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A Simple Guide To Your

Small Business

MARKETING PLAN

YOUR PLACE IN THE

MARKETPLACE

Illinois Small Business Development Centers

"Experts, networks, and tools to transform your business"

Illinois Small Business Development Centers

(SBDC) provide information, confidential

business guidance, training and other

resources to early stage and existing small

businesses.

Illinois International Trade Centers (ITC)

provide information, counseling and

training to existing, new to-export

companies inte

rest

ed in pursuing

international trade opportunities.

Illinois Procurement Technical

Assistance Centers (PTAC) provide one-

on-one counseling, technical

information, marketing assistance and

training to existing businesses

that are interested in selling their

products and/or services to

local, state, or federal

government agencies.

Technology, Innovation and

Entrepreneurship Specialty

(TIES) ten SBDC location

help

Illinois businesses,

entrepreneurs and citizens to

succeed in a changing economy by:

developing the skills of their workers;

promoting safe and healthy workplaces;

assisting in the commercialization of new

technologies; and providing access to

modernizing technologies and practices.

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Technology Services

See Northeast Region map on other side

for Business Center Services in that area.

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800-252-2923

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*See the Northeast Region map on the last page

for the Business Center Services in that area.

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Below

Got a good product?

A great service?

Unfortunately,

that’s not enough

A S I M P L E G U I D E T O Y O U R S M A L L B U S I N E S S M A R K E T I N G P L A N

Product

This guide adds a fifth

and crucial “P” to the mix.

Today, smart, targeted, relentless

marketing is often the difference

between a business that has reached

a plateau and one that has reached its

potential. Savvy entrepreneurs who

respect the power of marketing set

aside money for it in their annual

budgets. They think of marketing not

as an expense, but an investment.

In simple, easy-to-understand language,

this book aims to take the mystery out

of writing a marketing plan.

Between the covers is a basic

framework for “selling yourself” as a

company. Whether you’re a retailer or

a manufacturer, whether you sell a

product or service, whether you operate

from a storefront or on the Internet —

thinking like a marketer is the first step.

Remember that your business is not a

photo, but a video. Industry trends,

consumer sentiment and the economy

— these are all in constant motion and

so you must be, too. Your “5Ps” must

change, grow, adjust and evolve.

This book explains the classic “4Ps,”

which make up the four corners of

a marketing foundation:

s there

a demand?

How will you

differentiate

yourself from

the crowd?

Price

How much

is too much?

Are sales

high, but

profits

low?

Promotion

How will

you create

awareness?

Can effective

marketing be

exciting, too?

Place

How will

you connect

your product

or service

with your

customers?

Plan

Without

one, your

efforts will

be scattered

and your

results not

measurable.

P A G E

This material is not intended to provide or take the place of legal or professional

financial advice. If you need advice, look for a professional financial manager,

consultant, accountant and/or attorney.

Design and Text: © NewGround Publications. (Telephone: 800 207-3550).

This book may not be reproduced in any form, including xerography, or by any

electronic or mechanical means, including information storage and retrieval

systems, without prior permission in writing from the publisher. 0212

A Goal Isn’t a Goal Unless

You Write It Down

Make marketing real. Start by physically setting

yourself up. Organize a ﬁle system, with clearly

marked folders. Add marketing folders to your

computer’s hard drive.

As you begin to think about your goals and plan

of attack, always write them down. Keep paper

and pen nearby so your thoughts won’t get lost

in the shufﬂe. And be speciﬁc!

Now, respect your plan and chip away at it. And

when you’re feeling overwhelmed, it helps to focus

your energy. Circle one thing on your list to work

on, cross it off the list — and your sense of accom-

plishment will fuel you to tackle the others.

Without a Target

There’s No Bullseye

No doubt, you’ve heard the phrase “target market.”

So what is it? The best way to illustrate the point

would be to squeeze out an example.

Take toothpaste. In the old days, it was pretty

much a one-tube-ﬁts-all product. There were a few

brands to choose from, with very little difference.

Have you walked down the toothpaste aisle lately?

There’s kids toothpaste, whitening toothpaste, sensi-

tive teeth toothpaste, baking soda toothpaste,

striped toothpaste, ﬂuoride toothpaste…the

selection is telling, indeed.

Segmented markets produce the greatest sales

potential. Put another way, don’t try to be all things

to all customers. Reﬁne your efforts. Focus on the

most targeted segments of the market, the ones

you can serve best.

Know Your Audience

How do you ﬁnd segmented markets? You must

think constantly about who your customers are.

In what ways will they use your product or service?

How often will they buy?

If you’re targeting consumers, think about their

age, income, gender, education, marital status,

profession, lifestyle, hobbies and household size

in relation to your product or service.

If you’re targeting businesses, what size are they?

Think about segments in terms of annual sales,

number of employees, number of locations, etc.

Gather market research at every opportunity.

There’s a wealth of data on web sites, at the library,

in magazines, newspapers, reference books and

trade journals. The government is a good resource

for information and statistics.

Lastly, ask! Talking to your existing clients not only

makes for good customer relations, but it can also

bring great insight into the best way to target new

ones. Find out what your customers like, what they

want and what they need — then give it to them.

Treasure Your

Existing Customers

All too often, small business owners make the

mistake of thinking that marketing is only to attract

new customers. What about the ones you already

have? They’re a captive audience, already “sold” on

your company, so don’t forget to let them know

how much you value their business.

Keep a detailed list of your customers and study

it. Break the list down however you like: by sales

volume, buying frequency, etc. Review patterns.

If a customer tends to buy heavily in the spring,

contact them in March.

arketing your small business may seem like a daunting task, but like all tasks, the first

step is to formulate a plan. Remember that lenders look closely at your marketing plan

in relation to your financial statements.

