Never Stop Marketing Your Business - Or You Will Get Eaten Alive

A stark reminder of what happens when you don't market your business. From this news story of today... the key part is this:

When the economy is genuinely humming, the growth rates of retail chains and small retailers tend to be roughly in sync.

However, during downturns it is common for their performances to diverge, with the chains using their greater pricing flexibility and marketing muscle to keep the top line ticking along.

For example, in financial year 2008, even as interest rates rose because of Reserve Bank fears about an overheating economy, the growth rate differential between the chains and the independents - excluding businesses in food away from home - was just half a percentage point. Since then the difference has blown out to almost 9 percentage points.

My work is mainly within the B-to-B sector, but the comparison to how larger franchise and company-owned groups (the chains) maintain their position in tough times by using their 'pricing' and 'marketing muscle' is a strong reminder of why you always need to market your business - no matter what industry you are in.

1. Define your niche (or specialty).
2. Identify the value you provide (in the eyes of your client).
3. Develop an effective marketing program.
4. Keep doing it - all the time.

Selling Luxury Goods in a Recession

See what America's respected business journal Inc. says when asked: What's the best way to promote our luxury goods? (I reckon it also applies if you offer a service.)

Get the answer here...

The answer is no surprise really:
* Offer/upsell to existing customers.
* Joint venture - partner with a related business to create an event.
* Be present in the right place to be found (location).
* Use social media networks to build awareness and engage prospects.

Survey Results: Work for less? Most say yes.

It's always interesting to keep abreast of trends and community view points. I thought this article from Human Capital Magazine was worth mentioning here...

The majority of job applicants to non-profit organisations are willing to take a significant pay cut - up to 30% - to secure jobs they see as ethical, according to a new survey.

EthicalJobs.com.au surveyed HR managers and executives 60 Australian non-profit organisations including charities, industry bodies and non-profit organisations.

Seventy-eight per cent of employers surveyed reported applications from people outside the not-profit-sector willing to work for less in an equivalent position.

Of those employers:

• 56% said applicants are willing to work for 10-20% less

• 19% said applicants are willing to work for 20-30% less

• 6% said applicants are willing to work for more than 30% less

"Many people want more than a paycheck and a parking spot - they want an 'ethical job' and non-profits seem to be the big winners," EthicalJobs.com.au founder Michael Cebon said.

Study Shows Cash is Still King for Retail Sales

My training and consulting work focuses on business-to-business selling. But I also keep on eye on changes in consumer trends as this can indicate underlying movements in the way customers think and buy.

The Sydney Morning Herald recently reported that a Reserve Bank of Australia (RBA) study of consumer payment behaviour released on Wednesday found cash is still king, accounting for 70 per cent of all transactions.

EFTPOS and MasterCard and Visa debit card payments make up 15 per cent of all transactions, followed by MasterCard and Visa credit card transactions at nine per cent and American Express and Diners Club cards at one per cent.

Cash is overwhelmingly used for low value payments under $10 and for 75 per cent of payments between $11 and $25 for items such as take away food and bar bills.

Credit Card Loyalty Programs Work

The report aso found that loyalty programs offered by credit card companies do work.

For the average consumer, loyalty programs increase the probability of credit card use by 23 percentage points and reduce the probability of cash use by 14 percentage points.

Being 'Standard' Can Win You More Business

A recent article from MarketingProfs highlights how rectangular product packaging has a 'golden ratio' that makes the size most appealing to consumers. Key point: The higher the fun factor, the less important it is to stick to the golden ratio.

My reading of this is that the more serious the purchase decision, the more buyers will want your service/business to appear to be 'standard'.

In other words, being standard can make the buying decision easier (and safer) for customers.

Think about it - if you are about to have serious surgery you don't want a doctor joking around. You want them to be like the 'standard' doctor - serious and deliberate. However for treatment a minor ailment a bit of unexpected humour may be appreciated.

YOUR ACTION...
* Consider how seriously your customers treat the decision to buy from you.
* The more serious it is, you need to pay attention to creating trust by being familiar to them.

In other words, just like the golden ratio for rectangular product packaging, be aware of what your customers prefer to see in their service provider. And make sure your service looks familiar (and reliable).

Although being standard may sound boring... it could win you more business.

Which advertising works best? Recent data shows...

I'm a great believer in making sure you are using the best marketing tool to suit your objective. And I often say that marketing is like playing chess. In chess you have a variety of pieces, each with their own moves and abilities.

In marketing you have a range of marketing tactics, and each comes with its own inherent set of limitations and advantages.

The challenge is to use the best marketing tool for the job. The choice of which tool/tactics to use, and how frequently to use it, should be based on what your customer needs to move them forward in their purchase decision.

This article from eMarketer talks about the impact of various marketing tactics on consumer purchase decisions in the USA.

It shows that the first places people look for information is advertising inserts and the internet. Each source received 26% of responses. The internet was nearly double the number from 2004 (15%). Interesting newspaper advertising dropped by 33% since 2004 to now sit at 12%.

The message here is that you need to stay up to date with the most suitable marketing tactics for your requirements. The market is changing too fast these days to keep using what you had in place 5 years ago without reviewing it.