Marketing
Advantage: Small Business
Small business has powerful
advantages over big business when it comes to marketing. But
small business often misses using these advantages because they
are seduced into emulating the big
corporations.
The typical approach to marketing by big
business is to use the resource they have most of - money.
Those big corporations tend to throw large dollars at
expensive advertising campaigns.
If your small business is to survive and
grow you must learn quickly to avoid the temptation to act
like big sister or big brother. Never go head to head with
the mega corporations. You can compete and win by playing
your game - not theirs. David did not try to go toe to toe
with Goliath, instead he slue the giant with a sling shot.
Your small business is a David in a world of Goliaths.
Change the rules. Don't wish to be like the giants. Instead,
discover your sling shot to gain your marketing
advantage.
In marketing your business you
would be wasting your time and money emulating big business and
subsequently going out of business. Instead of trying to launch
an unaffordable advertising campaign discover and use your
unique resources - like the sling shot.
What is
Marketing?
Marketing is about sending
messages. Everything you do or don't do sends a
message.
Examine all the ways you can send
messages. Advertising is only one way. Big business tends to
wear blinders that only allow them to see advertising as
marketing. Partly because they have always done it that way and
partly because spending large sums of someone else's money is
fun and seductive.
How else can you send your
marketing messages?
Here are some possibilities you
can use:
Media news releases
Guest appearances on radio and
TV
Customer service
Sponsoring events and
awards
Holding a contest
Volunteering for a community
event or business association
Networking events
Product information
seminars
Public speaking at special
events
Exceeding expectations
Forming partnerships
Through your staff
Through your suppliers
With the help of your
clients
Personal
correspondence
This list is not exhaustive but
it should give you a broader understanding of marketing
possibilities. Most importantly all of them cost much less than
advertising and with greater impact. In small business you
might spend some of your hard earned money on advertising. But
remember that it is only one form of marketing and the most
expensive.
Marketing is part of everything
you do. The most important P's & Q's to mind with your
marketing is to be consistent and persistent through all the
channels of communication. If you preach about quality but buy
the cheapest components you are not consistent. That conflict
of messages will destroy your intended message. It should not
take a genius to realize that if you dump on your staff they
will dump on your customers. If you lie to your suppliers it is
reasonable to assume you must be lying to your
customers.
Use your
advantages
As a small business owner you
have several advantages in the marketing maze.
You are closer to the
customer.
You can build personal
relationships.
You can use the CEO
factor.
You have less money and therefore
must be creative.
You are nimble like the sail boat
while the huge ocean liner takes time to change
direction.
Closer to the
customer
You make the cold calls to
prospects, close the deals and follow-up with your customers.
You get to know how they think and feel. You know why they
bought from you or why not. Try to tell me that the president
of the big bank knows what goes on at the front
counter.
That proximity to your customer
gives you a special advantage. When you launch a new product
you can use the information you have gained from your
relationships with customers. What is important to them? What
packaging is the most attractive? What features are most
valuable? You are in the front lines. Ask questions, listen and
remember.
There is something special about
being able to speak to the president. Just try calling the
president of your bank or automotive company. You will get the
frustrating run-a-round. Make it easy for your customers to
reach you. Return calls - even if it is to say no thank you.
Most will appreciate the response.
A friend of mine wrote to the
prolific science fiction author and scientist Isaac Asimov.
Asimov answered his letter. He wrote that my friend's idea had
merit but needed improvement. My friend in his disappointment
destroyed the letter. I thought, "Wow you got a letter from
Isaac Asimov!" My friend did not realize how he might have
leveraged that letter.
Make it
Personal
Life is personal - so is
business. We make buying decisions based on our personal
feelings then we find the logic to justify the decision. Don't
hide in your office. Your most important responsibilities are
selling, and building relationships. Build relationships with
prospects, customers, staff, suppliers, and colleagues. We
would rather deal with people than with faceless corporations.
Even when we must do business with corporations it often is
because of the trust built with individuals.
In a small business your
character becomes the company culture. Treat your staff with
respect and pride and they will show respect to customers and
pride in the company. Your customers will feel the pride and
respect - and they will feel good about doing business with
you.
Build relationships with your
customers. Learn their names, their buying habits, and
important information about them. Be sure to store this
information on your database. Include personal information such
as birthdays, hobbies, Alma mater and family members. Make it a
habit of staying in touch with all of your customers by phone
or by personal correspondence regularly. Send them hand written
birthday cards, postcards, and notes about significant events
in their lives.
Use the CEO
factor
In your business you wear many
hats. That grants you intimate understanding of the company,
your customers and the market. Depending on the time of day you
play the role of CEO, sales representative, or shipping clerk,
accountant, quality control or telemarketer.
