Marketing Strategy Provides Incredible Leverage To Grow Your Business

Marketing Strategy is distinct from Sales Strategy in a number of ways.

This definition found at Wikipedia does justice to the definition of marketing:

Definition from Wikipedia:

From a practical point of view there are several step your small business can take to set your self apart from your competition.

These are steps I have taken to create an advantage for the small businesses I have had the privilege to run:

A. Defining and describing your Unique Selling Proposition (USP)

This is one of the most important concepts for any small business to master.

Defining your USP is describing the essence of your business. It's the definition of what your business stands for!

In one or two sentences (certainly no more than two paragraphs) you should be able to describe clearly what your business does for its customers.

Hopefully, you can describe the most powerful advantages or benefits that your business provides to the marketplace. Hopefully the advantages are different or unique?

When you are able to express this in a clear, succinct way, you have created a powerful advantage over your competitors. One that will attract customers and prospects to your business.

Why is creating your USP such a challenge?

First...we rarely bother to think about it.

The concept of a unique selling proposition simply does not occur to us very often.

Why?

Because we tend to get caught-up in our day-to-day activities.

We tend to spend our time working "in-the-business" as opposed to working "on-the-business".

We know we work hard and that we are very willing to satisfy our customers, our suppliers and our banker. However, we normally don't think about what sets us apart from the competition.

We fall into the trap of staying busy, helping our customers and employees without ever thinking about what sets us apart.

Second...when we do attempt to describe what makes us different (better) we tend to generalize.

It is not unusual to hear a business state, “We offer the best price, highest quality, and best service of any company in our field”!

That is not realistic! It is not believable! It can’t be done.  Your business cannot be all things to all people.

You lose credibility, and that will “restrict” the growth of your business. Without “credibility” people will not embrace and believe what you stand for.

To generate some ideas on how to create your own USP here are some famous examples of USP's from the past:

 
The USP clearly states what the "buyer" can expect when they make a purchase.

Ask yourself this question. "What is the Unique Selling Proposition for your business?"

If you would like to learn more about how to increase sales and create a USP for your business, click here.

B. Marketing through Advertising.

I know this must sound crazy but advertising is one of the least effective ways to attract new customers and generate additional sales.

Why?

Because you can expect a relatively small response to the advertising you use. Response rates normally fall into the 1% to 2% range on most advertising campaigns; 5% to 10% is exceptional.

What can be done to improve response rates?

Many small businesses are uncertain on how to advertise effectively.

Too often a great deal of money is spent on advertising with little to show for it.

First, you should learn to advertise correctly if you expect to increase sales.

You can develop an advertising “system” that will embarrass your competition.

And, don’t be surprised when your competition attempts to copy your advertisements.

Spending money on advertising must be done in a controlled system to maximize your return on investment.

The goal of any advertising system should be to get response rates in the 10% to 20% range.

 
C. Marketing by referral; making your "customer" an effective sales force for your business.

This is commonly known as a referral system.

Creating a referral system is probably the fastest and easiest way to grow your business and increase sales.

Your customers can be your best sales force by obtaining testimonials and referrals but you must ask your customers if they are willing to provide a referral.  If you are provide a quality product or service they are more than happy to help with a referral.

However, very few small businesses have established a consistent, structured system by which they gather referrals.

Why?

See if you can answer these questions as it relates to your business.

• Do you know where referrals come from?
• Do you know how to ask for a referral?
• Are you uncomfortable asking for a referral?
• Do you know what to do when you get a referral?

Lets assume you have satisfied customers.

How often do you ask them for a referral?

If you are creating benefit and advantage for your customers they will be happy to provide a referral or testimonial for your products and services!

You must find a way to ask your customers for referrals.

You must create a systematic approach to collection referrals.

Finally, you must create a follow-up system of using the referrals you have gathered (it's a little like finding "gold" in your own business).

D. Risk-reversal is a powerful marketing method; by transferring the “risk” in the transaction from the customer to yourself (your business).

In any business transaction normally, one party assumes more risk than the other party.

The more you are able to assume the risk in the transaction, the greater the chance you will have for the customer choosing to do business with you over the competition.

Here is part of a case history of how one company assumed the risk for the customer and increased their sales:

E. Marketing through Direct Mail.

Direct mail can be one of the most effective ways to increase your sales.

There are specific requirements that make direct mail work, they include:

• The mailing list you use.
• The message you create for the mailing list.
• The offer that is made.
• Asking the reader to take action.

Lets review each of these elements in greater detail.

The mailing list

The most effective list you can mail (or email) to is your own customer list. Why?

Because, these are the people who already know and trust you. They are five times more receptive to the message you are sending.
When you receive a direct mail piece from a company you know consider how you respond to it. At the very least you will read the mailer and not treat it as junk-mail. You might even buy from them!

The message you create

The message in your mailing must clearly state the “benefit(s) the reader will receive. If you don’t get their attention in the first paragraph it will be thrown out and your message will fail.

The offer you make in you mailing

What will the customer get?

What are you offering? Is it a particular product? Is it a special package? State your offer as clearly as possible.

The action you ask your reader to take.

Your mailing must cause your reader to take “action”.

The action could be:

• Place an order
• Set up an appointment
• Request for more information
• Come to your location
• Redeem a coupon
   

The list is endless. Your action step is dependent on what you hope to cause the reader to do (your "most-wanted-response").

Click here, to find how to improve the direct mail “response-rate” and how to save money on your direct mail.

F. Marketing through "joint-venturing" with a trusted business partner (another business that you know very well).

This is commonly known as joint venture marketing.

Lets explain what joint venture marketing is NOT.  It is not exchanging ownership of your business.

It is finding ways to work in conjunction with another “reputable” business to bring “greater benefit to your customers”.  One of the most powerful “assets” any business owns is the list of customers they do business with.

You have spent a great deal of time, effort and money to develop a relationship of “trust” and “confidence” with your customers.  You have a responsibility to bring more “benefits” to them.

This is much easier than you may think.

Obviously your products and/or services already meet the needs of your customers or they wouldn’t be doing business with you.  However, there may be several other things that your customers may need that “compliment” your products or services.

Consider asking a trusted business to joint venture with you in a marketing program in an effort to improve your customer's business life.

How do you get started?

Make a list of products and/or services that compliment what you provide to your customers.

Here are some suggestions to get your “juices flowing”:

• You provide office supplies; find a company who sells printing services.
• You sell expensive jewelry; find a “high-end” clothing company.
• You sell travel services; find a company that provides great luggage.
• You sell athletic equipment; find a company that provides a facility to exercise.
• You sell automobiles; find a company that sells insurance.
• You sell transmission repair; find a company that sells engine repair or replacements.
   

The list is endless.

Finally, make contact with your potential joint venture partner and explain what you are doing and explain to them how you both will benefit from a joint-venture relationship.

Joint ventures have to be a win-win-win situation for everyone in order to work effectively.

G. Marketing using "list brokers".

Using list brokers can be lucrative. However, before you undertake this activity you must do your homework.

First, do a thorough search for a reputable list broker. I have done a considerable amount of research since I have used list brokers in my small business and one that I have found on line is ZapData., I suggest you click here to go to their site.

Once you have found a list broker who you trust and with whom can feel comfortable, you have some more homework to do.