Save Your Advertising Dollars by Saying "No"

As small business owners, so many of us have fallen prey to the smooth talking media sales reps.  The minute you open your doors for business, sales reps from the TV stations, newspapers and radio stations are the first ones in your door.  In their hands they have what I like to call “the deal of the week”.  You know you need to market your business, especially when you’re just starting out, so you sign up for these promotions because they’re “a limited-time promotion” and “you’ll never get a better deal”.

I have a client who, when I first met her, had spent over $15,000 in advertising the previous year.  Her comment to me was “I’m not sure if any of it worked.”  This was a very clear example of someone who had been too nice to say, “No, thank you” to the sales reps.  I understand that sales reps need to make a living.  I get that.  What I’m saying is that you need to be smart about where you’re spending your money.

Before the sales reps ever come walking through your door, here are some things you need to do to save yourself a lot of money.

1. Know your customers very, very well.  I don’t just mean your existing customers, but who your ideal customer is.  Who do you want to communicate with?
2. Know where your customers are.  Do they read a physical newspaper or do they read an online newspaper?  Maybe they don’t read a newspaper at all.  Maybe they follow their favourite media online and get updates through social media.  You can’t communicate effectively to your customers if you’re not sure where they are.
3. Create some marketing goals.  These goals will stem from your overarching business goals.  Do you want to attract a new demographic?  Do you want to introduce a product or service?  Decide what you want.
4. Establish some tools to measure the effectiveness of your marketing campaigns.  If you have no way of tracking what’s working and what isn’t, you’ll never know what forms of advertising to use.  This is precisely why too many business owners wind up spending way too much money on their advertising.
5. Stick to a budget.  When you develop your marketing plan for the year, you need to create a budget to work from.  Stick to that budget and don’t be afraid to tell the sales rep that this current promo doesn’t fit into your budget.

Now, every time a sales rep walks through your door with the latest “limited-time promotion” stay strong and walk away from the “deal” if it doesn’t fit into your plan.  If it does fit into your plan and budget, take advantage of the deal.  Work closely with the sales rep to make sure the ad copy addresses the campaign goals and you’ll be all set.

Things You Need to Know Before Hiring a Marketing Consultant

Have you ever watched the show Dragons Den?  Or the American version, Shark Tank?  I’m addicted to watching those shows every week.  There are a few of the Dragons and Sharks that I would love to partner with in business and some that I could do without.  Some of the Dragons and Sharks have changed over the seasons and some have made a big impact on my own business decisions. 

I think what’s really amazing to me when I watch Dragons Den or Shark Tank is the sheer number of people who come on the show completely clueless about doing business.  Time and time again, people have spent countless hours and money developing a new product.  But they obviously have not done their research first.  People go out there on national television absolutely, solidly believing in their product but it’s clear that the market doesn’t want or need it.  Their valuations are often ridiculous too, usually because they have valued their company at a million dollars or some other crazy number but they haven’t made any sales yet.  But what really gets me (and I think it’s because I’m a marketer) is the people who go out there and have no clue who their customer is.  They go into this dramatic sales spiel about their product but then one of the dragons cuts them off and says, “But who’s going to buy it?”  It amazes me that they often can’t answer that question.

Whether you’re going on Dragons Den or Shark Tank to pitch a product or you’re approaching a consultant to help you move your business forward, there are things you need to do to prepare for this meeting.  So, here are some thoughts about what you need to know before hiring a marketing firm.

·         Do you have a business plan?  If you don’t have one that’s an issue because it shows me that you haven’t taken the time to do your research.  And if you wrote a business plan 5 years ago and haven’t looked at it since, you need to do that and update it.

·         Do you know your numbers?  You need to know how much it costs to produce the product, how much to sell it for, what your expenses are, what your profit will be and an accurate sales forecast for the next 12 months.  You also need to know how much you will be allocating to marketing expenses.  I can help you with that, but you need to come in prepared.

·         What are your marketing objectives?  Many clients come to me and say, “I need help with my marketing.”  Well, that encompasses a lot of things, so what exactly do you want help with?  What are your goals and how do you think various marketing activities will help achieve those goals?

·         What makes your product so different and special?  I can help you further define your differentiating factors and help you align those with the right target market, but you need to be able to clearly tell me why this is such a fabulous product and why anyone would buy this from you as opposed to buying it from a competitor.

Marketing is one of the most time consuming and expensive aspects to operating a business and it is absolutely crucial to any business.  But you can’t expect to sit back and just let it happen.  You need to do your homework first.  Here is also a list of questions to ask your marketing consultant before signing any contracts with a marketing firm.

Reaching Life's Milestones

Reaching important milestones is a big part of life.  Now that the kids are back in school and focused on their school work and activities it’s time for us to refocus, to set goals and to reach for some of our own milestones in life.  About a month ago, I celebrated a very big milestone in my career.  My company, Small Business Marketing Solutions celebrated its first birthday!! 

