I've been helping a friend launch a brand new business. There are different rules and recommendations that I'm giving him compared to some of the established, bigger businesses that I work with.
Small Fuel wrote about this subject this week:
5 Ways Big Business Marketing Can Hurt Small Business
Big businesses use marketing tactics and strategies which make them billions of dollars every year (and in a few cases, every month). Because corporate marketing is so pervasive and effective, it can be tempting for small business owners to believe that they have to follow suit, investing substantial sums of time and money developing massive marketing campaigns.
But breaking the bank to get the world’s attention isn’t necessarily in the best interest of your small business – and can actually hurt you in the long run.
In this article I’ve gathered a few small-scale marketing nuggets that have worked well for me over the years, and serve as reminders that big business marketing tactics don’t always work well for small business.
Trying to Reach Everyone Weakens Your Position
Sure, you may have a product that everyone can use ad benefit from, but if you take your small business budget and try to launch a marketing campaign that hits a wide range of demographics, all you will succeed in doing is making a series of tiny splashes in a very big pond. As a smaller player, your power comes in reaching deep into a niche or specific demographic and establishing a foothold there.
What You Should Do Instead: Rather than trying to tell the world how much your company has to offer, win over a slice of the world – and then use the revenues from the niche you dominate to help you tap into others.
When I began specifically targeting freelance web writers, I saw my sales go up – and rolled that money into targeting my next niche. Focusing on a specific niche has also helped me build a following of like-minded people, which is a great resource for building momentum.
Spending on Big Ads Drains Your Bank Account
Big business has the means to spend millions of dollars plastering their brand everywhere in sight, with a focus on building brand awareness over the long haul as people inevitably stumble across their advertisements over and over again. Trying to do the same with your small business, however, is a recipe for disaster. While advertising can be effective, don’t presume that “if you print it, they will come.”
What You Should Do Instead: Ensure you can measure every aspect of your advertising and squeeze the most out of every marketing dollar you spend there. Thinking lean will keep you from overspending in an area where you’re not getting a high return.
I use Google Analytics as well as software that allows me to split test my web pages and email content. On a day-to-day basis I can identify exactly what’s performing best and optimize it for tomorrow.
Trying to Impress Everyone Can Backfire
When a big business wants to prove its dominance, it pulls out the big guns by boasting about its huge revenues, monster market share and #1 rankings. Even if your small business has a lot of success behind it, it can be risky to use these “bragging rights” tactics to your advantage. All it takes is for your competitors – especially the bigger ones – to score a big win, overshadow your claims, and put you in your place.
What You Should Do Instead: Forget about impressing potential customers and focus on winning them over instead. Illustrate your company’s value via the successes of your customers and create a story that’s a lot more memorable – and compelling – than any appearance of “We’re #1” could ever be.
My product pages use this tactic by putting the emphasis on how my buyers benefited, rather than simply what features my products offer. The message “This product works!” comes across, and no one can steal that thunder. You can leverage that too, by capturing success stories & working them in to your marketing.
Only Using Traditional Media Can Slow Your Growth
Large companies depend on traditional media channels such as magazines, television and radio to build their brand image. The challenge with traditional media is that it can be extremely difficult to get visible in what tends to be an exclusive (and expensive) arena. If you limit yourself to advertising or telling your story in the mainstream only, you may be fighting an uphill battle when it comes to building your brand.
What You Should Do Instead: Leverage social media by identifying websites and blogs in the niche you want to target and get on their radar. Social media sites are hungry for content, stories and personalities that will help them connect with their audience, and they are more likely to give you the “face time” that can build buzz in a fraction of the time.
The easiest way to do this is to write for blogs that cater to your audience, and develop relationships with them so that they are more likely to mention you and put in a good word (and you should do the same for them). By providing value to their project, you can get a lot of value in return.
Ignoring Customer Service Kills Long-Term Success
This tip may sound odd, but a lot of big businesses do this. They think that revenue comes only as a result of advertising campaigns, and that pouring more money into ads and gimmicks is the best means to generate more sales. While this is true to a point, it can be ineffective and limiting, because it creates a situation where you always have to stoke the fire to get results. To really build your business, you want to move away towards one-off marketing efforts.
What You Should Do Instead: Rather than throw another log on the fire, light a fire under your customers by investing in unbelievable customer service. The goal: create self-sustaining marketing assets (translation: raving fan customers) who spread the word about your company and its offerings far more effectively than you could on your own.
Remember that repeat customers – and enthusiastic referrers – are the lifeblood of small business. In an effort to increase repeat purchases and product enthusiasm, I focus on over-delivering. When you give more than the customer expects, even one time, they will talk about it again and again.
You Don’t Have To Be Big To Win Big
Small businesses pull the carpet out from larger ones all the time – not because they have massive marketing muscle behind them, but because they make savvy moves that get the most out of every marketing dollar. Take a look at all of these tips and think of a small business you know of that leverages them effectively, and then model their strategies to boost your revenues as well. You don’t have to be big to win big – so show the market what you’re made of.
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