August 30, 2007

Top 5 Tips for Marketing Your Business

In my line of work the question I get asked most is “what should I do to market my business?” Sometimes it comes through the casual conversation of a dinner party. Often it’s from friends and acquaintances starting a new business. And, occasionally it comes from a company executive probing for insight to test his advertising person’s mettle.

Certainly, one answer is, “it depends.” And, while that may be true (larger businesses require more complex strategies and tactics than smaller ones), I am never really satisfied when I am given that broad grasp of the obvious. I continue to observe some common strategic issues in the marketing projects I’ve been working on. Since these themes repeatedly present themselves in my work, across a wide variety of businesses, I felt it would be worthwhile to summarize them and share. Just in case you are curious as to the source of my insights, they come from marketing assessments I conduct for organizations ranging from real estate to banking to government agencies, across Florida and out of state. Additionally, my small team of four consistently networks with our agency colleauges and business associates, and scours industry web sites to stay ahead of the marketing curve.

The following list represents my Top 5 Marketing Tips you should be thinking about for your business:

1. Start with a Plan.

A simple marketing plan should include at least these three parts---Identity, Strategy, and lastly, Tactics. Basically, you need to understand what makes your product/service different from competitor, what strategies will most effectively reach your consumer, and how much your specific programs will cost plotted on an annual calendar. Big businesses do this, and it’s not hard for small ones to do it either. One approach is to do it yourself, or internally, and there are plenty of inexpensive templates online. Another is to hire a consultant that will bring the added benefit of expertise and a fresh perspective to the business.

2. Clarify your Identity.

If I say Mercedes, Honda, Hyatt or Motel 6, don’t you quickly find the image of each in your mind? Three important questions I pose to business managers include:

a. Who are we trying to reach?

b. What do they currently think?

c. What do we want them to think [about us]?

Your answers should roll out effortlessly. If you can’t confidently, and quickly, explain what makes you different than the competition, why shouldn’t your prospect go there?

3. Establish a Marketing Budget

What is your 2007 budget? At nearly halfway thru the year, are you on-track? Are course corrections needed? From the industries I’ve served here are a few categorical averages:

Casual Dining
4.5% of total revenues spent on marketing. That was our standard at Community Coffee and is applied by Chili’s, Bennigan’s and most in the restaurant segment.

Real Estate
Coldwell Banker corporate recommends 5% of commissions for a project be applied to marketing.

Medical
Through our work with a mid-size orthopedic firm, we’ve learned the industry average is 1% of total revenues.

4. Get serious about your Web Site.

Look at the bottom of your web site, right now, and see if the copyright says anything other than 2007. If it says 2006 that tells the customer the information has not been updated for at least five months. When you search for a product or service are you looking for a provider more committed to their field than that?

Increasingly, managers are telling me their number one marketing goal [for their advertising efforts] is to drive people to their web site. Others confess they are downright embarrassed by their current site, often something completed by a friend of a friend completely outgrown. Pay close attention to quality photography and a design image that fits your organization. Remember, you get what you pay for

5. Build business thru relationship marketing.

Most business owners know it is cheaper to retain the customers they have versus prospecting for new ones. In most cases, both are important, but relationship marketing is the area where customers are cultivated and strengthened. Do you have a follow-up plan for how you build business from your valuable customer contacts? Are you constantly growing your database?

A simple hand-written Thank You note after a key meeting can really standout in your prospects electronically-driven day. Direct mail still retains the #1 spot for marketers as the leading relationship vehicle in the recent 2007 Target Marketing Media Usage Survey. However, email marketing showed the greatest growth outranking direct marketing 35% to 31% as the preferred method for “customer retention.”  Email marketing should be approached with care so you may want to consult a professional. Still, the benefits of cost and flexibility warrant its exploration even for the smallest of organizations.

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Jack Kerigan, Jr has guided national brands and regional brands such as Community Coffee as Director of Marketing. He established Kerigan Marketing Associates in 2000 and now resides in Port St. Joe, Fl  where  he leads a small team of marketing professionals focused on strategic advertising management, web site development and graphic design.

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