Marketing

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Contents

Page

Summary 3

1 Why You Need Marketing 6

2 Market Research 8

3 Pricing 13

4 The Image You Want to Project 15

5 Marketing Communications 19

6 Marketing Media 23

(I) Print Media 25

(II) PR (Public Relations) 31

(III) Broadcast Media 36

(IV) On-Line Media 38

(V) Outdoor & Transit Media 40

(VI) Sales Promotion Media 42

7 Hired Guns 44

8 Word-of-Mouth 47

9 Selling & Distribution 50

10 Customer Relationship Management 54

11 Service Businesses 56

12 Daring to be Different! 58

13 Creating a Marketing Strategy 62

14 Useful Contacts 66

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1. Introduction – WhyYou Need Marketing

In order to succeed, you need cashflow. Toget cashflow, you need paying customers.To get customers, you need marketing.

As your own marketing director, you haveto make decisions about:

✧ The product or service.

✧ Pricing.

✧ Customer service levels.

✧ Distribution.

✧ Advertising.

✧ PR.

✧ Selling.

2. Market ResearchThe better your market research, thesmarter your decisions, and the moreprofitable you will be. Market researchwill:

✧ Help you to determine whether theidea is viable.

✧ Help you to identify the customerswithin your target markets.

✧ Help you to analyse the market and thecompetition.

✧ Help you to analyse your owncapabilities.

Market research involves two routes toinformation. One is straight from thehorse’s mouth, asking the target marketdirectly through:

✧ Questionnaires.

✧ Focus groups.

✧ Indirect research (spying, counting,etc.).

The second route is through existingsources of information. Whatever you do,you need to do it and keep doing it.

3. Pricing

Every product or service has a price. Inorder to set a price, you need to consider:

• Your cost price calculations (includingpricing your time).

• How much are your customersmotivated/influenced by price? • Yourpricing strategy (Cost plus, Market minus,Penetration, Skimming, etc.). Whateveryou decide, stick to it and do not be afraidto ask!

4. The Image You Wantto Project

Your image determines how yourcustomers perceive you. Does your imageinstill trust, is it helpful to your business,or is it a hindrance? With regard to yourimage, you need to consider:

✧ The name you use for your company/product/service.

✧ The logo you use.

✧ The location you use (particularlyrelevant to retail).

✧ Working from home – pros and cons.

22. MarketingCommunications

You need to bring your potentialcustomers from being unaware of you toactually buying. To achieve that, you needto be able to communicate:

✧ What you do (who, what, where, how).

✧ Your unique selling proposition.

✧ Your features and benefits.

✧ Your marketing message (sales andimage).

Again, once you have decided, stick to it.

Summary

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6. Marketing Media

Once you have decided on your messages,the next step is to choose the right balance/mix of media from among all the options,including:

✧ Print media:

✧ Business cards.

✧ Brochures/flyers.

✧ Direct mail.

✧ Advertisement.

✧ PR:

✧ Media releases.

✧ Articles.

✧ Newsletter.

✧ Broadcast media:

✧ Radio.

✧ Cinema.

✧ TV.

✧ On-line media.

✧ Outdoor and transit media.

✧ Sales promotion media:

✧ Packaging.

✧ Point of sale.

✧ Giveaways.

✧ Exhibitions and trade fairs.

Match your Message to your Marketusing the right Medium (and budget).

7. Hired Guns These include:

✧ The copywriter.

✧ The graphic designer.

✧ The PR consultant.

8. Word-of-Mouth

Word-of-mouth/referral is a powerfulway of reaching new customers,particularly for small business. There aredifferent sources:

✧ Existing customers (ask!).

✧ Friends and family (ask!).

✧ Professional colleagues (ask!).

✧ Influencers.

Develop word-of-mouth by looking atyour dress code, behaviour, language, etc.,via smart use of business cards, via “thankyou” notes and a tracking system.

Go out and do it!

9. Selling & Distribution

You never stop selling. The trick is to staytrue to your own style. Selling ultimately(but not only) is about clinching the deal.Keep trying and you will. Consider:

✧ Direct/indirect distribution channels(sales routes) to deliver your productor service.

✧ Export – pros and cons (your local areais very small as a home market).

10. CustomerRelationshipManagement

Once you have acquired customers itmakes good business sense to keep them.Work through the checklist on page 55. 1

11. Service Businesses

Because services are intangible, you needto put even more emphasis on marketingand added value. Image and peoplebecome key!

12. Daring to beDifferent!

You need to stand out. What can you dodifferently, how can you make people situp and attract attention. Look at theexamples and try to come up with ideas.Boldly go where no one has gone before!

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13. Creating a Marketing Strategy

Tips to remember as you devise anddevelop your own marketing strategy:

✧ The main goal of your business is tocreate a coherent marketing strategythat will drive the engine of yourbusiness.

✧ Understand the business context inwhich you operate.

✧ Make time for keeping up-to-date onthe latest developments in yourmarket.

✧ Your customers are the lifeblood ofyour business – without them, yourbusiness will not survive.

✧ It’s not enough for your customers toneed your product or service, theyhave to want it.

✧ Once you have achieved your short-term goal of acquiring new customers,devote most of your efforts topampering your existing customers.

✧ Guide your customers fromunawareness through awarenessthrough knowledge throughpreference through conviction toaction.

✧ Develop a positioning statement thatexpresses the core message you wantall your internal and externalcommunications channels to deliver.

✧ Develop a USP that communicates apowerful statement of the uniquenessof your service or product.

✧ Formulate the marketing messagesthat will attract customers andpersuade them to do business withyou.

✧ Convince yourself of the value of yourproduct or service before you try andconvince others.

✧ Think of yourself as a walking andtalking marketing vehicle, dedicated24 hours a day to projecting a positiveimage of your business.

✧ Your business card can be your mostvaluable marketing tool – the next cardyou give out could land you yourbiggest customer yet.

✧ Resist the temptation to write yourown marketing literature or designyour own visual communications.

✧ Look for opportunities to get a storyabout your business in the local,national and trade media.

✧ Find out if your potential customerswill use the web to find you before youinvest in a website.

✧ Always match your message to yourmarket using the right medium.

✧ There are professionals out there whospecialise in creating andcommunicating your visual andtextual marketing messages.

✧ Explore the power of word-of-mouthreferrals and the potential of jointventure marketing.

✧ Make your marketing efforts stand outfrom the crowd by daring to bedifferent.

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Whether you are about to launch your newsmall business, or your business is alreadyup and running, marketing is the lifebloodof your business.

Marketing in a nutshell:

✧ In order for your small business tosucceed, you need cashflow.

✧ To get cashflow, you need customerswho pay you for your product orservice.

✧ To get customers, you need to marketyour business.

It really is as simple as that.

Marketing is all about letting peopleknow that you are in business. Howevergood the product or service you areoffering, your business cannot surviveunless you attract customers. You mustcreate a coherent marketing strategy thatdrives the engine of your business andenables you to operate at a profit. Failureto do so means that all the energy andexpense that went into creating yourbusiness plan will be wasted.

Marketing is not: ✧ A luxury.

✧ An expense.

✧ Something you can or cannot afford.

Marketing is: ✧ A financial investment – and your

customers are your ROI (return oninvestment).

✧ A time investment – don’t spend asingle cent on marketing until youhave taken the time to learn aboutyour market, to consider your options,and to plan how to market yourbusiness.

Your time commitment to marketing is notnegotiable. When I hear small businessesplead shortage of time as their excuse fornot developing a coherent marketingstrategy, I am reminded of a classic scenefrom The Muppets. A pressured Kermithas told Miss Piggy that he simply has notime on his schedule to see her. “Kermie,”she snarls with her trademark malevolentsmile, “MAKE time!”

Because marketing textbooks offer such aprofusion of marketing terms, it is usefulto start with some working definitions: ✧ Business plan – A working manual

that spells out what your business isabout – what you do and do not do,and what your ultimate goals are.Your business plan is a planning toolthat helps you assess your businessdecisions within a wider context, andalso shows how you plan to supportyour marketing operation

✧ Marketing strategy – Your marketingstrategy (this is a better term than“marketing plan”) forms part of yourbusiness plan, and presents a step-by-step guide to how you intend toimplement the marketing elements ofyour business plan. Your marketingstrategy is a roadmap that encompassesevery aspect of marketing yourbusiness. Do not confuse marketingstrategy with marketing tactics such asadvertising and PR. Without amarketing strategy to give you

1 Why You Need Marketing

Remember that it’s not enough to produce a product orprovide a service. Your #1 goal must be to market yourproduct or service.

CASE STUDY: Mr. Wrigley & the Train

Mr. Wrigley, he of the famous chewing gum, was on a trainjourney. One of his bright young executives said to him,“Mr. Wrigley, the whole world knows your chewing gum.Just think of how much money you could save bydrastically cutting the Wrigley marketing budget.”

Mr. Wrigley turned to the young man and asked: “How isthis carriage moving?”

“It’s being pulled by the engine, sir”, the young fellowreplied.

“And what would happen if the engine stopped?”

“The train would grind to a halt, sir.”

“Precisely”, said Mr. Wrigley, “Just think of marketing as theengine which pulls the whole train. If we stop investing inthe marketing of our chewing gum, the whole impetus ofour business will slow down, and our operations will grindto a halt.”

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direction and focus, your marketingactivities are like shooting from thehip

✧ Marketing activities – Marketingtactics – like advertising and PR – thathelp you deliver your marketingmessage to your potential customers.Marketing tactics cannot replace aproperly defined marketing strategy.

Every business needs a marketingfunction. Someone has to be responsiblefor the marketing operations. If you run asmall business, that someone may well beyou.

As your own marketing director, you willhave to make decisions about:

✧ The product or service.

✧ Pricing.

✧ Customer service levels.

✧ Distribution.

✧ Advertising.

✧ PR.

✧ Selling. At all times, you shouldalways involve your staff in all yourmarketing activities. This publicationis designed to take you step-by-stepthrough the process of marketing yourbusiness:

✧ In Chapter 2, you will learn about themarket research that will determinewhether your idea is viable, andwhether you can find a niche in themarket of your choice.

✧ Chapter 3 looks at pricing issues.

✧ Chapter 4 discusses the image youwish to project for your business,including whether or not you need abrand name or logo, and where youestablish your business base.

✧ Chapter 5 helps you develop yourmarketing communications, which

includes your positioning statement,your USP (Unique Selling Proposition)and your marketing messages.

✧ Chapter 6 examines all the optionsthat go into creating your owndistinctive media mix: print media(such as advertisements andbrochures), public relations (PR),broadcast media (TV, radio andcinema), on-line media (the Internet),outdoor and transit advertising(billboards and bus advertising), andsales promotion media.

✧ Chapter 7 introduces you to themarketing professionals who can helpyou develop and implement yourmarketing strategy.

✧ In Chapter 8, you will learn about theimportance of word of mouthmarketing.

✧ Chapter 9 is all about selling,distribution, and export.

✧ Chapter 10 describes the role ofCustomer Relationship Managementin your marketing strategy.

✧ Chapter 11 is devoted to the specialmarketing challenges facing smallbusinesses that offer a service ratherthan a product.

✧ Chapter 12 looks at some offbeat waysof developing a marketing strategy.

✧ Chapter 13 presents a samplemarketing strategy.

✧ Chapter 14 contains a list of usefulcontacts and addresses.

The goal of this workbook is to help youformulate and develop a marketingstrategy with which to navigate yourmarketing route. As the Cheshire Cat said,when Alice asked which path to follow: "Ifyou don't care where you're going, itdoesn't make a difference which path youtake."

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Why Do You NeedMarket Research?

Market research lies at the very core ofyour business planning. It begins themoment you decide that you want to starta new business – and never really ends.

Market research means becomingknowledgeable about your market. Withmarket research, you will possess theinformation you need to make smartmarketing decisions about your business.And the smarter your decisions, the moreprofitable your business will be.

Market research helps you to:

✧ Understand the business context inwhich you operate.

✧ Accurately identify and target yourmarket.

✧ Check whether there is demand foryour business idea in the market.

✧ Ascertain whether there really is amarket for your product/service.

✧ Become knowledgeable about yourpotential customers.

✧ Identify what your customers want,demand and expect.

✧ Determine who are your competitors.

✧ Identify gaps and opportunities in themarketplace.

✧ Understand the industry in which youoperate.

✧ Find out whether you know how tosell yourself.

✧ Determine the focus of yourmarketing strategy.

✧ Obtain feedback about your ideas.

Market research never stops, which is whythe data that underpins your decision-making must constantly be reviewed. Themore you continuously monitor what ishappening in the market, the betterequipped you are to fine-tune yourongoing marketing operations.

Is Your Idea Viable?

No amount of market research can everguarantee that your business willultimately be viable. There are too manyother variables at play here.

However, market research can help youdetermine whether your idea is viable inthe first place. So even before you embarkon gathering intelligence data on yourmarket, you first have to develop and testyour business idea by subjecting it to acritical analysis.

2 Market Research

10 QUESTIONS ABOUT YOURBUSINESS IDEA

1. Why is it a good idea?

2. On what assumptions is that opinionbased?

3. How can you prove that thoseassumptions are correct?

4. What types of customer will beinterested in your product/service?

5. Why?

6. List 4 reasons why the idea may notwork?

7. List 4 reasons why your idea will work.8. What is the difference about thisidea from others already in themarketplace?

9. Why are those differences important?

10. What if … you changed theproduct/service in some way?

Source: Starting Your Own BusinessWorkbook, Oak Tree Press

Before a military commander attacks a stronghold, he triesto obtain military intelligence: aerial photos, building plans,and personal eyewitness accounts of the target. When youare targeting your market, you too need critical intelligenceinformation: demographic data, business data, statistics,and eyewitness accounts from people who have operatedin that market.

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Identifying Your Target Market

To identify and understand your targetmarket, you need to know how yourpotential customers behave, theirmotivations, their perceptions, theirpreferences, their attitudes and theirknowledge. You also need to know whatyour customers want.

Don’t confuse need and want. How manytimes have you gone to the supermarketbecause you needed milk and bread – andemerged with a frozen Chinese meal, icecream, a bottle of wine and some crisps.We may forget what we need, but we buywhat we want.

That’s why your products and servicesshould reflect what your target marketwants to buy rather than what you want tosell. And the best way of discovering whatthey want is to put yourself in their shoes:

✧ Think like a customer

✧ Look at your business like a customer

✧ Ask yourself if you are happy withevery aspect of the buying experience.

Your customers must want your productor service. If they don’t want it, even ifthey need it, you can’t sell it.

When you are in the process of identifyingyour target market, you must learn todifferentiate between your true customer(the one who signs the cheque) and theultimate user/beneficiary.

Some businesses have multiple targetmarkets. They offer a range of products orservices to several different markets. Thisis fine – just remember to get the mix right.You need to be sure that what you supplyto one market does not offend orantagonise another market.

As you gather your intelligence data onyour target market, you need to focus onseveral different aspects of your market tohelp you understand why certain peoplewill become your customers and whyothers won’t. For example, caravanowners are much more likely to buycaravan equipment than non-caravanowners. The more detailed yourinformation, the better you will be able toidentify potential customers. And thebetter you can identify them, the betteryou will be able to target them later.

Analysis of your target market(prospective customers)

This involves answering these questions:

✧ What is the age, gender and incomelevel profile of your customers?

✧ What language(s) do they speak?

✧ What is their marital status?

✧ What nationality are they?

✧ What distinguishes their culture andtheir lifestyle?

✧ What are their extra-curricularactivities, interests, hobbies?

✧ Where are they located?

✧ What do they want and what don’tthey want?

✧ What motivates them to buy?

✧ Where do they normally buy similarproducts (in a store, Golden Pages,direct mail)?

EXAMPLE:

Phyllis runs a tourism venue that is anideal attraction for senior citizen daytrippers. Because she thought that hertarget market was the 50,000 seniorcitizens who belong to senior citizenclubs, she worried that her marketingefforts would prove too costly. It was onlywhen she realised that her true targetmarket consisted of just 150 socialdirectors of senior citizen clubs that shewas able to focus her attention onreaching these decision-makers. They,not she, had the job of persuading the50,000 seniors to come and visit hertourist venue.

EXAMPLE:

Mike runs a delivery service specialising in house-to-house deliveries. One of the most importantsources of his income is the local churches, whichuse Mike’s service to have their parish magazineshand-delivered. When Mike agreed to deliverpackages for a new customer who rented outadult videos, Mike’s church customers were notimpressed.

