Chapter 3 review

CHAPTER 3THEBASICS OFMARKETINGFOR SMALLBUSINESSES 33BASICS OF MARKETING

34BASICS OF MARKETING

BASICS OFMARKETINGWHY MARKET?This is a good question. Why should you market your business, product or service? What’s the aim?The aim is quite simple. Businesses that market themselves are set up for success, and it’s aboutmore than just advertising your product, it’s about knowing and understanding your customers. 1 Good marketing brings you customers 2 It helps you to anticipate the needs and desires of your customers 3 It keeps you relevant and growing with your customers 4 It helps you to communicate that your business provides what customers are looking for 5 It helps you to be in the same digital space that your customers are inMARKETING IS AN INVESTMENT, NOT AN EXPENSELet’s unpack that statement. An expense is when you lay out money for something and don’t get areturn in value, whereas with marketing you are absolutely getting ongoing value in return. How? Agood marketing strategy will increase your business, which will increase your revenue. By investingin marketing you are investing in growing your customers and business.COST-EFFECTIVE WAYS TO MARKETOne of the most cost-effective ways to market your business is online – digital marketing is far lessexpensive than traditional media like newspapers, magazines or radio. And the best part? It canreach more people. Think of digital spaces as screens and how many people a single marketingcampaign can reach just through one channel. To put numbers into perspective: there are over onebillion users on Facebook. There is not a single other platform or channel that can say that. 35BASICS OF MARKETING

OTHER COST-EFFECTIVE WAYS TO MARKET:Run competitions Offer freebies Get to know the people into promote your people love free stuff your area. This is especially and if they love your important for service based product product they will come businesses back that deal with the public. Get out and spread the word in your neighbourhood. Gone are the days of handing out pamphlets or dressing a guy up in a costume to look like a sausage, standing on a street corner to advertise your business. People today are busy and the way they get their information is through the Internet, so the most cost-effective way to get your marketing message out there is online.WHY ABOVE-THE-LINE IS JUST NOT THE BEST WAY FOR SMALL BUSINESSES?Above-the-line (ABL) marketing is intended to reach as many people as possible, but it is used, or appears, ina single space, such as on billboards and in TV and radio adverts. The message is not targeted at your specificaudience but is the same for all. The main reason why above-the-line is not the best use of your marketingbudget is the expense. You will pay large amounts without being able to measure whether it is working ornot. You will simply not get the same return as you would with digital media and it will likely cost you fivetimes as much. As a small business you want your Rand to stretch as far as it can and provide you a return.You want to make money when you market! 36 BASICS OF MARKETING

BASICS OFMARKETING WEBSITES NEWSLETTERS REFERRALPROGRAMMES MARKETING TOOLSTRACKING TOOLS LOYALTYTO TRACK BRAND PROGRAMMES MENTIONS SOCIAL MEDIAUseful sites:www.smallbizdaily.comhttp://www.wix.com/blog/category/small-business-tips/ 37BASICS OF MARKETING

STRATEGIES FOR DIFFERENT TYPES OF MARKETING: Who you are marketing your product to is incredibly important for your marketing strategy. We will discuss three kinds of marketing strategies: business to consumer, business to business and business to government. Each one requires an understanding of what it is that you are marketing in order to craft the correct message that will see your sales increase.BUSINESS-TO-CONSUMER – B2C If you are selling your product or service to the general public, you are a business-to-consumer company. Think of all the shops in a shopping centre – they are all B2C companies.The business-to-consumer marketing strategy is onethat is based on emotion and the benefits ofyour product or service. What makes you choose oneshop over another when you are groceryshopping? It is largely emotion and the benefits thatshop offers you that another shop possiblydoesn’t. The sales process is generally quite short andthere isn’t an ongoing relationship apart fromrepeat sales. 38 BASICS OF MARKETING

BASICS OFMARKETINGBUSINESS-TO-BUSINESS – B2B If you sell your product to another company, you are a business-to-business company. Think of the trucks that deliver all the items from the producers to shops to sell them – that truck company sells the service it provides with its delivery trucks to another company.When you look at a B2B company, the marketing strategy is going tobe different to that of the B2C strategy above. Companies are all aboutefficiency, how can they get the job done in the best possible time, thebest possible way and for the best possible price, and your marketingstrategy has to reflect this. With a B2B company, your relationship isnormally an ongoing one and the sales process is longer than just astraight sale. You will need to emphasise the benefits your productoffers to the company you are selling to and how you will help itachieve its business goals better than another company’s products orservices. There is no room for emotions with this type of saleand your marketing strategy needs to reflect the efficiency you willbring to your client’s business.BUSINESS-TO-GOVERNMENT – B2GYou are a business-to-government company (B2G) when yourcompany sells products or services to the government. One exampleof this is a textbook printing company supplying school textbooksto education departments. But it is also possible for a B2G companyto be a B2C and B2B company at the same time as well, since manyservices found in one of the two above categories can also be found inthis category. So how do you create a successful marketing campaignfor this?When the government buys products or services the process iscompletely different to the above two models. The language,motivating factor and ways of doing business are unique. Here aresome tips for B2G marketing: 39BASICS OF MARKETING

KNOW WHO YOUR CUSTOMERS ARE – THERE ARE 3 KINDS 1 Procurers – they select the procurement method and conduct the procurement. 2 Influencers – these are the project managers and high-level decision makers. 3 End users – they will ultimately be using your product or service. These are the people your product must be tailored to.OUTSOURCING YOUR MARKETING – HERE’S HOW:If you don’t have the time or tools to market yourself, you can employ the services of a marketing company.While this will cost you initially, it may be worthwhile to work out and get in place a strategy that sets yourcompany, service or product up correctly from the start. Most marketing companies will be able to create amessage aimed at your consumers and help you to build a brand.USEFUL TIPS FOR CHOOSING A MARKETING COMPANY Ask yourself, why do I need a marketing company and what are my expectations? Does this marketing company have the skills and tools to meet my expectations? Ask the agency about how they do what they do and for examples of their work. Then ask yourself, does this look like what you’re looking for? Do the marketing company people make you feel comfortable and as if they would like to work with you? Or are they just telling you what they think you should do? It’s very important to create the mentality that this is a team effort, that they need to listen to you and you to them. Don’t go for the agency with the most awards; work that wins awards doesn’t always sell products or services. Make sure they know that you want to see a measured return on your marketing strategy. Are they digital? In this day and age, if they aren’t digital, say goodbye and find a company that specialises in digital marketing. Lastly, make sure you are getting what you pay for. Ask for reports and ask questions if you aren’t sure. 40 BASICS OF MARKETING