Over the past year in business I have learned a lot about myself and what I’m capable of achieving.  And anyone who has a dream but doesn’t think they have what it takes should read these lessons learned and know that you can absolutely achieve anything you set your mid to.

1.       Don’t let anyone stand in your way.  A year ago there was a person in our community who was hell-bent on destroying me.  Because my career hinges on my reputation, I was terrified of what other people thought of me, especially those that had never met me.  I soon learned that the vast majority of people actually wanted me to succeed.  I had given way too much power to this one person and I needed to regain that power back.  So, as scary as it was, with my head held high I mustered up the courage to make some really key phone calls and I walked into meetings and networking events with confidence.

2.       Believe in yourself and others will too.  When you believe in your abilities and what you have to offer, you will attract other like-minded, positive people.  If you honestly believe that you are capable of providing an exceptional product or service, don’t be afraid to share that with everyone.  But there is a difference between having confidence and being full of yourself.  Confident people just exude that confidence and positive people are drawn to them.  They don’t go looking for admiration from anyone who will give it to them. 

3.       Persevere when things get tough.  I knew that going into this business was not going to be easy.  Having kids to take care of and bills to pay along with juggling work responsibilities is part of the world we live in today where the vast majority of women work outside the home.  I’m not going to say it’s easy to balance it all, but keep your goals in mind in everything you do.  Just keep plugging through, giving 100% in everything you do, whether it be your business, your finances, your family, or your friendships.

4.       Stay focused on your goals.  Sometimes it’s difficult to remember why you started this venture in the first place.  I knew that going into this I was opening the only marketing communications consulting firm north of Sudbury.  My goal was to give small businesses throughout northern Ontario the opportunity to adequately plan their marketing strategies with the assistance of a local marketing firm who understood their needs.  Just because we’re a little off the beaten path doesn’t mean that businesses in this area shouldn’t have access to the same resources as businesses in other areas of the country.  Keeping that focus top of mind throughout the year has helped me stay on track as to why I chose to start this company.

 

5.       Don’t settle for less.  Don’t sell yourself short.  Setting goals and achieving them is what keeps me motivated to do more.  I may not have achieved all of my goals by the timeframe I had originally set out but that doesn’t mean I’ll never reach them.  It may just take a little longer to do that.  I know what I want to achieve in my life, my career and my business.  And there is no way I’m going to settle for anything less.  I have goals set, but more importantly I have a plan of action to achieve those goals.

6.       Build a strong support system.  This may sound harsh, but there are people in your life right now that are weighing you down.  Surround yourself with people who genuinely care about your success, people who you can bounce ideas off of, people who will share in your big moments and be there to listen when things start going south.  I’ve had to part ways with “Negative Nellies” and I’ve been fortunate to have found people in the business community who have become real champions of my business.  The friends I have are people who genuinely like me for who I am and want to be friends with me.  I don’t hide my emotions well, so I don’t have patience for phony people.  But the one person I know that is always backing me up is my husband.  Having been together for 12 years, our marriage has been through a lot of good and a lot of not so good.  I don’t do this job (or anything else for that matter) for the recognition, but it’s nice to know that at the end of the day, someone is proud of me.

I once had someone tell me that they admired me for having the guts to start my own business.  I never really looked at it as having the guts to do something that other people may be afraid to do.  But it really does take a certain personality to run a successful business.  Not everyone is cut out for it, nor do they want to.  But if you’re anything like me and you want to make a contribution to business community in any way, just go for it. 

Direct Marketing - It's Not Just Junk Mail

We have all had “junk” mail appear in our mail boxes.  Well, it’s only junk if it doesn’t interest you.  But that doesn’t mean direct response marketing doesn’t work.  If it didn’t work, nobody would do it.   Similar to sales promotion activities, direct response marketing is designed to encourage immediate action.  Things like catalogues, direct mail flyers, sales or fundraising letters, magazine inserts and statement stuffers.  Even some forms of television can be considered direct marketing.  Things like infomercials and commercials that encourage you to “Buy now!  Just call the toll free number on the screen.  If you call in the next 10 minutes, you’ll receive a free bonus gift!”  Direct marketing is very highly targeted to ensure that the advertiser is reaching only a very specific target market as opposed to mass marketing which attempts to reach a much broader audience.

 

Advantages of Direct Marketing:

·         Allows you to target your message to a very specific audience.   Whatever kind of business you have, you will have defined specific target markets when creating your marketing plan.  Mail-outs can be sent specifically to those people only instead of mass mailing something.  Also, each specific piece can be customized to each person in that target market.

·         You can evaluate its effectiveness. If you compare the number of responses to the number of pieces mailed, you can calculate the response rate. If you include coded coupons or response cards you can keep track of exactly who responded and from where.

·         Mail readers are actively involved.  When people take the time to read their mail, your message will have their undivided attention while they open and scan through it.