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✧ Why do they buy this product orservice?

✧ When do they decide to buy thisproduct or service?

✧ What do they listen to on the radio?

✧ What do they watch on TV?

✧ What daily and local newspapers dothey read?

✧ Where do they socialise?

✧ What is their sexual orientation?

✧ How do they spend their money?

✧ Who makes the purchasing decision(husband, wife, child, buyer, manager,secretary)?

✧ What would persuade them to cometo you rather than to the competition?

Analysis of themarket/industryThis involves answering these questions:

✧ Are you trying to attract businesscustomers (what is known as B2B –business to business)?

✧ Are you trying to attract consumers(what is known as B2C – business toconsumer)?

✧ Is there sufficient demand (is themarket big enough) for you to makemoney?

✧ Can you identify a niche in the marketthat is under-served?

✧ Is there a gap in the market that youcan fill?

✧ Are you offering something new tothe market?

Analysis of the competition This involves answering these questions:

✧ Do you know who your directcompetitors are?

✧ Do you know who your indirectcompetitors (those competing for thesame money pool) are?

✧ Will your entry into the market be athreat to your competitors?

✧ How are they likely to react?

✧ What are their capabilities?

✧ What are their future prospects?

✧ Is there too much competition in themarket?

✧ Is there too little competition?

✧ What are the weaknesses in yourcompetition's offering?

✧ What alternatives do your customershave to your product/service?

Analysis of your owncapabilities It is also worth asking yourself somepertinent questions about yourself:

✧ What areas of marketing are youcomfortable with?

✧ What areas of marketing are you weakin?

✧ Have you instilled the right attitudesto customer satisfaction in your staff?

✧ Is the marketing culture in yourbusiness strong enough?

Finding the InformationYou Need

Once you have identified in which areasyou need information, you need to knowhow to go about obtaining thisinformation. Market research consists of:

✧ Primary research in which you godirectly to the target market and askquestions.

✧ Secondary research in which you lookfor sources of information.

If you conduct your secondary researchbefore your primary research, you will beable to formulate better questions. You’llfind much of the secondary researchinformation you need free of charge atyour public library or on the Internet.

A huge amount of secondary research isavailable from publicly accessibleinformation sources:

✧ Central Statistics Office (www.cso.ie).

✧ Enterprise Ireland (www.enterprise-ireland. com).

✧ Government Publications Office.

✧ Government Departments and StateAgencies (www.irlgov.ie andwww.basis.ie).

✧ Business magazines.

✧ Local and national newspapers.

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✧ Banks. ✧ Business Innovation Centres. ✧ County and City Enterprise Boards

(www.etradebusinessireland.com). ✧ Area Partnership Companies. ✧ LEADER+ companies. ✧ Professional associations . ✧ Trade bodies. ✧ Trade associations. ✧ Trade publications. ✧ Trade directories. ✧ Chambers of Commerce

(www.chambersireland.ie). ✧ Trade exhibitions and conferences. ✧ Web-based directories and resources. ✧ Non-profit agencies. ✧ Back issues of magazines and

newspapers. ✧ Golden Pages. ✧ Competitors’ catalogues, brochures

and price lists. ✧ Professional advisers (accountants,

solicitors, consultants). ✧ Local authorities. ✧ Business websites (such as

www.startingabusinessinireland.com). ✧ Universities and colleges.

Questionnaire Armed with this background information,you can now conduct primary research tohelp you understand the nuts and bolts ofyour market.

Qualitative research refers to in-depthstudies done on individuals and/orsmaller groups. Quantitative research isused to generate a large quantity of datathat will form the basis for makingpredictions.

Small businesses can rarely affordcomprehensive quantitative research. Amore realistic alternative is to concentrateon qualitative research such asquestionnaires and focus groups.

Your questionnaire should be based on allthe preparatory information you havegathered. To encourage your prospectivecustomers to complete your questionnaire,keep it relatively short and uncomplicated.

Focus groups Another way of collecting valuable marketdata is by using a focus group.

The function of a focus group is to provideyou with feedback on your ideas. Youassemble up to 10 people together in oneroom, and get them to discuss and react toa specific topic relevant to your business.These deliberations, preferably moderatedby an outside facilitator, can often provideyou with richer and more in-depth datathan questionnaires.

Indirect research Sometimes, you will notbe able to obtain the information you needfrom first-hand sources. Use youringenuity to indirectly tap the informationyou require:

FOCUS GROUP CHECKLIST

1. Choose a venue that provides a comfortableenvironment for constructive discussion.

2. Choose a professional facilitator. 3. Provide a free lunch – and you won’t need to

pay them for their time! 4. Select participants carefully to obtain a

balanced mix of experience and skills. 5. Select participants who represent your target

market. 6. The facilitator must ensure that every

participant expresses an individual opinion. 7. A focus group is not a jury – there does not

have to unanimity. 8. The aim of the group is to focus on a number

of key issues – make sure that these issuesare clearly explained.

9. Make sure the discussions are minuted.

YOUR MARKET RESEARCH QUESTIONNAIRE

Write down 10 questions you would like to ask therepresentative sample of your target market:

1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

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✧ Count how many cars are in yourcompetitors’ parking lots.

✧ Count the “footfall” (the number ofpeople passing a particular spot)outside the premises you intend to buy.

✧ Count the footfall going into yourcompetitors’ premises.

✧ Count the number of trucks deliveringto your competitors.

The results of your primary and secondarymarket research will form the basis forformulating your marketing strategy.Check that you have covered all therelevant elements.

MARKET RESEARCH CHECKLIST

Does your market research cover: Market size and structure YES/NO Market trends YES/NO Market potential YES/NO Market share YES/NO Level of competition in the market YES/NO Competitor products/services YES/NO Competitor prices YES/NO Customer profile YES/NO Customer attitudes YES/NO Demographic factors YES/NO Economic factors YES/NO Industry factors YES/NO Government factors YES/NO Level of demand for your product/service YES/NO

CASE STUDY

Ciaran trained as a travel consultant, and set up his owntravel agency on a busy high street. As the local populationgrew in size, his business volume grew as well.Encouraged by this growth, Ciaran decided to install anambitious new computerised booking system. Monthsafter it was up and running, the major airlines whosetickets Ciaran sold slashed the commissions paid to travelagencies. If he had been following market trends, he wouldhave seen that more and more people were bookingtickets online. He would have explored ways of diversifyinghis business. Instead, Ciaran invested in expensiveinfrastructure. In his eagerness to expand, he took his eyeoff the market research ball.

Market researchmust never be aone-off event. Youmust constantlyacquire vitalinformation aboutthe evolution ofyour market andyour industry. Learnfrom Bill Gates.Every year, he takesa week off with justa suitcase full ofbooks in order tocatch up onessential reading.

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A related but separate area of marketresearch is pricing. Every product orservice you intend to offer must have aprice set for it. In determining your pricingpolicy, you need to calculate your: ✧ Production costs. ✧ Profit margins. ✧ Overheads. ✧ Promotional and advertising

expenses. ✧ Delivery costs. You also have to juggle

with several different variables: ✧ The lowest price you can afford to

charge and still make a profit. ✧ The price your customers are used to

paying for a similar product orservice.

✧ The highest price you can charge andstill attract enough customers to beprofitable. Price is often a compromisebetween you and your customer:

✧ You want to charge as high as themarket will allow.

✧ Your customer wants to pay as little aspossible.

Once you have determined your pricingstructure, stick with it. Try and get yourpricing right from the beginning –raising your prices later runs the risk ofantagonising your customers.

Remember that while some customers useprice as the sole criterion for their buyingdecisions, others give greaterconsideration to service, dependability,and convenience value. Before youdetermine the price of your product orservice, you need to know what motivatesyour customers.

One way of testing your proposed pricingpolicy is to ask the people who should,would or could be interested in yourproduct or service: ✧ What would you regard as a fair

price? ✧ What would you regard as too low a

price?

✧ What would you regard as too high aprice?

Ask them to be honest, and not just to giveyou the answers you want to hear.

Remember that pricing is not always anexact science. Although, logically, the morestandardised your product or service, themore price sensitive it becomes, this logicdoes not always stand up. In somemarkets, especially in the services sector,there can be a sort of reverse psychology.The more you charge, the more customersyou attract.

Pricing Strategies

There are several types of pricing strategy: ✧ Cost-based pricing – You arrive at the

price by adding the costs ofproduction (material, labour, fixedand variable overheads) and businessoperations to a profit margin. This is apopular strategy in manufacturing.

3 Pricing

EXAMPLE 1:

You produce a flavoured milk drink that you wantto sell to a small 5-store local chain of grocers. Inorder to be competitive, you will have to sell thedrink to the chain at the same price they arepaying their existing supplier – or even lower.

EXAMPLE 2:

You run a call-out plumbing service. The going ratein the area is €20. You will have a problem tryingto charge much more.

EXAMPLE 3:

You are a physiotherapist. You charge 50% morethan all the other physiotherapists in town. Peopleflock to you because they think: “If he’s chargingso much, he must be good.”

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✧ Mark-up pricing – You add a pre-setpercentage to the cost of goods fromyour supplier + distribution costs.This is a popular strategy in retail.

✧ Demand-based pricing – Youdetermine price according to whatcustomers are willing to pay.

✧ Follow the market pricing – You setyour price by following the usual oraverage price of your competitors.

✧ Penetration/loss leader pricing – Youoffer a low price or below cost price inorder to attract customers away fromthe competition. Note that the pricesof certain items such as milk andbread are subject to special regulationsregarding minimum price.

✧ Price skimming – You go in with aninitial high price, and reduce the priceas the market becomes saturated or asthe novelty value wears off. Look athow computer prices plummet just afew months after they are launched.

✧ Time-based pricing – This is commonpractice for service businesses,whereby you agree a fee per hour andcalculate the number of hours the jobtakes or should take.

Negotiating Prices If you have never had to negotiate pricesbefore, you may find that you are reticentto talk about money to your customer. Youmay feel such gratitude and relief that youhave received an order that your businesssense goes out the window and you chargea price that is too low. Get over it!

Make a list of features and benefits foreach product, and put a price on eachbenefit. You will soon find yourself wellable to justify your price.

Small businesses are often frightened bytheir own pricing. Even though you knowthat your sums are right, there is atemptation to underprice, especially ifbusiness is slow. Customers are quick tosense your embarrassment, and willexploit it if they can.

If you find yourself breaking into a coldsweat every time you have tocommunicate your price, it means that youyourself are not yet convinced of the valueof your product or service. Alwaysmaintain eye contact with your customerwhen you are discussing price. Yoursteady gaze helps your customer believethat your product/service is worth themoney.

DETERMINING YOUR PRICING STRUCTURE

What are customers used to paying at present? €____

What do your competitors charge for a similar product/service (on average)? ¤____

What is your price? €____

What are the components of your price? Materials €____

Time €____

Equipment cost €____

Distribution €____

Other costs €____

Total costs €____

Profit margin v____

Selling price v____

Will you offer discounts? Yes/No

If yes, what kind of discount?

Will you give special offers? Yes/No

If yes, what kind of special offers?

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The Importance of Image

Once you have identified your market,you need to give attention to the imageyou wish your business to project. Thedecisions you make about your businessimage will influence the way you areperceived by your customers. Thequestion you need to ask yourself is: Is myimage a help or a hindrance to mybusiness?

The impression you make on othersdepends on several image factors:

✧ Dress code and grooming.

✧ Personal hygiene.

✧ Attitude.

✧ Politeness.

✧ The car you drive.

✧ The location of your business.

✧ The name of your business.

✧ Your staff.

✧ Your business cards.

✧ Your logo.

✧ The message on your answer phone.

You can’t afford to dismiss the imageissue. You can produce the world’shighest-precision paper clip, or give theworld’s most heavenly massage, but ifyou’re not making the right impressionon your customers, you’ll find you don’thave any.

The situations below show you how imagecan play a key role:

4 The Image You Want to Project

Remember that customers like dealingwith a reputable business. Project theimage of success. Project a professionalappearance.

Talk the language of “we” rather than “I”.In the B2B (business to business) fieldespecially, customers are often morecomfortable dealing with entities ratherthan with individuals.

Your aim at all times is to develop andmaintain a consistent image that is

reflected in everything youdo. Have a look in themirror as you start yourwork-day and ask: "WouldI be comfortable doingbusiness with thisperson?" Because that isexactly what customers areasking themselves: “Can Itrust this person/businessto deliver the benefits theypromise?”

You are your ownwalking and talkingmarketing vehicle.Think of yourself asa company van,with your business’name and contactdetails emblazonedon your front, backand sides.

You turn up late and fumble yourway through the presentation.

You turn up to deliver thefurniture in a battered old van.

Customers in the shop can seeyour employees smoking in theback.

Your hair is unkempt, yourclothes are scruffy, and you haveBO.

You are not careful with yourlanguage, and offend some of theparticipants.

You are making an importantpresentation to a potentialcustomer.

You sell high-quality bedroomfurniture.

You run a small jam andpreserves company with itsown shop.

You run a childcare facility.

You are giving a seminar towould-be entrepreneurs.

SITUATION HELPFUL IMAGE UNHELPFUL IMAGE

You turn up early and make surethat everything is in workingorder for your presentation.

Your delivery person dusts thenewly-installed furniture, andeverything around it.

You give out a small sample jarwith every over-the-counterorder.

You greet each parent by nameas they bring their child eachmorning.

You hand out a synopsis of yourseminar for the audience to referto later.

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16 Your Name as Image

The name of your business, product orservice also impacts on your image.

One of the first decisions any smallbusiness has to make is whether to usetheir own name or to create a brand namefor the business.

If you are a solicitor, accountant, mortgagebroker or auctioneer, it is traditional – butnot mandatory – for your name to besynonymous with the business name. Ifyou produce consumer items to be sold inretail outlets, you are more likely to wantto create your own brand name. Look atthe examples in the table, and decide whatmakes sense for you.

Pine furniture Seamus Faulkner Pine Furniture The Pine PlaceHouse-cleaning service Sally Whittaker Clean-Up

House-Cleaning Services Landscape gardener Steven Quinn Landscape Gardening Verdant Web designer Deirdre Black Web Design Online Web DesignPR consultant Grainne O’Brien PR Consultancy Image ConsultantsEngineering Mary Hughes Engineering Proto EngineeringFashion boutique Stella McArdle Fashions Bucks FizzInsurance Peter Malone Insurances QuoteDirectMilk-based fruit drink Connolly Dairies Fruit Drink Tootee-FrooteePlastic garden chair Daly Brothers’ Garden Chair The Relax Range of garden chairs Safety at Work training programme The Jan Butler Consultants’ Watch It!

Safety at Work Training ProgrammeRecipe book The Dave Macintosh Recipe Book Yummy!

DESCRIPTION OF USING YOUR OWN NAME CREATING A NEW NAMEBUSINESS

In the end, it is a comfort thing. There areno rights and wrongs. Go with yourintuition. When Apple computers first hitthe market, many eyebrows were raisedwhen people encountered this strange-sounding brand name for the first time.But did anyone decide not to buy an Applebecause it had a funny name? Unlikely.

Bearing in mind that your business issurrounded by mass-volume advertisingand brand promotion, you need to askyourself: “Are my brand names making iteasier or harder for my customers torecognise and value my business?”

While you might think that yourproducts and services will benefit from abrand name, your business may actuallysuffer if customers perceive this as beingtoo smart by half. Use your marketresearch to help you decide.

If you do decide to create a new brandname, the panel has some useful tips.

BRAND NAME TIPS

1. Avoid names that are too long, toocomplicated, too difficult topronounce or too difficult to spell –unless you believe that the noveltyfactor will work to your advantage.

2. Avoid initials unless they meansomething.

3. Avoid names that could beconfusing for your customers –unless this is deliberate (such asFCUK – French Connection UK).

4. Brainstorm (by yourself or withothers).

5. Make your decision and move on,otherwise you end up wastingvaluable time.

6. Don’t ask too many people theiropinion – names are intuitive, notscientific.

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Remember that the most creative name inthe world cannot make up for defectivequality or service. The last thing youwant is for customers to associate yourname with negative experiences.

Do You Need a Logo?

Logos can be powerful images. Think ofthe Nike swoosh, the graphic treatment ofthe words Coca Cola, and the Volkswagensymbol.

But does a small business need a logo?

Certainly, a well-designed logo can oftenadd to your image. As a small business,you will need to invest in a basic designlanguage anyway, if only to have businesscards, invoices and letterheads. Whetheryou invest specifically in a logo reallydepends on what line of business you arein.

