SMART MARKETING

A word of sage advice from your Web Concierge and Thunderbolt Designs:

Marketing = Success

Planning for Business Success

Dream like crazy. Plan, build, and have faith. Let insight flash. Move forth with the sound of thunder ringing in your ears. unquote

Whether you are a "for-profit" business, or a "non-profit" organization, Smart Marketing is essential for your success. For the sake of simplicity, we'll use the term "business" here, but all of these strategies apply equally to non-profit organizations.

Having a business (and yes, a non-profit organization) is a lot like raising kids. If you don't baby your business when it's in it's infancy, it will die. If you don't continue to apply some discipline and guidance when it's in its adolescence, it will run amok and go out of control. As a business matures, even in a robust economy, if it doesn't change with the market it will stagnate and eventually begin a gradual decline that can affect its financial health. Marketing is the tool you must use to nudge your business forward.

Now, for the good news:

We've all seen the recent headlines - with a roller-coaster stock market and real estate bumps and slumps, combined with a blooming federal deficit the same color as Santa's favorite outfit, there is no denying we face challenges building a successful business in the midst of economic uncertainty. The silver-lining in the Mid Columbia's local economy is this:

• WE WILL SURVIVE - As a community, the business owners in the Columbia Gorge area are resilient. We've been around a long time, and the people who live here love the area and don't want to move. People are emotionally invested in our communities. We each have a lot to gain when we help each other.

• CREATIVITY CREATES CHANGE - When a business is struggling, the owners either get creative or they go out of business. There are a lot of creative business owners in this community, and we can learn from each of them.

• YOU DON'T NEED A BIG BUDGET TO ADVERTISE - There are a lot of inexpensive ways to market your business.

• THE WORLD IS WIDE OPEN - The internet has broadened our reach. Potential customers don't just live next door; sometimes they live across the world. There is a thriving sub-community of businesses in our communities who make the bulk of their money from clients and customers who find them on the internet. Are you prepared to join them? Don't forget to take your marketing to Gen Y, the first generation that has grown up online?

The BIG advantage in being a SMALL business

There are many advantages in being a small business. Being big may mean more money, but it also means more responsibility, more paperwork, more red tape, and more stress. Small business has an edge over the large, mega-McBusinesses that exist out there. Those advantages include:

1. TRUST - A poll published in The Oregonian showed a higher percentage of people believe small businesses are more trustworthy than big corporations.

2. FLEXIBILITY - Small businesses are quicker to adjust to changes in marketing trends. Because the owner is usually involved in the day-to-day operations, a quick decision to add a trendy new product to stock can be made instantly.

3. PERSONAL - Small businesses have a more personal relationship with their customers, and are often on a first name basis.

4. NICHE - Small businesses can offer a richer selection. Because they aren’t supplying a huge volume, they can fill a unique niche by opting to sell hand-crafted, unique one-of-a-kind items, or personalized service.

5. LESS OVERHEAD - Because small businesses have less overhead, they can thrive in a niche market that won’t support a large corporation.

6. INTEGRATED - Small businesses are often integrated into the community. Customers see them as essential to the community’s culture. A business owner that reaches out to the community through acts of kindness and community service develops customer loyalty that big corporations rarely match.

7. ABOVE AND BEYOND - People are hungry for good service. Small businesses can excel in providing good service in a way that big corporations just can’t match.

The purpose of advertising and marketing

Selling products, making money, developing a business reputation: those things are a result of good advertising and marketing. However, they are not the purpose. Understanding the underlying reasons for why you should spend the time and expense to tell people about your business is critical to understanding not only why you advertise, but how.

The purpose is communication!

Marketing is the plan and Advertising is the method used to communicate to people solutions to their problems.

Understanding this principle gives you the power to develop a dynamic marketing plan and to create powerful advertising. If you have a business you are excited about, and you can offer solutions to a person’s needs, then the only thing standing between you and success is a plan (marketing) on how to tell people about your solutions to their problems, and a method (advertising) by which you can tell them.

The difference between Marketing and Advertising

Some things bear repetition. Marketing is the plan you develop. Advertising is the method you use to carry it out. Think about it in terms of taking a trip. A marketing plan is like a road map, helping you identify the best way to travel. Marketing is the plan. You need to know where you are, where you are going, how you are going to get there, and what obstacles you can expect along the way. But most importantly, a marketing plan helps you get over the rough spots without getting lost, and keeps you headed in the right direction.

