Marketing on a tight budget

November 2008 | Posted by Carolyn Pikoulas
Right now, many companies are finding that their marketing efforts present a troubling Catch-22: not enough business for marketing, and not enough marketing for the business. The reality is that the majority of businesses don't stand a chance if they don't continue to market in order to retain a thriving company in a slumping economy. Fortunately there are loads of creative and inexpensive ways to create marketing programs even with a small budget.

The secret to creating a high-impact marketing plan is to optimize your limited budget. A one-time print ad, billboard or glossy brochure will quickly eat away at your budget and spoil your marketing efforts. And expensive ads don't necessarily translate into increased sales. Statistically, your target customers need to hear your marketing message at least 7 times to influence a buying decision. Using marketing strategies beyond your budget does not allow you to repeat your message often enough to make an impact.

By using multiple marketing channels, your marketing impact can be greatly improved. Prospects will likely become buyers if they notice your company in a variety of media outlets: in the newspaper, at a seminar, on a brochure, through a Google search, or a visit to your website. The further you can stretch your budget, the higher the impact of your marketing message.

With an increasing number of companies advertising through every imaginable communication outlet, it's becoming harder to stand out and attract the attention of consumers. But marketing success comes from creativity; not from having the biggest budget. A successful marketing plan doesn't have to include prime placement, an expensive Flash-built website or a massive budget. Being resourceful and smart can be just as effective. Often, it's the personal touch that speaks to your customers. Here are some ideas to help you make the most of your budget:

Find the right fit. The single most important part of your marketing plan is targeting the right customer. Forget the mass market and go for small niche markets. If you try to be everything to everyone, you end up being nothing to no one. Always strive to figure out how your business can give your customers something they can't find elsewhere.

Think. You don't have to outspend your competitor, you just have to outthink them. Do something outside the normal realm of advertising, like holding an event to draw media coverage. Or try advertising on a billboard every other month. If it's not in a prime location, the billboard might not be replaced on the off months, so it becomes possible to have some free exposure.

Check out some other really creative ideas HERE.

Don't just read the news-be the news. A mention of your company in the right media can help deliver your marketing message in a low cost way. Reporters need you as much as you need them. Send press releases when you hold a special event or offer new services & promotions. If you can't figure out why your company might be newsworthy, go to your previous customers. Have them fill out a short questionnaire, and ask them why they chose your business.

Let your customers testify! The most cost-effective method of reaching new customers is by referrals from satisfied customers. Marketing doesn't end with the sale--a satisfied customer telling others about your business is more effective than any fancy ad campaign. Ask them to write a testimonial letter. Send them small gifts or annual holiday cards--the emotional affect can be felt long after the purchase.

Smile! People tend to spot faces before objects, so placing your photograph on your website or business card creates a personal relationship with your customers. Not only will they remember your name, they'll remember your face.

Don't disappear. Don't completely dismiss the old media outlets in which you've been advertising (unless you know for sure they haven't been working). A large body of evidence indicates that cutting marketing budgets has instant and long-term negative effects on your brand. Businesses that maintain or increase their marketing strategy will yield higher sales growth both during and after the economic downturn.

Give them a reason to meet you. You're not the only one with a small budget. In this economy, your customers do, too. Help each other out with a special discount or offer. You don't have to distribute coupons in expensive print advertising or in big direct mail campaigns. You can hand them out at trade shows or send them through an e-mail campaign. You might consider offering free tickets to the movies just for visiting or listening to a sales pitch. Or have a unique contest or giveaway that could get some news coverage.

Do it for free! There are lots of free tools you can use these days on the good ol' Information Superhighway. From business-related social networking to online directory listing, you can get your business in front of millions of viewers for little to no cost. On top of that, it can help your website's search engine optimization immensely. Discover how these sites might be able to grow your business:

Google Local Business Center: Add your business to Google's directory and get free recognition from related searches.

YellowPages.com: Is your business listed in this huge directory? If not, you could be missing out on sales from customers looking for a business just like yours. Get a free listing in the yellow pages just to cover your bases.

Yahoo! Local: You'll get a listing that includes everything from your business's name and location to operating hours and payment methods.

LinkedIn: This is the business-professional version of MySpace or Facebook. It allows industry professionals to connect with past colleagues, find new business opportunities, and to communicate with people within your own industry. Find more social networking ideas HERE.


Sources: http://sbinformation.about.com/cs/marketplansample/a/impactplan.html
http://www.score.org/m_pr_10.html
http://www.businesstown.com/marketing/lowcost-marketing.asp