A useful yardstick for deciding whetheryou need a logo is whether you have abrand name. Some of the examples welooked at earlier – such as The Pine Placeand Tootee-Frootee – would be obvious

candidates for either a unique graphicsymbol or a stylised visualisation of thename itself.

The chapter on marketing professionalslater tells you what sort of things youshould be looking for when choosingsomeone to design your logo.

Your Location as Image

You have probably heard the famousadage about the three things thatdetermine the success of a retail shop:Location, Location, Location.

Location can also have image implicationsfor retail outlets. Location can have lesscritical image implications for non-retailbusinesses, such as:

✧ Businesses where the customer neversteps inside an office – a window-cleaning business or a mail orderbusiness.

✧ Businesses that are more geared toserving other businesses (B2B –business to business).

✧ Service businesses. Whether you areretail or not, your decision regardinglocation should take account ofbusiness, marketing and imageconsiderations.

CASE STUDY

When Dundalk-based PC assemblerRomak Computers embarked on a re-branding exercise, they called in acopywriter (see Chapter 7: HiredGuns) to facilitate a brainstormingsession aimed at finding a new name.The copywriter brought a list of 30names to the meeting, and persuadedthe participants to agree in advance thatby the end of the 2-hour allottedtimeframe, they would choose a name.Ten of the names were struck offbecause they were too similar to existingcompany names. Ten names wererejected as unsuitable, and a further 5were rejected as not being specialenough. Finally, one the 5 remainingnames emerged as everyone’sfavourite. The company chose the nameiQon Technologies, and the very sameday a graphic designer was asked towork on designs based on the newname.

LOCATION CHECKLIST

1. What are your location options(shopping mall, shopping area, hoteldistrict, restaurant district, officebuilding, town centre, industrialestate, home, suburbs, village)?

2. What does the area look like?

3. How easy is it to find?

4. Will this location draw the customersyou are looking for?

5. Could this location turn yourcustomers off?

6. Do you need to provide a map tohelp your customers find you?

7. What will customers see andexperience when they visit yourbusiness?

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Locating your business in a smallcommunity has its own advantages.

The smaller customer base means that thenumber of potential customers you needto reach is smaller. Your advertising costsare usually much less than in the majorcities, and in a small community you canmake an immediate presence.

The downside to being located in a smallcommunity is that unless your market isnot geographically dependent, yourpotential market is more restricted.

You can also afford to make fewermistakes in a smaller community. In largerpopulation bases, you can make mistakeswithout everyone knowing about it.

Working from home

Some small businesses can get away withbeing located in the home of the businessowner. There is something very appealingabout swapping the early morning rushhour for a commute that takes you all theway from your bedroom to your homeoffice. However, running your businessfrom home doesn’t work for everyone anddoesn’t work for every business. Look atthe checklist before you rush to convertyour home into your workplace.

Over 8,000 new home businesses startevery day in America. They even have acute name for people who operate fromhome. They are called the “Pyjama Set”(because the myth says that they can workin their pyjamas until noon or later!).

WORKING FROM HOME CHECKLIST

1. Is your business suitable for working from home?

2. How will your customers react to a home-based business?

3. Are you able to separate your work space and your living space?

4. Are you the sort of person who needs to interact with others on a daily basis?

5. Have you studied the tax implications of working from home?

6. Is there anything in your lease which forbids certain types of commercial activity on your premises?

7. Do you have the self-discipline to work from home?

8. What happens when you want to employ staff? Are you mentally prepared for employees using part ofyour home like a regular office, including access to bathrooms?

9. What does your family have to say?

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Once you have identified your targetmarket and established an image that suitsyour business, you need to develop yourown marketing communicationslanguage. This will enable you tocommunicate the real and perceivedbenefits of your product, your service oryour business to your potential customers.The role of your marketingcommunications is to shepherd customersfrom unawareness to action via five keystages:

✧ STAGE 1: From unawareness toawareness – becoming aware of yourexistence.

✧ STAGE 2: From awareness toknowledge – understanding what youdo and what you are offering.

✧ STAGE 3: From knowledge topreference – liking what you offermore than what the competitionoffers.

✧ STAGE 4: From preference toconviction – deciding to do businesswith you.

✧ STAGE 5: From conviction to action –performing the purchase act.

In this chapter, we will look at severaldistinct layers of your marketingcommunications strategy, starting withyour positioning statement and yourunique selling proposition (USP).

YOUR POSITIONINGSTATEMENT

When someone asks you, “So, what doyou do?”, you need to be able to respond:

✧ Clearly.

✧ Concisely.

✧ Convincingly.

✧ Consistently.

That’s why you need a positioningstatement that expresses the core messageyou want all your communicationschannels (internal and external) to deliver.

Try and imagine that every time you meeta potential customer (face-to-face, on thephone, via a direct sales letter, through anad or PR piece on you in the local media),he or she is asking you seven basicquestions:

✧ WHO are you?

✧ WHAT do you do?

✧ WHAT market do you serve?

✧ WHO have you worked with?

✧ WHAT is so special about yourbusiness?

✧ WHERE can I find you?

✧ HOW do I initiate business with you?

The better crafted and clearlydifferentiated your positioning statement,the faster you can move your customersalong the awareness continuum to theaction stage. Remember, you don’t alwaysknow in advance how much time youhave to make that crucial first impression,so it’s best to prepare a range ofpositioning statements.

Don’t be caught off guard when you’reasked what you do. A fumbled “Oh Idon’t do anything special” or “That’s adifficult question” just won’t do. Practiceyour answer so that it comes out like amantra.

5 Marketing Communications

Exercise

WRITE A ONE-LINE POSITIONING STATEMENTIN ANSWER TO THE QUESTION:WHAT DO YOU DO?

WRITE A ONE-SENTENCE POSITIONINGSTATEMENT IN ANSWER TO THE QUESTION:WHAT DO YOU DO?

WRITE A ONE-PARAGRAPH POSITIONINGSTATEMENT IN ANSWER TO THE QUESTION:WHAT DO YOU DO?

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Once you have formulated a positioningstatement that you are happy with, makesure that everyone involved in yourmarketing communications, PR and salesoperation is familiar with it. They too haveto be able to answer clearly, concisely,convincingly and consistently when askedabout your business.

Your Unique SellingProposition (USP) Developing a positioning statement is avital first step – but it is not enough:

✧ You might be a highly qualified child-carer – but so are many otherchildcarers in your market.

✧ You might be a gifted engineer – butso are many other engineers in yourmarket.

✧ You might be a superb furniture-maker – but so are many otherfurniture-makers in your market.

Whatever technical skills, innovativeproducts or creative ideas you possess willremain a secret unless you let peopleknow.

Whether your competition is locally,nationally or even globally based, youneed to find a distinct advantage.

Which is why your business needs its ownUnique Selling Proposition – your USP –which:

✧ Communicates a powerful statementof the uniqueness of your service orproduct.

✧ Is the essence that runs through yourentire operation.

✧ Projects a message about yourcommitment.

✧ Hints at the benefits of working withyou.

✧ Sets you apart from your competition.

Your USP helps your business to standout from the crowd. Differentiateyourself with something unique andmemorable that helps your customers toremember you and persuades them to dobusiness with you.

Here are some examples of how todevelop your USP into a USP tagline thatyou can use in your marketing:

DESCRIPTION OF BUSINESS ELEMENT OF UNIQUENESS USP USPTAGLINE

Grocery/convenience store in thevery best location in town.

You have opened a graphicdesign studio after 15 yearsworking in New York with a majorgraphic design studio.

Childcare facility.

You run a repair garage, and youare aware of the bad reputationof auto repair establishments.

Kitchen table manufacturer.

You are a white goods retailer,and the products you sell are alsoavailable from your competitors ata similar price.

Sandwich shop.

You offer ample parking and easyhassle-free access.

You have won several industryawards for your work.

You are the only professional whohas trained in a new method ofteaching children arithmetic skillsthrough music.

Your USP is that you promise toundertake a job only if there isreal need.

You use only top quality materialsand workmanship.

You offer very fast delivery and,even if your competitors offer thesame service, you can be the firstto emphasise this particularadvantage.

Unlike other sandwich shops, youmake your own sandwiches fresheach day.

Convenience.

Record.

Exclusivity.

Trustworthiness.

Reliability.

Speed.

Freshness.

The mostconvenientshopping intown.

Effectivedesign fromaward-winningdesigner.

The pioneersof arithmeticteachingthrough music.

If Your Car’sOK, We Won'tFix It.

You’ll still besitting at ourtable 20 yearsfrom now.

Buy today,we'll deliver ittonight.

Home-MadeTastes Better.

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Write down some elements thatdifferentiate your business.

Now choose the most important elementof uniqueness, and formulate a USPstatement that you can trumpet at everyopportunity.

Remember to expose your customers toyour USP in all advertising material. As anexercise, write down your USP and yourUSP tagline.

Your features and benefits

Whether your business sells a product or aservice, it has both key features (which aredescriptive and factual) and key benefits(which are emotive).

You should never confuse features andbenefits. Your customers need to knowabout the features, but it is the benefits thatwill persuade them to make the purchase.

Your Marketing Messages

Based on your positioning statement, yourUSP and your benefits, you can nowformulate the marketing messages thatwill attract customers and convince themto work with you.

If you decide to employ marketingprofessionals (see Chapter 7) to help youconduct your marketing strategy, yourmarketing messages will form the basis ofthe creative brief you give them. If youdecide to handle your own marketing,your marketing messages will become aconstant theme running through all yourmarketing activities.

Remember that your marketing messagestake time to establish themselves in theminds of your customers. Don’t letthoughtless communication erode all thegood work.

Once you find a marketing message thatworks for you, stay with it. Customerscan become confused if you changemessages, so unless it is imperative, don’tdepart from it.

CASE STUDY

In an unguarded moment during an after-dinnerspeech that was widely reported in the media, UKhigh-street retail jewellery-chain boss Gerald Ratnercalled his company's products “crap”. He sooffended customers that within a week, sales inhundreds of Ratner’s stores plummeted, sharevalues dried up, and eventually Ratner himself wasforced out of the company he founded. His ill-chosenwords destroyed years of developing his marketingmessage.

PRODUCT/SERVICE FEATURES BENEFITS(VALUE PROPOSITION)

Sofa Leather upholstery Long-lasting

Book store 20,000 books Massive choice

Childcare facility Qualified staff Peace of mind

Alternative healing Massage bed Calmness

Home-made cakes Log-shaped Mouth-watering

Folding kitchen chairs Pine Handy

Air conditioning units 3-speed power Comfort

Insurance Comprehensive cover Security

Travel company Linked to 10 major airline Time-saving

booking systems

Wedding dresses Choice of fabrics Glamour

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Image messages vs salesmessages

We said at the start of this chapter thatyour marketing communications mustshepherd customers from unawareness toaction via five key stages.

Stage one was to make customers aware ofyour existence, and stage five was to actupon their conviction and to complete thepurchase act.

When formulating your marketingmessages, distinguish between:

✧ Image advertising focuses on theimage of your business, and helpsfocus attention on your existence.

✧ Sales advertising focuses on closingthe sale on your product or service.

Both forms of marketing messages arelegitimate, but you need to be clear whichyou want.

TYPE OF BUSINESS EXAMPLE OF IMAGE EXAMPLE OF SALES MESSAGE MESSAGE

Training organisation We have worked with Sign up for our computer blue- chip companies. training course

Food manufacturer Our manufacturing facilities Special offer on ourcomply with the highest quality home- made sausages.standards.

Travel agency We look after our customers. New York weekend forunder €400.

Printer State-of-the-art printing Free business cards when equipment. you order letterheads.

Computer-repair workshop Highly trained maintenance Free home call-out.engineers.

MARKETING MESSAGE CHECKLIST

1. What is your positioning statement?

2. What is your USP?

3. What are your value propositions (key benefits)?

4. What are the features?

5. Testimonials from satisfied customers.

6. Information about guarantees, service, installation, etc.

7. Prices and fees.

8. Payment/credit terms.

9. Ordering information.

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Introduction to the Media

In previous chapters, you determined whoyour target markets are, what image youwant to project, and what marketingmessages you wish to employ to reachyour prospective customers.

Now comes the key decision-makingmoment: Which media to use?

This chapter explores the variousadvertising and marketing media thatserve as communication vehicles to deliveryour marketing message to your targetmarket.

Before you can make an informed choice,you do need to know what is available outthere and to gauge which media will workmost effectively for your business.

The marketing literature offers a confusingarray of different buzzwords to define theadvertising and marketing media. Theseconcepts are not always terribly usefulwhen you need to decide which media touse in your marketing strategy.

Thus, to simplify the picture, we havedivided the media into six maincategories:

✧ PRINT MEDIA

✧ Business cards.

✧ Brochures, flyers, circulars.

✧ Direct mail letter.

✧ Newspaper and magazineadvertisements.

✧ PUBLIC RELATIONS (PR)

✧ Media releases.

✧ Newsletters.

✧ Sponsorship.

✧ BROADCAST MEDIA

✧ Radio.

✧ Cinema.

✧ TV.

✧ ON-LINE MEDIA

✧ Website.

✧ OUTDOOR & TRANSIT MEDIA

✧ SALES PROMOTION MEDIA

✧ Packaging.

✧ POS (Point of Sale).

✧ Merchandising.

✧ Giveaways.

✧ Exhibitions and trade shows.

A seventh category – word-of-mouthmarketing – is not strictly a medium, andwill be dealt with separately.

Media Mix – Finding theBalance

Once you know the function (and cost) ofthe alternative media options, you canstart developing a media mix: acombination of marketing activitiestailored to your target audience and toyour budget in order to achieve yourmarketing strategy.

The secret of a successful marketing mixcan be summed up in the 4 Ms formula:Match your Message to your Marketusing the right Medium.

One thing you can be sure of: you willnever use every media option (even if youcould afford them all!) to market yourbusiness, because certain media aresuitable for some markets and not forothers.

6 Marketing Media

As you ponder which communicationactivity to use, remember that yourcustomers are being bombarded withhundreds if not thousands of advertisingmessages every day. These messagesare hitting them from many differentsources, so it is smart to spread yourmessages among more than one singleadvertising activity.

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Just as you don’t need to use everymedia, don’t be tempted to rely on justone medium. Think of your marketingmedia as a toolbox containing a choice ofways that promote your business. Atdifferent times, for different occasions,and for different target audiences, choosethe combination of media you feel aremost effective.

EXAMPLE 1:

If you open a fashion boutique and your targetmarket is teenagers in the 12-17 age bracket, youare unlikely to reach them by advertising on aclassical music programme on the radio.

If, however, you open a book and record store witha large classical music range, you may well chooseto advertise on the classical music programme.

EXAMPLE 2:

If you open an engineering business specialising inbuilding prototypes for industry, you are unlikely toreach you target market by sponsoring the localamateur theatre production.

If, however, you open a drama school, you may wellchoose to place an ad in the programme.

The marketing budget

There is no magic formula for determiningyour overall marketing budget. In theopening chapter, we said that marketingshould not be regarded as an expense, butas a financial investment. You invest inmarketing, and your customers are yourROI (return on investment).

It is really a question of balance. At everystage of your business development, youneed to assess how much you mustallocate to your marketing budget. It is notjust a question of what you can afford. It ismore a question of what you have tospend in order to expose your business toyour target market. Becoming aware of thedifferent media options, as well as non-media options, such as word-of-mouth, isthe first stage. When you have assessedwhich media mix is the most effective foryour particular business, then you can findout how much this costs, and try and buildthis into your budget.

Small businesses, in particular, bydefinition, will have limited resources. Thetrick is to creatively weigh up where youspend your money. That is why it is soimportant to track your marketingperformance and results. Whatever yourline of business, find a mechanism thatallows you to monitor how yourcustomers found out about you. Unlessyou know that, you will never knowwhether your particular media mix reallyworks.

CASE STUDY

John had a small accounting business, and wantedto increase his exposure in the local media.

He made a €5,000 donation to a local charity'sannual gala fundraiser, in the hope that this wouldmake a great news story.

His gesture was greatly appreciated by the charity,and indeed he gained one brief story and photo inthe local paper. But for this moment of glory, Johnhad blown away his annual marketing budget.

If John’s goal was to be a philanthropist, hisdonation made sense. But since his goal was todrive his business by attracting positive mediaexposure, he could have spent the money morewisely on a more diversified marketing and PRprogramme.