Advertising is like the vehicle that gets you to where you are going. Advertising will move your business to new territory through the power of communication. Through effective advertising, your business goes from being something only you know about, to something the community - and through the internet, the world - knows about and can respond to.

Work that business plan, baby, work it out!

Many people don’t bother with a business plan if they are not seeking financing from banks. However, they are missing an opportunity to create a clear, measurable marketing plan for success. A good business plan will help you set your intention, and define your marketing and advertising goals. It will help you:

• Define your long term business goals.
• Set your intention and priorities.
• Identify your target market–who you are trying to sell to.
• Reveal your customer demographics–your target market’s common characteristics: How old are your customers? Where do your customers live? What do they have in common? Culture, leisure interests, economic status, lifestyle.
• Give you a list of advertising options–what advertising media will reach your target market?
• Establish an advertising budget–how much your advertising will cost you.
• Identify any obstacles you will encounter.
• Identify any advantages you have.
• Identify your competition’s strengths and weaknesses.
• Help you stay on track when sales are slow.

A well thought-out business plan helps you keep your head so you don’t panic when you experience a downturn. If you have a good plan already in place, and you work your plan, you will experience results. If you don’t make a plan, your marketing efforts will be like shooting a shotgun blindfolded; you may hit something, but the chances are not good you will hit the target you meant to. To view a Basic Business Plan Format, click here.

What do customers really want?

The secret to good marketing research is to identify the core values of the customer. But do you know what those core values really are? They may not be what you think they are! Marketing and Advertising are very much a study in psychology. In order to be successful, you have to identify what is really important to the consumer, and what they really want to buy.

People don’t usually buy for the reasons they think they do. You must uncover the hidden need they are trying to resolve. For example, you don’t need a big house for shelter. A small apartment would keep the rain off your head. You don’t need new clothes–it’s highly likely that you are not in immediate danger of going naked. You don’t need a meal in a restaurant–there is probably something to eat in your cupboard at home.

Very few purchases are based on real need. We need air. We need food and water. We need shelter. Beyond that, our purchases are an attempt to satisfying something else beside a physical need.

Get emotional about core values

As human beings, we have other core values we want to have met. But unlike physical needs, such as air, water, food, and shelter, these are emotional needs. We need to feel loved. We need to feel successful. We want to feel smart, attractive, satisfied, desirable, informed, healthy, competent. We want to achieve a desired emotional state.

Our core values are to feel: happy, secure, loved, and to stop feeling fear. Almost everything we buy revolves around trying to achieve these feelings. When you identify the emotions your products and services satisfy for your customers, you will have identified how you can most effectively market and advertise your business.

About Money and Value

While money is often an important point in your marketing, keep in mind it is not the only thing people value. It may, in fact, be one of the least important things to them, especially at a given moment. If your heat goes out in the middle of a blizzard, you are more worried about speed of repair than in shopping for the cheapest fix. People are also seeking quality of life. Some core values most consumers share include:

• Saving time.
• Avoiding the frustration or bother of a "do-it-yourself" job.
• Having fun and adventure.
• Learning and having new opportunities.
• Being productive, contributing to society.
• Being loved, being with family and friends.
• Getting a good deal, saving money.
• Satisfaction from owning something well made, good quality, and/or hand-crafted.
• Being treated with respect, good service.
• Enjoyment of aesthetics–artistic expression.

The 20/80 split

In marketing, there is a rule of thumb known as the 20/80 split. What that means is, 20% of your customers supply 80% of your revenue. The trick is to expand the kind of customer base that comprises the 20% who provide you with 80% of your revenue.

Have you ever dealt with a customer who left you saying, “They aren’t worth it!” The amount of time, trouble, and stress they extract from you is not equal in value to the amount of income they provide.

Remember how we discussed that customers are looking for core values in a business? Well, flip that equation around, and realize that you are looking for core values in a customer. You are looking for customers who:

• Pay on time
• Appreciate your products and service
• Listen to, and respect your advice
• Come back as a repeat customer
• Are willing to work within reasonable and co-operative terms in your business relationship.

You can probably customize that list to fit your own business. Don’t kill yourself by chasing that other 80% of the market who only supply you with 20% of your revenue, but give you 99% of your headaches.

