Ken Wong.
It’s tough to be a small-budget marketer
(SBM) in a world where sales volumes and marketing spending tend to go hand-in-hand. But the challenge goes beyond generating sales: as small media buyers, SBMs have less access to prime advertising rates and space. Small wonder, then, that in challenging economic times, these firms are often tempted to drop marketing.
But smaller-budget firms should not give up. Nor should they start looking to do “marketing on the cheap.” Often, the very practices they turn to in order to “save” money do just the opposite.
Here are some of the more common mistakes that SBMs make in trying to stretch their dollars.
> Avoid Token Marketing
The first rule for all marketers is to never spend without a specific purpose in mind. Too often, firms run generic ads or engage in other promotional activity (including buying corporate swag) just because they think it’s standard practice. These firms would be just as well served by doing nothing at all.
You advertise to increase sales. But no one buys anything indiscriminately and no one pays attention to ads unless they know they will soon be making a purchase. Knowing your customer’s buying cycle is essential in order to give your marketing the opportunity to be noticed.
But it is not enough to be noticed. It also needs to be acted upon. That’s why you should only advertise if you have something important for a customer to hear. You’ll know it’s important if it provides customers with a compelling reason to act. Since products are bought to solve “problems,” focus your ad around that problem, so the buyer doesn’t have to think too hard to make the link as to why they should contact you.
Finally, make it easy for the potential customer to act as soon as possible. Customers won’t commit your message to memory, so the longer they wait to contact you, the more likely your marketing will be forgotten. Forget phrases like “look for us at the conference” or “ask your dealer”; drive buyers to a source of further information or personal contact.
> Be Careful of False Bargains
Your ad can’t work if no one sees it. So you always want to be in the publications most-read, the radio time slots most-heard, the social networks with the most members, and so on. You will pay more to be in these locations, but less expensive media that cannot deliver audience are not a bargain, no matter how inexpensive. You can never pay too much to reach the right audience.
> Know Your Media’s Audience Profile
Notwithstanding the above, there is no value in reaching someone who isn’t likely to buy from you. SBMs often have a niche product that appeals to a very specific customer segment. Media charge on the basis of the size of their audience, but if the audience is diverse, you may find yourself paying to reach people outside your target segment.
> Don’t Run Promotions, Manage Campaigns
If you only run an ad one time, then you are trusting that everyone who should see it, will see it. Running the ad in multiple publications will increase the likelihood that the ad is seen. Moreover, repeated exposure to the ad will help ensure your ad is understood and remembered.
> Watch for Special Theme Publications
These editions can be one of your most important advertising vehicles if you can forge a meaningful link between your product or service and that theme. Plus, your competitors will be there, too.
As you can see from the above, there’s no magic bullet to marketing with a small budget. Nor is it rocket science. It is more a matter of taking some time to apply some critical thinking to your marketing expenditures.
The biggest mistake an SBM can make is to allocate thinking time that is proportional to their budget. You need to have a systematic approach when your budget is small; otherwise, your small budget will produce small results.
Ken Wong is vice-president of Toronto-based Level 5 Consulting and is a professor in the faculty at Queen’s University School of Business. E-mail: kwong@business.queensu.ca