MEDIA MIX CHECKLIST

1. What role will each component of themedia mix play in your total marketingeffort?

2. On what do you base your decision tochoose this particular mix of media?

3. Does each medium reach yourintended audience?

4. Have you got the balance right?

5. Are you trying to do too much with toofew resources?

6. Are you trying to reach non-essentialtargets?

7. Have you looked at cheaperalternatives?

8. Do you want to use the same mediaas your competitors?

9. Are you creating sufficientdifferentiation from your competitors?

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Business Cards

The minimum requirement of any smallbusiness is to have business cards.

Your business card has a multitude ofuseful functions:

✧ Provides core information on yourbusiness.

✧ Projects your business image.

✧ Leaves a reminder when you’re notthere.

✧ Serves as a referral tool.

Your business card could be your mostvaluable marketing tool. Take them withyou everywhere, hand them outgenerously, and you never know – thenext card you give out could bring youyour biggest customer yet.

Remember that your official job title is lessimportant than a description of what youdo:

✧ “Assertiveness- and confidence-building trainer” is more informativethan “Trainer”.

✧ “Expert in designing engineeringprototypes” is more informative than“Engineer”.

Here are some creative ways of using yourbusiness cards:

✧ Add a business card to every singlebill you pay. The cost is minimal, andyou never know who is on thereceiving end at the electricitycompany, phone company, insurancecompany, credit card company,stationery supplier or professionalassociation.

✧ Hand-deliver your card to everyhouse within walking distance of yourhome and office. It’s only natural forpeople to want to know what theirneighbours do, and you never knowwho they know.

✧ Pin your card on free communityboards in supermarkets, colleges andlibraries. .

Don’t forget that your business card hastwo sides! Use the reverse side to youradvantage – a slogan, a quotation, detailsof your range of products/services, acalendar, emergency phone numbers, oranything else that could spark extrainterest in your business.

Brochures, Flyers,Circulars

A brochure is a business tool that talksabout the business when you’re not there.Your brochure explains what yourbusiness is all about and how yourproduct or service can be of benefit. Andlike ads, brochures can be either image-based or sales-based.

6 (I) Print Media

BUSINESS CARD CHECKLIST

1. Look at all the business cards you havecollected – which ones stand out?

2. If you have a logo, can it be reproducedin the business card format?

3. Put the most important information at thetop.

4. Don’t forget your full contact details,including dialling code.

5. Don’t forget your mobile phone number.

6. Use a business slogan, if you have one.

7. Is it appropriate to have your photo or acaricature of you on the card?

8. Do you want to add the logo of aprofessional organisation you belong to?

9. Will colour add to your message?

10. Use a good quality heavy card for extradurability.

11. Consider using an alternative materialto paper/card, such as plastic, cork, wood,and so on.

12. Don’t try and cram in too muchinformation.

13. Make sure the information is easy toread

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Before you rush off and have a brochuremade, there are some questions to ask:

✧ Why do you need a brochure?

✧ Who is the brochure aimed at?

✧ How will the brochure reach yourtarget market?

✧ Will a brochure convince your targetmarket to do business with you?

Here is an example of a brochure text froma venture management company thatwished to set out its stall for the benefit ofpotential customers. The brochure isneither too long nor too short – itaddresses a particular niche market, itpresents its marketing messages concisely,and it avoids unnecessary waffle.

PRIME MODE

Hands-on management consultancy services to help grow your venture.

Prime Mode - a management consultancy company

Prime Mode is a management consultancy company that provides small to large enterprises in diverse industrieswith hands-on services to help grow their ventures.

Prime Mode works side-by-side with enterprises to rapidly meet and exceed their priority objectives and to help themreach “Prime Mode”. We achieve this by using our signature results-based methodology that provides timely,performance-based and dedicated services powered by a world-class team with multi-sector global experience.

We help companies access markets and launch new initiatives, and we work closely with venture capitalists in duediligence and in managing portfolio ventures.

Our ventures

Prime Mode works with companies that have a proven track record, the potential for compelling value creation, anda strong fit with our proactive hands-on style. Ventures at various stages of design and delivery include:

✧ Setting up European business development for a fast-growing US-based pharmaceutical company.

✧ Helping an Irish software company penetrate the European market.

✧ Licensing an Irish online fraud detection and prevention technology into the UK.

✧ Launching a credit card for the youth market in Europe.

✧ Designing an in-house innovation engine for a major PC manufacturer.

✧ Conducting due diligence for a blue-chip venturing arm.

Our key differentiators

✧ Multi-sector international experience.

✧ Our vast global network, including Wharton Business School and its alumni.

✧ Superb operational and execution skills.

✧ We access and mobilise the highest calibre of practising and seasoned professionals.

✧ Expediting time to market.

✧ We are in for the long-term.

Our team

The Prime Mode team includes specialists in engineering, innovation, business development, project management,marketing, finance, operations, systems integration, outsourcing, licensing, and human resources. The breadth ofour capabilities enables us to add value to the “old” and “new” economies, across multiple industries.

Flyers or circulars are a useful and low-costway of highlighting special offers, sales,new product announcements and the like.The best place to display flyers and

circulars is in non-competitive locationswhere customers can pick them up (such asyour chamber of commerce) or where theycan see them (on bulletin boards).

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BROCHURE CHECKLIST

1. Collect brochures from othercompanies, see what you like/don’tlike, and tell your designer.

2. Hire a professional writer to write yourbrochure.

3. Make sure your USP is reflectedpowerfully.

4. Your headline must cause enoughinterest to make the reader want toread further.

5. Don’t be scared of long headlines.

6. Make liberal use of subheadingsthroughout the document.

7. Use as little or as much text neededto tell your story.

8. Keep the tone enthusiastic.

9. Use testimonials.

10. Keep sentences and paragraphsshort.

11. Your logo alone can appear on thefront cover.

12. Your logo and company details shouldappear on the back.

13. Always proofread your brochurebefore printing.

14. Reread the brochure and see whetheryou as a customer would be attractedby what it says.

15. Test the text with some potentialcustomers.

Direct Mail

Direct mail is used when you wish to targeta specific, named individual. Whether youare sending a direct mailer to one person orone thousand, you have to be sure that youare crystal clear in your message. Look atthe checklist, and incorporate all theelements into your letter. The best advice isto get a professional to write the text andthe accompanying letter. Remember, directmail pieces can be in letter form, or in theform of response coupons, envelopes orother innovative formats.

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Print ads are published in a variety offormats: local newspapers, national press,free newspapers, trade publications, local/national consumer magazines, andprogrammes (sports, cultural).

The cardinal rule with print ads is: Don’tconfuse ego with effectiveness! There isonly ever one justification for spendingyour hard-earned cash on a print ad – thatit reaches your target market. Your ad musteffectively deliver your marketing messageand bring in the customers. You mustavoid other reasons, such as:

✧ You like seeing yourself/your businessin print.

✧ You want to impress your family andfriends.

✧ You want to do a favour to the ownerof the publication.

Too many small businesses instinctivelybelieve that the best way to advertise theirexistence is by running an ad in a localnewspaper. Newspaper advertising can bethe right solution, but it is not the onlysolution, nor necessarily the best solution.

DIRECT MAIL CHECKLIST

1. Use an opening headline that grabsthe reader’s attention.

2. Identify the reader’s problem,generate a “That’s exactly how I feel”response.

3. Tell the reader that you can solve theirproblem.

4. Convince the reader you have thecredentials and the experience toprovide the solution.

5. Detail the benefits your reader willgain from your product or service.

6. Introduce testimonials from satisfiedcustomers.

7. Make the reader feel that he or she ismissing out by not using your productor service.

8. Guarantee money-back satisfaction.

9. Spell out what the reader should do tocontact you or to order yourproduct/service.

10. Add a PS – they always get noticed.

Don’t accept the print media price listsas definitive. You will usually be able tonegotiate a better deal with localnewspapers. If you find them tooexpensive and too inflexible, threaten tomove your advertising to rivalpublications.

28

Whatever you need for Christmas,you’re sure to find it at O’Brien’s

You’ll love our turkeys, hams, spiced beefand everything else for those special

seasonal recipes.

You’ll love our fresh beef, lamb and porkproducts, as well as our mouth-watering

sausages.

You’ll love our huge selection of wines,beers and spirits in our off-license – look

for superb value labels from Spain,Argentina and Chile.

You’ll love our glorious choice ofconfectionery items at cost price – that’s

right, cost price!

You’ll love our colourful fruit and vegdisplays, our magnificent deli section, topvalue groceries, babycare products and

household items.

You’ll love our Christmas cakes that addsuch fun to your Christmas meals.

You’ll love our Gift Vouchers from €5 to€50, the perfect thank-you gift and

stocking-filler. O’Brien’s – taking the hassleout of Xmas shopping.

Here is an example of how a small firm ofsolicitors used the local newspapereffectively to put across their marketingmessages. These are four of a series of adsthat was part of an awareness campaignfor O’Brien & O’Brien Solicitors (the nameis fictitious, the ads are real).

The ads achieved maximum impactbecause they were short, clearly focused,and invited immediate action – “call intoday”.

Here is an example of an ad from a smallsupermarket. It contains a whole string ofsales messages that are designed to attractthe attention of shoppers thinking of doingtheir Xmas shopping.

Many local newspapers offer a specialprice for 1-, 2- or 3-page announcementsfor new launches, new management, newstaff, new service, new location,renovation, and so on. The way it works isthat the publication gives you editorialspace, and you ask your friends, businesscolleagues, suppliers and major customersto cover the cost of the page by taking anadvertisement.

Be careful. It is tempting to do this, but thequestion must be like before: is this foryour ego or will it be effective?

Note how the headlines are designed toattract initial attention, while the short texttells readers in a nutshell why they shouldcome and pay a visit to O’Brien & O’Brien.

IT’S GOOD TO HAVE THE PROFESSIONALS ONYOUR SIDE

Whether you need advice in property law, businesslaw, personal injuries, family law or wills, you wantto be reassured that your needs are fullyunderstood. That’s why you can rely on theexperience of the professionals at O’Brien &O’Brien. Our team of skilled solicitors and supportpersonnel is here to offer you sound and sensibleadvice. Come in and talk to us.

LEGAL ADVICE WITHOUT THE TRAUMA

Seeking legal advice can be a traumaticexperience. That’s why it’s good to rely on theprofessionals at O’Brien & O’Brien. Whether youwant help with property law, business law, personalinjuries, family law or wills, our team of skilledsolicitors and support personnel is here to offer yousound, sensitive advice. Come in for a chat.

PROPERLY TRANSACTED PROPERTYTRANSACTIONS

When it comes to buying, selling, renting or leasingproperty, you need to be sure that you’re gettingsound legal advice. That’s why you should talk tothe professionals at O’Brien & O’Brien. Our team ofskilled solicitors and support personnel will adviseyou on conveyancing and all other aspects ofproperty transactions.

YOUR FAMILY WILL THANK YOU WHENYOU’RE NO LONGER AROUND

Neglecting to make a Will can cause your familyunnecessary hassle. The responsible way to settleyour estate is to make a Will now. Call in today toO’Brien & O’Brien, and ask our team of skilledsolicitors and support personnel to help you drawup your Will. Your family will thank you when you’reno longer around.

Marketing

29

Ads in Golden Pages andother directories Some questions to ask yourself:

✧ Should you advertise in the GoldenPages?

✧ How big should your ad be?

✧ In which category(ies) should youadvertise?

✧ In which editions of Golden Pagesshould you advertise?

✧ Does your target market use GoldenPages to look for your type of service?

There is no straightforward answer tothese questions. Some businesses will tellyou that their Golden Pages ad generates asizeable proportion of their custom.Others will tell you that the Golden Pagesis a waste of money. Your problem isdiscovering whether Golden Pages is aneffective option for you and for your typeof business.

For some honest feedback, look in theGolden Pages of an area far from yourown, where you pose no competition.Phone some of the bigger advertisers inyour category, and ask the ownerswhether the expense justifies the results.

CASE STUDY

Sophie owned an accountancy and taxconsultants office in a small town.

She was approached by the sales rep of amajor Sunday newspaper that wasplanning a county supplement. At first,Sophie was very excited at the prospect ofnational exposure for her business,especially since they promised to publishher photo together with editorialinformation.

When she asked her marketing consultantfor advice, he asked her a series ofquestions: “How big is the circulation of thepaper inside the county? How many of thepotential customers in the county read thispaper? How many people outside thecounty will read the special supplement?How many people inside or outside thecounty will realistically decide to move theirbusiness to Sophie as a result of seeingher photo in the supplement?”

A chastened Sophie realised that thetemptation to spend money on an ad in thesupplement was based on ego, not on arealistic assessment of how many newcustomers the ad would draw.

CASE STUDY

Jason had worked as a copywriter (theperson who writes the words of advertising)for an international advertising agency, andwas setting up as a freelance copywriter.

He assumed that the Golden Pages wasthe place to advertise. However, there wasno Copywriters category. The sales repsoothingly suggested Copyright Agents &Consultants – but he was only displayinghis ignorance, since copywriting hasnothing to do with copyright. The rep thensuggested Advertising Agencies – butJason was not an ad agency. The repsuggested Editing Services, WordProcessing, Graphic Designers and Design& Image Consultants – but none of theseare copywriting either.

In the end, Jason placed much lessexpensive ads in two media directories thathad a Copywriters category.

Another thing to be wary of – thinkrealistically before you pay for insertionsoutside your area. The deals you may beoffered may be tempting, but there is nopoint being in any edition that does notreach – and is not read by – your targetmarket.

PRINT AD CHECKLIST

1. Does the publication reach sufficientnumbers of your target market?

2. Will your ad stand out among theclutter?

3. Can you afford to run a series of ads?

4. Have you used a bold headline thatgrabs attention and tells your readerthat you can help them?

5. Have you given enough attention to thecontent?

6. Have you told your readers exactlywhat you are offering them?

7. Is there enough emphasis on thebenefits of your product/service?

8. Have you told them how others (andwhich others) have benefited?

9. Have you told them what they must doto obtain what you offer?

10. Have you made it easy for them to findyou/contact you?

30

Stick to your core area of competence. If you don’t want unprofessional writing,let a professional writer write your ad, brochure and other print media.

Unless you want wasted time, costly rewrites and redesigns, you shouldappoint a senior decision-maker within your organisation (this could beyourself) to be involved in the project from the very beginning.

Remember that less is very often more. The function of most brochures is notto sell, but to generate interest and to get potential clients to contact you. Keepthe text simple, compact and relevant.

Off-the-shelf software can make you believe that you are a real designer, butyou might end up with an uninspiring design that undermines your image.

Trying to write your ownmaterial.

Allocating responsibility forthe brochure/website projectto someone too junior.

Trying to cram as muchinformation as possible intothe brochure.

Saving money by using adesktop publishing softwareprogramme.

SOME COMMON ERRORS WHEN PLANNING YOUR PRINT MEDIA

ERROR SOLUTION

PRINT MEDIA CHECKLIST

Form of advertising Why is this Why is this not What do you want How will you appropriate appropriate to achieve measure the

for your business? for your business? from this ad? effectiveness of this ad?

Business cards

Ad in localnewspapers

Ad in national press

Ad in tradepublication

Ad in freenewspapers

Ad in consumermagazines

Ad in programmes(sports, cultural)

Ad in Golden Pagesand other directories

Sales brochures

Flyers and handouts

Direct mail letter

OTHER

Marketing

31

You need to distinguish between proactivePR (deliberately and consciously settingout to make your business well knownand well liked) and passive PR, wherepeople get to like your business withoutyou having to do anything specific toencourage them. We return to passive PRin Chapter 8.

The goals of PR are:

✧ To build a relationship with thepublic.

✧ To mould a positive opinion aboutyou and your business.

✧ To bolster your image.

✧ To get you noticed by potentialcustomers.

✧ To make existing customers feel goodthat they work with you.

In addition to targeting your existing andfuture customers, PR is also aimed at:

✧ The local and national businesscommunity.

✧ Local and national media.

✧ Your suppliers.

✧ Local government.

✧ Financial institutions.

✧ Trade organisations.

✧ Your competitors.

✧ Your own staff (“internal PR”).

Good PR also impacts on the peoplewithin your organisation. It reinforcestheir motivation and pride to be workingwith a successful company like yours.

A big advantage of PR is that it costsmuch less than paid-for advertising. Forsmall businesses, one of the best vehiclesfor spreading the word about yourbusiness is the local media – newspapersand radio. Editors welcome news of localinterest. If you can provide them withsomething newsworthy, there is a goodchance that they will print it or broadcastit – which will add to your public profileand widen the number of people exposedto your business. As the case study shows,a local story can sometimes become anational story.