Keep the 20% happy

Another one of the laws of marketing is, every one person who has a positive experience with your business is likely to tell 4 other people about it, but every person who has a negative experience with your business is likely to tell 10 other people. Never underestimate the power of good service. It’s far less expensive and time consuming to retain a satisfied customer than to find a new one to replace them.

Get your message out in multiple ways

Advertising, to be effective, should be frequently distributed in a variety of many different ways. Some people read the paper, but never listen to the radio. Some people listen to the radio, but never drive down a particular street with billboards. More and more, consumers are getting their information online.

Multiple channels of advertising allow you to cover more territory, and get your message through to people who have a wide variety of personal habits. Take a lesson from the big companies: you will see them advertising in a variety of ways.

Don’t put all your advertising eggs in one basket. Here’s a list of some possible advertising channels. How many are you using?

What should I expect advertising to do for my business?

Good advertising does many things for your business, including:

• Attract new customers to your business.
• Expand your market.
• Develop name recognition for your services, products and your business (also called "branding").
• Enhance and support the visual “look” that identifies your business and style.
• Help people know about you as a resource.
• Establish you as an expert in your field.
• Help you stand out in your marketing niche.
• Encourage future buyers to think of you first when they get ready to purchase.
• Keep your business from shrinking as customers move, switch suppliers, etc.

As you can see, not all of those benefits are directly related to cash-in-hand purchases. There is a financial value in your image and how customers perceive your business. Successful advertising and marketing will build both your business' short-term sales and long-term financial stability. Keep in mind that advertising can only deliver the curious consumer to your door. It's your job as a sales person to convert those curious consumers into cash-paying customers.

Can I afford to advertise?

Perhaps the real question is, Can you afford not to advertise? Advertising is an investment. When managed correctly, advertising will show improvements in business and return on your investment year after year! Large corporations like Coca-Cola, Microsoft, and McDonalds spend millions each year on advertising. These companies know that if they are going to stay in business, they must advertise to keep brand recognition high, and to reach new customers. They budget a percentage for advertising costs, just the same way they budget for the cost of labor, raw materials, engineering, etc.

How often should I advertise?

It takes about 7-10 times of exposure to a message to really hear it. Think about how many times you have heard a commercial on radio or TV, and thought, “Some day I should check that place out!”... only to put it off, again and again. But finally something sinks in, and you make an effort to take that next step of picking up the phone or stopping by a store.

How often are you putting your message out for people to hear? Do you expect them to respond after hearing it once? Or are you giving the message a chance to sink in, and be “heard” through regular and repeated exposure.

Keep in mind that not everyone will be in the market for your particular product on a given day. The trick to regular advertising is to keep your business in the forefront of their mind, so that when they are ready to purchase, you are the business they think of first.

Make an advertising schedule

While it takes 7-10 times of exposure to a message to hear it, it takes 30 days of continual effort to create a habit. If you want people to get in the habit of thinking of you, they need to be exposed to a regular schedule of advertising. How often you advertise depends on your business goals. The more frequent your advertising, the bigger the response you can expect.You don’t have to spend a lot of money advertising, but you should plan your message - and your business name - going out frequently and regularly.

How much should I budget?

How much should you budget for your advertising? It depends on many things: your long term goals for your business, your market demographics–even the time of year can affect the advertising budget for a business that is seasonal. A standard rule of thumb is 2%-10% of the gross annual amount you want your business to earn.

Some business owners insist that they don't advertise. What they actually mean is that they don't advertise using some common channels. Advertising on the radio or in the newspaper are only two options among many for advertising. Some business owners are extremely successful using only word-of-mouth. But if your business isn't one of them, you should begin developing an Advertising plan.

Developing a marketing and advertising plan for my business!

Thunderbolt Designs is here to help you! With over 25 years of experience, we can get you past the curves in the road, and set your business on the road to success! To learn more about Smart Marketing, and Thunderbolt Designs, click here.

Do you want your business or non-profit to be online? It's easy! We can build you anything, from a simple web page that we host on our A2Z site, to your own domain website featuring an online catalog and shopping cart program. To learn how you can get online with Thunderbolt Designs, click here!

Dream like crazy. Plan, build, and have faith. Let insight flash. Move forth with the sound of thunder ringing in your ears.