Entrepreneurs go into business for many reasons. You want to change the world, solve a burning need, help a community, or simply realise a dream. Whatever your personal motivations are, business is your chosen tool. Vision alone cannot sustain a business though – profits do.
And the way to earn profits is to sell your products and services for more than it costs to produce them. That’s finance 101, so where does marketing come into play?
Marketing has two primary aims: It ensures you are offering your consumers something they really want, and it gets your message out there so that customers know what you’re offering, who you are, and where to find you.
It’s not rocket science, and it doesn’t need to cost you an arm and a leg to achieve. In fact, a great marketing strategy isn’t only cost-effective, but simple to follow as well.
Here are three steps to creating a killer marketing strategy.
1. Create a product or service customers will clamour for
Are you offering your customers something that they really want?
Marketing research can tell companies whether they are meeting their customers’ needs and expectations. With research, SME owners can learn whether they need to change their packaging, tweak delivery methods, or even offer additional services.
A good market research plan indicates where and who your customers are. It will also tell you when they are most likely to purchase your goods or services.
Use the results of research to create a business and marketing plan or measure the success of your current plan. That’s why it’s important to ask the right questions to the right people. Poor research can steer a business in the wrong direction. Here are some research basics to get you started, and some mistakes to avoid.
Types of market research
The goal is to gather data from analysis of current sales and the effectiveness of current practices. Primary research also takes competitors’ plans into account.
Collecting primary research can include:
- Interviews (either by telephone or face-to-face)
- Surveys (online or by mail)
- Questionnaires (online or by mail)
- Focus groups gathering a sampling of potential clients or customers and getting their direct feedback.
- Why would you purchase this product or service?
- What do you like or dislike about current products or services on the market?
- What areas would you suggest for improvement?
- What is the appropriate price for the product or service?
The goal is to analyse data that has already been published. With secondary data, you can identify competitors, establish benchmarks and identify target segments. Your segments are the people of a predetermined age group who fall into your targeted demographic – people who live a certain lifestyle and exhibit particular behavioural patterns.
No SME can remain competitive without understanding its customers, its products and services, and its market. There are two categories of data collection: Quantitative and qualitative. Quantitative methods employ mathematical analysis and require a large sample size.
The results shed light on statistically significant differences. Find quantitative results in your web analytics (available in Google’s suite of tools). This can help you determine where your leads are coming from, how long visitors are staying on your site and from which page they are exiting.
Qualitative methods help you develop your quantitative methods. They can help define problems and reveal customers’ opinions, values and beliefs.
2. Bring your brand to life
Simple steps to effective marketing.
Marketing isn’t sales. You aren’t pitching your product. What you are doing is letting your customers know what you do in such a way that they not only respond to your brand, but want your brand to be a part of their life. This starts with step one – you need to produce something that they really do need in their lives. Once that’s done though, they need to know you exist. Enter our four simple steps to effective marketing. (See checklist)
Marketing is all about deconstructing your business and vision for everyone else. It’s not about dumbing things down (your customers don’t ever want to feel like they’re being talked down to). What it is about is taking the complex and making it easily understood, while tapping into the core values of your customers. What do they really care about? How does your business fill that need?
An often-used example is Harley-Davidson, which doesn’t focus on the complicated technical aspects of its products. Sure, many of its consumers are petrol heads, but many more want to feel the freedom of the open road, while showing they are able to afford that freedom in style. Harley-Davidson markets a lifestyle – not a machine.
Keeping it simple
Products and services (especially digital ones) can be complex. Your job as a marketer is, in part, to make the seemingly impenetrable easily understood, to lose the corporate ‘Frankenspeak’ and convey your business’s value in human, accessible terms.
Businesses that develop buyer personas for their products or services exemplify the ‘keep it simple’ mantra. A buyer persona is a representation of the type of consumer you believe will be interested in what your company is selling.
The idea is to address customers’ wants and needs directly – speaking to their specific pain points from their specific points of view.
More broadly, it can be handy to envision intended prospects as people who demand clarity and simplicity. This will help you to market effectively.
Let’s take Steve as a great local example. While we can all agree that FNB’s Steve ads that flooded the airwaves throughout 2012 were more than a little annoying, the campaign was also very effective. Steve’s prospects touched on our pain points, we have a clear understanding of FNB’s offering, and we associate with the bank as one that speaks our language – not banking lingo.
3. Keep the momentum going
Instead of jumping from trend to trend follow these six steps for marketing that really works.
Feeling bombarded by all the theories on the so-called newest, latest and hottest trends in marketing? You’re not alone. Jumping from trend to trend in pursuit of the latest idea is the last thing a smart entrepreneur should do in this economic climate – particularly when we’re not out of the woods yet.
Now’s the time to keep a level head and chart a course that’s guided by what really works. Take a look at this list of six tried-and-true steps you can take for a successful marketing programme in today’s marketplace.
