MARKETING BASICS FOR START-UP BUSINESSES
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1 MARKETING BASICS FOR START-UP BUSINESSES By Christina Motley Executive Vice President, The O Connor Group Overview: The Small Business Administration reports that 80% of small businesses close their doors within the first five years, partly because of poor or no marketing efforts. Many business owners think they can do their own marketing. Maybe because it s creative and fun. But in reality, we all specialize in what we do best and that is the reason smart business owners partner with marketing firms and advertising agencies. Unarguably, marketing is critical to a business success. The O Connor Group is a full-service, award-winning marketing communications firm and advertising agency dedicated to helping clients build their business through cost effective and creative marketing, advertising and public relations strategies. An Introduction to Marketing, Advertising and Public Relations: People often confuse marketing, advertising and public relations. While they are different by definition, these areas work together to provide the greatest return on your marketing investment. In simple terms, marketing is the act or process of selling or an aggregate of functions involved in moving goods from producer to consumer. It is the blend of various mediums and innovative strategies working together to sell your business, products and services. Marketing examples include market research, branding and establishing your firm s identity, positioning, pricing, packaging your product and or services, signage, speciality/promotional items and sales materials such as a website to help move the product or service to market. Advertising is the tool or vehicle used to promote a product, service or idea and usually comes with a price (that is you pay to deliver your message into the marketplace via a specific communication channel or media). Advertising includes yellow pages, direct mail, print ads in newspaper and trade publications, billboard, radio, tv, internet advertising and media placement. Public relations is the management function that establishes and maintains mutually beneficial relationships between an organization and the clientele on whom its success or failure depends. The basics include increasing awareness with the public, as well as internal and other external audiences. Examples of public relations efforts include distributing news releases, pitching story ideas and earning media coverage for your products, services and company, media kits, holding special events, sponsoring area organizations, involvement in the community, networking, providing speeches and presentations, newsletters and e-communications.
2 Getting Started: So with all that stuff, where do you start? Well, you know the saying: First impressions are often lasting impressions. And in the ever-expanding business world of increased competition and tougher economic climates, a company s first impression can make the difference. It can attract or deter clients. It can win or lose a sale. Or ultimately, it can make or break a business success or failure. So we ve tried to break marketing your business into three basic steps. First, develop a corporate image and brand your business. While this might sound easy, to do it right takes time and strategy. From that will come a logo and identity. The second step then, is to set a budget (ideally 6 to 10% of projected sales) and create a strategic plan that includes marketing, advertising and public relations components. This requires research, evaluation and analysis of your business; competitors target audiences, the marketplace and communication channels. The plan can include short term and long term goals and should include measurable objectives for future evaluation. Thirdly, with your plan in place, you simply implement and execute the plan.
3 Five Keys to Successful Marketing In order to ensure your marketing success, you ll want to consider each of the following areas carefully. 1. Consistency Whether business is good or bad, you must consistently market your firm and stay in front of your target audiences. 2. Repetition Repetition will build awareness. People need to hear, read and see things over and over again before it really sinks in. 3. Message Your message needs to be clear, creative, consistent and concise. It must connect with your audience logically and emotionally. 4. Frequency Frequency generates results and you must saturate the market. There are many tricks of the trade to buying media effectively. 5. Reach You must reach the right audience at the right time with the right message. Additional Resources: Books & Websites The American Marketing Association offers this free newsletter. The Direct Marketing Association shares advice and tips Guerrila Marketing provides a weekly magazine for small business owners. The Business Marketing Association shares tips for b2b marketing. Advertising Age provides the latest news in the world of advertising. Small Business Owners Toolkit. Edit Yourself by Bruce Ross-Larson Marketing Myths that are Killing Business by Kevin J. Clancy & Robert S. Shulman Olgivy on Advertising by David Ogilvy The E-Myth Revisted: Why Most Small Businesses Don t Work by Michael E. Gerber The Fall of Advertising and the Rise of PR by Al Ries Why Work with A Marketing Firm or Advertising Agency?
