Small Business Marketing FAQs

What is a small business? The government has introduced certain criteria including the number of employees, annual receipts, affiliates and other applicable factors to identify a small business. It can be quickly determined by using SBA’s NAICS (North American Industry Classification System) Lookup. Enter the business description; NAICS will locate the business type in the resulting table.

What is marketing? Marketing refers to the commercial processes involved in promoting, selling and distributing a product or service.

What does marketing involve? Marketing is an organizing tool. The four basic aspects of marketing include the four Ps such as product, price, promote and provide. It involves market research, formulating strategy and selling based on two important principles. The first principle states that all company policies and activities should be directed toward satisfying customer needs. The second is that profitable sales volume is more important than maximum sales volume.

What is marketing strategy? Marketing strategy is the summary of the marketing goals. It is the formulation of the methods used to achieve the marketing objective.

What are the major constraints for small business marketing? The major constraints for small business marketing include budget limitations, lack of adequate resources and tough competition.

What are the important collateral marketing materials? Collateral marketing materials consist of printed marketing materials. They include brochures, business cards and news letters.

What is the importance of advertising in small business marketing? Advertising plays an important role in small business marketing. It helps to influence people with attractive marketing materials such as banners, sign boards, magazine and directory ads as well as trade booth displays.

Small Business Marketing Book Review – People and Your Business

What if somebody told you one critical key to business success was to practice the principle of the Golden Rule in your business? The idea seems to somehow run counter to so much of what we’ve been taught about business, doesn’t it? Yet, what if that same source convinced you through case-study after case-study that application of the Golden Rule in business actually leads to success?

Let us introduce Frederick Reichheld and his book The Loyalty Effect. While not a small business marketer, but rather an expert business consultant, what Reichheld teaches us about loyalty is worthwhile reading for any small business owner or manager.

Did we say “worthwhile”? Scratch that; pencil in the phrase “urgently essential”, instead. This book is that vital to a small company.

The Loyalty Effect focuses on three groups of people critical to business success: Customers, Employees, and Investors. For most small business, the investor is the owner, so for our brief review in this article we will focus on Customers and Employees.

Reichheld is a definite advocate of customer retention. He convincingly demonstrates time and again that small percentage increases in customer retention have huge impacts on profits. This read will be a just-right fit for those of you having problems focusing on the right customers. If you will take the time to trudge through this book, and really understand most of its principles (we found Chapter 8 to be the toughest) then not only will the marketing of your business improve, but so will your profits.

Isn’t that the reason for all this focus on marketing, anyway?

And Reichheld really opened our eyes to how important employees are in retaining customers. If a company treats their employees right, those employees become more efficient and productive in their daily tasks. Profits go up, retention increases.

Reichheld stresses again and again that a company’s prime mission needs to be creating customer value. Most of you in small business realize this, but it’s reaffirming to see hard-and-fast facts to back up what many of us intuitively know. Customers don’t come to a small business looking to boost our profits; they arrive seeking value. If we consistently create value, profit will come.

Another key point for small business owners is the importance of leadership. If you need to go down to the bookstore and browse through The Loyalty Effect before you buy it, flip over to page 246. Reichheld has studied several large and successful businesses, and concludes here that most of them had leaders with an “intuitive grasp” of how important loyalty is. This is critical for business success, regardless of business size. While not written to be a rah-rah inspirational book, Reichheld’s arguments and his examination of the role strong leaders play in forming great companies reinforces just how important to the bottom line it is for a small business owner to be a good leader.

So much of Reichheld’s book seemed familiar; akin to common sense…after we read it. Treat employees well and they’ll perform well for you; we’ll that’s pretty basic, now isn’t it? But we tend to forget, we tend to think we need to cut corners or just “improve efficiency” and that’ll lead to greater profits. In the short term it very well may, but Reichheld argues effectively that in the long run it’s only by creating value for our customer that we build profitable businesses.

Remember, People is the third element–along with Brand and Package–of any small business marketing success story. Taking a week or so and reading Frederick Reichheld over lunch or before lights out at night is a great way to hone your “people productivity”.

