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3 Little Secrets - The Keys To Low Budget Marketing

Wednesday, February 10, 2010   By Mike Reddy

 



Even in a downturn, if you don’t get in front of people and explain your unique value proposition then your chances of selling will be restricted to current customers or accidental passersby. Marketing is what sets you up for selling. However there are three important things you should know before you start.

  1. Your target customers need to hear your marketing messages at least 7 times to influence a buying decision. Sounds a lot, and it is. People just don’t always take in all the information at any given time. Especially the first time they hear it. So you need to choose strategies that allow you to repeat them often enough to work for you.
  2. Expensive ads don’t guarantee sales – even when they are popular with the public. Companies have gone broke over big ticket ads. Every marketing dollar has to result in sales.
  3. A sure fire way to improve sales is to use multiple marketing channels. Your underlying message should be consistent, but you need to get it out in a variety of mediums.

 So, if you’re a small to mid-sized business on a limited budget, your tactics should be to optimise your marketing dollar so that you get in front of the right customers regularly, and in a variety of ways. Here are four techniques you can use.

Identify and target niche customers

Unless you are a major player with unlimited dollars to devote to scatter gun marketing – go narrow. Do your market research, and focus on small niches –customers you can clearly identify who would be interested in your offering. Customers who are affordable for you to reach! Then get your message out into local clubs, trade shows, industry publications, niche newsletters, anywhere you can reach those specific prospects.

Be newsworthy

Local media are always on the alert for new content. Recently a local dress designer in a city suburb went to register her own personal name for her fledgling business. She discovered that an overseas singer used it as a stage name. The local designer publicised the resulting legal negotiations over the right to use her own name in her local area. Hey presto –plenty of ongoing press coverage in all the local papers lead to lots of sympathy and interest for the local girl, and promoted her new business better than any form of paid advertising could have done for her.

Seek out co-opetician and alliance opportunities

Co-opetician is forming friendly alliances with businesses that are competing in your market, but with a slightly different focus to yours. By forging an alliance with a group of small companies or a large corporation which is complementary to your business you can lower your costs, and expand your public presence. You might also be able to provide your customers with a more holistic product offering which will enable you to enter into new markets and create new distribution opportunities. Here’s an example, a local business specialised in fresh, healthy low fat pre-prepared meals for busy people. They approached their local gym with an offer of special deals to gym subscribers and a free meal pack for clients on weight loss programmes who achieved target goals. The gym benefited from the free prizes they could offer, and the business got lots of publicity through the gym’s e-newsletter and promotional literature. The gym’s clients tended to be working people who wanted to maintain an active healthy lifestyle and this supported their goals. Win Win all round!

Develop a structured referral program

The most cost-effective method of reaching new customers is by referrals from satisfied customers. A satisfied customer telling others about your small business is more effective than any fancy ad campaign. But are you spending time to get customer referrals on a weekly basis? Make it part of your marketing plan and stick to it rigorously – you’ll see the results.

One business we know makes it part of the duties of the admin person to follow up with all customers and request a referral. They send the customers several business cards they can pass on to others to make it as easy as possible to recommend the business. And they always drop a thank you note for any referral made.

These are just a few of many tactics and strategies used by small business to create a high-impact marketing plan on a low-budget. Marketing success comes from creative approaches that focus on your ideal niche customer’s needs; not from having the biggest budget.


Mike Reddy is a Chartered Accountant, business coach and advisor helping businesses in Sydney, Melbourne, Brisbane and Gold Coast to easily increase their profits and cash flow. He is currently President of the North Sydney Chamber of Commerce, a Regional Councillor for Sydney North East and a member of the Institute of Chartered Accountants Sydney leadership team. As well as advising businesses, Mike presents business development seminars and webinars and is regularly contacted by the media to comment on small business matters. You can connect with him on Facebook, Twitter and Google+.