Market More In A Downturn
 By B.J. Addington

The slumping economy is weighing heavy on small-business owners. Maybe you’ve noticed.

In April, FedEx Kinko’s released the results of its national “Signs of the Times” small business survey, which found 89 percent of the small-business owners polled were moderately to very concerned about the current economy’s impact on their business.

In addition to their concerns about the economy, 66 percent of those polled foresee flat or falling profits in 2008.

But, smart small-business owners aren’t hunkering down.

Despite concerns about the economy and profits, decreasing their marketing and advertising budgets is not a likely course of action. In fact, 92 percent of survey respondents said that they will either keep their spending the same or increase it this year.

“Strategic marketing tools provide the most efficient and cost-effective ways for small businesses to connect with prospects and stay connected to customers, especially during a challenging business environment,” says Jim Blasingame, small-business expert and host of the nationally syndicated radio show “The Small Business Advocate.”

“Now more than ever, it’s critical that businesses maintain market visibility. Marketing budgets need to be deployed on projects and promotions that will both drive new traffic and remind existing customers why they should come back.”

Five Marketing Ideas
Blasingame, who began counseling small businesses more than two decades ago, says that companies can be more efficient with their marketing budget by using a combination of traditional and referral marketing tools proven to increase customer traffic.

Here are five of his top tips for cost-effective marketing.

1. Don’t overlook the basics. Remember that something as simple and relatively inexpensive as eye-catching signs grab attention and draw in new business.
   
2. Target the right people. With a strategic prospect list, small businesses can use a direct mail offering to target just those customers likely to buy their products and services.
   
3. Partner with other companies. Develop strategic alliances with other local, non-competitive businesses to cross-promote services in stores, mailings and special promotions.
   
4. Network. Building relationships at business meetings and industry events costs nothing more than a little time, but can deliver big returns as a result. This kind of word-of-mouth marketing can be powerful, says Blasingame.
   
5. Trust the experts. Since most small-business owners are not naturally marketing savvy, they should find someone to help implement their plan. That might mean hiring a Web designer to spruce up your small-business Web site or using a copywriter to craft the right message for a direct mail campaign.
   

More Cost-Effective Marketing Ideas

• Use postcards. Reduce your mailing costs by using postcards. The postal service increased mailing rates in May. So, it now costs you 42 cents to mail a first-class sales letter. But it only costs 27 cents to mail a postcard.
  
• Start a referral program. Develop a program that rewards your current customers and colleagues for referring new clients to your small business.
  
• Make use of social media. Web sites such as LinkedIn, Spoke and even Facebook can connect with you clients and expand your network of contacts. The cost? Just your time.
  
• Launch a blog. Adding a blog to your Web site can increase traffic to your site, build customer loyalty and lend credibility to your small business.
  
• Improve your customer service. It seems like a no-brainer. But many small businesses have blinders on when it come to their customer service. Open your eyes and find ways to deliver exceptional service. It’s a simple marketing strategy that can pay big dividends in customer retention and referrals.
  
• Increase your online presence. Get listed in online business directories. The listings are usually free. Look into pay-per-click (PPC) ads. These two firms offer automated PPC solutions for small businesses: LocalLaunch.com and ReachLocal.com.

(Posted June 2008)

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