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Learn the ABCs of Advertising

For a small business, taking the first steps into advertising can be an intimidating and mysterious process. Even though we see advertising everywhere, creating and using ads ourselves can seem alien and expensive. Understanding how the medium works and what it can and cannot do for a small business is tougher than it seems. And there is always uncertainty over results.

Think of advertising as one element of the broader area of marketing. You recognize it in many forms, including magazines, newspapers, directories, online search engine ads, Web site banners, radio spots, TV, billboards, flyers, direct mail and others. Before you spend your hard-earned money on advertising, you’ll want to investigate what to realistically expect. Only then should you draw up a plan for moving ahead.

Ads can do the following:

• Attract new customers, prospects and leads.
• Encourage existing customers to spend more on your product or service.
• Build credibility, establish and maintain your “brand” or unique business identity, and enhance your reputation.
• Inform or remind customers and prospects of the benefits your business has to offer.
• Promote your business to customers, investors or others and slowly build sales.

But here’s what advertising probably cannot do:

• Create an instant customer base.
• Solve your cash flow or profit problems by producing an immediate sales windfall.
• Cure poor or indifferent customer service.
• Create benefits that don’t really exist or sell products and services that nobody wants.

In short, advertising won’t guarantee quick sales for your product or service by itself, but it will get you noticed, if you do it right. That means you must know, as precisely as possible, the demographics of your target audience and craft a precise message about your product or service that will touch them. You must give customers a compelling reason to call, visit your Web site or stop by your business.

Your ad must also stand out in some way. If it fails to grab your potential customers, they are not likely to respond. Frequency is also key. A single ad in one place won’t do much. Getting people to see your ads as often as possible in different places will deliver better results.

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Take Action to Brand Your Business

Some small business owners believe they can stand out with just a great product and exceptional service, and that they are too small to create a “brand.” But to set your business apart—no matter how small—branding is a vital strategy in today’s competitive marketplace.

Buyers have short attention spans, so you need all the tools you can get to help them remember who you are. Every business can benefit from branding, right down to the independent contractor working alone.

In fact, some marketing experts say that branding and marketing go hand-in-hand. “If you can build a powerful brand you will have a powerful marketing program. If you can’t, then all the advertising, fancy packaging, sales promotions and PR in the world won’t help you succeed,” says Laura Ries, president of Ries & Ries, an Atlanta-based marketing firm.

Almost anything can be branded, including you. But branding is complex and involves the customer’s total experience with you, your product or your service. The most effective branding combines both online and off-line elements. The Web offers tremendous opportunities for promoting your brand, through low-cost search engine ads or interactive features on your Web site.

Keep in mind that the best brands tend to tap emotions and appeal to a person’s natural need for involvement. Be original in identifying your brand identity—the thing that truly sets your small business apart. Everybody touts quality and service, for example, so look for something that’s really different. If you are having trouble pinpointing a branding message, try asking your customers what they need from you the most. Then base your brand on that.

Your brand should also last a long time, so avoid elements or catch phrases linked to trends likely to disappear or become outdated. Simplicity is also a virtue in your branding message. Buyers are overwhelmed by excess information. Too much information confuses your brand message.

 The 22 Immutable Laws of Branding by market guru Al Ries and daughter Laura is a smart and accessible book on branding that includes 11 Immutable Laws of Internet Branding as well . Another helpful book is The Brand Called Youby Peter Montoya, which offers ideas and advice on how entrepreneurs can promote themselves, personally, as a brand. In addition, a Web site created by branding expert Martin Lindstrom has an extensive library of branding articles. Visit www.martinlindstrom.com.

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Match Up with Big Buyers

It can be frustrating for a small business trying to land its first sale to a public institution, government agency or major corporation. One of the most helpful steps—meeting personally with the right person—is often the most difficult to take. But a fast-growing program from the U.S. Small Business Administration (SBA) is offering hope to small business owners.

Donnie McDaniel was once frustrated trying to “break in.” His Arlington, TX-based industrial products distribution business was looking to sell more to big customers. But the right doors weren’t opening. So McDaniel attended an SBA-sponsored Business Matchmaking event.

Business Matchmaking, launched in 2003, is a series of regional events that bring corporate and government buyers face to face with small business owners. So far, business owners have landed over 20,000 one-on-one appointments with key government and corporate officials from hundreds of major corporations and agencies. Matchmaking was so successful that the program was expanded in 2005 to include more regional events.

For McDaniel, a single meeting led to a contract potentially worth $1 million in new sales. “To do business with any large buyer almost takes an act of Congress,” says McDaniel. “These companies are busy focusing on their core businesses, but they take the time to attend these events to meet with potential vendors in person and that’s a chance we won’t pass up.”

Business Matchmaking doesn’t promise you’ll snag a deal, but it does give you a chance to state your case directly to decision makers. If you’ve never sold to large corporations or government agencies, this is an excellent starting point. Business Matchmaking levels the field, allowing every small business an equal opportunity to learn about selling to big business, public institutions (like universities) and government entities at local, state and national levels.

