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As we begin to come out of the pandemic and return to normalcy, many small businesses are looking for guidance to get their marketing back on track. Here are a few simple steps you can take to get started:
1. Know Your Differentiating Factor: If You Don’t Know It, Nobody Will
What makes your organization unique? This can be a difficult question to answer, but if you want to be successful, knowing what makes your business different from others is essential. This will be a critical factor in the development of new messaging and an updated marketing plan.
a. What problems do you solve in a way that your competitors don’t?
b. What do your users think are your strengths?
c. Can any of your competitors’ weaknesses be turned into an opportunity?
d. What are some user needs (based on the common complaints they voice about the product/service) that can be turned into potential growth opportunities?
e. What are some market/industry trends that you could foresee and prepare for?
f. What can you offer that NOBODY else is talking about?
Identifying your target audience takes consideration and patience. The more you can empathize with the audience, the better. Which is why we recommend developing Buyer Personas and Buyer Profiles.
Regardless of the profile you build, be sure to ask yourself these key questions:
a. What motivates them to purchase from you? Do they have any goals?
b. What prevents them from purchasing from you? Do they have any fears or are they facing any challenges?
c. What problem are you solving for them? Do they have multiple problems?
3. Revamp Your Marketing Plan: Something to be Excited About, Not Scared of
This is an opportunity to review your marketing budget with a fresh set of eyes. By doing this, you can eliminate the marketing efforts that aren’t measurable or reaching your target audience. Once you’ve decided what stays and what goes, you can focus your marketing efforts on measurable items that will both reach your new audience and drive home your differentiating factor.
a. Does your target audience use the same marketing channels as you?
b. Are you afraid to give up traditional forms of advertising that aren’t producing results?
c. Do you take advantage of digital advertising tactics and measure their effectiveness?
d. Are you spending marketing dollars on things that are unnecessary?
e. Is your marketing program being run efficiently and strategically?
Knowing what makes you different is what can make your organization great. And there is no better time than the present to confidently create a strategic marketing plan that positions your organization for growth in the years ahead.
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Marketing is the least understood area of a business, which is what makes it easy to cut from your budget when a global pandemic hits. Yet, history has proven time and again that recessions provide a golden opportunity to increase brand awareness and capture more market share when the economy rebounds.
During past recessions, many organizations panicked and drastically cut their marketing and advertising budgets. Others, however, took a more strategic approach. Understanding that negative economies rebound, they maintained or increased their marketing and advertising budgets while pivoting their marketing efforts to better position themselves for the recovery. In the end, these companies strengthened their brand and position in the marketplace.
Take a look at how this has played out throughout some of the major historical economic downturns:
Recessionary Period | Conclusion | Studied by |
1920s | Largest sales increases reported by companies that increased advertising. | Harvard Business Review |
1970 | Increased advertising provided sales and/or profit advantages in years following the recession. | ABP and Meldrum & Fewsmith |
1974-1975 | Maintaining advertising during the recession produced higher sales and net income during and after the recession. | ABP and Meldrum & Fewsmith |
132% 5-year sales growth for companies that advertised during the recession. | McGraw-Hill | |
1981-1982 | 275% sales growth by 1985 for companies that advertised through the recession. | McGraw-Hill |
Source: https://www.msi.org/reports/should-firms-increase-advertising-expenditures-during-recessions/
While there are ways to trim your marketing budget without hurting your business, Peter Drucker explains why maintaining or increasing your marketing—even during challenging economic times—is critical:
“Because the purpose of business is to create a customer, the business enterprise has two—and only two—basic functions: marketing and innovation. Marketing and innovation produce results; all the rest are costs. Marketing is the distinguishing, unique function of the business.”
Your ability to keep and attract customers will determine the success of your business. So, marketing and advertising are critical to your organization’s survival as the economy opens back up, as customers react to record high unemployment, new COVID safety measures, and restricted access to certain services.
“I have yet to see any study that proves timidity is the route to success. Studies consistently have proven that companies that have the intelligence and guts to maintain or increase their overall marketing and advertising efforts in times of business downturns will get the edge on their timid competitors.”
– J. Welsey Rosberg, Senior Vice President, Meldrum & Fewsmith
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When calculating your marketing budget, all the costs related to marketing and advertising should be included, such as:
Note: On-site marketing staff costs may be considered an HR expense, but should also be included when you calculate marketing ROI.
Unfortunately, knowing what to include in your budget doesn’t tell you how much you should be spending. Here are some simple guidelines that can help you get started:
The U.S. Small Business Administration suggests spending seven to eight percent of gross revenue on marketing and advertising if your company has annual sales of $5 million per year or less, and your net profit margin is in the 10 to 12 percent range.
