Billboards & Bumper Stickers Develop dynamic advertising strategies that will increase your sales.
Opinions expressed by BIZ Experiences contributors are their own.
Build A Better mousetrap and customers will beat a path to yourdoor, right? Wrong--unless you advertise, says Richard F. Gerson,owner and president of Gerson-Goodson Inc., a marketing, managementand consulting service in Clearwater, Florida, and author ofMarketing Strategies for Small Businesses (The Crisp SmallBusiness and BIZ Experiences Series, $20. To order, call 813-726-7619;mention this article for free shipping and handling).
"You must promote that mousetrap," Gerson says."To do that, you must first know your unique selling position.What is different or special about your product or service thatwill make the customer want to buy it? Then, determine your uniquemarketing position--such as being the friendliest florist in town,or the most service-oriented or the lowest-price provider. Afteryou have defined your niche, then define your customerbase."
Brian Senjem, Minnesota's 1996 Young BIZ Experiences of theYear and co-founder of Senjem Enterprises, a Mankato, Minnesota,accounting and computer-consulting business, says, "It'simportant to give high priority to marketing and advertising whenyou draw up your business plan. You should have marketing goals andknow your target market (including its demographics), yourindustry, and the economy. Small Business Development Centers(SBDCs) and Small Business Administration (SBA) offices nationwidewill provide materials and resources. Know the psychology of yourtarget market. Brainstorm with marketing professors and graduatestudents."
Be Specific
"Target your market very specifically," Senjemadvises. "Business executives and owners look in specificjournals, not in general media or at direct-mail pieces. Peopledon't want to receive junk e-mail. In some businesses, peopleare successful with `cold calls,' but I prefer to use a softsell, sending a specialized brochure with a personal letter aftermeeting the potential customer at an event or being referred bysomeone."
From the start, keep a detailed database of customers, Senjemadvises. This helps you to be specific when sending out a flier ornewsletter about a new product or service.
Be Bold
Businesses typically allocate two to 10 percent of an annualbudget to advertising. Retail businesses usually spend near the topof that range, because it's easier for service businesses touse word-of-mouth referrals and networking as promotion. Senjemsays BIZ Experiencess must view advertising and marketing as aninvestment, not as an expense. "As soon as you can handle morebusiness, spend the money to get it," he advises. "If youfollow the tradition of putting a cap on the advertising budget,you may sell yourself short."
Be Creative
If your business is seasonal, your advertising costs shouldreflect that ebb and flow, says Dean Otto, a small-business advisorand business management college instructor at the South CentralTechnical College in Man-kato, Minnesota. "Research thetypical peaks and valleys inherent in your business; reduce youradvertising a month before the valleys, and increase it a monthbefore the peaks," he advises. If your drive-thru restaurantin North Dakota specializes in Jumbo Freezies, transfer your adbudget for January to June and close during the coldest months--orexpand your menu.
"You can be creative with a small budget," says RileyHarrison, a Minneapolis consultant for new BIZ Experiencess. "ATwin Cities company that manufactures and sells garage shelves senta letter to a local radio personality, who hosts a political talkshow called `Garage Logic,' asking him to be the company'sofficial `interior decorator of garages.' He read the letter onthe air, including the company's phone number, and themanufacturer received numerous phone calls. The company getsfrequent mention on the radio and free posters of the radiopersonality to use as eye-catchers at trade shows."
All BIZ Experiencess should look at nontraditional ways ofadvertising and marketing their businesses, but it is particularlyimportant for small businesses, according to Senjem. "Make alist of ideas and keep adding to it," he advises. "Youcan prioritize the list for each target market and then work itinto your budget.
"When marketing, always keep in mind who your audience isand where they spend their time. To reach business executives andmanagers, place advertising on country club bulletin boards. Giveaway promotional items, such as golf balls, with your logo onthem," Senjem suggests. "Try the newest advertisingmedium--signs in public bathrooms (advertising posters under aplastic pane, positioned for easy contemplation in each toiletstall). These are more appropriate for a sports-oriented product ora cosmetic-sales business than for, say, a businessconsultant."
Cut ad costs in half by purchasing a joint ad with a businessthat's complementary to yours; a florist might make anarrangement with a candy shop, for example. Barter your product orservice for print-ad space or broadcast time--a common arrangementwith many media, according to Jane Wesman, founder of Jane WesmanPublic Relations Inc. in New York City, and author of Dive RightIn--The Sharks Won't Bite (Dearborn Financial PublishingInc., $19.95, 800-621-9621, ext. 3650).
A business such as "Teriyaki Take-Out" might placecoupons on car windshields, supermarket bulletin boards, andneighborhood doorknobs; a Scout troop or church youth group may dothe legwork as a service project, or for a small donation.
Get Online
"The World Wide Web is a very good way for many smallbusinesses to advertise," Senjem says. "It'savailable 24 hours a day to the entire world. Annual cost for a Webpage can be much less than one month's worth of TV or newspaperadvertising. As with all advertising, look at how the Web fits intoyour overall marketing plan. It's obviously more beneficial toa specialized retailer or a business analyst than to a maintenancemechanic."
Take a Test Run
"Many new BIZ Experiencess overlook testing an ad beforespending too much money on something that may not get the desiredresults," Harrison warns. "For a direct-mail piece, youshould test with a small sample (5,000) and act based on theresults. To gauge the response of newspaper, TV and radioadvertising, use coding or special offers."
"Advertising is nothing more than an experiment,"Gerson says. "That's why testing is important. Askyourself questions. Did the ad pay for itself? Did it achieve yourpurpose or objective, such as generating sales or leads?"
Wesman lists several reasons an ad may not get results: the adis running in the wrong medium; it does not offer the rightproduct, service or benefit; or the ad itself is wrong in design,text or appearance. Wesman advises checking weekly and monthly totrack the increase in profits generated by each advertisingeffort.
Get Involved
In every community, the doers are perceived as the movers andshakers. To build your business's identity and enhance itsimage--and yours--become active in local Kiwanis or Rotary clubs,join the chamber of commerce, do some public speaking, writeinformational articles for magazines, publish your own newsletter,or offer to serve on the United Way board. "It takes time tocreate an image without doing image advertising, but your effortswill produce results," Gerson says.
You can get free publicity by doing something newsworthy."Apply for business awards," Senjem advises."Publicize your awards and achievements with a news release tonewspapers, and make a public service announcement to local radioand television stations."
Earn Free Advertising
The best advertising is free, but you and your employees mustearn it. "A small business must provide exemplaryservice," Gerson says. "It's not an option, it'sa requirement. You must train your employees to provide greatcustomer service. The response is the best kind of advertising youcan get--word-of-mouth."
You can even reward your best advertising mediums. As Harrisonsuggests, "Offer a gift certificate to any customer whose nameis mentioned by a new customer."
Sales and advertising principles are the same for allbusinesses: know your market and what you can provide it, deliveryour message clearly and creatively, monitor the results, and workat becoming known as the best in your field.
FoodForThought
BIZ Experiences Magazine: Successful Advertising for SmallBusinesses by Conrad Berke, John Wiley & Sons, $19.95. Toorder, call (800) 225-5945.