6 (II) PR (Public Relations)

EXAMPLE OF GOOD PR:

You run a PC repair business, and youmanage to rebuild some discarded PCs,which you donate to a local school forhandicapped children.

If you deliberately publicise this, thepublicity surrounding your generous deedcan generate positive publicity for yourbusiness.

EXAMPLE OF BAD PR:

If one of your staff left your business andcited racial harassment as the reason, thepublicity surrounding the claim could havea negative impact on your business –even if the claim is totally unfounded. Youwill find it harder to recruit staff, and someof your customers may wish to take theircustom elsewhere.

CASE STUDY

Joe ran an auctioneering and propertybusiness in a provincial Irish town, andwas given the exclusive rights by abuilder to sell a new 50-home estate. Onthe morning that the sale of Phase Icommenced, Joe found huge crowdsoutside his office. To alleviate the crush,he placed some benches out on thepavement, and ordered tea andsandwiches to be given to all thosewaiting. Sensing a media opportunity, heinvited a freelance press photographer torecord the unusual scene. Several majornational papers featured the photo andthe story, and suddenly the whole countryknew about Joe and his business.

This had two important PRconsequences. Joe’s standing in the localbusiness community was enhanced, andbuilders in other counties approached Joeto use his flair to sell their properties.

Media Release

Once you have found an angle for yourstory, you need a media release that willprompt the media to use it. Basically, amedia release is a pseudo-news story thathighlights something newsworthy aboutyour business in a language familiar to thejournalist.

Editors judge an item to be newsworthy ifthey believe that their readers or listenerswill find it interesting, useful, entertaining– or better still, all three.

Once you establish a reputation forcredibility with the local media, you willfind that they use a well-written mediarelease with almost no changes.

Remember that the media often needs youas much as you need them. They need tofill editorial space in their newspaper/magazine, you can make their job easier.

The secret about getting a story into thelocal media is to think like an editor. Askyourself:

✧ What can I write that will make thisstory more useful to editors?

✧ How can I deliver my story in aprofessional, courteous way?

Using your media release as the basis for astory or news item is not the only thingthat editors can do. They can also decide tosend a reporter to interview you. Aninterview with you in the paper or onradio will further promote your publicimage.

There are several basic ingredients thatwill improve the chances of your mediarelease generating positive publicity foryour business. The media release on thenext page was sent by iQon Technologiesto the professional/trade media. As youread it, check off how the basic ingredientswere incorporated to persuade editors ofthe professional media that this was animportant story.

Public Speaking

If you can overcome your fear of publicspeaking, there are some valuable PRrewards awaiting you. Business and civicorganisations are always looking forspeakers for their meetings, and you cancultivate a reputation as someone willingto talk about your area of expertise. Offerto:

✧ Give a seminar.

✧ Open a school trade fair.

✧ Give a welcome speech to a foreigntrade delegation or visiting dignitary.

✧ Deliver a report to a franchiseesmeeting.

Articles

Newspapers and other publications oftenwelcome articles containing helpful tips.Submit a simple problem/solution-stylearticle, a how-to article or a free advicearticle related to your product or service.State the problem, and then share someinsightful tips. At the end of each article,include an identifier paragraph listingyour name, company, what you do andyour contact details. This will allowreaders to contact you for moreinformation about your services.

32

OPPORTUNITIES FOR GETTING A STORY IN THELOCAL MEDIA

Ask yourself whether any of the following apply to yourbusiness:

✧ Are you using a new or unusual technology,procedure or technique?

✧ Are you offering something unique that no oneelse is offering?

✧ Do you have something controversial to say aboutyour market/industry?

✧ Do you have something provocative to say aboutthe local business community?

✧ Do you have any special tips for consumers?

✧ Can you offer any special insight on a hot mediatopic?

✧ Have you won a big, complex or unusual project?

✧ Are you involved in any charity, school or otherworthy community organisation?

✧ Are you celebrating any special anniversary (forexample, “First year in business”)?

✧ Have you taken on any new senior personnel?

✧ Have you moved into new/renovated premises?

✧ Have you won any professional award?

✧ Have you launched a new product line?

✧ Have you received a major export order?

✧ Have you given a speechlocally/nationally/internationally?

What other opportunities are there for getting yourbusiness mentioned in the local media?

Marketing

33

When editors see the date and the word “today” inthe opening paragraph, they know that this is hotnews.

Includes: company name, something about thecompany’s achievement, name of the new product,and one of the world’s most recognised brandnames (Philips).

If you only read paragraph #1, you know what this isall about.

Paragraphs #2 and #3 give more details about thenew range of designer PCs being launched.

The whole media release, except the quote, iswritten in an impartial and objective journalistic style.

Words like “fantastic”, “brilliant” and “amazing” thatwere used in the advertising for this range havebeen dropped.

Paragraphs #4 and #5 explain something about thecompany, its production capacity, its success untilnow, and the all-important Philips connection.

Paragraph #6 provides information on availability.

This quote from the head of sales and marketing isa legitimate excuse to promote the company andeven hint at the company’s vision.

If editors want more information, they know exactlywhom to contact.

MEDIA RELEASE – SEPTEMBER 5 2002

iQon Technologies, Ireland’s #1 Indigenous PC Manufacturer, launches new “Multimedia by Philips” X Series Designer PCrange.

iQon Technologies, Ireland’s largest indigenous computer manufacturer and the second largest supplier of consumer PCs andlaptops in Ireland, today launched the Multimedia by Philips X Series range of designer PCs.

Developed in conjunction with Philips Electronics, the X series represents a new concept aimed at bridging the design gapbetween PCs and the latest consumer electronics products. Manufactured in a contemporary chrome and ivory finish, the Xseries has its design foundations in a new monitor developed and launched by the Philips Consumer Electronics team in Q1 ofthis year.

The design of the new X series is driven by a greater focus on the user’s overall audio and visual experience. Among the newtechnologies incorporated into the X series are Real Flat CRT displays, Optical Mice, Dolby Digital surround sound and DVDrecorder drives.

iQon Technologies are the exclusive European manufacturers of the “Multimedia by Philips” PC range that was co-developedwith Philips Electronics in 1989. Multimedia by Philips is now the second-biggest selling consumer PC in Ireland, and is rapidlygaining significant market share in the UK via iQon’s retail partner, the Argos Retail Group.

The launch of the X series comes just weeks after iQon Technologies moved into its new 32,000 sq.ft production and distributionfacility in Dundalk, which has tripled the company’s capacity. Two major brands are manufactured in the Dundalk facility: theiQon brand, which includes Qompanion notebooks, Qonnect workstations and Qommand servers; and the Multimedia byPhilips brand of PCs.

iQon products are available via a nationwide network of independent resellers/dealers, as well as through retail chains includingShop Electric, ESB, Electric World and others.

IQon products are delivered directly by iQon of behalf of these retail chains, and backed by a nationwide technical supportstructure. The Multimedia by Philips X Series will be available from iQon retailers and resellers nationwide from 7 September2002.

Ciaran O’Donoghue, head of sales and marketing: “Working with a company with the high profile of Philips, a recognised globalleader in consumer electronics design, was of undoubted value in the development of our exciting new X series. With the PCbecoming increasingly integrated into the fabric of everyday household life, particularly with the advent of broadband andwireless technology, we see PCs as ultimately evolving in the same design-driven direction as other consumer electronicsproducts have done in recent years.”

For further information, please contact Ciaran O’Donoghue at 042 9327270.

Reproduced courtesy of iQon Technologies

Date

Catchy headline

Opening paragraph

Expand the story

Use third-person

Refrain from usingtoo manysuperlatives

Backgroundparagraph

Secondaryinformation

Quote

Contact details

INGREDIENT DESCRIPTION iQON MEDIA RELEASE

If you don’t put the date, editorswon’t know whether the story isout of date.

You will need a headline thatimmediately appeals to a busyeditor.

Not more than 2 sentences –must contain the entire story in anutshell, and must make itworthwhile reading on.

Focus on the main story that isthe subject of the media release.

“The company plans…” ratherthan “we plan…”.

The editor must be able todistinguish real news frompromotional spin.

At least one paragraph must giveyour story background and context.

Mention other importantinformation and anything else thatportrays your business in apositive light.

Quote yourself, a seniorpartner/employee, a major client,or anyone else whose commentscarry weight.

Name and phone number/email ofcontact person.

34

Trade PR

Your PR efforts need not be exclusivelytargeted at the local (or national) media. Itmight also make sense for your business tocultivate the editors of industry and tradepublications. For example, if you have acraft business, and you have a story to tell,make yourself known to the editors ofwhatever publications speak to yourparticular market.

Newsletters

A newsletter can be:

✧ A great promotional tool.

✧ A valuable source of information foryour customers.

✧ Relatively inexpensive to produce.

✧ A way of making your company lookbigger than it really is.

A newsletter allows you to show off aboutyour business in a legitimate way, andallows you to feature any aspect of yourbusiness that you want to push.

The newsletter is halfway between abrochure and a media release, and givesyou more flexibility than either.

Even one-person companies can produce anewsletter – it doesn’t have to be longerthan two sides of A4.

There is little point sending out newsletterson a haphazard basis. You must adopt aregular publication schedule, which isnormally at least twice a year, but can alsobe quarterly or even monthly. The wholeidea of a newsletter is to remind customersand potential customers that your businessis alive and kicking.

If you don’t stick to a regular schedule,you could be sending out precisely theopposite message.

EXAMPLE 1:

If you run a small animal clinic, you mightwrite about "Ten Ways to Help Your Pets atChristmas-time”.

EXAMPLE 2:

If you manufacture tables, you might writeabout “Ten Tips on Furniture Care”.

When you produce PR material – mediareleases, articles, radio interviewtranscripts, speeches, and so on – makesure you exploit them (see checklistbelow).

EXPLOITING MEDIA MENTIONSCHECKLIST

1. Distribute copies to your customers.

2. Distribute copies to your bankmanager.

3. Distribute copies to other interestedparties.

4. Distribute copies to your staff.

5. Highlight a particularly complimentarycomment or phrase.

6. Include a copy with every invoice.

7. Post a copy on your website.

8. Include a copy in any mediakit/presentation folder.

9. Frame a copy for the waiting area ofyour business.

10. Frame a copy in your office.

CASE STUDY

Mona went to her local bank to request ashort-term bridging loan to tide her over atemporary liquidity problem in her graphicdesign business.

Her bank manager rummaged through herfile and found a copy of 2 articles from thelocal press that she had forwarded to him.“I see that you won a big contract from theChamber of Commerce,” he said, “and Isee that you gave a seminar to theEmpowering Women in Business network.I’m glad your business is thriving.”

By keeping her bank in the PR loop, Monahad created a favourable environment forher business. When she neededsomething from the bank, the positivemedia image proved very useful indeed.

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35

NEWSLETTER CHECKLIST

1. Most business owners do not find thetime to produce the newsletterthemselves.

2. Asking someone else within theorganisation often means that the jobnever gets done.

3. The best solution is to hire a writer towrite your newsletter.

4. Keep the content interesting andinformative.

5. Give readers something of value(business tips, humour, special offer).

6. Encourage feedback (contests, lettersto the editor).

7. Avoid too much text.

8. Use plenty of visual material (photos,charts).

9. Use an easy-to-read typeface size.

10. Use a conversational, personal style ofwriting.

If you do intend to produce a regularnewsletter for your business, remember:

Advantages

✧ Ideal vehicle for addressing external(customers, suppliers, general public)and internal (employees) audiences.

✧ Allows you to speak less formally toyour readers, scope for humour.

✧ Gives you the opportunity to profileleading clients.

✧ Useful way of announcing neworders.

Disadvantages

✧ Someone in the company must bedesignated as being responsible forcollating the material and co-ordinating with the copywriter anddesigner.

✧ Chatty style could be counter-productive, you could be perceived asbeing not serious enough.

✧ You must publish at least twice a year,otherwise there is no continuity.

✧ You must have something fresh andinteresting to say in each issue.

Form of PR Why is thisappropriatefor yourbusiness?

Why is this notappropriate foryourbusiness?

What do youwant to achievefrom this formof PR?

How will youmeasure theeffectivenessof this?

PR CHECKLIST

Press releases

Newsletters

Seminars at professional events

Guest speaker (Chamber)

Sports sponsorship

Cultural sponsorship

Event sponsorship

OTHER

36

Radio

You probably listen to the radio more oftenthan you think. In your car, at home, atwork. And if you listen to the radio, manyof your customers do too.

Radio advertising has the potential toreach a lot of people, and as long as theyare the people you are interested in, youcan use well-written highly-focused radioads to your advantage.

Successful and effective radio ads need:

✧ A strong introduction.

✧ A good offer.

✧ A clear and concise description of thebenefits.

✧ Conversational tone – remember thatthe words on paper have to bespoken.

✧ Simplicity – the listener must absorbevery word with minimum effort.

✧ A call to action.

Often, radio can be used to support youradvertising in another medium. Forexample, “Answer the questions in thespecial coupon in your local paper, andyou can win a free weekend in Paris”.

Radio advertising extends beyond radioads. Most local stations offer plenty ofsponsorship opportunities:

✧ ‘The local business news is brought toyou courtesy of …’

✧ ‘Lunchtime favourites are brought toyou courtesy of …’

✧ ‘The weather forecast is brought tocourtesy of …’

These sponsored messages can be ideal fora service business looking or greater namerecognition and public profile. Enquire atyour local station to see what deals areavailable

Cinema

Like radio advertising, cinema advertisingcan often be neglected by small businesses.The advent of multiplex cinemas meansthat there are now more opportunities toget your message across to cinemaaudiences. Cinema advertising is notcheap, but it is nothing like as expensive asTV.

Naturally, cinema advertising – like anyadvertising medium – is only suitable forparticular target markets. Cinemas attractmainly younger audiences. If these are thepeople you want to reach, then cinemaadvertising may make sense.

6 (III) Broadcast Media

RADIO CHECKLIST

1. Is your product or service suitable forradio advertising?

2. Does your product require a visualdemonstration?

3. Can your product or service bedescribed in 30 seconds?

4. Can you use radio to generate leads?

5. Can you use radio to persuadepeople to call you (free information,free estimate, free sample)?

6. Is your budget big enough to afford asustained radio campaign?

CASE STUDY

Patricia runs a book and record store. Sheknows that each Christmas, crowds ofkids (and their parents) are going to flockto the local cinema to see the latest Lordof the Rings and Harry Potter movies.Patricia books a 3-month slot at her localcineplex, covering the period earlyNovember to early February. In her 60-second cinema commercial, she informsaudiences eagerly waiting to watch themovies that she carries a large range ofLord of the Rings and Harry Potter books,CDs, DVDs, videos and othermerchandising. Her message is hitting hertarget audience just at the point whentheir attention is at a peak.

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37

TV

TV advertising is usually too expensive forsmall businesses to afford. However, withthe growing fragmentation of satellite andcable TV, there may be opportunities inniche markets.

A cut-price alternative to TV advertising isfree TV advertising! If you can find anangle that TV editors could regard asnewsworthy, you might gain valuable PRfor your business.

CASE STUDY

An internationally famous pop star visitedIsrael several years ago to give a concert.Over the weekend, he asked to go to a toystore. All the media followed him to a toystore near his hotel. The entire countrysoon discovered in which toy store the popstar spent $3,000 in half an hour. For yearsafterwards, the store owner had the TVcoverage of the visit playing on closed loopvideo in the store.

Form of ad Why is thisappropriatefor yourbusiness?

Why is this notappropriate foryourbusiness?

What do youwant to achievefrom this ad?

How will youmeasure theeffectivenessof this ad?

BROADCAST MEDIA CHECKLIST

Local radio

National radio

TV

Cinema

OTHER

38

There has never been a faster growingmarketing tool than the Internet.

Email is no longer a novelty, and todayvery few businesses have failed torecognise the speed and conveniencebenefits of being able to send and receiveemails.

Most email users are also familiar with theWorld Wide Web, the millions of websitesout there in cyberspace. Anyone with abusiness knows enough by now about theweb to ask themselves whether theyshould have their own website.

The advantages of having your ownwebsite include:

✧ It provides information on yourbusiness 24 hours a day.

✧ You don’t have to be on the other endof a phone line if a prospectivecustomer wants to know more aboutyou.

✧ It can help you attract new customers.