You need to designate a specific amount of money in the yearly budget for marketing. Keep

in mind that new businesses often require more marketing dollars to establish themselves

than companies who have already made a name for themselves.

Y O U R P L A C E I N T H E M A R K E T P L A C E

Plan

Convince Customers

They Need You

Before They Need You

Marketing can be “passive” or “aggressive.” The

result of passive advertising is that you wait until

a customer needs you. Aggressive companies don’t

wait; they create opportunities. They know that

marketing consistency wins customers long before

they need you.

For example, Pipe Dreams is a small plumbing

and heating company. Their ad used to appear in

the local phone book and customers would call

when their hot water heaters burst. That was

passive advertising.

Now Pipe Dreams places frequent ads in the

community, sends out fridge magnets and buys

radio time. The strategy is, the next time a potential

customer’s water heater breaks, Pipe Dreams will

be the ﬁrst plumber that comes to mind.

Advertising Is Marketing,

But Marketing Isn’t

Just Advertising.

The ways to market your business go way beyond

placing an ad in your local paper. The overall mar-

keting might include sponsoring a cultural event,

participating in a trade show or appearing on a

local radio show as a guest. Your efforts should be

diverse and ﬂexible.

Tune In to Frequency

The owner of a small business runs an ad every

quarter and comes to the conclusion that “Ads just

don’t work!” Remember, once isn’t enough. The

goal is to become a constant presence rather than a

ﬂash in the pan. For example, rather than running

one big ad in your industry’s trade journal every

quarter, place smaller ads once a month for a year.

Use Downtime to Move Up

If your sales slow down, don’t slow down your

marketing efforts. Not being consistent is a classic

mistake. Use slow time to restore and create

demand with aggressive efforts. Remember that

the only thing you’ll get from less marketing is

less business.

Be smart about when you place ads. For example,

a local magazine rep calls offering a small interior

design company ad space in an upcoming design

issue. But how many similar companies will be

advertising as well? Wouldn’t it be a better idea to

hold off, to capture more “quiet time” with

prospective clients?

Step Outside The Box

Thinking creatively about where to market should

be at the foundation of your efforts. Suppose you

own a small ﬁnance company. Don’t automatically

place ads in ﬁnancial journals. Instead, how about

your ads appearing in home construction magazines?

Always think of places to reach an audience where

you’ll have the greatest impact.

A S I M P L E G U I D E T O Y O U R S M A L L B U S I N E S S M A R K E T I N G P L A N

Plan

Because marketing needs and costs vary widely, there

are no simple rules for determining your budget. A

popular method among small business owners is to

allocate a percentage of gross sales for marketing.

But if you’re launching a new business or product,

the challenge will likely demand a larger ﬁnancial

commitment.

Another method used by small business owners is to

analyze and estimate the competition’s budget, then

to use it as a guide when determining your own.

Once your Marketing Plan is complete, estimate the

costs of each marketing activity you have described,

and arrive at a grand total. Having a “hard number”

will help keep everyone on track over the course of

the coming year.

Your Marketing Budget: How Big Should It Be?

F. Y. I .

Maxtronics, a retailer of electronic games with

three locations, might have a Marketing Budget

that looks like this:

Direct mail printing . . . . . . . . . . . $5,000

Direct mail mailing cost . . . . . . . . $2,000

Web site development . . . . . . . . . $5,000

Development of ads . . . . . . . . . . $2,000

Ad space in local magazine . . . . . $3,000

Sponsorship of “Today’s Gear”

radio show . . . . . . . . . . . . . . . . . $2,000

Booth at Teen Expo . . . . . . . . . . . $3,000

Production costs –

T-shirts/temporary tattoos . . . . . . . $1,000

Total marketing budget . . . . . . . . . $23,000

Staying Flexible

Is Part of Growing

In order to stay vital, most businesses have to

practice ﬂuid thinking. Revising, adjusting and

improving products and services to meet customer

needs will keep you vital. If a particular product

isn’t selling, why offer it? If another product is

selling well, expand on it.

Take the example of The Mouse Trap, a small

business that custom builds computers and sells

them in a retail space. When it seemed that 8 out

of 10 customers inquired about tutoring, a light

went off in the owner’s head. A few weeks later,

he was offering evening classes, and even making

house calls to his customers, who were willing to

pay handsomely for help with their new machines.

He expanded his services to meet the demand

of his customers.

Service Is

Everybody’s Product

All the marketing in the world can do but one job:

bring customers to you. What you do with them

then is your choice. It matters very little whether

you landscape gardens or sell shoes — customer

service should be every business owner’s priority.

Your corporate culture or the standard of behavior

you set for your company is key. Are salespeople

friendly and helpful? Is the phone answered

politely? Do you follow a sale with a thank-you

letter, a phone call or an e-mail? The way your

business “behaves” is marketing in action.

Asking friends to act as undercover customers can

give you unbiased feedback about how client-friendly

your business truly is. Whether ordering a thousand

widgets from your manufacturing facility or drop-

ping off some dry cleaning, their feedback on the

experience can be invaluable.

Discovering Your

Features & Benefits

All products and services have features and beneﬁts.

Features are your products’ characteristics that trans-

late into beneﬁts. For example, an air mattress with

an attached pump is a feature. The beneﬁt? The

pump takes the work out of making a guest bed.

Features are easy to point out, but describing

beneﬁts may take more thought. Beneﬁts that pro-

vide emotional or ﬁnancial rewards are especially

attractive to people. Financial rewards allow the

buyer to save money, make money, or gain time

(since time is money). Emotional rewards allow

the buyer to feel better.

> An emotional payoff: the beneﬁt of low-fat

cookies is not reduced caloric intake; it’s what

a thinner body might bring.

> A financial payoff: the beneﬁt of professional

asset management is not retiring with more

money, but being able to enjoy your golden years.