Your marketing budget may increase in some years because you are developing your brand or making significant changes to your marketing plan. If you re-brand or reposition your company, develop a new website, start social media marketing, or implement marketing automation with ad retargeting, you will likely exceed your budget numbers, and for good reason. You need to invest more to build the foundation of any marketing funnel in your plan. Otherwise, your marketing tactics may struggle to get the desired results.
When it comes to determining a marketing budget, it’s important to keep in mind that your plans for growth will affect the amount you need to allocate. If you have plans to grow your organization’s revenue, need to improve the foundations of your marketing (listed above), or need to acquire an in-house marketing staff person or work with an outsourced marketing agency, you will want to allocate a higher percentage to the marketing budget.
“If you are marketing from a fairly static annual budget, you’re viewing marketing as an expense. Good marketers realize that it is an investment.” – Seth Godin
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We are months into a worldwide pandemic, and there are still many unknowns. But, two things are certain:
It’s common to put more pressure on marketing during a recession. Expectations are that it will achieve more with fewer resources while still providing a high return on investment. While this is possible, under current conditions it requires reallocating marketing dollars to digital marketing tactics. An article from Forbes says it best:
“We are in uncertain times, but with the increase of remote working and a collaborative approach, companies are turning to digital channels and embracing the transformation. We have seen a real spike during the last few weeks from companies wishing to create or update websites, launch new eCommerce channels and create social media campaigns focused on home-workers and a real focus on using influencers and SEO to reach new audiences.”
For businesses that have been slow to transition from traditional to digital marketing, time is running out. Some businesses have transitioned their budgets to include digital channels. But, they can gain valuable market share by accelerating that transition and fully embracing a digital strategy. As we’ve previously discussed, businesses that maintained or increased their advertising budgets during a recession actually received positive results in the marketplace.
In the pre-coronavirus world, one of our technology clients relied heavily on trade shows and other events to generate leads. When that channel disappeared under social distancing restrictions, we realigned their budget to establish an automated marketing program coupled with a digital and retargeting advertising program. Working with their sales and marketing department, we developed a strategy to digitally educate their target audience on the problems the company solves, drive online demos signups, and retarget website visitors with advertisements to drive them back to the client’s website.
For one of our municipality clients, we were consistently creating social media content that produced impressive engagement numbers with their audience. However, their audience size was stagnating. So, we worked with them to create a social media advertising plan and budget that included boosting posts, social media ads, and interacting more with followers. Over the course of just a few months, their social media account likes grew by thousands.
CASE STUDY 3: Advisors to Advisees
It’s not only our clients that needed to reassess their marketing strategy as a result of the pandemic. We also took the opportunity to change our own strategy. We developed a new website with messaging and information targeted to our ideal client personas. The website is also optimized to work with marketing automation and digital advertising programs that we are currently developing.
It’s decision time for many businesses, especially when it comes to marketing budgets. Businesses that down-size their marketing and advertising budgets in reaction to current social and economic conditions are in danger of losing a significant amount of business. Or, worse yet, losing their business entirely. Those that adjust their strategy, invest in developing a strategic marketing plan, and transfer their marketing and advertising dollars to digital will have a significantly better chance for success in the year ahead.
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How can you sell and market online if you rely on foot traffic sales?
As we traverse through this changing world, one thing is clear: business is not the same as usual. Even as businesses begin to reopen, operations won’t look as they once did. Whether you have to function at reduced capacity, or customers are staying closer to home, this pandemic will impact your revenue projections for 2020.
If you operate a traditional brick-and-mortar business that relies on customers coming to your location for sales, what can you do? How can you sell to customers that aren’t coming through the door? How can you continue to see the same volumes that you saw pre-pandemic? One word: Online.
This virus has changed the way we use the internet, but it is also going to change the way we do business. As work, schools, and families transitioned home, they made many changes to their lifestyle and doing business online became the new normal.
If you’re feeling underprepared or overwhelmed, it’s okay. Here are five easy tips that will impact the transformation of your business into the digital world.
Do you have a social media presence? Are you selling online through social networks? Whether you are utilizing a specific inventory shop or simply posting items for sale, this is a great strategy. Customers may not be browsing in your store, but they are browsing online.
We have seen many businesses use social media to develop creative sales methods during this pandemic. Consider having a live auction on Facebook Live for selling overstock, a weekly special that requires an entry to win, or a “deal of the day” that can only be purchased through Instagram. The possibilities are endless!
Do you have gift cards available? Can customers easily buy them online? While we are “all in this together” and many want to #BuyLocal and #SupportLocal, your customers may not feel ready to engage as they once did. Make it easy for the community to support your business by purchasing gift cards. Why do you think Amazon gift cards are such a popular gift? They are easy to buy and easy to give.
If you don’t have gift cards yet, you are just a few clicks away from being able to sell them in-store and online.
Google is doing its best to help all organizations during this time and has made several changes to help maximize their online presence.