Disadvantages of Direct Marketing:

·         Many people don't like unsolicited offers and many are skeptical of their validity.

·         Increasingly, busy people don't even open what they view as "junk mail."

·         Using this method of advertising requires thorough maintenance of mail lists. Many small business owners don't take the time to update their mailing lists. With outdated lists, however, mail goes to undeliverable addresses, which is a waste of money.   Another possible glitch - an inaccurate list may misspell names or address a person who has died. These kinds of errors annoy, or worse yet offend, the recipient.

·         Some groups are concerned about the environmental impact of resources used for advertising mailings.

·         It can be expensive.  When creating a direct marketing campaign, you really need to weigh out the cost differential between producing the materials and the profits earned from any new business the campaign will generate.

Tips on Developing Your Direct Mail Piece

·         Focus on customer benefits and do it right at the beginning. The first sentence (the lead) in a direct mail letter should be about benefits.   Your prospective customer only takes a second or two to decide whether or not to keep reading or to pitch it.  So, make sure the benefits of your product or service are offered right up front.

·         Keep the offer simple, easy to understand and persuasive.

·         Include a "call to action."

·         Ask the customer to "call today."

·         Include a postage-paid reply card.

·         Make the offer for a limited time to encourage prospects to act.

·         Make it easy to respond or place an order. Include order forms if appropriate for your product. Include a:

o   toll-free phone number (24-hour ordering if possible)

o   fax numbers

o   email addresses

o   payment options such as credit cards

o   payment plans for big ticket items

·         Use a personal and friendly writing style. Mail is a one-to-one communication; make it sound that way.

·         Create different direct mail pieces to address different audiences - even when you're offering the same product. Your product or service may have a different benefit for different target markets. So, create multiple forms of the same offer for those different audiences.

·         Consider making your mailing "3D" by including an object in the envelope that will peak the recipient's curiosity.

Mailing List Options:

Mailing lists are available for purchase, but they can be quite costly, especially for small businesses on a tight budget.  A better option is to use your house list.  That means that you really need to be diligent about obtaining information from your current customers and people who have inquired about your product or service in the past and maintaining it.  Keep your mailing list current by periodically asking your customers for their current mailing address.

Success Measurements:

When you include coded coupons or response cards, you can track how many you have received and where they came from.  Direct mail experts tell clients to expect anywhere between a .05 percent and 1 percent response rate.  That means that if you mailed out 1,000 direct mail pieces, expect to receive about 10 responses.  That might not sound like a lot, but it’s better to receive 10 actual sales, than 500 “maybes” that you could be chasing down forever.  So, don’t increase the number of mail outs just to increase your response rate.  The quality of the response is what’s important.

Is It Just a Dream or an Actual Goal?

With the new year upon us, everyone is making New Year’s resolutions… lose weight, get out of debt, stop smoking.  Personal goals are important, but what about your business goals?  Every business owner has dreams of what they want to achieve, but unless you have a plan in place, those dreams will never become a reality.

Running a business requires a great deal of planning.  My husband laughs at me because I am the queen of lists and schedules, but that’s just the way my brain works.  But it’s a good thing I’m wired that way.  That’s what keeps me so organized with all of the marketing activities going on with my own business as well as my clients’.  Make your calendar your absolute best friend.  Here is what I do for myself and for my clients.

Plan things out on a yearly, monthly, weekly and daily basis.  Start off by setting some goals you would like to achieve for the year.  Maybe you want to see a 10% increase in sales this year.  Maybe you want to get your book published by end of the year.  How are you going to achieve that? By doing things on a daily, weekly and monthly basis until you’ve achieved what you set for yourself, that’s how.

Whatever your goal is, make sure it’s a SMART goal.  Most people are familiar with SMART goals, but here’s a quick refresher.  First, it needs to be SPECIFIC.  Don’t just say you want to increase sales (everyone wants that!).  How much do you want to increase it by?  Next, make sure your goal is MEASURABLE.  If you don’t have a plan in place to track and measure your results, you will never know how close or how far you are from achieving it.  Is it ATTAINABLE?  Make sure the goal you have set is actually REALISTIC.  Good for you that you want to increase sales, but if you’ve decided you want to increase sales by 200%, you might likely be setting yourself up for failure.  And finally, make sure you have a TIMELINE.  By setting a timeline, you are essentially giving yourself a deadline.  That makes your plan an actual goal, not just a dream. 

By building tasks into your daily, weekly and monthly schedules that are geared around your goals, you can achieve your goals slowly and systematically.  Schedule every hour of your day and follow your schedule.  If your personal goal is to lose 100 pounds this year, you’re going to need to follow a strict schedule of workouts and planned eating.  Your business is no different.  If you want to see success you need to build it into your schedule every single day.  So, get that calendar out and start using it.  I want you to achieve all of your goals this year!!  Happy New Year everyone!