What is your overall plan?

This is the first item in any formal marketing plan.  You can also refer to this as your marketing mission statement if you wish.  Although it should pertain to the marketing of your business, it may also draw on the business concept you developed in Module 1 and incorporate your target marketing objectives, product positioning, and unique selling propositions developed in Module 4.  If you will have a theme, this is the place to describe how it will be used.  In a few short paragraphs at most, this section of your business plan will bring into focus what you are about and how your customers will perceive you. 

What are your marketing objectives?

Here you will state your overall objectives, looking out at least three years, incorporating your goals and objectives.  You will need to be more specific here, identifying who your customers are or will be, and how you will get them to come to you or buy from you.  Be sure to look at how you will obtain repeat customers as well as new ones.  If your business is sales driven, describe what your process will be and what your objectives are for this.

What are your specific strategies?

At this stage in your marketing plan you need to get specific in what will be your chosen media and other means to market your business.  Many businesses think of marketing strategies only in terms of advertising.  As the following sections of this Module show, this couldn’t be further from the truth.  While advertising may be key to some businesses and industries, many cannot or should not use the mass market approach to marketing.  The best approach is to look at what your objectives are and find strategies that will work best for you.  The final section of this module attempts to incorporate a listing of specific strategies that have proven to work for other small businesses, that you may be able to use with yours.

Budget and time-line

Once you have chosen specific strategies for your plan, it is a good idea to incorporate these ideas into a budget and show a calendar or time-line.  This should detail the specific strategy, your goals for frequency, and cost estimates.  The costs are only an estimate at this stage, but in the future you will get better at setting meaningful budgets based on more knowledge of strategies that work for you and their costs.  The format is not important.  The follow-up is the important aspect.  Putting together a marketing calendar and posting it in a conspicuous place will often help with remembering to follow-up in this area.

Selling, distribution, warrantees, guarantees and other considerations

These are the final considerations for the marketing plan.  Consider the various options for distribution, and consider brainstorming other methods to get wider distribution for your products.  Will you sell direct to consumers, use representatives, open a retail outlet, or do direct sales through company salespeople?  Or a combination of the above?  By utilizing catalog sales through others you can take a local company national in scope and let others do most of the sales and distribution for you.  Your direct sales, shipped via United Parcel Service or Federal Express can be in any city in Arizona the very next day.  Do you need warrantees or guarantees on your product or services?  What is the real cost in terms of returns or claims?  Some situations dictate a free trial or preview of a product to create more sales.  Describe any servicing or other features unique to your business.

Do it to them, before they do it to you

In marketing for small businesses, often you will be contacted by outside sources for advertising or promotional opportunities for your company.  It may seem prudent at the time you receive the call to sign up for the ad in the football program.  Or to try five radio spots to see how you do.  Maybe.  The point is that if you are proactive in putting together your plan you will know if this works for you.  If not, a good practice is to have a solicitor send information so you can consider it for your next fiscal year.  You might even find that you are seeking out some of these promotional opportunities before they seek you out!

Conventional advertising

Although I’m covering this first, the fact is that traditional advertising is not always the best means of promotion for small businesses.  Advertising typically consists of newspapers, radio, magazines, television, billboards, and other traditional media.  I have chosen to provide a separate section for Internet or World Wide Web promotion, which is a rapidly emerging market for small businesses today (and also widely different from other traditional advertising media).  It is usually found that advertising is in the background of the purpose for the media.  For instance, people turn on the radio for information and entertainment, but ads are not the primary purpose.  The point is, you will rarely have the attention of those you are trying to reach.  You must find a way of grabbing their attention.  Repetition is also an important consideration, and they say you usually have to expose a customer to at least seven of your ads before they will even be receptive to buying from you when the urge or need strikes them.  I’ve heard some small businesses say , “I tried advertising in the paper once.  It didn’t work!”  Clearly, they didn’t have the frequency or stick-to-it-tiveness that the customer needed to become a buyer for their product.

Conventional advertising is often difficult to evaluate for effectiveness.  It is important to develop ways to do so if you are to use it to your advantage.  Look at emotions as a means of making your ads grab the customers attention.  Using humor, or other drama, can enhance the effect of your ads.  Then translate the emotions into a benefit to the customer.  Once you’ve gotten their attention you can’t forget to sell!  And make your claims as believable as possible.  By communicating clearly and being credible you are much more likely to create a sale in the future.  If you can find a way to tie promotion to your ad it will make measurement easier, also.  You will know when clients are responding to your ad by the nature of the inquiry or order.  Lastly, make sure your ads are written for your customers and not yourself.  An ad is not just your name, address, phone, and models of products.  An ad should have a message, selling benefits to customers rather than features.