When your customer talks to you
they are talking to the CEO. Your customers feel special when
they can speak to the CEO. Make it easy for them. Be available
and accessible.
Remember how frustrated you get
when you can not talk to the person in charge. Imagine walking
into your bank and asking to speak with the CEO? Or when you
are shopping for a car just try and speak to the president of
the car company. I dare you. Try it and drop me a line on what
happens.
Large corporations are falling
all over themselves lately to apologize for their misdeeds. You
name it; banks, airlines, tire manufacturers, automotive
companies. They are putting their CEO in front of the media to
say sorry for the bad service, stupid mistakes and faulty
product. We are suckers for those who admit their mistakes. We
are willing to give most anybody another chance. Why? Because
we all made mistakes and have probably asked for a second
chance ourselves.
Maybe you have not yet really
screwed up with your customers - but it will happen one day and
when it does you must say sorry. The advantage you have when
you make a mistake is that we believe it more when you are the
CEO. If we know you, we want to forgive you - all you have to
do is ask for forgiveness. And when you do - call or send a
hand written note. The CEO of the bank or national airline
can't do that.
You present a human face to your
business. Notice how few corporate CEOs are able to be the
human face of their company. The skills that enable CEOs to
battle it out in the boardroom are not the same skills you need
to build rapport with customers. It is so much easier for you
to present your face. When we do business with small companies
we like to know the owner. So get out there in the front lines.
Volunteer your time in your community, for your chamber of
commerce or industry association.
Although a large corporation,
Marriot does a fine job of humanizing their business. They have
the picture of the founder in every lobby. Although you do not
meet the founder or even the current CEO you still feel a
personal contact. At the other end of the scale is Holiday Inn.
Who is the founder and CEO? Who knows? You pay much more at the
Marriott than the Holiday Inn. It's not the beds that make a
difference. It is the perception of personal
service.
Less Money
When is less money an advantage?
When it forces you to be creative. If you have millions of
dollars to spend on marketing you might hire some Madison
Avenue advertising agency and buy 30 seconds on the Super Bowl
game. If your marketing budget is considerably less - say a few
thousand or a few hundred, you will have to be creative. You
might put extra effort in being nice to your customers. Happy
customers are your best marketing agents. They talk about you.
It costs nothing and they have much more credibility then a
paid spokesperson. When you don't have tons of money to throw
at expensive advertising campaigns you should put more effort
into the simple marketing techniques like exceptional service,
respecting your customers, returning phone calls promptly,
guaranteeing results, free advice, contests, …
The best marketing is free
marketing. That comes when people talk about you. Do things
that cause customers to talk about you. Something outlandish.
In the old movie Cool Hand Luke, Paul Newman boosted he could
eat 50 eggs. I don't suggest that you eat 50 eggs but maybe you
could cook a 50 egg omelet for charity.
Nimble
If you can't be bigger and
stronger be smarter and faster. Be a practitioner of business
judo. How many times have you been annoyed by someone quoting
company policy? "I'm sorry, but company policy won't allow me
to help you."
Company policy is created to
protect the company - not help the customer. I get so
frustrated dealing with employees who are hired to enforce
company policy instead of helping the customer. You can adapt
to customer needs and unique circumstances. When you do, let
your customer know that you have intervened with policy to help
them in this unique situation. Treat them special and make them
feel special.
Sometimes it is smart to provide
your customer with something extra at no charge. Send them an
invoice for what you would normally charge but with the price
stroked out and your hand written note - "Regular fee Waived"
or "Policy Over-ruled."
Develop your company policy for
efficiency and be prepared to change policy to delight your
customers. It will be some of the best and cheapest marketing
you can buy.
Find the most annoying 'rule' of
your business. What do customers hate most about buying your
product or service? The most annoying rules tend to be about
time and process. Break that 'rule'. It will gain you a loyal
following and provide fantastic marketing
opportunities.
Marketing is about sending
messages. Marketing is part of everything you do. Decide on the
messages that you want to send. Then review everything you do
to be congruent with the messages you want to send.
George Torok brings practical insights to
business. He is co-author of Secrets of Power Marketing, the
first guide to personal marketing for the non-marketer. As host
of Business in Motion he has interviewed over 400 business
leaders. He is available to deliver keynote speeches and
business seminars. Contact him at 905-355-1997 or visit
www.Business-Speaker.biz
You can read an
excerpt from the book at www.PowerMarketing.ca
. Get your free Marketing Tune-up
at www.MarketingTuneUp.ca
. Marketing expert, George Torok is available
for speaking engagements and media interviews at
www.Torok.com
© 2000-09 George Torok All Rights
Reserved
Business Articles by Business Speaker, George Torok
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