Reap The Benefits of

Asking Your Customers

How do you clearly identify your beneﬁts? Con-

sider your target markets’ viewpoints. Develop

surveys. Talk to customers and ask them for

suggestions or ideas for improving your products

and services.

Look at who has purchased your product in the

past. Develop proﬁles (a list of information)

about these customers. What do the proﬁles tell

you about your beneﬁts? On the reverse side,

understand the value of customer complaints.

What beneﬁts are missing? You could even train

employees to question customers about what they

like and don't like.

Once you know your beneﬁts, use them relentlessly

in your marketing material and in all selling situations.

hy should someone use your product or service? What do you have that your

competitors don’t? Your Unique Selling Proposition (USP) should be the

cornerstone of your thinking when designing and marketing products. Your product or

service must have the potential to sell. Make your product or service stand apart from

he crowd in any way you can. Make sure there’s a demand for it.

Y O U R P L A C E I N T H E M A R K E T P L A C E

Product

Competition: Know

What You’re Up Against

Business is highly competitive. If you’re not aware

of your competition, how will you offer customers

omething different or better? Don’t just compare

obvious things like product and price. Compare

your quality, promotion, perceived value, ﬂexibility,

restige, knowledge, innovation, reliability, and

schedules. It will become obvious where your

business needs to improve.

Find out the answers to these questions:

쩧

Who are your closest competitors?

쩧

Are these businesses growing or shrinking?

쩧

How do they run their operations?

쩧

What are their strengths and weaknesses?

쩧

How do their products and services

differ from yours?

쩧

In what ways are they the same?

쩧

What are their sales strategies?

쩧

Who are their target markets?

쩧

How do their prices compare to yours?

Information Is a

Powerful Tool

Create a ﬁle for each of your competitors. Include

their advertisements, promotional materials, prices,

and any other research you gain. Review their mar-

keting materials throughout the year for content and

frequency. Know what promotions they run, when

they offer sales and what events they sponsor.

Where can you gather data on your competition?

These days, it ﬂows freely. Log on to their web

sites, search the Internet, ﬂip through written sources

(local newspapers, industry/trade publications) and

attend trade shows where they exhibit.

There’s no rule against doing a little investigating to

explore the ﬁeld you’ll be playing on. Pick up the

phone, log on to your competitor’s web sites or visit

in person. If you’re uncomfortable doing this your-

self, or you think a competitor would be resistant to

your visit, send a “secret shopper” instead.

Differentiation

A thorough understanding of your beneﬁts com-

pared to your competitors’ allows you to compete

hrough differentiation. Now you can explain how

your product is different or better — your Unique

Selling Proposition.

What happens if your product or service really isn’t

ll that different? Keep in mind that a company

differentiates itself when prospects and customers

perceive it to be different. How can you create

his deﬁning factor?

• Be New Be the ﬁrst to offer a new product

or service. There can only be one “ﬁrst,” so

claim the leader position if you can.

• Be Improved Improving your product or service

shows you care about customer satisfaction.

Remember, when you modify your product’s

features, beneﬁts will change.

• Be Creative For example, by putting products or

services into groupings, you can create perceived

value. A hair salon charges one price for a cut,

another fee for a color. When they decided to

add in a blow dry and call it the “Total Trio,”

sales went up.

A S I M P L E G U I D E T O Y O U R S M A L L B U S I N E S S M A R K E T I N G P L A N

Product

Little Things Count

Any opportunity you can seize — or create — to

further your marketing cause deserves consideration.

Be a relentless promoter of your business. Get

creative. Have fun! Remember that little things

can equal big impressions.

• Suppose you own a restaurant. The wait staff

includes a response card with every check,

asking about the food and service, and for

a mailing address. The card also asks for a

birthday (month and day only). A month be-

fore the big event, you send a mailing offer-

ing them a complimentary birthday cake if

they celebrate at your restaurant. The mailing

costs a few dollars, the cake may cost you

$30, but you get $400 in business and 15 new

people who can now tell others about your

wonderful restaurant.

• If you own a windshield repair service, every

car that leaves your premises is vacuumed and

given an air freshener.

• Your delivery service gives the client a choco-

late bar each time you pick up a package.

ADJUSTING A PRODUCT’S BREAK-EVEN POINT

Lower variable expenses to 60% and proﬁts rise to $100,000.

$500,000 100% Sales

- $300,000 - 60% less Variable Expenses

$200,000 40% Margin

- $100,000 less Fixed Expenses

$100,000 Proﬁt

Raise prices to increase sales to $800,000

and the proﬁt rises to $140,000.

$800,000 100% Sales

- $560,000 - 70% less Variable Expenses

$240,000 30% Margin

- $100,000 less Fixed Expenses

$140,000 Proﬁt



othing is more important than the price you get for your products or services. You must

offer them at prices your market is willing to pay, yet ensure that you make a profit.

Y O U R P L A C E I N T H E M A R K E T P L A C E

Price

To determine your break-even

point, you must know your ex-

penses. Expenses can be di-

vided into two categories:

쪧

Fixed expenses do not change whether sales are up or down.

For example, your rent.

쪨

Variable expenses do change. Factors that might affect these expenses

are inventory costs, sales commissions and how good or bad business is.

ADJUSTING A SERVICE’S BREAK-EVEN POINT

Lower the assistant’s rate and proﬁts are $140,000

$200,000 2,000* hours x $100 per hour

- $30,000 less Fixed Expenses

- $30,000 less Variable Expenses (2000* hours x $15 per)

$140,000 Proﬁt

Raise the hourly fee to $125 and proﬁts are $170,000.

$250,000 2,000* hours x $125 per hour

- $30,000 less Fixed Expenses

- $50,000 less Variable Expenses (2000* hours x $25 per)

$170,000 Proﬁt

Reaching the Break-Even Point

A company is at the break-even point when it has neither a proﬁt nor a loss. For example, if it costs you $500

to produce a product and you sell it for $500, you are at the break-even point — with $0 proﬁt or loss.

