Truth 38. How to approach marketing in a new business

Marketing refers to all the activities that a business engages in to be successful in selling a product or service that people not only desire but are willing to buy.[1] Most of a business’s marketing activities are executed through one of the four Ps of the marketing mix—product, price, promotion, and place (or distribution). Most new business owners see the development of an effective marketing program as a key factor to their ultimate success.

Be careful, however, of how you think about marketing and the financial resources that you dedicate to it. Marketing is one area where hard work and ingenuity can make up for a lack of funds. It’s also an area where money can be easily wasted if a business doesn’t have a well-thought-out marketing plan. There are three things to be mindful of as you approach the topic of marketing and promotions in a new business.

Make your marketing efforts consistent with your mission

First, a business’s marketing efforts should be consistent with its overall mission and values. For example, Kitchen Sentry, the fictitious firm introduced in Truth 33, “Intellectual property: What is it, and how is it protected?”, has the mission of protecting individuals and families against kitchen fires. The company believes that people fear kitchen fires as much as any calamity that might befall themselves or their families, and that having a high-quality smoke alarm in the kitchen will provide people peace of mind. Kitchen Sentry’s marketing efforts should reflect and reinforce these core beliefs. A common mistake that new businesses make is that their marketing efforts are poorly focused. Stay on script. If the people behind Kitchen Sentry care deeply about protecting families from kitchen fires and their product is sound, those attributes should be the focal points of the company’s marketing efforts.

Know your customers

Second, a business needs to have a clear sense of who its customers are and how they behave. A well-managed start-up uses a two-step approach for selecting its market: segmenting the market and selecting or developing a target market. This process is explained in Truth 39, “Segmenting the market and selecting a target market.” A business must complete these steps and clearly define who its customers are, because all of its marketing decisions hinge on these initial critical choices. If other marketing decisions are made first, such as choosing an advertising campaign, there is a danger the firm will not send a clear message to its target customers. For example, if a jewelry store that features high-end merchandise advertised in a local shopper alongside discount merchants, it would risk sending confusing signals to its intended market. It’s more affluent clientele might wonder, “Is this a high-end store, or isn’t it?”

It’s also important that a business knows as much about its customers as possible, from knowing the amount of disposable income they have, to the periodicals they read, to the media they watch. Knowledge of these and similar factors helps you fine-tune your marketing strategy and lower expenses.

Learn about the full array of marketing techniques that are available

Third, a business needs to learn about the full array of marketing techniques that are available. The majority of business owners are familiar with the most expensive ways to run a marketing campaign, such as buying print and media advertising, but they are less familiar with more cost-efficient alternatives. Many of the most cost-effective ways for a business to get noticed, from passing out brochures to speaking to civic groups, are inexpensive but take time and effort. The best approaches to learning about the methods available are to look through books and magazines on marketing and promotions and take a class from your local Small Business Development Center (SBDC).

An example of an inexpensive way for a business to get noticed is to write a blog. Blogs familiarize people with a business and help build an emotional bond between a business and its customers. A case in point is a blog written by Mary Baker, the co-owner of Dover Canyon Winery. Baker started her blog in April 2006 using a software package called TypePad Pro that costs her $149.50 a year to maintain. She uses the blog to give her readers periodic updates on what’s happening at the winery and how she feels about her life and her business. She also posts pictures of herself, her pets, her family, and daily life at the winery. To make her customers aware of her blog, she drops a postcard with the blog’s address into bags with customer purchases. There is also a link to the blog on the Dover Canyon Winery’s Web site. Mail order sales for the winery almost doubled from 2006 to 2007.[2]

While writing a blog may not be appropriate for all businesses, the overarching point is that Mary Baker found an inexpensive and novel way to promote her business, rather than relying on more traditional and expensive forms of promotion. In a midsized city, a large newspaper ad can run as high as $5,000.

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