1. Put finding prospects first
How do your best prospects find what they’re shopping for? Chances are they begin by using a search tool. Having a strong presence in the online search engines or directories is a must, and you can also purchase links in the resource sections of third-party websites your prospects frequent.
Traditional search tools, including the printed Yellow Pages, industrial directories and newspapers have moved online as well and offer increasingly affordable solutions. Magazines with ‘shopper’ sections also represent smart search corridor options for advertisers.
2. Don’t drop out of sight
It’s always a huge mistake to stop communicating with customers: Out of sight = out of mind. So while the recession may have shrunk your marketing budget, it’s essential to find a good mix of tactics you can sustain over the long haul to reach out to clients with sufficient frequency.
Develop a database of prospects and customers, then retain and up-sell them through ongoing communication via email and direct mail. And coordinate this effort with acquisition tactics to bring in new prospects.
3. Separate from the pack
Economic hard times have changed the way people shop. Today’s big motivators include low prices and savings. Free shipping continues to be a strong incentive for example. Green practices or aligning with a charitable cause can also help positively differentiate your business from its competition.
After all, you can’t always differentiate based on what you sell; but how you sell, who you are and what you do can make all the difference to prospects.
4. Invest in relationships
In uncertain times, consumers want to buy from companies they trust and believe in. That makes one-to-one customer relationships essential. Wherever possible, increase in-person selling, networking in business and professional groups, and online social networking.
Use experiential marketing, such as events that bring you into direct contact with customers in small groups, to foster positive client relationships with your company, products or brand. Create several great letters that can be customised to follow up each interpersonal contact – and send handwritten thank you notes.
5. Get people talking
Recommendations and positive word-of-mouth are extremely important today. Cautious shoppers want to know they’re making safe and smart decisions. A public relations campaign that includes savvy article placements or product reviews can give your sales a lift.
For example, a well-placed article that runs on a respected website can quickly be spread friend-to-friend across the web. Another strategy for building word-of-mouth is to create an advisory group of influential clients who are the first to receive your new products, info and special offers. If they like what they see, they’ll pass the word along.
6. Expand your website
Customers are shopping on more websites and viewing more pages in less time than ever before, so your site has to immediately grab and hold them with information they want. Highlight special pricing, offers and incentives at the top of your homepage.
Include background information about your company, its principals, media coverage and charitable giving. And create a space for customers to share their experiences through a message board, or post their stories and testimonials somewhere visible for a website that works hard to help you close sales.
Ask These 3 Questions To Determine Where To Spend Your Marketing Budget
Stretching your marketing budget is imperative, especially when there aren’t that many marketing rands to stretch.
As you grow your business, it’s important to be creative and efficient with your money. When it comes to marketing, there are a number of cost-effective ways to spend and save your money. So, if you’re worried about marketing on a limited budget, here’s some helpful info to know.
First, great marketing is about highlighting wants and needs and attaching them to desired outcomes. It’s possible to do that regardless of budget — and every company’s strategy will be different.
For example, when my consultancy worked with Dollar Shave Club to grow its platform beyond viral videos, we focused on establishing a unique voice, which led to creating an editorial component. When we worked with Arnold Schwarzenegger on his fitness and nutrition products, we focused on creating a core mission and understanding why he was involved in the product. And when we worked with Four Sigmatic to market its coffees and teas, we focused on customer acquisition and retention.
3 Questions that Cut Through the Clutter
Those projects all started with the same three questions: What is the value and purpose of your product or service? Who is your target audience? And what is the best platform on which to reach them? That’s where you’ll want to invest most of your attention before you determine where to spend your money. (Notice my word choice: Your planning is an investment; where you spend is a cost.)
1. In general, we prefer to use digital campaigns
It’s easier to track what works and what doesn’t. Plus, digital creates multiple opportunities to engage. Think of it this way: 10% of your audience will buy, 10% won’t and 80% will be on the fence. Would you rather have one shot to convince that 80%, or multiple? By retargeting through something like Facebook ads or Google, or even creating a distribution channel like an email list, you can communicate repeatedly.
2. If you don’t have an audience, spend money fishing in small ponds where you know you can get a bite, and then set yourself up to communicate repeatedly
(This is where creating content as a form of acquisition or building an email list can be incredibly valuable.) Depending on your product or service, this could mean a very targeted ad to a small audience on Facebook — rather than attempting to reach millions — or setting up a pop-up shop, or getting a spot at a local farmers’ market.
3. If you already have an audience, turn them into super-fans who will bring their peers into your universe
Identify previous buyers and give them direct access to you through focus groups or calls. Reward them for their time with product or a gift certificate. When you show your consumer that you care about and appreciate them, it not only increases the likelihood of repurchase but also helps them personally invest in the soul of the business. Not to mention, their insights will help you understand why they bought and how to replicate that process.
Whatever you do — and no matter how big or small your budget — keep finding better answers to the core marketing questions and your success won’t hinge on any one platform.