Pricing for Profit

You’re in business to make money, so sales and expenses

must be adjusted to gain the proﬁt you want. These adjustments might include

increasing your sales, raising prices or fees and lowering expenses.

This example is based on 2000 billable hours

annually (250 days a year x 8 hours a day = 2,000

hours). Why not 365 days? Subtract for holidays,

vacations, sick days, and non-billable activities.

FINDING A SERVICE’S BREAK-EVEN POINT

Example: Ezra’s Interiors charges $100 an hour for design

services. Rent and other ﬁxed expenses total $30,000 annually. The

ﬁrm has one project assistant who is paid $25 an hour.

$30,000 Fixed Expenses

÷$0.25 Variable Expense (divide $25 paid to the assistant

by the $100 hourly fee). Math Reminder .25=25%

$120,000 Sales needed to cover expenses or break-even

The $100 hourly charge does not create a proﬁt since the break-even

amount is $120,000.

$200,000 Sales ($100/hour x 2000* billable hours)

- $30,000 less Fixed Expenses

- $50,000 less Variable Expenses

($25/hour to assistant x 2000 hours)

$120,000 Proﬁt

The hourly rate must be increased or the assistant’s fee must be lowered.

FINDING A PRODUCT’S BREAK-EVEN POINT

Example: Colina Corkscrew Inc.

$500,000 100%

Total Sales

- $350,000 - 70% less Variable Expenses

(cost to produce $500K in products)

$150,000 30% Margin/Proﬁt

- $100,000 Total Fixed Expenses

$50,000 Proﬁt

$100,000 Total Fixed Expenses

÷ 30% divided by the Margin

$333,333 Sales needed to cover expenses

or break even

To increase proﬁts, lower expenses or increase sales.

A S I M P L E G U I D E T O Y O U R S M A L L B U S I N E S S M A R K E T I N G P L A N

Name Your Price

Fair pricing is a delicate balancing act. Charge too

little and your proﬁts are too low — charge too

much, and your sales go down. So how do you

determine a fair price for your product without

pricing yourself out of business?

Think of your cost (what it costs to offer your

product or service) as the ﬂoor, and your product’s

perceived value (what you sell it for) as the ceiling.

Somewhere between the two is the right price —

the price that seems fair to your customers and

brings you a proﬁt.

What Will The Market Bear? How much are your

customers willing to pay? For example, a company

produces widgets for $2 each and they’re a top

seller. The price is raised to $2.50 and sales come

to a screeching halt. The good news is, they’ve

learned what their market will bear.

Consider Price and Demand Sometimes it’s more

important to consider a product’s total contribution

to proﬁts rather than what it’s sold for. For example,

the owner of a coffee shop wants to sell a new

popular frozen drink which costs him $1. Based on

his research, he found he shouldn’t sell the drink for

the highest price ($5) or for what will move the most

number of units ($2). The best price ($3) maximizes

the item’s contribution to his proﬁt. The coffee shop

sells the drink for $3, but its “total contribution” is that

it brings people in who buy a mufﬁn as well.

Perceived Value. Determining a price for your

product is based on many factors, but don’t forget to

consider perceived value. Suppose you were asked

if you’d pay $40,000 for a car. Your ﬁrst response

would be, “What kind of car?” This simple exchange

illustrates the two main ingredients in the pricing pie:

what you will pay vs. what you expect to receive.

Value-based pricing goes beyond a standard

mark-up method, allowing you to think about your

business from the customer’s perspective, their per-

ceived value of your product or service. Understand

the perceived value of your product or service by

studying its consumer beneﬁts, convenience and

quality. Factor in your company’s image, reputation

and packaging. Think about customer demand and

competitive prices.

For example,

Copy To Go comes to its customers to

pick up printing jobs, then delivers when the job is

done. Because this convenience eliminates an hour

or so of down time for customers for every job,

Copy To Go can charge more than the printer down

the street who doesn’t offer these services.

Price

A Few Value-based Pricing Strategies

• Aim High There are instances when you can

charge a high price compared to your costs: if your

product is unique and valuable, if your target

market is afﬂuent or if you’re offering something

prestigious. If you’re selling bike helmets with a

headlight built in — and no one else is — you can

probably charge more. If you have a great location

or you can offer the convenience of free delivery,

you can push your prices a bit higher.

• Custom Design Sometimes creating a product to

suit your audience affects pricing. For example,

you’re a company that designs and manufactures

solid brass doorknockers. A very upscale catalog

company wants to include them in their book. It

might be better if you developed a more expensive

collection just for the catalog’s clientele. On the ﬂip

side, if you were a ﬂorist doing business in a work-

ing class neighborhood, it would be smart to offer

more affordable bouquets.

• Stay the Same. Keep your price the same as

your competitors when offering a similar product or

service, when prices are well-established or when

you have nothing that would justify a higher price.

• Go Low. A low-price strategy gains customers

who are price sensitive, allowing you to create

awareness and establish your business. Make sure

you are producing a proﬁt. If your prices cannot

be the cheapest, make customers believe they're

getting something special for the extra expense.

• Give Them a Break. Consider offering cash

discounts to customers who pay promptly, since they

help you maintain a positive cash ﬂow. Offer quantity

discounts on large orders, since the cost-per-unit to

sell or deliver your product will likely go down.

• Mix It Up. Price some products low to attract

customers, but put a higher mark-up on other

items to make up for it.

• Pricing Is Not Forever As your business grows

and changes, be sure to ﬁne-tune your prices.

The factors that determine the price of your product

— cost increases, seasonal demands, product

upgrades — change. While you don’t want to

confuse your customers with constant price adjust-

ments, don’t be afraid to revisit the math regularly

to make sure you’re still turning a proﬁt.