✧ It can help you support existingcustomers.

✧ It allows you to sell your product/service via electronic commerce (e-commerce).

✧ It lowers your operating costs:information dissemination, reachingclients, servicing clients, selling.

Reasons for not having a website include:

✧ Your customers don’t use the web.

✧ Expense of creating the site.

✧ Expense of maintaining the site.

✧ Expense of updating the site.

There are some key questions you mustask yourself before pouring a smallfortune into establishing an e-presence:

✧ Will my customers consider that I amnot a serious business unless I have asite?

✧ Am I jumping on the websitebandwagon because everyone else is?

✧ Will my business genuinely benefitfrom having my own site?

✧ Will my site be cost-effective?

✧ Is my type of business suitable for aweb presence?

✧ Will I be able to update it regularly?

✧ Will my prospective customers lookfor me on the web?

✧ Do my customers use the web?

✧ Do my customers expect to findinformation on this kind ofproduct/service on the web?

✧ Will I use my website for information,sales, or both?

If you decide that you do need a website,how do you go about doing this?

Technically, it is possible to produce yourown website. But even if you have thetechnical skills to do so, remember thatover 90% of non-professionally designedwebsites fail to produce enough income toreturn their software and hostinginvestment. Remember too that the timeyou spend on creating the website takesaway from your core business – unless ofcourse website design is your business.

You are better off seeking the professionalservices of a web design company. Askaround. Look at websites these companieshave produced. Call them up and askthem if they are satisfied with the service.

Make sure you choose a company thatoffers you:

6 (IV) On-Line Media

MEDIUM NO. OF YEARS TOREACH 50 MILLION

Radio 30 years to attract 50 millionlisteners.

TV 13 years to attract 50 millionviewers.

Internet 5 years to attract 50 million users.

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✧ Name registration.

✧ Good design.

✧ Hosting.

✧ Search engines.

✧ Maintenance.

✧ Special features, such as e-zines(electronic magazines/newsletters),pages designed as "doorways" tomaximise search engine and listingservice popularity, and onlineshopping carts.

It is also very important to develop linkswith other websites, whereby informationon your business appears on otherwebsites, and your website hostsinformation on other websites.

When you are giving the design companyyour brief for your website, make sure youbear in mind the following facts about on-line users:

✧ They appreciate good, clear design.

✧ They seek helpful content.

✧ They scan the screen rather than readword for word.

✧ They look for key words andconcepts.

✧ They like a personal, upbeat tone inweb writing.

✧ They are turned off by boring, long-winded writing.

✧ They want shorter sentences, shorterlines of text, shorter paragraphs andshorter pages.

✧ They like headings, subheadings andbulleted text.

✧ They prefer the active voice: ‘We willcustomise ...’ rather than the passivevoice: ‘The product will be customisedfor you’.

✧ They don’t like having to guess whoyou are – they want to know whatyou do immediately, without havingto scroll through several pages.

✧ They want to navigate your site easilyand quickly.

✧ They want to be able to return to yourhome page at all times.

✧ They expect to find hypertext links.

✧ They don’t want to see a replica ofyour print brochure.

Registering your site with search engines isnot enough. If you want to improve thechances of people finding you on the web,you must insert your website address(URL) in every single marketing document:

✧ Print ads.

✧ Fax cover sheet.

✧ Invoices.

✧ Business cards.

✧ Business directories.

✧ Trade publications.

✧ On your shop/office window.

To get extra mileage out of youranswering machine, use it to encouragepeople to visit your website. At the endof your message, say something like: “Formore information on our services, pleasevisit our website at ...”.

Website Why is thisappropriatefor yourbusiness?

Why is this notappropriate foryourbusiness?

What do youwant to achievefrom yourwebsite?

How will youmeasure theeffectiveness ofyour website?

ONLINE MEDIA CHECKLIST

Website

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There are plenty of outdoor and transitopportunities for you to promote yourbusiness:

✧ Your own delivery vehicles.

✧ Billboards.

✧ Shop/business signage.

✧ Window posters.

✧ Community notice board.

✧ Bus advertising – side panels, rearpanels, interior panels, fully paintedbuses.

✧ Taxi advertising – side panels, interiorpanels, fully-painted taxis.

✧ Mobile billboards applied to smalltrucks, trailers or bikes for two-sideddisplays.

✧ Bus shelters.

✧ Other street furniture.

✧ Bus stations.

✧ Train stations.

✧ Terminals.

✧ Airports.

✧ Seaports.

✧ Sport venue advertising.

✧ Beach and rest area advertising.

✧ Golf course advertising.

As always, the questions you must ask are:

✧ Will this work for you?

✧ Will your target market see it?

✧ Will your target market be influencedby seeing your business advertised inthis particular context?

✧ Is it worth the expense?

✧ Is this the appropriate medium foryou?

Here are a few examples of businesses thatidentified a particular outdoor/transitmedium to promote themselves:

6 (V) Outdoor & Transit Media

TYPE OF BUSINESS OUTDOOR/TRANSIT MARKETING MESSAGE

Shoe shop Bus shelter Are your feet hurting you from so much standing around?

Courier service Delivery van Another package being rushed to its destination – courtesy of ABC Couriers.

Sewing and Community notice board Sewing and mending at competitive mending service prices.

Sports shop Sports venue (stadium) We supply all your sports requirements.

Mobile phones shop Taxi – inside You could be using your time usefully on the phone right now.

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Form ofoutdoor/transit advertising

Why is thisappropriatefor yourbusiness?

Why is this notappropriate foryourbusiness?

What do youwant to achievefrom this formof advertising?

How will youmeasure theeffectivenessof this?

OUTDOOR & TRANSIT MEDIA CHECKLIST

Billboards

Window posters

Community notice board

Shop sign

Bus advertising

Taxi advertising

Mobile billboards

Bus shelters

Other streetfurniture

Bus stations

Train stations

Terminals

Airports

Seaports

Your owndelivery vehicles

Beach and restarea advertising

Golf courseadvertising

OTHER

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Packaging

Packaging usually refers to the physicalenclosure in which you sell your product.Good packaging:

✧ Attracts the customer.

✧ Communicates product attributes.

✧ Identifies the brand and seller.

✧ Lists ingredients.

✧ Makes the product easier to handle.

Your packaging design can reduce costsassociated with storage, handling,shipping, and pilferage. Packaging canalso refer to the overall impression thatyour business makes, see Chapter 4 onimage.

Point of Sale

POS refers to the visual and audiomerchandising that a customer meets in ashop, a warehouse, a showroom, oranywhere else that products are ondisplay. Bags with your name/logo, flags,banners, cut-outs, posters, signs and otherPOS elements are designed to createawareness of a product at the moment ofpurchase.

You should only consider investing in POSmerchandising if you want to create asatisfying buying environment thatstimulates an engaging customerexperience. If this is not critical to yourbusiness success, then you shouldconsider alternative ways of spendingyour marketing budget.

POS is less relevant for a service business,except that the state of your office orwaiting room (tidy, untidy) can alsoinfluence whether your customerexperiences a satisfying buyingenvironment.

Always ask yourself how you would reactif you were a stranger turning up in yourown office.

Giveaways

You are certainly no stranger to giveaways– just think how many promotional pensyou have received in your life. Giveawayscan be a useful promotional tool if useddiscriminately. To be effective, yourgiveaway must:

✧ Not cost too much.

✧ Be relevant to your business.

✧ Be durable.

✧ Act as a permanent promotional toolfor your business.

✧ Not put your customers off byappearing too tacky.

See the table on the next page for examplesof some giveaways.

Exhibitions & Trade Fairs

There are 3 categories of exhibitions andtrade fairs:

✧ Events aimed at the consumer.

✧ Events aimed solely at the trade.

✧ Events aimed at, and open to, both.

The commitment to participate in a tradefair or exhibition is costly. You need to takeaccount of several other expenses inaddition to the hiring of the stand:

✧ Stand design – If you want yourstand to look professional, you needto employ a designer to decorate thestand, and you need to deliver thestand to the venue.

✧ Stand literature – Brochures,giveaways, etc.

✧ Equipment, samples – The cost ofdelivering these to the venue

✧ Time – You or your representativehave to spend valuable hours awayfrom the office. Think carefully beforecommitting yourself to this expense.

6 (VI) Sales Promotion Media

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If you believe that participating in a showis critical to attracting the attention youwant, or if this show won’t be repeated fora few years, go ahead.

If you like the idea of participating in atrade show, but you’re not sure it willproduce dividends, maybe attend theshow as a visitor the first time round. Youcan assess who the competition is, whatthey are offering, how many people visittheir stands – and you can also use theopportunity for valuable networking. Justdon’t forget to take along a stackful ofbusiness cards!

Type of salespromotion

Why is thisappropriatefor yourbusiness?

Why is this notappropriate foryourbusiness?

What do you wantto achieve fromthis type of salespromotion?

How will youmeasure theeffectivenessof this?

SALES PROMOTION MEDIA CHECKLIST

Packaging

Shop/officesignage

POS in-storesignage/posters

Bags and othermerchandising

Giveaways

Exhibitions andtrade shows

OTHER

TRADE FAIR CHECKLIST

1. Is the expense justified? 2. Who will be attending the event? 3. Will the procurement decision-makers

be there? 4. How many visitors came last year? 5. How many visitors are expected this

year? 6. Of these, how many will be interested

in your product/service? 7. Are you only participating because

everyone else is? 8 Have you spoken to previous

participants to find out what value theyplace on the show?

DESCRIPTION OF COMPANY GIVEAWAY

Insurance agency Umbrella on which is written “We’re Here To Protect You”.

Smoked salmon company Packet of toothpicks with company logo.

Dental practice Dental floss with own name on the packet.

Auctioneer Free report: “How to obtain the best mortgages”.

House builder Free information pack for new home owners.

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How to Make EfficientUse of MarketingProfessionals

Now that you have examined your mediamix and decided which combination ofmedia to use, you have to decide who togo to:

✧ You can go directly to the mediaproviders (local newspaper, localradio).

✧ You can wait until the media come toyou.

✧ You can use the services of marketingprofessionals.

Going to the media directly is tempting,because you assume that you can get itcheaper than going through a professionalintermediary. The problem is that themedia might be good at selling space, butnot necessarily good at producingprofessional quality advertising.

Even large companies do not have the in-house expertise to run their marketingcampaigns. Small businesses have evenless in-house resources, so it makes sensefor them to stick to their core business, andto leave hired guns to look after themarketing.

Small businesses can benefit greatly fromprofessional creative experts whospecialise in creating the visual and textualmessages that will attract your targetaudience. The two most importantmembers of your hired creative team arethe copywriter (the words person) and theart director (more commonly known as thegraphic designer).

The copywriter is a wordsmith, someonewho has a way with words. Thecopywriter’s function is to act as a sort ofgo-between for both you (the advertiser)and your customer (the target audience).The copywriter distils your marketingmessage, and translates it into advertisinglanguage that will persuade customers tobuy your product or service. In essence,the copywriter is your mouthpiece, andensures that your marketingcommunications are clear, consistent andconcise.

The copywriter writes the words forseveral different media:

✧ Ads, brochures and other print media.

✧ Websites.

✧ Slogans, taglines, and brand names.

✧ Direct mail letter.

✧ Narrative and jingles for radio and TVcommercials.

✧ Press releases.

✧ Packaging text.

✧ Instruction booklets.

✧ Speeches.

7 Hired Guns

CASE STUDY

Liz opened a new nail bar, and decided to announcethis via an ad in the local newspaper. She went in totheir offices, gave in the wording of the ad, andwaited to see how the ad turned out.

On the publication day, she was disappointed to findthat her ad was hidden among much bigger ads, thatthe wording she had used seemed veryunprofessional compared to other ads, and that thedesign of her ad was very unexciting.

She had chosen what she thought was the cheapestroute, but in terms of effectiveness, her ad was awaste of money.

CASE STUDY

Fergus was very flattered when he received a callfrom a sales representative of “New MillenniumIreland – The Essential Business Directory”. Theywere offering him an ad in the new edition at half-price if he paid upfront.

Although Fergus had not actually come across thisdirectory, he understood from the salesrepresentative that every major company in Irelandhad a copy. The terms seemed very generous, so hesigned the contract.

It was only when the directory was eventually printed10 months later (and 10 months after he had paid forhis ad) that Fergus realised that no one was actuallygoing to use this directory.

By reacting to the offer to advertise, rather thanproactively choosing to advertise, Fergus had givenup control of his media mix decisions.

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Unless your business is in the creativearts, don’t be tempted to write your ownpromotional texts and marketingmaterials. Copywriters do it better,because they have mastered the languageof your customers. Also, don’t think thatjust because your neighbour’s daughtermajored in Eng. Lit. at university, she’llbe able to help you with the writing.Academics often make the worstcopywriters!

The graphic designer combines the textwritten by the copywriter with graphics,photos, illustrations, and other visualelements to create marketingcommunication for a variety of media. Thegraphic designer understands the powerand the emotion of typefaces, shapes,words, colours and photos. Today’sgraphic designers have access to computersoftware and computerised techniquesthat can achieve dramatic results.Designers can usually handle the entireproduction cycle, from concept to finalexecution. You would go to a designer for:

✧ An ad, brochure or newsletter.

✧ A logo.

✧ Letterheads.

✧ Posters.

✧ A sign.

✧ Business cards.

✧ Packaging design.

✧ Any other type of visualcommunication.

The printer (the human variety, not themachine) is another professional withwhom you will have frequent contact. Nottoo long ago, a small business that wantedpromotional or advertising work wouldgo to the local printer. Designers wereregarded as a costly luxury, so printers gotlanded with jobs that they were often notfit for. The advent of desktop publishinghas allowed many print operations tomove up the skills chain, and someprinters can now offer quite sophisticateddesign. Before you decide whether toentrust your material to a printer or adesigner, take a good look at theirportfolio of work. If you are happy withthe output of the printer, this may be acheaper option.

If design is important in your business, itis often worth paying the extra price forthe creativity, experience and expertise ofa professional graphic designer.

The PR consultant advises you on your PRstrategy. Your PR consultant can:

✧ Provide an external, objectiveviewpoint or perspective.

✧ Increase your overall visibility.

✧ Support a specificproduct/service/event.

✧ Support your entire marketing effort.

✧ Advise you when you are the target ofadverse publicity (crisis management).

✧ Strengthen community relations.

When choosing your PR consultant,check the chemistry! Make sure thepeople working on your accountunderstand your business, and aresensitive to the PR image you want toproject.

PR consultants price their services in avariety of ways:

✧ Hourly fee.

✧ Minimum monthly fee based onestimated number of hours permonth.

✧ Project fees for a one-time project(such as the opening ceremony for anew building).

✧ Retainer fee.

Check which is the most appropriate foryou.

Other professionals involved in thecreative process include:

✧ Web designers.

✧ Photographers (including pressphotographers and commercialphotographers).

✧ Illustrators and animators.

✧ Marketing consultants who provideexpertise covering the broad spectrumof marketing.

✧ Ad agencies.

✧ Audio/visual experts (musicians,sound, video).

46

Leaving it too late to involve the writer andthe designer.

Debating whether the text or the designshould come first.

Asking your designer or printer to “look overthe text”.

Giving your brochure to a web designer andsaying, “Just reproduce this on my website”.

Bring your key professionals (copywriter andgraphic designer) into the loop at an earlystage. Involve them in identifying andformulating your marketing messages andtarget audiences.

There is no need to waste time on thischicken-and-egg question. It doesn’t matterwhich comes first, so long as you copywriterand your designer synchronise their work.

Just as you wouldn’t expect your copywriter todo the design, don’t expect the visualprofessionals (web designers, graphicdesigners, printers) to write your text.

Giving your brochure to a web designer andsaying, “Just reproduce this on my website”.The visitors to your website look forinformation in a different way than readers ofyour brochure. Web content (text) should bespecifically written by your copywriter for thispurpose.

COMMON ERRORS IN WORKING WITH MARKETING PROFESSIONALS

ERROR SOLUTION

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We all feel special when the waiter in ourfavourite restaurant greets us by name. Weall like being asked whether we want “theusual” on the menu. We feel valued, andwe want to visit that restaurant again andagain. And because we want our friends toshare the same special treatment – we tellthem about it.

There are few more powerful ways ofreaching new customers than a personalendorsement from a satisfied customer.Word-of-mouth referrals that give yougreater exposure in your market canbecome a valuable marketing tool forsmall businesses.