Gen Z Is Coming! Are You Ready?
How do you market your company to this generation?
According to the CNBC, about 61 000 Gen Zers are on the verge of entering the workforce and consumer market in the US alone.
They are digital natives; they have grown up in a world of vines, txts (yes, we know) and internet. Their attention span is shorter than ever, they are more connected than any other generation, and they are brilliant multitaskers. Gen Z is a more tolerant generation but also more cautious; studies have found less risk-taking amongst this group and an increase in thoughtfulness and questioning authority.
So, on the one side of this coin, how do you market your company to this generation?
1. By being transparent
Be upfront about your business, what you’re doing and how you’re doing it. They have lost faith in corporations. Thus, you must stop relying on and hiding behind small print. Yes, you need terms and conditions to protect your company, but when it looks like a miracle weight-loss advert of the 80s (“Eat anything you want just take this pill. Ts&Cs apply.”), you’ll lose customers.
Related: Investing in Young Entrepreneurs
Gen Z consumers want to see you are real; they don’t want models or celebrities but regular people who can assist them in a manner that speaks to them. And they will hold your business is socially accountable. Instead of producing millions of T-shirts at the cheapest possible price, they want local, equality and free-trade, and they want to know what businesses are doing for the environment and society.
Gen Z won’t accept your claims at your word; they want to see evidence in your company culture.
2. By offering options
A jewellery purchasing study has found that most Gen Zers don’t have a preferred shopping platform. What this means is your messaging, availability and culture need to be spread evenly across all contact points – sales, call centres, website and digital advertising. In fact, many Gen Z consumers rely on mixing their contact points.
That being said, they want immediate action. If they see something they want online, they will go to the shop just to have the item right now. More than immediacy, they also want custom-made or made-to-order products and services. They shy away from traditional made-to-stock methods, which creates plenty of room in the production industry.
3. By being forward thinking
We have to always remember what was mind-blowing inventions to other generations are the norm for Gen Zers. They hold brands and businesses to high expectations, and instead of being loyal to brands, expect brands to be loyal to them. As Gen Z is more focused on individuality, they are also proving to be a generation with a high entrepreneurial output. All this shows that they don’t want the norm; they don’t crave what’s new today, they want tomorrow, sustainability and innovation, and they want it now.
On the other side of the coin, how do you attract this generation to work at your company? In much the same way.
1. By being transparent
As much as you are hiring them based on what they bring to the table, so too are they looking at what you can afford them. But, they don’t just want to hear you tell them about the benefits, they want to see it – and they are not after just money. Gen Zers want to be financially secure, but also one that is fulfilling; one where they find purpose in their jobs and company.
2. By offering options
Gen Z employees don’t want to work eight to five, they don’t want to be chained to a desk, and they don’t want to be micro-managed. Give them flexibility on how they want to conduct their work and how they can communicate with their colleagues. Create an understanding workspace for their needs and help them improve their skills – for instance, it’s been reported that a stumbling block for Gen Zers is communication. Growing up with emojis and text messages make face-to-face conversations, business calls and writing emails difficult for them.
Gen Z employees want to work hard and grow their skills. Even though they’re growing up in a super-paced society, they want to climb the corporate ranks at the given speed. What they crave, with urgency, is gaining value from their jobs.
Related: The Z Generation
3. By being forward thinking
They are lateral thinkers, and their creativity is not just outside the box but has broken the box completely. Gen Z is incredibly tech-savvy, and they will challenge the systems and procedures you have in place if these are not providing the needed speed and data required. Thus, they crave to work in an environment where they can push boundaries and ultimately help the company move forward. Hiring from the Gen Z pool can provide you with innovative insights into your business that can grow it towards tomorrow’s giants.
The only way to be sure you are future-proofing your business is by guaranteeing it caters for future customers and employees, by relying on forward-thinking enterprise resource planning software, for instance. Epicor ERP software ensures that their clients stay agile and innovative through trusting top minds to build and develop intelligent systems that open doors for Gen Zers. It’s Epicor’s innate tech-savviness that allows them to visualise the landscape of tomorrow and develop the software to support it today.
Free Sample Marketing Plan Template
You don’t need an MBA to write a marketing plan for your business. While no two businesses are alike, all solid marketing plans need to provide specific information. Use this sample marketing plan template to get you started on the right foot and cover all the essential information.
Your marketing plan should provide a comprehensive blueprint of the business, its market and associated market activity, its position in the market, target and expected customers, offerings, competition, solutions and contingency plans.
Using a sample Marketing Plan Template can save you a lot of time in creating your own marketing plan.
Download a Sample Marketing Plan Template
Use the free templates below to help make sure you’ve covered all the important bits:
Recommended Marketing Reads:
- Smart Marketing Ideas for Small Businesses
- Mega Guide to Online Marketing
- Marketing Toolbox for the Entrepreneur
- The Ultimate Marketing Tool Library for Entrepreneurs
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