• After The Sales Don’t forget to factor in what it

will cost to service the customer after the sale. Do

you provide customer service, technical advice,

maintenance, returns or exchanges? All these costs

should be included in the pricing mix.

Y O U R P L A C E I N T H E M A R K E T P L A C E

The Playing Field

The world we live in is exploding with marketing

messages. Today, we are marketed to when we’re

put on hold, when we rent movies, go online, open

our bills, even when we pump our gas. This week

alone, you’ll be bombarded with thousands of

marketing messages.

Just notice what happens on the TV screen as the

credits are run after your favorite show. You might

see the logo of your local TV station, a sponsor logo

and slogan, a current event headline, the time and

temperature, even the weather forecast, all on screen

at the same time! What a telling example of how

inundated with information audiences are these days.

Less Is More

Trying to jam every little point about your product

into one ad is a great way to make sure none of

them get through. Smart communication is built on

a foundation of discipline. Exercise restraint con-

stantly. Choose your information wisely, for it will

be competing with scores of other messages. (Will

“free parking” really attract more customers?) If

you have a list of ten points you want to make in

a communication, include the top one or two only.

Trust that once you gather customers, you will have

the opportunity to make the rest of your points.

Mix It Up

Don’t put all your marketing eggs in the same bas-

ket. Try a variety of marketing vehicles, and in dif-

ferent combinations. You’ll soon get a feel for which

ones work. For more information about media

choices, see page 12.

Back Into Your Message

Smart communication isn’t what you want to say,

but saying what your audience wants to hear. This

strategy grows from one of the basic principles of

marketing: to know your audience. If your response

cards and customer surveys show that your clients

care about price above all, then make price your

lead point. Make it your business to ﬁnd out what

your audience wants to hear, and gear your mes-

sages accordingly.

The Glaze Phrase

“Great quality at great prices.” “We value our

customers.” “The best for less.” Consumers have

heard these clichés a million times, so what makes

you think they’ll listen when you say them? Use

marketing language that’s fresh and interesting.

Instead of saying, “We have a large selection,”

how about, “You’d have to go to China to ﬁnd

more varieties of tea!” Say the same old thing, but

in a brand new way.

Remember that telling isn’t necessarily selling.

Consumers read from one point of view: “What’s

in it for me?” So instead of listing a feature of your

product (“Our travel agency offers electronic

ticketing”), talk about the beneﬁt to your customer

(“Save time, gas and parking hassles — one click

of the mouse and you’re on your way!”).

C O M M U N I C A T I O N B A S I C S

reating effective ads, designing brochures, developing web sites and writing press releases is

challenging. But, armed with a few basics, you can have fun promoting your company.

Promotional materials serve as “reminders” of the benefits of your products and services. Every

iece of promotion you do is another step toward building your company. Each one encourages

existing customers to buy more and attracts new customers to replace lost business. Remember,

your promotional efforts probably won’t create an instant customer base or cause sales to

skyrocket. Growing a business takes time, perseverance and consistency.

Hiring graphic designers, copywriters, mailing houses and printers to promote your business gives

you a polished image. Find creative professionals by looking in the yellow pages, searching the

Internet and asking for referrals from other small businesses.

Promotion

A S I M P L E G U I D E T O Y O U R S M A L L B U S I N E S S M A R K E T I N G P L A N

Y O U R I M A G E

Your Name

Marketing starts with your company’s name. Smart

marketers know that it’s a big task to get consumers

to remember a name, so make sure your name is

simple and memorable. If you repair computers,

which name would be more consumer-friendly:

JB Computer Repair or The Mouse Trap?

Make sure your name isn’t already “taken.” One

determining factor might be, “Is the name available

for a web site?” You can go online and check your-

self. An attorney can check for registered trademarks.

Contact your Secretary of State’s ofﬁce to see if a

company name is being used in your state.

Your Logo

A company’s logo — the symbol that represents the

business — is the very foundation of your image. A

logo should be easy to recognize

and read, whether it’s large or

small. Color helps to “brand” your

company. Once you settle on logo

colors, use them persistently to

help customers associate you with

them. Put your logo everywhere

— on your products, signs, busi-

ness cards and stationery. Use it

consistently and proudly. If you

invest in making the right ﬁrst

impression, it’s likely to be a

lasting impression.

Your Tagline

Your company slogan should

be short and memorable. In some cases, it has to

work very hard. Suppose your company name is

unspeciﬁc, like Ocean State Restoration. What do

you restore: cars, homes or antique boats? In this

case, a tagline — “New life for old boats” —

is a hard-working completion to the name. Include

your tagline wherever your logo appears.

Your Packaging

Suppose someone handed you a brown paper bag

with a gold watch inside. Now imagine getting that

same watch in a sleek black velvet box, wrapped

with a gorgeous gold ribbon. Pay careful attention

to presentation and packaging. If you deal with the

public, make sure everything they see or leave with

— bags, boxes, menus, gift wrap, etc. — reﬂects

your image in a positive way.

Your Printed Material

If it’s on paper, it’s a crucial piece to your image

puzzle. Ads, direct mail, brochures and ﬂyers all

represent your image, so make sure they look

professional. But even if you don’t use any of

them, chances are you’re still using printed material

in the form of invoices or letters to your customers.

Remember, everything reﬂects your image!

Your Physical Space

Even if customers or clients rarely come to you,

there needs to be a professional standard for the

appearance of your business. Keeping it neat, clean

and pleasant affects attitude and productivity. Look

at your space through a visitor’s eyes: is it safe and

comfortable? Does it reflect the image you want? If

not, a fresh coat of paint or a storage unit can do

wonders.

Word of Mouth

In a simpler time, people shared information with

their friends and family. But today, with consumer

review websites like yelp.com and angieslist.com,

customer feedback can reach tens of thousands,

worldwide! So yes, the bar has been raised. Studies

have shown that potential customers take word of

mouth very seriously, so don’t dismiss this powerful

tool. How can it be a tool? Consider referral programs:

“Tell someone about our great service and if they

sign on, we’ll send you a $50 gift card!” A program

like that not only brings in new customers, but

fortifies the loyalty of your existing ones.

Promotion

F. Y. I .

Is Your Marketing List-Less?

Smart marketers understand that good lists are invaluable marketing

tools, and they mine for names as if they were gold. The word “lists” is

plural because, the more speciﬁc the list, the more speciﬁc you can be

in your marketing. You could potentially have a list of customers who

buy regularly, a list of customers who haven’t bought in a year, or a list

of prospective customers who’ve never done business with you.

You can rent or buy databases for just about any group imaginable. If

your business is open to the public, you could easily develop your own

list from active customers. Why not keep a book for people to sign? Or

a ﬁshbowl for people to drop their business cards in? Another idea

might be to print response cards that ask for feedback — and a name

& address.

S O C I A L M E D I A

What Is Social Media?

It’s a big topic! But if we had to come up with a

definition, it would be an analogy. Think of some

websites as a one-way street; you go there for infor-

mation and it flows to you. Social media sites are

two-way streets, where visitors contribute, partici-

pate and interact. Rather than be intimidated by this

social media explosion, think of it instead as rich

opportunity – a new technology toolbox to help

you gain, engage and keep customers.

I’ve Got a Website.

Now What?

Think of your website as a living, breathing, chang-

ing, vital portal to your business. It’s not a printed

brochure that you produce once and check off your

list. A website can bring business you never

dreamed possible, but you must be willing to care

for it. Hiring professional web developers is where

you begin (see the section named SEOs), but be sure

to ask about WCM – Web Content Management. This

application allows you to access and manipulate

your site’s content.

like Google, to be sure it appears when someone

who’s local searches for your product or service.

Monitor consumer review sites like yelp.com (free)

and angieslist.com (paid memberships) to see what

the “word on the street” is about your company.

You may want to consider banner ads on popular

sites like Google or Facebook. But why not get a

little creative? Suppose your company makes canine

fashions. You might place an ad on the website of

the local kennel that boards dogs.

SEOs

Let’s say a potential customer, who lives just 6

miles away, wants 28 replacement windows for the

Victorian home she is restoring. At the top of her

search results is a company with cookie-cutter

quality located 70 miles away. Why didn’t you

appear at the top of the list?

Getting search engines to recognize your website

for its relevance to searches – and appearing in the

highest possible “results position” – has everything

to do with SEO, or Search Engine Optimization. (If

your website is SEO-rich, it has good spiderability.)

Content can be optimized in many ways, ranging

from highly relevant words and phrases, to the

way codes are handled by the web developer, to

the regularity of blogging posts. Don’t hesitate to

discuss SEOs with your website developer.

Understand the Pace

The nature of the web is immediacy. One of the

worst things a visitor to your website can see is an

“upcoming” event from last year, or a 2-year-old

price list. It’s a good idea to designate someone –

and in many cases, that’s you – to “man the social

media.” Inquiries from your website or posts on

your Facebook page should be acknowledged

ASAP. Suppose a potential customer asks about

placing a large custom order and you’re too busy

that day to respond. It’s smart business to pop back

a reply that says, “Thanks so much for your ques-

tion. You can expect a call tomorrow.” Do, how-

ever, put time limits on maintaining all your social

media. You don’t need to post often (twice a day),

but you should post regularly (every Friday).

Y O U R P L A C E I N T H E M A R K E T P L A C E

Promotion

How Do You “Jump In?”

Let’s suppose your business has a website, but no social media presence whatsoever.

Here are some examples of easy-to-do social media entries:

• The chef at a Japanese restaurant has just prepared his masterpiece. This Tweet goes out at 11 AM:

“What’s for lunch today? Our incredible Crispy Shrimp! Chef Tanaka’s specialty is unforgettable and

affordable. Get here before it’s gone!”

• Your shoe boutiques are celebrating the season with a sale, and your Facebook post reads: “Run,

don’t walk, to our Spring-in-Your-Step Saturday! Mention this post for another 10% off. We’ll photo-

graph you in your new shoes and post them here next week. See you on Saturday!”

• If you’ve got news, share it. Here’s a sample of how a blog post might read: “Kathi Ferguson, one of

our most popular personal trainers here at Tone Fitness, has just been named Trainer of the Year by

Shape Up magazine! Kathi has been with us for five years now, and she is one of the most…”

Blogging

This funny sounding word is a combination of

“

web” and “log” and simply put, it’s an online

journal you can use to connect with, hear from

and learn about your customers. Start by

earching and subscribing to related blogs, es-

pecially from your competitors. Notice that the

most successful blogs are relatively short and

have something to say. Think about the content

that your audience wants, and write to it. Blog-

ging with regularity will move you higher up in

search results ranking. Your website company

will know how to incorporate a blog onto your

website, or you can start at sites like

www.wordpress.com.

Many companies take blogging to the video

arena and become “vloggers.” Say, for example,

you create a series of 10 videos to commemo-

rate your 10 years in business. Or you want to

highlight the capabilities of your new printing

press. An entertaining, creative, short video –

no more than a few minutes – posted on Face-

book or YouTube can be a great marketing

tool.

Blasting

Sending emails out to a mass audience is called

lasting. Just like “paper mailing,” it’s critical to

have a list of active, interested customers. So let

the gathering begin. Give visitors a place to

ign up on your website, or at your business

location – and then, romance them with special

offers that are exclusive for them. After all,

these are your “A-list” customers who have

invited you into their inboxes.

Start by signing yourself up to get blasted by

your competitors and by some of the “big guys”

like Walgreen’s, Kohl’s or Home Depot. The

emails are fully designed, full-color communica-

tions. Not to worry. You can look this good,

too. Easy-to-use companies like MailChimp,

Constant Contact, Emma and Vertical Response

will not only handle your email blasts, but

you’ll get invaluable information, too. Their

analytics will answer key questions like, “How

many people actually opened the email?” and

“How many clicked on the embedded link and

went to my website?”

The Big Four

The number of social media websites out there is staggering!

Here are four of the biggest you can use to your advantage.

A S I M P L E G U I D E T O Y O U R S M A L L B U S I N E S S M A R K E T I N G P L A N

Promotion

This is the social network-

ing “go to” site, boasting

staggering statistics! It’s

simple to create a com-

pany page, almost like a

mini website. Posting

content is equally easy,

whether it’s words, photos,

video or links. Facebook is

a good place to interact

with your customers in an

open forum.

Facebook Twitter Linkedin YouTube

It’s microblogging central!

Messages (called Tweets)

are sent out to followers

with high immediacy.

Tweets are limited to just

140 characters, so Twitter

is best used as a “buzz

generator.” One Tweet can

create multiple “re-Tweets”

and that’s great for brand

awareness.

The site that gets down to

business. Here’s where

professionals post their

résumés, do their network-

ing and read about the

latest industry trends. A

good place to showcase

your company’s profession-

alism and your highly

qualified employees.

YouTube is all about

watching videos that “You”

make. It’s very easy to

open your own “company

network” and start to build

subscribers. How can you

use YouTube? Post a 2-

minute video about your

new product line or a

recently completed project.

Y O U R P L A C E I N T H E M A R K E T P L A C E

Tools of the Trade

Media is the varied means of communication — the

ways you market your company, including print

ads, radio, television, direct mail, telemarketing and

having a web site. Every business needs to ﬁnd

which mix of media tools works best for them.

Don’t make the mistake of spreading yourself too

thin. Each marketing tool demands frequency.

Direct Mail

Today’s savvy consumers can pick out “junk mail”

instantly, so preface your mailing with some calcu-

lated thinking. Keep in mind that a 2% response

rate (20 responses from 1,000 pieces) is the norm.

Three factors will impact your success rate: the list

(see page 11), the offer and the creativity.

Whether you send a “supersized” postcard (like a

mini billboard) or a traditional letter (more per-

sonal), make it clean, simple and focused. Ask your-

self, “Would I read this or toss it?” It used to be,

recipients would tear off a reply card, fill it out and

send it back, postage paid. But today, the pace is

more immediate. So include a special offer with the

mailing (“Bring this postcard in for a 15% discount”)

or direct traffic to your website (“Order online and

get a 15% discount until the end of the month!”) Be

sure you can deliver on your offer, because even a

few disappointed customers can make lots of noise.”

Radio

Before adding radio into the mix, make sure your

target audience is listening. Chances are, CEOs don’t

have the radio on from 9 to 5! If there’s no budget

to hire a writer, most radio stations can provide

everything from copy to voices to production. Aim

for radio that isn’t just 30 seconds of words. Instead,

consider sound effects, music or an interesting sce-

nario. The more spots you buy, the better the price

will be. You should know when the ads will run,

and then listen to make sure they do.

Television

Throwing your hat into the TV arena is relatively

expensive, but very effective in establishing a pres-

ence in the marketplace. Ask local TV stations, both

network and cable, about packages they offer.

Often, they’ll produce your TV spot and give you

air time for a set fee, but be careful. Be sure you

reach exactly who you want. If it’s in the budget,

hiring a media buyer can be very helpful.

Print Ads

Imagine yourself flipping through a local magazine,

seeing an ad for Apple Valley Landscaping. If the

headline says, “Quality Landscaping at Affordable

Prices,” chances are you’ll turn the page. Suppose it

said, “We Plant Happiness.” The energy difference is

clear. Print ads are in a tough competition, with the

reader’s attention as the prize. Busy ads have little

impact, so discipline yourself to limit content; a

catchy headline, a striking visual and some very

short text will stand apart from other more crowded

ads. Make the copy interesting, free from the Glaze

Phrases (see page 10).

Be bold enough to eliminate much of the “hard in-

formation,” like hours of operation. Less is more!

While a “call to action” is important, just getting

readers to your website is a realistic goal.

Merchandising

Think of all the T-shirts and baseball caps you see

with big company logos on them. The big guys

use their customers as walking billboards, and you

might consider it, too. Unless your company is fully

established and demand is high, you’ll probably

have to give away merchandise. But consider offering

an incentive (“Spend $100 and get a travel mug with

our thanks!”). Just remember to start with small

quantities, and be clear about production costs.

Trade Shows

Here’s a powerful, concentrated marketing medium

that brings together not just your customers,

but your competition, too. The level playing field –

big and small companies, side by side – is a great

platform to demonstrate your product or service

up close and in person. Shaking hands with suppliers

you’ve only spoken to, or saying hello to new

vendors is invaluable. In general, you’ll come away

feeling much more in touch with your industry.

Do a little research to find out which shows will

serve you best. Which ones do your competitors

go to? Carving out a budget is key, because you’ll

have to create and ship materials for your booth,

plus develop handouts or giveaways. Don’t forget

costs for travel. If you can’t afford all this, consider

attending a show to see your competitors from a

customer’s point of view.