Research shows that referrals can accountfor up to 50% of your business. Don’tmiss the opportunity of milking all yournetworks to create a steady stream ofword-of-mouth referrals.

Referrals & Networking

Referrals are an ideal marketing toolbecause:

✧ They are an inexpensive way ofgaining new business.

✧ They come from a credible third-partywith first-hand experience of doingbusiness with you.

✧ There is a high probability that youcan convert referrals into business.

✧ People who refer others to you aremore likely themselves to work withyou.

Word-of-mouth referrals can come fromdifferent sources:

✧ Existing customers – As we saw inthe restaurant example, a satisfiedcustomer can give the most authenticendorsement of your product orservice.

✧ Friends and family – These are thepeople who are naturally predisposedto recommend you to others. But

again – don’t assume anything.Galvanise them into sending youreferrals.

✧ Professional colleagues – These arepeople who work in your field,possibly offering complementary butnot competitive products and services.For example, if you are aphysiotherapist, your sources ofreferrals would include orthopaedicspecialists, GPs, massage therapists,physical therapists, local gym ownersand sports coaches.

✧ Influencers – People whom you comeinto regular contact but who do not fitthe other 3 categories.

Examples include:

✧ Neighbours.

✧ Clergy.

✧ Other small business owners.

✧ Corporate business executives.

✧ Accountants.

✧ Solicitors.

✧ Bank staff.

✧ Health club members.

✧ Former colleagues.

✧ Sports club members.

✧ Members of the Chamber ofCommerce.

These sources of referrals: existingcustomers, family, friends, professionalcolleagues and influencers – also describethe networks, the groups of people youassociate with at varying levels ofintensity, that every small business mustcultivate.

Don’t make the mistake of believing thatsatisfied customers automatically passyour name to other customers orbusinesses. If you want referrals, youhave to actively ask for them.

In the best case scenario, relationships thatstarted out simply as networking/referralrelationships can become semi-permanent.

8 Word-of-Mouth

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POTENTIAL SOURCES OF REFERRALS

Write down the names of at least 10 people in each category

# Customers Family/friends Professional colleagues Influencers

1

2

3

4

5

6

7

8

9

10

CASE STUDY

Tom is a builder who received arecommendation from another builder touse the services of Dick the cleaner. NowBob calls on Dick to clean every singleproperty he completes.

Another builder recommended to Bob thathe use the services of Harry, the cabinet-maker. Now Tom calls on Harry to buildand install cabinets in every home hecompletes.

Everyone in the loop is happy. Tom isrelieved to have found top-classprofessionals, while Dick and Harry aredelighted to have a solid client like Tom.

To create a systematic referral generationand tracking system, you need:

✧ Business cards that spread the wordconcisely.

✧ A tracking method that teaches youwho is a good source and who is awaste of time.

✧ Fast follow-up of all leads andreferrals.

✧ To express your thanks to the sourceof the referral.

Acknowledging referrals with a “thankyou” encourages people to continuereferring customers your way. Avoidgiving gifts or cash, because it could beconstrued as paying a commission.

REFERRAL TRACKING SYSTEM

Name ofperson towhom yougave businesscards

Date you gavethem cards

Quantity ofcards

Results(names/dates)

Date that youthanked thereferral source

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When you own your own business, youare always selling yourself. Every timeyou meet someone, whether socially or inbusiness, you are not just a spouse, aparent, tall, short, funny or serious. Youare a business owner looking forcustomers.

Remember all those times you went for ajob interview? You developed some fineinterview skills. You were careful to makea good impression on the interviewer.

✧ You dressed smartly.

✧ You were well-groomed.

✧ Your shoes were clean.

✧ You were upbeat.

✧ You sat attentively.

✧ You answered in a focused manner.

✧ You smiled and were polite.

Think of every encounter with prospectivecustomers as an interview situation. Youare being interviewed for your suitabilityto supply your product or service. And ifyou want to turn prospects into realcustomers, you need to shine at yourinterview.

If you lack the confidence to sell yourselfand enter interview mode every time youmeet a prospective customer, have a friendvideo a mock encounter. Study it. Get overthe embarrassment. Learn the differencebetween passive and proactivenetworking, then get out there andpromote your business at everyopportunity.

NETWORKING CHECKLIST

1. Shake hands with everyone you meetat business functions.

2. Exchange business cards witheveryone you meet.

3. Write to past customers and tell themyou miss them.

4. Never throw away prospect namesand addresses.

5. Most people throw away mostadvertising material – so keep sendingit.

6. Keep updating your contact list.

7. Send customers/prospects articles ofinterest they may have missed.

PASSIVE NETWORKING

“By the way, I’ve just opened a new business.”

Joining the Chamber of Commerce.

Going to business events/functions and standingby yourself at the side.

Telling your family and a couple of friends.

PROACTIVE NETWORKING

“Hello, I’m Susan, I’ve opened my ownbusiness in the office supplies sector, andI would love to have the opportunity ofdiscussing with you how we could dobusiness together. Here are some of mycards for you to hand to any colleagueswho might be interested in my services.Do you have a card?”

Offer to sit on a Chamber committee. Youwill be welcomed with open arms. Useevery opportunity to let Chamber membersand staff know what you do. Sponsor aChamber breakfast meeting or theChamber newsletter.

March up to people, introduce yourself,shake hands, talk about your business,hand out business cards.

Contacting everyone you know, includingall of the business and personal contactsyou have developed over the years. Askthem to spread the word about your newventure.

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Selling

When you run a small business, youdiscover that you never actually stopselling. Wherever you meet yourcustomers or potential customers – at yourplace of business, in the street, in theirpremises, in the pub, at Chamber ofCommerce meetings – you are selling. Thisis even more the case in smallercommunities, where you are known by agreater proportion of the population.Selling operates at several different levelssimultaneously:

✧ You are creating a relationship offriendship and trust with thecustomer. At the end of the day,people buy from people they like.

✧ You are exploring the customer’sworld, mindset, wants andexpectations.

✧ You are establishing a communicationchannel based on mutual respect.

✧ You are bridging the gap betweenwhat the customer wants and whatyou can deliver.

✧ You are offering your services as aproblem-solver.

✧ You are building the foundations for afruitful long-term businesspartnership.

You do not have to be born with sellingskills to sell your product or your service.Everyone develops their own style ofselling. But whatever your style, your goalis identical: to try and clinch the deal.

You have already invested in marketingtools to motivate people to want to workwith you. Now you need your sellingprowess to turn these people intocustomers and your encounters into salestransactions.

One of the secrets of selling is tounderstand where your customer iscoming from. Customers can beantagonised if they perceive that all you’retrying to do is convince them to buy yourproduct or service. It is more useful tothink of how you can help customers getwhat they really want. Once they knowthat they can get what they’re looking forfrom you, your selling challenge is tomake sure that when they look for it, theycome to you.

Have you ever had a washing machine dieon you? If so, you’ll know that ads forwashing machines suddenly jump out ofthe newspaper and shop windows. Why?Because you want a new washingmachine, and you are attuned toinformation on where to buy one.

It’s the same with selling. Always askyourself what your customers are lookingfor, then help them find it by pointingthem in the direction of your business.

To successfully close a sale, you need to bevery, very persistent. Some products orservices can take several discussions withthe same customer before a sale is closed.Sometimes nine people will turn youdown before someone says yes. You need alot of self-motivation to overcome theserejections – but unless you determinedlykeep trying, you won’t get to the tenth.

For an example of unbelievablepersistence, spare a thought for ColonelHarlan Sanders, the man behind KentuckyFried Chicken (KFC).

9 Selling & Distribution

CASE STUDY

When Sanders had to close his highly successfulrestaurant when a new interstate highway completelybypassed his town, he decided to try and sell hisKentucky Fried Chicken recipe. He drove across thecountry, cooking batches of chicken for restaurantowners and their employees, but no one jumped at theopportunity of going into business with him. Sanders hadbeen rejected by over 1,000 restaurants beforeHarman’s Café in Salt Lake City agreed to pay for theprivilege of using Sander’s unique chicken recipe. Theidea caught on, and everyone knows the end of thestory. Sanders’ stubborn tenacity made him believe thateven after 1,000 rejections, someone would eventuallysay “Yes”.

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Distribution Channels

Once you have decided what kind ofbusiness you are setting up, you need tochoose a combination of distributionchannels for delivering your product orservice to your customers.

Direct marketing channels If you are a service business or a smallmanufacturer, you will probably use aDirect Marketing Channel, whereby youand your salaried staff sell directly to yourcustomers. By customer, we mean anyonewho buys directly from you, whether it’s aconsumer, another business, a retailer or awholesaler:

✧ Consumers (B2C) – If youmanufacture kitchen tables, and yousell directly to consumers, you areusing a direct marketing channel.Similarly, if you have a retail outlet,

you are selling directly to thecustomers who come into your shop.

✧ Other businesses (B2B) – If yourservice or your product are geared forthe business market rather than forthe consumer market, then you aredealing directly with your businesscustomers.

✧ Retailers – The retailer is anintermediary who sells your producton to their customers. Although youdon’t sell directly to these customers,the retailer is your direct customer.

✧ Wholesalers/distributors – These arealso intermediaries who buy yourproduct in bulk and distribute it toretailers and other outlets. They canhandle storage of your product,advertising and promotion to retailersand/or end-users. Although you don’tsell directly to the end-user, thewholesaler/distributor is your directcustomer.

✧ Internet – The Internet is becoming anincreasingly popular direct marketingchannel. Indirect marketing channel –independent representatives & agentsReps and agents are independentcontractors who find outlets for yourproducts. When you work through anintermediary like a rep or agent, youare not selling directly to yourcustomer. Unlike wholesalers, thesefreelance sales agents do not purchaseyour product. They meet their owncosts and are paid only according toresults.

The advantages of using a rep/agentinclude:

✧ Cost advantages – they only earncommission when they sell on yourbehalf.

✧ If they don’t sell, you are not left withhefty overheads, such as salary, carand office space.

The disadvantages include:

✧ You don’t control the time they spendpushing your business.

✧ If they find other products easier to sell,or they are offered higher commissionto sell similar products to yours, they

SELLING CHECKLIST

1. Be confident about the product.

2. Smile.

3. Enthusiastically describe the benefits.

4. Politely rebuff any objections.

5. Avoid jargon – speak in the languageyour customer understands.

6. Remember and use your customer’sname.

7. Remember personal details of yourcustomers.

8. Learn your customers’ buying habits,likes and dislikes.

9. Be sure you are talking to the personwho can close the sale.

10. Learn how the customer found you (oryou found the customer).

11. Be aware of the customer’sexperience with your competition.

12. Be aware of how your product/servicewill benefit the customer.

13. Be convinced in your own mind thatthe price is right.

14. Be clear about what price you agreeon.

15. Be clear about the payment terms. 16.Be clear about the delivery methodand date/time.

17. Be persistent.

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may decide to give relatively little effort topromoting your products.

✧ If they sell your product/service to adisreputable customer, you could beleft with unpaid bills.

If you intend to appoint a rep or agent, it isa good idea to draw up a writtenagreement so that both parties understandwhat is expected.

Export

Export used to have an exotic ring to it, butin today’s marketplace, it simply meansthat your customer lives outside yournational boundaries.

In this age of global communications,overnight delivery and streamlinedlogistics, having an export customer canbe no more complicated than having adomestic customer – so long as the price isright and the customer is happy.

If you make Christmas cakes, it might beeasier to deliver a truckload to Liverpoolthan to Wexford.

Is one export customer enough to make itworth developing an export strategy? It isdifficult to generalise. Just as you shouldavoid letting any single domestic customeraccount for too much of your business, it isnot a good idea to allow a single exportcustomer to account for too much of yourtotal business.

Another thing to remember is that onceyou have established procedures forhandling orders to one export customer,you have the infrastructure to absorbadditional export customers.

Small businesses involved in a creativeservice industry will hardly notice thedifference between export or domesticwork. It takes exactly the same amount oftime and effort for a designer to send agraphics file by email to Chicago as toCork. It takes the same time to email thetext for a brochure to London as toLimerick. It takes the same time to showyour customer in Rimini what his websitewill look like as it takes to show yourcustomer in Roscommon.

The only justification for taking theexport route is if you find an exportcustomer who makes it worth your while.There is no glory in being an exporterwho loses money on every exporttransaction.

Use the checklist below to help you planyour export strategy.

POINTS TO BE COVERED IN YOURREPRESENTATION AGREEMENT

Products/services – Define which products orservices are covered in the agreement.

Price – Define the retail price of the product, sinceyou will be issuing the invoice.

Payment – Define who is responsible for collectingpayment. Rate of commission – Define the exact rateof commission that the rep will earn on each sale.

Territory – Define the geographical territory in whichthe agent will operate (for example, the town, county,region, or country).

Type of customer – Define what kind of customeryou are looking for, and also define what kind ofcustomer you don’t want.

Duration of agreement – It is a good idea to limit theterm of the agreement, so that you can reviewperformance, and if necessary revoke the agreementif it’s not working.

DISTRIBUTION CHANNELS CHECKLIST

1. Are you reaching your customers inthe most cost-effective way?

2. Is your business more suited to directmarketing or indirect marketing?

3. Is the final price that your customerpays (whether the customer buys fromyou, from a shop, from a wholesaler orfrom a rep) the right/appropriate price?

4. Are you sure that the end customer isbeing provided with service andsupport?

5. Are you devoting enough time andenergy to your core competency?

6. How does this distribution channelaffect your bottom line (can you affordit?)?

7. What channels do your competitorsuse?

8. Where are the weaknesses in yoursystem?

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53

EXPORT CHECKLIST

1. Are your export plans part of your initial business plan and marketing strategy, or the result ofa marketing opportunity you don’t want to miss?

2. Which products/services do you want to export and to which foreign markets?

3. What primary and secondary research have you conducted on your target market?

4. Have you visited these countries in person to get a feel for the market?

5. What marketing distribution channels are you planning to use, and who are you appointing tomanage the marketing and sales operations?

6. Does your company possess the necessary language skills at all levels of the organisation, fromtelephonists to customer support?

7. Have you organised your administration for foreign currency payments?

8. Are you complying with special safety, environment, quality, packaging, language, andcustoms/excise regulations?

9. Are you sure your bottom-line profit justifies the extra distribution costs?

10. What are your sales targets per country/market/segment?

11. Will the energy you put into export place undue strain on your organisation?

12. Have you developed suitable marketing/promotional literature for your export markets?

54

The key role of customer service in themarketing of your business cannot beover-emphasised. It may be a truism, butwithout satisfied customers, your businesswill not survive.

Customer service involves:

✧ Delivering what you promised.

✧ Being pleasant and friendly.

✧ Willingness to help.

✧ Providing prompt service.

✧ Well-trained staff.

✧ Personal attention.

✧ Little things that make the difference.

Your staff (which includes you) mustunderstand how much importance youattach to customer service. You will findthat employees who are treated withrespect will treat your customers withrespect. Your goal is to ensure that yourcustomers receive a consistently goodlevel of service, no matter who theyencounter in your business.

Poor customer service, for example, candrive your customers to your competitorjust as effectively as a heavy mediacampaign mounted by your competitor.

Customer Retention

When you first start your new business, itis only natural to channel all yourmarketing efforts into new customeracquisition. Without customers, you willnot survive, and your initial focus must beon creating a solid customer base. The wayto find these customers is via themarketing tools described in thispublication.

But once you have achieved your short-term goal of acquiring new customers, thebalance shifts. Your medium/long-termgoal is to devote more and more efforts tocustomer retention. Customers who have

given you a vote of confidence by doingbusiness with you become your mostvaluable asset. You must continue toprovide them with good service, continueto meet (or even exceed) theirexpectations, and these satisfiedcustomers will return time and time again.

Customer Relations Management (CRM)is not just a new way of saying customerservice – it is a better way. By makingcustomers more than mere transactionsand focusing on the relationship aspect,you will be better equipped to engage innon-stop wooing of your loyal customers.

It also makes good business sense to focusyour marketing energy on loyal customers:

✧ 20% of your loyal customers usuallyaccount for 80% of your revenue.

✧ You invested considerable time, effortand money in winning thesecustomers.

✧ You can drive your marketing costsdown, because you no longer have totry and reach such a wide audience.

✧ Dissatisfied customers rarelycomplain – they simply vote withtheir feet (or their wallets).

There is evidence that dissatisfiedcustomers tell up to 10 friends andcolleagues about their negativeexperience. Just think how fast you couldlose potential customers.