If you aren’t sure how to prepare your pitch, Small Business Procurement Workshops held a month in advance of each Business Matching event could help you:

• Identify potential buyers of your product or services.
• Write and submit successful proposals.
• Plan your marketing and sales approach, and line up financing.

The workshops and matchmaking events are free. You can register, set up to three appointments and get all you need to participate online. Slots at Matchmaking events are limited so sign up early. The Matchmaking Web site at www.businessmatchmaking.com has a calendar of events and information on how to participate.

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Listen to What Your Customers Want

Sometimes, selling more means saying less. If your small business is attracting good prospects, but you keep hearing “no thanks,” it may be time to do a little less “selling” and a little more listening.

 Take time to learn as much as you can about why your customers are coming to you. Ask questions, and listen carefully to the answers. Gather information on past problems and find out what’s working for them, what’s not and what they are really looking for that your business can provide. Armed with this information, your business can offer the solutions or benefits the customer is seeking.

Do they merely want a wrench? Or do they need one for a very specific purpose such as making adjustments on an Italian-made bicycle? It could be a big difference. Your task is to help customers explore their options and select the right action to achieve their goals. Your small business will gain customer trust by listening, not rambling endlessly about what you offer. Results are what customers care about the most. If you provide results, you gain their business.

Once you’ve listened attentively, you have the information you need to create an urgency to act that is based on the client’s needs, not yours. No need to push. Just use your knowledge to understand the customer’s own urgency. That’s why they are talking to you in the first place.

To make more sales, you must keep the process in motion by establishing with the prospect what action will happen next. It may be a meeting or follow-up phone call, but it needs to be something. In the process, try to identify a consequence the customer will suffer if they don’t buy from you.

In all cases, you need to reach the decision-maker. Others may be too concerned with trying to “not be wrong.” Find someone who is motivated to accelerate the buying process. Do whatever you can to raise the comfort level of buying from you. One good way is to give them a way out with a satisfaction guarantee.

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Score Big With Low Cost Ads

If your advertising budget, assuming you even have one, is low to start with, blowing it all on a single high-profile ad placement isn’t likely to yield significant long-term results. It might make more sense to try a variety of low-cost outlets to find something that works.

Small business owners face a daunting task of breaking through today’s non-stop ad clutter to reach buyers. But don’t give up. There are ways to win the small business advertising game. “For the average business owner, creating and placing an ad is like learning a foreign language,” says marketing consultant Andrew Griffiths. “But advertising works and the more time and energy you put into your advertising, the greater your results will be.”

Time, energy and creative thinking are key. You can find low-cost options in almost every advertising category. While display ads in magazines and newspapers cost a bundle, advertising in the classified section costs less and is often overlooked. Readers flock to the classifieds in many trade and specialty magazines. Look for publications that specifically target your customers. Try a few test ads to gauge response.

Advertising online through search engines is inexpensive and has become the single most popular new advertising outlet for small business. You’ll find complete details and guidelines on creating and managing pay-per-click ad campaigns at search giants such as Google and Yahoo!

A lower-cost option in the direct mail arena is postcards. They are simple, timely and easy for customers to read quickly at a glance. And they are considerably less expensive than typical letter-and-envelope type mailings.

Choosing the right ad medium, however, is only part of the battle. You still need to create a plan for your ad program and craft a message that works. A few tips:

• Choose words and images that appeal to your customers and prompt them to action.
• Create a message that stands out from the crowd, but keep it simple.
• Don’t advertise on impulse. Create a plan; select several ad methods that can support each other, and don’t give up before your ads have a chance to work.

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Grow Your Business with Online Ads

Not so long ago, millions of small business owners turned almost exclusively to the tried-and-true Yellow Pages to advertise their wares. But the Internet revolution has changed that, as small businesses have rushed to embrace new ways of attracting customers with technology.

Internet search advertising is the hottest marketing trend to hit small business in decades. These are tiny, text-only paid ads that you create and which pop up as search engine results when potential customers type in key words and phrases related to your business.

Business owners in every industry and location are turning to these low-cost online advertising campaigns conducted through search engines to help drive business. The trend is unmistakable. According to an A.C. Nielsen survey, consumers are not letting fraud concerns stop them from shopping online. Results of this survey, commissioned by eBay, indicate that consumers are buying more each year online and that most believe the Web is becoming a safer place to shop.

Meanwhile, the spread of high-speed Web connections and hardware improvements are giving the Web advertising market a boost, and paid search engine advertising, also known as keyword advertising, is leading the way.

Small businesses are showing a marked preference for the new online marketing tools, which offer tremendous flexibility to control costs and test various marketing approaches almost instantly. For example, florists can quickly change from prom to wedding season or an air conditioning service can exploit an early heat wave. What’s more, results from these types of ads can be tracked, and return on investment measured in tremendous detail never available with traditional print types of advertising.

If your business uses a Web site to sell or market products and services, online marketing will be critical to your success. Targeted ads attached to keyword search results are the clear winner among Web-based marketing methods. Their simplicity, low cost and popularity among small businesses have pushed flashy banners aside as the main method for connecting buyers and merchants online. You pay only when someone clicks your ad and visits your site. A prospect that reads your brief ad but doesn’t click it costs you nothing.

Two leading search ad outlets are Google AdWords, www.google.com/ads, and Yahoo! Search Marketing, http://searchmarketing.yahoo.com. Visit the sites for complete details and to open an account.

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Prepare Yourself Properly Before Marketing

What does “marketing” really mean for a small business? For you, it might include events, public relations, trade shows or advertising. But for other small businesses, it might mean different things, like electronic newsletters, packaging, postcards—and even the hats, uniforms or nametags that employees wear.

In fact, think of marketing not as a single action but rather a combination of steps your business takes to identify, attract and retain profitable customers. As such, marketing is of vital importance to your business, so you want to make sure and do it right. And that means preparing yourself properly before you spend money on marketing.

If you play a sport, you know that preparation is vital for success. Ditto for marketing your business. You must be able to clearly identify what sets you apart from the competition. Without this knowledge, you can’t market yourself properly.

Verify the accuracy of marketing information before you proceed. To prepare yourself for marketing, create a detailed profile of your ideal prospect. As you create your marketing message, aim it at them and list the benefits they will receive. Be certain your marketing message highlights the special knowledge and expertise you offer.

Look for ways to make the buying process easier for your customers. What roadblocks can you remove? Simplify everything; eliminate potential interruptions in the sales process and make decision-making as painless as possible for your customers.

Put your marketing budget in proper perspective. You might, for example, think of marketing as your ace-in-the-hole rather than merely a “cost.” Try to set a budget and a pace that lets you market continuously. Customer memories are short, and they are bombarded with thousands of marketing messages and images daily. Your effort must be ongoing or people will quickly forget.

Match your marketing to your primary market. If it’s a local market, then that’s where your marketing focus should be. Broadly focused newspaper or radio advertising, for example, might be the wrong choice. Instead, consider marketing neighborhood-by-neighborhood.

A good place to find marketing help is MarketPower.com, a free Web site produced by the American Marketing Association. The site offers authoritative information on all marketing topics from advertising, Internet marketing and research, to strategy, public relations and items specific to small business.

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Supercharge Your Sales with Good Selling Habits

If you want your small business to succeed, selling is certainly an essential ingredient. As you go about the sales process, you will need to know why your targeted customers are saying “yes” or “no” to your product or service pitch.

This basic information on your buyers’ habits is essential. Even if sales for your business have been strong, the effort can run off track at any time. Even when sales are strong, don’t get overconfident and begin to slack off in your efforts. That may be precisely the time to step things up. You competition will almost certainly be watching.

The key to supercharging your sales is to develop and stick to good selling habits. In a short timeframe, little things you’ve done to disappoint customers can build up. So it’s important for your business to approach selling with a positive, service-minded attitude. One great habit to develop is taking the time to ask about your customer’s needs, desires and expectations.

Keeping the attention on them, rather than you, will also help you tune in to why they buy, or why they don’t. Plus, if you take time to listen and ask questions, customers will start to think of you and your business as a valued resource, rather than just a selling machine. You can easily show that you are willing to help the customer by anticipating what they need and having answers to potential objections.

Train yourself and your employees to smile. It’s easy to get grumpy or cynical if sales go south. But that’s when a good attitude becomes most important. Don’t be afraid to take a risk or try out a new approach from time to time. It could be a new marketing pitch or advertising channel. When operating a business in today’s competitive world, the greater risk is in thinking that the status quo will suffice.

Try to foster an atmosphere within your business that embraces the can-do word “yes.” Sales efforts suffer when people start making excuses, whining about failure and believing that “no” is the natural state of affairs. Encourage belief that appointments will come, sales will follow and success will be yours.

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Generate Word-of-Mouth for Your Business

Word-of-mouth is one of the best ways for a small business to attract new customers. It requires no expensive and time-consuming advertising or marketing campaigns, and uses the most trusted spokesperson you could ever find for your business—a satisfied client.

But while the power of word-of-mouth can drive business to your door, even if your marketing budget is nonexistent, don’t expect a marketing miracle to suddenly appear. Contrary to popular belief, word-of-mouth is not something that just happens. It might work that way for a few businesses. But for most it is a phenomenon that you, the business owner, can actually take steps to create and nurture. And it generally does not happen quickly, but rather over time as word has a chance to spread.

To help generate word of mouth, create a simple marketing message that is easy for people to pass along. If it’s not simple, it won’t pass the test. But make it specific to a real benefit or need, not something vague or general. If you can, include success stories or testimonials from real customers. These can have a tremendous pass-along impact.

To stimulate word of mouth, you might also consider asking customers for referrals and recommendations. And put your networking efforts into high gear. If you network and get to know people in your community or industry, they will think of you when they need your product or service. Join networking groups and local business organizations, and attend conferences. Donating your products or services to local charities can generate goodwill and get your name around.

Consider introductory discounts or free samples. People are more willing to try a new product or service if they can do so economically. Many small companies have jump-started sales through carefully controlled giveaways.

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