Public Relations

This is an area that nearly all start-up businesses can benefit from.  Public relations is usually free, and can help create an awareness for your business without the cost of an advertisement.  Most media are interested in new businesses for their area - this in itself is news.  The basic means of creating public relations opportunities is the press release.  In our rural communities as long as a press releases contains news they will usually run a story as submitted.  If your story is advertising then they want to get paid for it, in the form of ads or classifieds.  The trick is to present news in a way that promotes your business in the process.

If your small business will plan to use public relations as a strategy you can gain credibility and visibility in the process.  Thinking of it another way, your responsibility is to educate the market about your products or services.  You just need to pursue an angle to the story that serves to do this.  It will help if you develop a media list, and a system for initiating, maintaining and following up with your media contacts.  The media you choose depends on your needs.  For some businesses the local papers won’t sell many of their products, but an article in a trade journal may be just the ticket.

What is newsworthy?  Such things as new employees, promotional events, walk-a-thons, food drives, sponsored activities, new product introductions, or innovations are good examples of such stories.  It will help if you get involved with your local Chamber of Commerce, industry organizations, governmental assistance programs, or anything that takes advantage of your expertise or area of business.  Sponsoring a Little League team or a tournament are another example of methods of enhancing awareness and image for your company through public relations.

Direct mail:  not what you think

Direct mail can be a very effective method to promote your business on a shoestring.  When most people think about direct mail they picture a large bulk mailing of junk mail.  This is not the direct mail that will work for most small business.  You can, however, do direct mail without the huge mailings by directing specific pieces to your customers and selected prospects.

Start first with your customers.  Compile a mailing list from the day you start business by using a sign-in book or complete a sales receipt with name and address.  Let your customers know you have a mailing list.  Have salespeople generate names and provide an incentive.  Then keep good records from there and keep track of who’s buying.  Use letters, post cards, sales flyers, new product information releases and communicate with them on a regular basis.  If you keep it small enough you can continue to make it personal.  When’s the last time you received a thank you note after making a purchase anywhere?  It’s a nice touch, but takes a system to make it work and continue it consistently. 

Trade shows:  a hidden strategy

Many small businesses don’t realize how many trade shows exist as a means of developing business.  There are thousands of shows in the U.S., many for industries you might not even consider.  Today, tire dealers, bicycle manufacturers, art & craft sellers, hotels, and many other businesses can utilize trade shows to sell their products.  You can check the Encyclopedia of Tradeshows at your local library to find those that may apply to you.  Also, there is a list of Internet resources in the Resource section at the end of the book, found under Tradeshows.  You can even order "How to Succeed at Trade and Consumer Shows", a booklet by Fred Fox,available exclusively through e-mail.

How effective are trade shows?  You can start by visiting those that apply to your business to check them out.  Or write for a packet of information by the sponsor of the show.  Talk to others in your industry.  Ask the show for references.  A trade show can be a very cost effective means for selling.

When you attend a trade show have someone at your booth at all times who is knowledgeable and sales oriented.  Trade shows should not be just a means of gathering business cards.  You should strive to get solid orders.  Staff your booth with order blanks, brochures, and credit applications.  In short, be prepared to do business.  Like other forms of advertising, your booth needs to catch the buyers attention, by looking professional and beckoning their interest.   Coupons, contests, and attention getting displays all serve to improve your booths overall appeal.

Word of mouth:  a spoken strategy

Although you won’t find this as a specific strategy in many traditional marketing books, the fact is readily acknowledged that the single biggest source of customers for most small businesses is work of mouth.  You can and should create word of mouth strategies that start with you the owner.  You will have more opportunities to talk up your business than anyone else.  And your good word can spread just like anyone elses.  When you go to Chamber meetings you should look at this as a marketing opportunity.  Ask to get up and speak about your business.  Get on the Chamber radio hour with the local station.  Carry your business cards everywhere and give them to everyone.  (They really don’t do much good in your desk drawer.)  Leave your cards everywhere you visit, with everyone you visit with.  Have a route that you regularly travel where you leave a supply, including community bulletin boards, restaurant lobbies, front desks, etc.

Use your people to carry your message, also.  Offer incentives to your employees for referrals.  Talk to them about your word of mouth strategies and make them part of the plan.  Do the same for customers.  It can and may happen on its own, but the chances go up dramatically if you make it a point of asking.  And look at providing an incentive for the customer, too.  A free oil change.  A discount on their next purchase.  Something to thank them for the free advertising.

Getting caught up in the World Wide Web

This is an area that has many businesses working frantically to become marketing experts.  There is a feeling out there that if you’re going to be a savvy, 90’s kind of business, that you need a web page and you’re there!  (WWW.Whyme?.com.)  and the customers will come flocking to you with orders.  Unfortunately, it doesn’t quite work that way.

The Internet or (World Wide Web) is a rapidly growing resource in terms of users, but the actual number of people making purchases is still quite limited.  This will probably not remain that way, however, and it’s a good idea to get up-to-speed now on this valuable resource.  In Module 4 we gave you a list of resources you can use the Internet for in researching for your business.  If you will employ some public relations thinking to your promotion on the Internet you may come out a winner.  People using or surfing the Internet are mostly looking for information, not advertisement.  Blatant ads on the Internet are referred to as Spam, that not-too-good tasting, mass-produced, ham-meat-like substance sold in the can.  Get the picture?  By creating news for the Internet you may find there are a lot more customers than you think.  Also, if you can take the time to get involved with Newsrooms (places where people use the Internet to gather information on a specific subject from other people on-line), you can develop one-on-one selling opportunities on the Internet, also.  And don’t forget, as a source of research information for you, the Internet is becoming invaluable. 

Ideas:  the mainstay of marketing

The following are some ideas taken from other small businesses and marketing experts who have had some success with them.  As you finish developing your marketing strategies you might be able to use one or two in your business.

 The following are some ideas taken from other small businesses and marketing experts who have had some success with them.  As you finish developing your marketing strategies you might be able to use one or two in your business.

• Don’t make spontaneous changes to your marketing plan.  Make changes based on hard results only between plans.

• Consider bartering for advertising costs.

• Take advantage of cooperative advertising with manufacturers or distributors.

• Consider ‘per order’ or ‘per inquiry’ payment arrangements with media for advertising.

• Use ‘gang runs’ for printing larger print jobs such as color brochures.  These are usually offered only by larger print labs, with no rush orders allowable, with considerable savings.

• Negotiate with the media on advertising rates.  They can be more flexible with off peak times when breaking rates.

• Use smaller, cheaper size ads more frequently.

• Use a more expensive, professional designer for your initial work.  Do follow up work using an inexpensive designer, or in-house.

• Buy ‘remnant space’ in magazines.  With remnants your ad is not guaranteed a spot, but can be inserted by the publisher near deadline when they’re short of ads.  The cost savings can be substantial.

• By acting as your own advertising agency, and creating a separate entity to do this, you can benefit from additional commissions that are normally given only to outside agents.  When you become large enough the savings can be substantial.

• Producing your own television commercials in-house can save substantial money over custom-producing in a studio.  The format is important here, and many do-it-yourselfers do an admirable job of producing their own ads when done right.

• Use simple design techniques that involve lower typesetting, layout, production, and printing costs.

• Know postal regulations, utilizing bulk rates to save money on larger mailings.

• Yellow page ads work best in the alphabetical section rather than off on a separate page.  Use a special ad in this section, and consider small sizes to do the same job.

• Use other companies products to promote yours.  Examples are billboards printed on trucks or trailers, moveable signs, the back side of cash register tape, matchbooks at restaurants, benches, movie theaters, etc.

• Sell tee shirts with your company logo, design or slogan.  They are free advertising, and can become a money-making product line for you.

• Use coupons.  They work and give you immediate feedback on how the customer found you.

• Ever changing window displays can be effective in generating renewed interest in your store, and get customers to visit you more often.

• Seasonal displays, even if consisting of other peoples products, will increase traffic at key times.  Create new holidays on your own to peak interest and increase sales at slow times.

• Contests can be effective, but keep them simple and stupid, and small enough so you don’t have to follow sweepstakes rules.  Even small contests or drawings can generate good interest.

• Use your letterhead, invoices or other forms to reinforce your marketing message.  Inserts to billings are free postage if kept under one ounce.

• A roadside stand, Farmers’ Market, or swap meet can be good for generating sales.  These are usually low overhead, and economical in generating sales.

• Gift baskets can be effective in increasing sales and make good gift items around the holidays.

• Use audio/visual aids for the sales process, demonstrations, and training.  These can enhance your image as well.

• Decor and merchandising need to work with your marketing theme and strategies.  This also goes for attire and dress code for employees.  Use ad specialties and gifts; people love free gifts, and it can get them to visit your business.

• Music can be great at creating an image for your company.  People associate music with a pleasing atmosphere, which can enhance sales.

• Develop a short, concise telephone policy, with training, which is consistent with your theme and goals.

• Smiles are the cheapest, best sales tool ever known.  Make sure you and your people use them regularly.

• Find ways to exceed your customers expectations.  Do work ahead of schedule, deliver their food more quickly than expected, make sure your estimates are met or lower, etc.

• Constantly check on your competition and devise ways to differentiate your product or service from theirs.

• Hand out circulars in high traffic areas.  Avoid putting them under wiper blades in large parking areas, this can be a real turn-off.  Door-hangers can be very effective, especially for personal services such as carpet cleaning.

• Have refreshments available for customers.  This will create a buying mood and extend their shopping time.

• Gift certificates can increase sales, if used correctly.  Promote them at holidays, graduations, etc. and add this to your brochures, ads, and mailers.

• A newsletter can be an inexpensive, effective marketing tool.  You can inform  your customers of new products or services and use a soft sell technique to generate more sales.

• Make your hours of operation, means of payment, financing, or catalog more user-friendly for your customers.