A high level of customer retention canhave a critical effect on your bottom line:

✧ Higher staff morale (= lower staffcosts).

✧ Lower staff turnover (= lowerrecruitment costs).

✧ Longer customer retention (up to 50%longer).

✧ More repeat business (20% to 40%lower selling costs).

✧ More referrals (20% to 40% lowermarketing costs).

10 Customer RelationshipManagement

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55

✧ Higher prices (7% to 12% higher).

✧ Increased margins (7% to 17% moreprofit).

CALCULATING THE LIFETIME VALUEOF A LOYAL CUSTOMER

Average sale value per customer

€______

Multiplied by sales per year per customer

______

Total sales value per year per customer

€______

Multiplied by no. of years your customerbuys from you

______

Gross lifetime sales value per customer

€______

If every loyal customer recommendsyou to at least one more customer,your sales will soar.

CUSTOMER SERVICE CHECKLIST

1. Make sure the phone is alwaysanswered promptly.

2. Train your staff in how to talk tocustomers on the phone

3. Train your staff in how to talk tocustomers in person.

4. Make sure orders are fulfilled quicklyand efficiently.

5. Establish grievance-handlingprocedures.

6. Train your staff how to handle difficultsituations (for example, iratecustomers).

7. Establish an ongoing dialogue withyour customers.

8. Regularly evaluate feedback on howyou are meeting customers’ needs.

9. Share your customer service visionwith your staff.

10. Visit/call/email your customers on aregular basis.

11. Keep a record of the customer’sdetails – name, address, phone,email.

12. Maintain a positive buzz about yourproduct/service.

13. Aim to meet and exceed yourcustomers’ expectations.

14. Design your business to deliver whatyour customers want.

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Because small service businesses areselling an intangible product, they facetwo big marketing challenges:

✧ How to market your service when,even after you have completed thejob, there is often nothing customerscan hold in their hand.

✧ How to price your service when youcannot show your customer what youpropose to do for the price you arequoting until the job is done – andeven then it could be too early tojudge.

Not only do you have to somehow sell aservice that the customer can't see, taste orfeel, you also need to convince thecustomer that you can perform the service:

✧ To the customer’s satisfaction.

✧ At least as well as, if not better than,competing service providers.

✧ At the same price, or less, than thecompetition.

11 Service Businesses

As a service provider, do not forget thatyou deliver lots of extras that do not showup as items on your invoice:

✧ Free consultation (meeting/s todiscuss the work/contract).

✧ Fast on-time delivery.

✧ Free installation and setup.

✧ Money-back guarantee.

✧ First-year service.

✧ Extended service hours.

EXAMPLE

Insurancebroker

House-cleaningservice

Landscapegardener

Webdesigner

PRconsultant

PROBLEM

Customers are paying for something they hope will neverhappen. The only tangible item they can hold in their handis the insurance policy itself.

Customers are paying for something they can’t see. Evenafter the cleaning service has completed the job, there isno tangible product left behind.

Customers can see photos of other jobs completed, buteven if they see 3D imaging, they cannot see the finishedversion.

Customers can see examples of websites produced forother companies, but they cannot see the final version oftheir own website.

Customers can view examples of Media Releases andpress clippings, but it will take a while before they canascertain the effectiveness of the consultancy – has therestaurant managed to shake off the poor image?

SERVICE

Cover against theft andfire.

Home cleaning.

Redesign of privategarden.

Website for newcompany.

A more positive imagefor a restaurant after afood-poisoning scareclosed it down.

EXERCISE

List the added-value items that your servicebusiness provides:

1.

2.

3.

4.

5.

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57

Make sure that your customersunderstand and appreciate these added-value items. Service providers must makesure that people know you are still aroundand keep you in mind when the rightproject comes along:

✧ Your follow-up calls after you havecompleted a job should not only beabout chasing up your cheque. Findout how the project is progressing.

✧ Enquire whether the service youprovided achieved its goal.

✧ Contact companies who failed to giveyou their business last time round (orfailed to give you repeat business) –just because you didn't get the jobonce doesn't mean that they will nevergive you work.

A familiar problem with one-person (soletrader) service companies is thatprospective customers might be concernedthat you cannot provide the same level of

service and reliability as a bigger, moreestablished company. You can counter thisby:

✧ Promoting yourself as a business andnot as an individual (“we”, not “I”).

✧ Focusing on your track record.

✧ Emphasising your ability to work wellwith large clients.

A big advantage about selling anintangible service is that your customersoften make their purchase decisionsbased as much on emotion as on facts.Exploit this by using the language ofbenefits when trying to sell your service.

One way of compensating for the smallsize of your business is to emphasise yourprofessionalism by drawing up adocument that clearly defines what you do(and what you do not) provide for theprice agreed. The more detailed thedocument, the less room there is formisunderstanding.

Assignment

What does theassignmentinclude?

What does theassignment notinclude?

Start date

Delivery date

Delivery method

The price

Payment terms

Materials costincluded?

Travel costincluded?

Extra costs notincluded

SAMPLE AGREEMENT FOR WRITING A WEBSITE

Writing the text (content) for a website for ABC Engineering.

Stage 2: Presenting an outline of the site architecture (max. 10 pages).Stage 3: Writing the text. Stage 4: Delivering first draft. Stage 5: Corrections. Stage 6: Delivering final draft. Stage 7: Proofreading of the text in its final web format.

This assignment is for writing only, and does not include the web designor the technical posting of the website on the Internet.

20 January 200x

20 February 200x

Final text to be emailed to ABC Engineering and their website designer.

€1,000 + €210 VAT = €1210.

€350 + VAT with order; €350 + VAT on delivery; €300 + VAT 30 daysafter delivery.

Yes.

1 visit to the customer’s premises to collect the initial information –further visits requested by the customer will be charged at €100 each.

If the client makes more corrections after the final draft, there will be asurcharge of €100 per round of corrections – If the client requires morethan the agreed 10 web pages, there will be a surcharge of €50 perpage.

YOUR OWN SAMPLEAGREEMENT

58

The preceding chapters have focused onthe various options available to you as youplan your marketing strategy.

But if you really want your marketingefforts to stand out from the crowd, youneed to step back, look at all you haveabsorbed about your business, and askyourself:

✧ What could you do differently?

✧ How can you make people sit up andnotice you?

✧ How can you attract attention to yourbusiness in an unusual andunconventional way?

One way for small businesses to competeagainst larger competitors is to emphasisethe disadvantages of the competition’ssize. There is a long and noble tradition ofemulating Jack (of the beanstalk fame)who used the giant’s weight against him.

The classic example is the famous Avistagline, “We try harder”, which capitalisedon the company’s number-two status.Being seen as the underdog can appeal tocertain types of consumer. Niche markets,such as the organic food industry andvarious types of luxury goods, have usedthis strategy to their advantage.

Strategic MarketingAlliances & JointVentures

Another way for small business owners toachieve their marketing goals differently isto cooperate with other businesses instrategic marketing alliances and jointventures. By looking for opportunities toreach the customers of complementarybusinesses, you gain access to newprospects.

Best of all, you will be exposed to thesenew customers with the activeencouragement of the business thatacquired them in the first place.

The table on the next page shows someexamples of strategic cooperativemarketing ideas.

All these examples are win-win-win:

✧ You gain greater exposure becausethese other businesses are telling theircustomers about you.

✧ The other businesses gain greaterexposure because you are telling yourcustomers about them.

✧ The customers gain because they arebeing wooed with special offers.

Chutzpah

One of the most effective ways for smallbusinesses to add value to their marketingis to use chutzpah. Originating in Yiddishand Hebrew, chutzpah is a combination of:

✧ Cheek.

✧ Nerve.

✧ Audacity.

✧ Guts.

✧ Outrageousness.

✧ Bottle.

✧ Boldness.

✧ Balls. Chutzpah allows you to achievethe competitive edge you seek by:

✧ Challenging traditional methods ofproblem-solving.

✧ Looking for unconventional solutions.

✧ Spotting opportunities that othershave missed. The table on page 60offers some examples of people whoused chutzpah to add pizazz to theirmarketing.

12 Daring to be Different!

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59

STRATEGIC CO-OPERATIVE MARKETING IDEAS

YOURBUSINESS

Sports shoe andsportswear store

Wallpaperingbusiness

Dry cleaners

Nail bar

Fashiondesigner

Any business

YOUR TARGETMARKET

Men, women andchildren.

Privatecustomersmoving into anew home orredecorating theirexisting home.

Men and women.

Women (adults,teenagers andgirls).

Women.

All local businesspeople.

YOU SHARETHIS MARKETWITH:

Fitnessequipmentproviders, fitnesscentres andgyms, fitnesstrainers.

DIY stores.

Men’s fashionboutiques, ladiesfashion boutique.

Hair salon.

Hotel.

Local hotels,local restaurants.

YOU COULDADD VALUE TOTHEM BY:

Handing out 10%discountvouchers for theirservices to yourcustomers.

Providingwallpaperingclasses in theirstores.

Offering discountvouchers for theirstores to yourcustomers.

Offering free-perm giftcertificates toyour customers.

Hosting a fashionshow for thehotel’s guests –the hotel alsogains from saleof extra food anddrink.

Sponsoring afree monthlybusiness-carddraw – dinersplace theirbusiness-cards ina bowl – you payfor the prize(dinner for two,free weekend,etc.)

THEY COULDHELP YOU BY:

Handing out10% discountvouchers foryour store totheir customers.

Referring theircustomers to youwhen they wanta professionalservice.

Offering drycleaningvouchers to theircustomers.

Offering free nailart giftcertificates totheir customers.

Allowing you tosell your line offashions afterthe show.

Allowing you toget publicity asthe sponsor, andto access avaluable extrasource ofbusiness cardsfor yourdatabase.

60

COMPANY

Fran Rooney,who boughtBaltimoreTechnologies, asmall 6-personconsultancy firm,in 1996.

Simon Woodroffe,founder of Yo!Sushi restaurant-chain in London.

Steven Spielberg,film-maker.

Rosemary, whoset up her ownweb designcompany whilestill at college.

Ely Callaway,manufacturer ofrevolutionary golfclubs.

Harry Ramsden,owner of Britain’sbiggest fish andchip restaurant.

MARKETINGCHALLENGE

To make tinyBaltimore look likeone of the majorplayers in thenetwork securityfield dominated bylong-establishedUS companies.,

To find prestigiousmultinationalsponsors whowould impresspotentialcustomers andinvestors.

To break into themovie businessafter failing to getinto the Universityof SouthernCalifornia CinemaSchool.

To break into theinner circle of thetightly-knit localbusinesscommunity.

Ely’s ERC II driverwas banned bythe US GolfAssociation afterit failed toconform to testinglimits.

To pull off a majorpublicity coupbefore he retired.

CHUTZPAH

Just months after buying Baltimore,Fran handed out huge cigars sportingthe Baltimore logo at the world’s majorsecurity software event, the RSA DataSecurity Conference. At subsequentshows he threw big parties, broughtover the entire Dublin office to boost theimpression of Baltimore’s size, and co-sponsored the RSA event, with theBaltimore name and logo featured on allthe conference and publicity material.

When Honda agreed to loan Simon amotorcycle, he expressed his gratitudeby appointing them official sponsor ofthe restaurant. When All Nippon Airwaysgave him an upgrade on a ticket toJapan where he was conductingresearch for his restaurant, heappointed them sponsors. He thendisplayed the names of his twoprestigious “sponsors” on the menus, onthe window, on the front door, on thedelivery bikes.

During a bus tour of Universal Studios,he discovered an abandoned janitor’scabin. Each day, he turned up at thestudio gates with a clipboard in hishands. The security guards alwayswaved him through. He turned the cabininto his office, placed his name on thedoor (“Steven Spielberg, Director”), andproduced a short movie that went on towin several film festival awards.

Rosemary set her sights on theinfluential local TD and cabinet minister.She discovered where he liked having acoffee, and just happened to be thereevery time he was there. When theminister invited her to join him onemorning, she told him of her businessplans and the difficulties facing a youngentrepreneur.

Realising that if golf pros could not usethe ERC II in tournaments, it could notbe marketed, Ely persuaded the Royaland Ancient Golf Club of St. Andrews,the governing body of golf outside NorthAmerica, to recognise the ERC II. Theyendorsed it as a legitimate club for allchampionship golf.

In 1952, Harry decided to sell fish andchips at the price (11/2d) they had been

on 7 July, 1912, when he opened hisfirst shop in Bradford. In a singleevening, Harry served more than 10,000portions of fish and chips, causing trafficjams for miles around.

RESULT

Fran’s marketingchutzpah forced majorUS rivals to notice theIrish upstart company,and the company wasperceived as a globalleader in its field.

Thanks to Simon’schutzpah, investors andbanks were suddenlytaking note of Simon’snew sushi restaurantwith the famous backers.

Spielberg became theyoungest director ever tobe signed to a long-termdeal with a majorHollywood studio.

The minister agreed tobe guest of honour at thelaunch of Rosemary’snew local informationwebsite. On the eveningof the launch, thebusiness communitycame out in force.Rosemary’s chutzpahgave her the opportunityto wow a high-profileaudience of businesspeople.

Thanks to Ely’schutzpah, suddenlyeveryone wanted to buythe ERC II driver.

Harry earned himself aplace in the GuinnessBook of Records, andreceived live coverageon the BBC.

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A small dose of chutzpah can go a longway. Every small business owner has theopportunity to come up with the chutzpahto market their business differently. Everysmall business owner can use chutzpah tofind unusual ways of achieving theirmarketing goals.

Below is an example of a direct mailerproduced by Alan Clark, a one-person PRconsultant. Alan’s tone is deliberately

upbeat and cheeky, which is precisely theimpression he sought to achieve.

Use chutzpah to your advantage. If youwant to add that extra spark to thepromotion of your business, turn on thechutzpah – the secret weapon in yourmarketing armoury. Now look back overthe preceding chapters, and ask yourselfhow you could use chutzpah to add extraflair and fun to the marketing of yourbusiness.

ON THE VIRTUES OF WORKING WITH A VIRTUOSO PR CONSULTANT

Introducing the new, compact and improved Alan Clark Communications

How would you react if I were to boldly announce that Alan Clark Communications is a smaller PRconsultancy than it seems? You’d probably say to yourself, “What an odd way to promote any business,never mind a PR business”.

So let me explain.

As founder and head of the eponymous Alan Clark Communications, I ran a successful mid-size PRconsultancy for over a decade, with offices in downtown Glasgow. In recent years, I started feeling that Iwas a victim of my own success. I originally entered the PR field because I knew I had what it takes todeliver high-quality, proactive PR services to high-profile clients. But the bigger my company became, Ifound that I was doing less and less of the hands-on client work that I really love. While I enjoyed runningthe business, I increasingly found myself missing the cut and thrust of media liaison, crisis management,and all the rest.

I decided to get back to what I do best – establishing intimate working relationships with my clients,and personally attending to their diverse PR needs. So I converted my garage into a super-efficient office,in the process gaining 2 extra working hours a day by not having to commute.

Today, Alan Clark Communications is me. Moi . Himself. WYSWYG.

When you choose to work with Alan Clark Communications, you get Alan Clark, the virtuoso PRconsultant.

When you choose to work with Alan Clark Communications, you join a small core of hand-picked clientswho prefer an experienced PR virtuoso to having to deal with junior staff.

When you choose to work with Alan Clark Communications, you are working with a PR virtuoso, whoseclientele includes Europe's largest low-fares airline Ryanair.

When you choose to work with Alan Clark Communications, you are working with a PR virtuoso chosento advise Disney, the world's largest entertainment organisation, in Scotland.

When you choose to work with Alan Clark Communications, you are working with a PR virtuoso whoadvises Hutchesons’ Grammar School, Scotland's largest independent school.

Why did they choose Alan Clark Communications?

✧ Because they value the wealth of experience that I bring to every job.

✧ Because they value the creative ideas and strategies that I bombard them with.

✧ Because they value my wit and my wisdom.

✧ Because they value my ability to think and act clearly under pressure.

✧ Because they value the fact that they always get superb value for money.

✧ And above all, they value the fact that I am 100% dedicated to promoting their image in the media.

I know that not every business or organisation is comfortable working with a solo operation. But I also knowthat there are lots of potential clients out there who feel that their interests are best served by a virtuoso withan impressive track record.

Give me a call. Let’s meet and chat. If you like what you see and hear, and if I feel confident that I can deliverthe results you require, we can make great music together.

62

Everything in this workbook is designedto help you create your own exclusivemarketing strategy. