Small business marketing goes beyond advertising for new customers. It involves a strategic approach to group, price, and distribute products or services, with the aim of driving sales. A solid marketing strategy should identify business goals and outline the means to achieve them. The strategy should consider the four main levers known as the Four P’s: Product, Pricing, Placement, and Promotion.
A good marketing plan begins with an analysis of the business, customers, and competitors. It restates the goals and details the actions to be taken. The plan should include eight steps: finding the business’s place in the market, understanding what customers care about, defining the unique selling point, setting clear objectives, setting a budget, choosing tactics, launching the campaign, and tracking results to make necessary adjustments.
Understanding the business’s strengths and weaknesses, and the opportunities and threats in the market (SWOT analysis) can help plot a course forward. Knowing what the target customer needs and values can guide the provision of the right product at the right price and place. The unique selling point (USP), which sets the business apart in the customer’s eyes, should be emphasized in all promotional material.
Objectives should be Specific, Measurable, Achievable, Relevant, and Timely (SMART) to track the success of the marketing strategy. Besides sales, other indicators of success could be visits to the shop or website, purchase value per customer, subscriptions to a newsletter or loyalty program, customer inquiries, improved customer reviews, repeat customers, etc. Budgeting for marketing is also crucial, with established businesses typically spending about 1% of revenue on marketing.
Key Takeaways:
- Small business marketing is much more than just advertising, it includes all activities aimed at driving sales, which often starts with a strategy and a plan.
- A small business marketing strategy should consider the Four P’s: Product, Pricing, Placement, and Promotion, to drive sales and attract new customers.
- Creating a marketing plan involves analyzing your business, customers, and competitors, setting clear objectives, defining your unique selling point, setting a budget, and tracking results for adjustments.
“It’s common to think of small business marketing as advertising for new customers. But there’s much more to it than that. The ways you group, price and distribute your products or services are also marketing decisions.”
More details: https://www.xero.com/nz/guides/small-business-marketing/