4 Because you want the best. Would you set your own broken leg? Of course not. We all specialize in what we do best, and that s the primary reason smart businesses hire professional agencies. While you know your product and market, good agencies know how to help you make the most of your marketing investment. Because the do-it-yourself way doesn t work. Most business owners that do their own marketing, when all is said and done, still spend quite a bit on an annualy basis. However, they typically don t have a plan but instead respond to good deals. Hap-hazard efforts don t work, nor are the results measurable. Additionally, media deals and packages can be complicated and confusing when you don t truly understand what you are buying. Take radio for example, what are you getting for $50 per spot? How many people are you reaching within your demographic and geographic target market? Is that station the best for your message? Are you getting drive or peak listening times? What is your frequency? What is your cost per thousand of people you are reaching? What is the radio s ratings? Because you want an unbiased perspective. Media and marketing-related sales representatives want to sell you their specific product. While they know their product and how it may compare to their competitors, they are still trying to steer you in the direction of buying their product. Ad agencies work for you and look out for your best interest. Because you don t have enough time. Most business professionals need more time to focus on the business operations. A good agency will save you not only time, but unwanted headaches and hassles of dealing with marketing-related sales representatives. Because you want a more professional image. In the world of increased competition and tougher economic climates, you want your first impression to be a lasting one. An agency can help you hone in on your competitive advantages and market your products and services more effectively. Because you want a turnkey solution. A good agency can handle everything from concept and production to media placement and delivery. By using an agency, you change literally dozens of steps in a complicated process into one simple solution. In addition, the agency s relationships with vendors allow them to negotiate optimum pricing, placement and etc. Because you want to produce results. By developing and re-evaluating a marketing plan and by creating innovative, solid and effective advertising campaigns and promotional materials, a good agency will bring you heightened awareness and bottom line results.
5 Getting Started: Questions to Answer What is the company s vision? What is the company s mission? What is the company s positioning statement? What are the products and services the company offers? How does your pricing compare relative to the market? What are the features of the company s products and services? What are the benefits of the company s products and services? Who are your target audiences? What are the demographics of your target audiences? How will you reach your target audiences? What additional value do you offer? Who are your competitors? Where does your pricing fit into the marketplace? How does your pricing compare to the competitors? What is the overall objective of your products/services/image? What are the company s strengths? What are the company s weaknesses? What are the opportunities to your company? What are the threats to your company? What is the one message you want to deliver? What is the company s marketing budget? What image do you want to convey to the public? What colors do you want to consider for the company s brand? What names are you considering for the company?
6 Menu of Start Up Business Marketing, Advertising & Public Relations Services Assistance in naming company Market research Identity development (logo, tagline, branding position) Stationary packages (business card, letterhead, and envelope) Marketing plans and media recommendations Budgeting assistance Development of marketing communications plans Development of creative concepts for communication materials to include: Printed materials (letterhead, brochures, sales slicks, direct mail, trade show, collateral/other sales support materials, newspaper, presentation folders, magazine ads) Broadcast materials (Television and radio commercials; jingles) Interactive and online communications (CD ROMS, Flash presentations, PowerPoint presentations, websites, s) Trade Show, POS, POP materials Media kits and public relations tools Signage and outdoor media Media planning, negotiation and placement Media management (includes the billing, checking and resolution of all media discrepancies, fielding all calls with the media to free your time; Management, tracking and analysis of results) News releases Development and implementation of partner promotional programs to enhance your relationship with the trade and audiences to whom you market Development and implementation of brand building publicity and public relations programs Brainstorming and development of marketing ideas for client Competitive analysis General marketing counsel
7 Marketing Packages for SBDC Clients Option 1 $1,750 Option 2 $5,000 Option 3 $8,000 Option 4 $12,000 Option 5 $16,000 Logo Option 1, plus: Option 2, plus: Option 3, plus: Option 4, plus: Identity Tagline Option 1a $2,250 Marketing Consulation Tagline & Positioning Statement Identity Package Design Letterhead Envelopes Business Cards Marketing Plan Brochure 3 image ads Competitive Analysis Website (up to 10 pages) Media Plan Complete Marketing Plan *Printing, Photography and Production costs not included
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