4. Create a Community
Staying connected while staying apart has proven to be one of the biggest challenges for organizations during this pandemic. How can you connect with your customers virtually and create the same environment when you aren’t in all one location? It’s time to create your own community.
Start a Facebook Group for VIP Insiders. Host virtual Zoom parties or Google Hangouts. Having a live event at your establishment? Steam it online and offer “event kits” that viewers can order ahead of time to participate at home. The important thing is to stay connected with customers and stay front-of-mind so when it is safe to reopen, you are fully booked.
As you get back to business, think about what you can do differently. People are bored. People are tired. What can you offer them that will make this situation a little more bearable (and make you a profit at the same time)? Here are a few examples others have done:
This isn’t a complete list, but it’s a great place to start. It is easy enough to accomplish in one weekend, it doesn’t take a technology expert to implement, and it is something your business will need to survive.
If this feels overwhelming to you, you aren’t alone! Outsourcing some or all of this work is an option and may end up saving you time and money in the long run.
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I know, I know…it sounds too good to be true. And, your mother always told you if something sounds too good to be true, then it probably is. And, I would normally agree with her on this (and almost anything else because MOMS ROCK!) But not this time. She’s wrong (sorry, Mom). You CAN hire an entire marketing team for less than the cost of a single employee. How?
Hire a Marketing Agency.
According to Salary.com, the average annual salary for a marketing manager in the Detroit metro area (near where the agency I work for – full disclosure – is located) is $104,164. That’s about $8,680 per month. For that amount, you can put a marketing agency on retainer. “But,” you say, “that is the SAME cost, not less.”
That’s true…but it’s not.
The $8,680 a month you pay the marketing agency is the “all-in” price. For your employee, you still have to figure in the cost of (among other things):
• Payroll taxes
• Benefits
• Hiring/Onboarding/Training
• Software
• General overhead like rent (for their desk space), air conditioning (for their comfort) and paperclips (for their papers …and “art sculptures”)
Looking at all the additional expenses on top of a base salary makes it easy to see how it actually costs LESS to hire an agency. “But,” you insist, “my marketing employee is still dedicated to me alone, and the agency won’t be.”
You’re right, and that’s good…but it’s bad.
Having a full-time, dedicated employee means you need to provide them with full-time, dedicated work. Many small to mid-size businesses don’t always have enough marketing work for a full-time employee. More likely, however, they have marketing work that requires a full-time effort for a while, then can slow way down or stop altogether before picking back up to full-time…for a while. (You see where I’m going here, right?)
Because agencies work for multiple clients, they can work with your fluctuating workloads. They can assign your work the resources it needs when you need them. And, they can reassign them to another client’s work when you don’t. The best part is that you usually only pay for the time they work on your projects. So, you are paying only for the time you use.
“That’s ridiculous,” you say, “I run a small business, and I have plenty of marketing projects for a full-time employee. I would rather have ‘my marketing gal’ (or guy!), ready to do it all.”
And, that’s a really great idea…for a bad idea.
Most businesses today require a mix of marketing skills to be successful. Graphic design, writing, web design, web programming, social media, and public relations are all skills that will probably, from time-to-time, be needed to effectively market your business.
And, with the speed at which technologies, software, methodologies, and best practices are changing in all of these areas, it is impossible for one person to possess all those skills and maintain them to the level necessary for your business to use them effectively.
When you work with an agency, you have a team of specialists and subject matter experts at the ready—each with specific expertise in one or two areas of marketing. This exponentially increases your access to QUALITY knowledge and resources to grow your business.
To be fair, not all agencies have staff who specialize in every area of marketing. But, they do have relationships with a stable of freelancers and partnerships with specialty agencies (like videography or web design companies) that they can call on as needed. So, with an agency, you’re always covered with top-notch resources.
“All of this sounds great,” you’re now thinking, “but working with an agency just isn’t right for me and my business.”
And that may be true…but it’s most likely false.
OK. I’m going to say this just once so listen up: You may be better off hiring a marketing employee than you are if you hire a marketing agency. Your business is YOUR business. And, you may be one of those people who likes to do certain things in very specific ways…like your marketing. I can relate. I’m like that. So, if you are dead-set on hiring a marketing staff member. Go for it.
But, marketing agencies come in all shapes and sizes, and I guarantee you there is one out there for you when you are ready.
For instance, many agencies work only with clients in one or a few industries. Other agencies work with companies of a certain size or within a certain geographic area. And, there are agencies of all sizes – from a few to hundreds of employees. Plus, you can find agencies that work with every size marketing budget and project workload.
But the one thing that is the same with any agencies is that they measure their success by your success. Any agency worth its salt wants to find and retain only those clients who are going to succeed by working with them. And, if—or when—that is not true, they part ways amicably, and will even help you find an agency that is a better fit.
I know what you’re thinking now — “I need to hire a marketing agency!”
And you are right. Absolutely right.