© 2006 Marketing Hawks

Small Business Marketing Strategies

Small business marketing strategies identify and implement the goals of the company. A sound marketing strategy is inevitable for the success of any business. The strategy helps to focus the marketing on the business target. Small business marketing strategies include market research, identification of customer groups and target competitors and efforts to tailor the product pricing. The success of the strategy relies on the proper implementation of the formulated methods. It also judges the effectiveness of the marketing plan. Small businesses have unique marketing strategies to meet customer needs, while offering maximum profitability with minimum investment. Attractive marketing materials and ambient after sales support are also a part of small business marketing strategy.

Small business marketing strategies consist of three basic steps. They are increase the number of customers, increase the average transaction amount and increase the frequency of repurchase. They start with client problems and demonstrate methods to rectify it. This will help to build a network of clients. Consistent after sales support also enhances the popularity and credibility of the product. Marketing strategies also assess the profitability of an approach before actual promotion, to avoid the pitfalls.

Small business marketing strategies include various options to increase business revenue. They try to acquire more customers, sell more expensive products, come up with more profitable products and persuade each customer to buy more. The marketing strategy is developed according to the nature of the product or service. The business concern will tailor the product option according to the target group. Thus there are premier versions for those who choose expensive goods, comprehensive plans for profit seeking customers and a few basic products. The quality and reliability of products ultimately determine customer satisfaction.

Small businesses also introduce unique marketing strategies to differentiate a company from its competitors. Cause-related marketing is an attractive strategy that helps to gain customer loyalty and media coverage. The association with an organization helps to profit from the situation without much financial burden. Referral marketing is the most powerful, cost-effective marketing strategy. Promotions and offers intimated to the existing database through regular newsletters or mail alerts will help.

Small business marketing strategies are a summary of the goals of marketing plans. They provide guidelines and motivate companies to achieve a competent sales record.

7 Small Business Marketing Tips

Small businesses do not often have large budgets. Thanks to the Internet, small business marketing can be a huge success, even without big dollars behind it.

Small business marketing can benefit from new trends in general marketing. These trends point to methods that are inexpensive, innovative, and online.

One of the key online options for small business marketing is search engines. The cost of submitting your Web site to a search engine is minor, but there are some considerations to be made:

1. Your site must be optimized with keyword phrases. Search engine optimization is achieved by including keyword phrases that apply to your company. These phrases must be present enough times to draw the attention of the search engines to your site.

2. Since most small businesses focus on their local market, you should aim your advertising efforts at your local audience. Users have recently begun pushing for better local search capabilities and most search engine companies are responding. Statistics have shown that 74% of Internet users perform local searches. Your keywords should reflect your locale and you should look into local search engines and directories, like your local Yellow Pages, Google Local, Citysearch and others.
If you are a local merchant and your intention is to sell products on the web, one of many tactics is to build your online ads around local content to increase your click through rate.

3. Speaking of local searches, newspaper Web sites have become the top portal in their local areas, especially among the coveted 18-34 demographic. Traditional newspaper advertising is generally beyond most small business marketing budgets, but the online versions offer more affordable ads on the “back” pages – those that are not visited as often but are rich in content.

4. Another exciting small business marketing method is the weblog, or blog. A blog offers your business a good way to have an inexpensive, two-way conversation with your customers. Write a blog for your Web site to give your customers and prospects an additional reason to visit your site.

5. Podcasts are among the newest small business marketing techniques. A podcast is a multimedia file (think radio broadcast) distributed by paid or unpaid subscription over the Internet. Podcasts offer you a direct way to tell your prospects how your product or service can benefit them.

6. Many small businesses can use online seminars or demos, also known as webinars, to demonstrate and promote their latest products. Online demos are an ideal tool for small business marketing because they are relatively easy to produce and allow you to reach a wide audience without ever leaving the office.

7. A strong online presence is a critical component of any small business marketing campaign. Why? Because the Internet offers advertising options that are relatively inexpensive. Because 87% of consumers research purchases online before they buy. Because 63% research online and then visit a bricks and mortar store to complete a purchase. And because demographic trends show that the most desired customers are most accessible through online means.