T R A D I T I O N A L M E D I A

Promotion

A S I M P L E G U I D E T O Y O U R S M A L L B U S I N E S S M A R K E T I N G P L A N

Place

Methods for Reaching

Customers

• Selling directly to the end user means ordering

products directly from a manufacturer or distribu-

tor, and then keeping them in stock until you

receive an order. You are responsible for storage,

bookkeeping, shipping and handling, customer

service and marketing. The advantage is you can

ship orders immediately, with control over good

customer service. In addition, you have a bank of

customer information you can use to market your

product in the future. The disadvantage is that you

tie up money for inventory that could just sit on

your shelves. Before deciding to sell direct, ask

yourself important questions: Will you accept credit

cards? How much commission will you pay to the

credit card company? Who will help your customers

with information requests, orders, status inquiries

and returns? Will your credit policy allow customers

to pay you at a later date? In 30 or 60 days?

• Selling to a wholesaler A wholesaler will buy a

large quantity from you, to resell at a proﬁt. The

wholesaler handles the shipping and storage and

takes a percentage of the ﬁnal sale.

• Selling through a manufacturer’s

representative A rep will sell your product,

along with those of others in the same business,

for a commission.

• Selling by consignment Someone else sells

your product and the sale price is divided. For

example, the consigner or drop-shipper sells your

product for 40% of suggested retail, and may also

charge another 10% for drop-shipping services.

Most drop-shippers allow you to send them your

labels and forms, so the package looks like it

came from your company. Be prepared for lower

proﬁt margins and investigate their customer

service to insure it is up to your standards.

• Selling via the Internet Selling online is like

operating from a virtual “mail-order storefront.”

See page 12.

The Power of Partnerships

Forming partnerships with other businesses can be

mutually beneﬁcial to all involved. And your partner’s

business doesn’t have to be even remotely like

your own. One phone service provider offers new

customers a free pint of a top-brand ice cream every

month for a year. A carpet retailer might offer a gift

certiﬁcate to a local restaurant with every purchase.

If your business has a web site, you know that the

worldwide web seems like it was custom designed

for partnerships. There are “links” that will connect

people from one web site to another with a click of

the mouse. Suppose you manufacture pet supplies

for people who travel a lot — airline-friendly pet

containers, portable food bowls and pet tags that

come in two languages. Wouldn’t it make sense to

have your web site appear as a link on a travel

agency web site?

If you think a partnership might work for your

business, approach the idea with professionalism

and a well-thought-out plan. Find out the name of

the right person to approach. Then, make a presen-

tation that emphasizes the beneﬁts your potential

partner will reap. All the details — the “what ifs” —

should be considered and worked out.

erious thought must be given to how your product will get to the customer, a crucial

atter to discuss in your Marketing Plan. Keep in mind that your company may use

several distribution channels. For example, you may sell directly to customers who place large

orders, but also to those who buy small quantities through retail outlets.

These days, it is entirely possible to run a business

that outsources everything to a “fulﬁllment house.”

For a percentage of each sale, these houses handle

some or all aspects of getting product into the

customer’s hands. They can warehouse your

inventory, order replacement products from you,

and provide the Internet shopping cart on your

web site. When an order is placed, they’ll handle it

all — from packing and shipping to processing

credit cards and handling customer service.

F. Y. I .

Results & Revisions

Tracking Your Results

Establish a method for determining how customers

ﬁnd you, then keep track of the results. Whatever

ystem you use, tracking is the only way you can

assess marketing effectiveness. Tracking can

make the crucial distinction between which media

choices bring inquiries and which bring sales.

For example, if you have a web site, a tracking

program can monitor the number of site visitors

(inquiries). If you’ve done a coupon promotion,

you can simply count the number of coupons

customers redeem (sales).

As we discussed on page 12, change is important

when it comes to which mix of marketing tools you

use. Tracking can be important in keeping the mix

effective. When you see results from one media

choice dwindling, you know it might be time to

give it a rest and try something else. For example,

in the summer, radio listeners are likely to be

outdoors and away from their radios. If response

from your radio spots dwindles, it may be time

to move on to something else.

Ways To Track

Just Ask It’s so simple. Why not just ask your

customers how they heard of you? Always engage

them in conversation — their feedback is one of

the most valuable tools a business owner can use.

Send a survey after you render a service or ship an

order. Call or e-mail customers. Ask them what they

liked (or didn’t like) about the experience of doing

business with your company. Especially right after

a marketing promotion, keep close track of where

customers heard about the promotion.

The Mention of Your Name Whether you’re using

print ads, TV & radio commercials or mailings,

“the mention” is the granddaddy of measuring

techniques. Simply put, “Mention this ad and get

10% off” works.

But Hurry…This Sale Won’t Last A sale or special

promotion is a great way to measure marketing

effectiveness. Have a big sale this September, then

again next September, and compare ﬁgures. Run

a weeklong promotion and compare sales to a

non-promotion week.

Keep Your “Price Category”

in Mind

One factor that will impact the way you measure

effectiveness is your price category. For example,

if you’re selling homemade candy for $5 a box,

consumers are more likely to buy immediately

after seeing your ad or ﬂyer. After all, it’s only $5,

so your sales may likely show a spike. But if, on

the other hand, you’re selling luxury automobiles,

response will obviously have to be measured over

a longer period of time.

Be Well Adjusted

We’ve established that adjusting your media mix is

a good idea, but it shouldn’t be the only ingredient

that is constantly under review. Your budget (see

“Your Marketing Budget” on page 5) always needs

updating. You may also need to change your prod-

uct or service (review “Discovering Your Features

and Beneﬁts” on page 6). And lastly, your prices

should be scrutinized regularly (see Value-Based

Prices on page 9).

Be patient and persevere. A successful marketing

and media mix is a trial-and-error process. Trying

out various options and assessing results could take

several years. Remember to stay ﬂuid in your

thinking, constantly adjusting your goals to reﬂect

the ever-changing marketplace.

ow do you measure the effectiveness of your marketing? Let’s say you’ve had a great

year. Profits are way up. Is it because of the economy? Word of mouth? The time of year?

ould profits have grown if you did more marketing? Isolating your marketing effectiveness

may be tricky, but it’s not impossible.

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