Ask SCORE

Marketing Strategy?

 

A Sound Marketing Strategy is a Must for Small Businesses

Many people often equate “marketing” with sales and advertising.  These are, of course, important elements of a marketing strategy.  There is a host of tools and tactics that can increase both the visibility and attractiveness of your business to potential customers.

The key is to think of marketing not as a single action but rather a combination of steps designed to identify, attract and retain profitable customers, and to differentiate your business from the competition.  It encompasses everything from your company name, logo, and service lines to advertisements, public relations, presence at trade shows, and community involvement.

Marketing strategies need to be tailored to your business and target customer base.  To prepare yourself for marketing, create a detailed profile of your ideal prospect.  As you create your marketing message, aim it at them and list the benefits they will receive.  Be certain your message highlights the special knowledge and expertise you offer.

Look for ways to make the buying process easier for your customers.  What roadblocks can you remove?  Simplify everything; eliminate potential interruptions in the sales process and make decision-making painless for your customers.

Put your marketing budget in proper perspective.  Customer memories are short, and they are bombarded with thousands of marketing messages and images daily.  Set a budget and a pace that lets you market continuously.

Match your marketing to your primary market.  If it’s a local market, then that’s where your marketing focus should be.  Broadly focused newspaper or radio advertising, for example, might be the wrong choice.  Instead, consider marketing neighborhood-by-neighborhood.

A good place to find marketing help is the American Marketing Association’s Web site, MarketingPower.com.  The site’s Best Practices section contains valuable guidance for small businesses in the areas of research, Internet marketing, advertising, public relations, customer service tips, and many others.

To learn more about marketing your small business, contact SCORE Rochester.  Seasoned, volunteer business counselors stand ready to provide free, confidential business counseling to small business owners.  Call (585) 263-6473 or visit www.scorerochester.org.

Broad economic slowdowns can often trickle down to small businesses, including those in relatively stable industries or geographic locations.  Individuals tend to cut back on discretionary spending while corporations curb routine activities, delay major purchases, and shelve new initiatives. 

For many small businesses with limited resources, these and other factors often combine to pressure bottom lines past the breaking point, creating a domino effect of other dilemmas such as a credit crunch or layoffs.

A downturn doesn’t have to spell disaster for your small business, however.  Good financial management practices will help you weather even the worst of economic times, and be ready to capitalize on new opportunities that will inevitably come with good times return.

Begin with the basics.  Even when times are terrific, no small business can survive without good recordkeeping, budgeting, cash flow monitoring, and credit management.

Consult your bank.  Lenders can tap their vast experience in economic cycles to advise you on issues specific to your business and industry.  Depending on your projected long-term expenses, consider arranging a line of credit in case a cash flow gap occurs.

Be on good terms with your creditors.  Falling behind on payments is never the answer, even if it’s “just this once.”  Creditors will be more amenable to renegotiating terms to small businesses they consider to be conscientious and reliable.

Watch your receivables.  By the same token, you need to stay on top of any outstanding debts to your company, particularly problem accounts.  Be firm, but also willing to negotiate where appropriate.

Scrutinize your spending.  Rather than arbitrarily slashing your budget, strive to spend only on those things that have a justifiable positive effect on your business.  That will make it easier to redirect money to areas that enhance business performance.

Step up your review of financials.  Assessing your reports weekly or biweekly, rather than monthly, will put you in a better position to make informed decisions.  Similarly, a monthly or quarterly Business Plan review enables you to adjust your strategy and direction to changing market conditions.

Keep marketing in the mix.  Look for cost-effective ways to keep your company visible to current customers and potential new markets.  They may be ready to restart their spending long before the headlines proclaim an end to the economic crisis.

For more help in coping with an uncertain economy, contact SCORE Rochester.  Seasoned, volunteer business counselors stand ready to provide free, confidential business counseling to small business owners.  Call (585) 263-6473 or visit our web site at www.scorerochester.org.