How much should you spend on marketing to get the best results?
Similar amongst many small business owners, finances are unstable, budgets are constrained, and money needs to be spent wisely in regards to every aspect of the business. But, when it comes to marketing, how much money should be invested towards your business?
Numerous small business owners think of marketing as:
Marketing = money and superfluous expenses
When in reality, marketing is not an expense. In fact, its an extremely valuable investment for a business, an investment that will help you take that very first step in reaching your potential customers in a cost efficient way.
Marketing is all about knowing what your customers want. Accurately pinpointing their needs and presenting your services in a way that would most appeal to the consumer. In saying so, cost-efficient is not just about budgeting and investing in marketing tactics that are cheap. Its about the added return that you will gain from the investment.
So what constitutes as a marketing strategy that would give you the bang for the buck?
Firstly you need to know who youre selling to. In other words, understanding that only a small portion of the market will actually be interested to buy your product, finding a niche market and focus on selling to this niche group is crucial. Otherwise, it would be a waste of money and time to sell to those that your marketing efforts would not impact.
Try to come up with a target audience, specifying their age, sex, hobbies, interests, spending habits, lifestyle. Describing your target audience as detailed as possible will allow you to understand what marketing tactics and approaches would be most effective.
After youve established a detailed description of your target audience, there are few ways that small business can market effectively with a low budget.
Take advantage of free publicity:
Reach out to local newspapers or local online forums when launching of a new product or if your company has any interesting news to announce.
Join local clubs to increase networks:
Being involved in the community by joining clubs, attending conferences and seminars would help you gain a broader network. Clubs like Chamber of Commerce or a rotary club requires weekly presentations, giving you a chance to show expertise in your field. Just by being involved in the community and exposing yourself to more businessmen and businesswomen in the field, youre practically building credibility for yourself, and gaining exposure for your company as well.
Hiring a professional and paying a full-time salary is a costly expense. On the other hand, outsourcing is less expensive. Many outsourcing marketing companies offer a variety of services to choose from, different programs that could accommodate to your budget - such as offering only consultation services, or a full on marketing management for your company.
Marketing doesnt need to equate big spending. As long as you are on the right track (marketing to those that are valuable to your business), little efforts go a long way.
Red Wheel Marketing