April
In This Issue
Welcome to the April edition of News from Sue Henry
This month we ask the thought provoking question "What would you do if I gave you $50,000 to invest in marketing your business?" we review the book "22 Immutable Laws of Marketing" by Al Ries and Jack Trout. And include a link to our new on-line networking site.
What would you do if I gave you $50,000 to invest in marketing activities for your business?
Imagine that I walked into your office today and offered you $50,000 to invest in marketing your business no strings attached just a cash injection to your marketing efforts. How would you feel, Relief? Thankful? Confident? Confused? Excited? Enthused?
This is usually one of the first questions I ask of my customers when we are discussing their marketing efforts, it helps me to determine exactly how much thought they have put into their marketing strategies and to identify the best recommendations to move them forward.
Recently I was with a customer and asked this question their response was "I'd definitely invest in a new website" I was pleased that they knew where they wanted to invest the money. However, the more we discussed how the new website would operate and how they wanted it to reflect their branding and act as an information point for new customers some loud alarm bells started to ring in my ears. Here was a customer that was willing to spend up to $50,000 if funds were available, and most alarming they had already been quoted $10,000 for a new website when in fact all they needed was a better web solution.
After a few more questions and a couple of phone calls they had their new website and get ready for this it cost a grand total of $1,200! Now they have exactly what they NEED and they saved themselves over $8,000. The scary reality of this scenario is that as business owners we do not always have time to research and determine the most appropriate investment of our marketing dollars. We tend to rely on 'experts' to provide guidance, advice and importantly 'a fair deal'.
Websites are only one aspect of the marketing mix, and the reality is I hear these stories of over quoting on what should be 'reasonable costed' marketing activities which often result in business owners not spending anything on their marketing limiting then what they want to achieve. In fact one of the reasons I started my business was because I saw numerous business owners spending outrageous dollars on marketing initiatives in the tourism industry where they were never going to see a return on their 'investments'.
Normally the response I get from my customers is 'well how do I avoid making these mistakes?" My answer is always the same "create a marketing plan and stick to it".
Here are some key elements to include in your plan:
Ensure marketing activities drive sales activity
You must ensure that your marketing activities are designed to drive sales activity, when designing your strategies ensure that the marketing element you are selecting is directly linked to a product or service promotion to assist in driving sales activity. For example let's say you are a company selling personalised collars for dogs and part of your marketing plan is get 'get some exposure' in the media. While getting exposure is great to assist in building your brand what you really want is to drive people to either purchase from your website or visit and buy from your store. In this instance you would include a PR strategy that includes a 'special offer', your website details and/or your street address. In marketing terms this is your HOOK to get the customer to purchase from you.
Research and compare apples with apples
I mentioned the website example earlier, you do need to compare apples with apples in this case that's what we did and saved a lot of time, money and frustration. Call your business buddies or feel free to call our office 1800 88 5650 if you are not sure what you are purchasing often I see small business owners spend money without this research because they simply do not know where else to go. You do not have to do it on your own! Often our business friends have learnt the hard way and can provide invaluable advice to save us time and money.
Develop a calendar for activities
Map your marketing activities onto a calendar so you can see clearly when they will occur and that they are not competing against one another and you are utilising the activities in the best 'peak' periods for your customers and business.
Make sure your activities compliment one-another
Your marketing activities need to compliment one another, more often than not I see business owners put together a website strategy, PR campaign, advertising schedule, networking activity as separate entities and not look at how they can work together. Ask yourself some simple but powerful questions when embarking on these ventures, for example if you are putting a new website together how will you promote it? Will your 'look and feel' match the branding on your business cards, signage, and other materials?
Imagine your marketing like a jigsaw puzzle
In order to successfully finish the puzzle all the pieces need to fit together in a particular order! Each will have it's unique shape and place so will your PR, Advertising, Networking, Sales Activity, Promotions, Website, Newsletters, and other activities to complete your marketing plan.
Determine your marketing budget and stick to it
You need a marketing budget! Mostly because it will help you assess how your marketing dollars are working for you and you can accurately work out your return on investment. But importantly working to a marketing budget will assist in you looking at the whole picture of your marketing rather than one aspect.
I'm asked often how much should be put into the marketing budget and my answer is always the same - how much does it cost you to make a sale? knowing this will assist in setting a budget as a rule of thumb many businesses will invest between 3- 5% of their profits back into marketing. Many businesses that I work with have low budgets especially when they are starting out and some work with a set amount each month. In order to best calculate what you need in your marketing budget assess your sales goals and ask the question 'how much will it cost to make these sales?' Email our office if you would like a list of marketing activities and some average costings.
Make some time to sit down and work out your marketing plan and determine the exact costs involved in your marketing activities and don't forget to shop around for the great deals or importantly the deals available for small business!
By the way if I had $50,000 to give you today I would have one condition on giving it to you... that you spend first $1,500 -$2,500 working on your plan.
Take action today with one of these marketing plan ideas
1. Print out a calender for the next three months and plot on that calender either your marketing ideas or your planned activities and determine if they compliment one another
2. Assess the costs associated with each marketing activity you have undertaken in the past 6 months and measure it against your returns.
3. Sit down with a business friend and discuss the ideas that worked and the ones that didn't and determine what you can do today to improve your results
Book Review - The 22 Immutable Laws of Marketing by Al Ries & Jack Trout
An oldie but a goody! I first read this book back in the mid 90's and have been applying it's strategies in one form or another with great success, like any marketing text you should adapt the model and message to fit your personal situation. There are several other texts by the same authors including branding and Internet marketing worth a look at as well.
I recommend that you buy the book (simply click on the book image) and implement the strategies suggested and accelerate your business.
Featured Link- Sue Henry's Networking Group
Join Sue Henry's on-line networking group to assist in developing your offline networking skills, you can network with other members, contribute your networking ideas, promote your business, discuss your challenges and possibly create new business opportunities. It's free to join!
Visit Sue Henry's Networking Group
I'm presenting at the following functions in the next month, I'd love to see you at one of them! Simply click through to register:
17 April 2008 Penrith Home Based Business Network - Accelerate 08 - Penrith
6 May 2008 AIM (Australian Institute of Management) - Accelerate Your Networking Skills - North Sydney
7 May 2008 Business Women Connect - Seek, Secure and Maintain Customers - Central Coast
One last thing...
"Definiteness of purpose is the starting point of all achievement".
- W. Clement Stone
Have a great month!
Sue Henry
PH: 1300 88 5650
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