Direct approach best way to get product out there
FINDING ways to achieve greater bang for your marketing buck is always high on the agenda for those in business.
If you're determined to make budget cuts, a brutal approach is the only way, says Kimberly Palmer, who wrote zeromarketingbudget.com.
"Work out what you are spending time on that isn't getting any measurable result and kill it," she advises. "If you are getting all your leads from networking, put more time and effort into that, rather than booking ads for example. If you are spending an hour every day updating your social media, but are not getting any business results from it, it is time to question whether it is really right for your business."
A tried and tested approach is to start by marketing to your own database, Palmer says. "These are people you already have a relationship with and don't have to spend any new funds to reach. Working out how to sell again or sell more to your existing customer base is the most cost-effective way to go. You want to be harnessing your database to help you spread the word, which is a cheap approach. No matter what your marketing budget, referral is still king, especially as social media becomes an even more dominant channel."
A mortgage broker, for example, doesn't sell something you buy every day, so could benefit greatly from sharing monthly updates on the state of the market, predictions for interest rate moves - the sort of things that are always of interest to their market, she says.
"I'm not talking about hitting them over the head with sales pitches, but sharing useful information, knowledge and content, with a touch of sale," Palmer says.
Partner marketing could also work well for some in business, she says.
"Putting together a cross promotion is often free or cheap for both businesses and works very well. Combining two small marketing budgets will be better than trying to spread the word on one small budget."
This could be as simple as including an offer in your newsletter for a fellow retail business. Alternatively, several retailers might put together a local shopping voucher booklet.
When putting together a marketing plan, focus on lead generation, not sales, Palmer adds. "Marketing rarely delivers sales, it delivers leads. If you change this mindset to lead generation, your marketing will start to be more successful and less costly," she says.
Cutting the costs of PR also could save on marketing costs. Website handleyourownpr.com.au gives business owners all the tips and tricks to run a PR campaign for free. Site founder Jules Brooke says the site helps business owners build a relationship with the media. Given that the average PR retainer is around $3000 a month, an SME could save about $36,000 a year.
Start by asking your PR firm to break down what they're doing for their retainer. Whatever your marketing approach was last year, a different approach may well be needed in 2013, says Sydney advertising executive Jon Holloway.
He says that as consumers seek out brands they connect with, the emphasis will be on telling the story of the people who put the business together. "This is the year to give consumers solutions to their problems, which may not even be recognised as marketing," he says.
Holloway says online marketing will stay a vital tool. "The power of online marketing is peaking now and many SMEs are not being smart about marketing dollars in this area."
Frequently Asked Questions about this Article…
Start by killing marketing activities that aren’t delivering measurable results, then double down on channels that do work (for example, more networking if that generates your leads). Focus on low‑cost tactics like marketing to your existing database, referrals and partner cross‑promotions to get better return for less spending.
Marketing to your database means contacting people you already have a relationship with — past customers, prospects or subscribers — to sell again or sell more. It’s cost‑effective because you don’t need new acquisition spend and existing contacts are more likely to respond, plus they can help spread the word cheaply via referrals or social sharing.
Referrals remain a powerful low‑cost way to get customers because they come from trusted sources. Using social media to amplify recommendations and useful content helps referrals travel further at little extra cost, though you should stop spending time on social channels that aren’t producing business results.
Partner marketing can be as simple as including a fellow retailer’s offer in your newsletter, creating a local shopping voucher booklet with other businesses, or running cross‑promotions that let two small marketing budgets achieve more than one alone.
Marketing typically delivers leads, not instant sales. Shifting your mindset to prioritise generating quality leads helps you design campaigns that feed your sales process and become more successful and cost‑efficient over time.
Yes — doing your own PR can save substantial fees. The site handleyourownpr.com.au offers tips to build media relationships and run PR campaigns; given the article’s estimate that average PR retainers are around $3,000 a month, an SME could save roughly $36,000 a year by taking some PR in‑house.
Stop activities that take time or money but show no measurable business results. Examples from the article include paid ads when your leads come from networking, or daily social media updates that don’t convert — reallocate that time and budget to proven channels.
Telling the story of the people behind your business helps consumers connect with your brand and can provide solutions that don’t feel like traditional marketing. Online marketing remains vital and powerful, but many SMEs aren’t yet being smart with their online marketing dollars, so focusing on storytelling and targeted online tactics can boost impact without overspending.
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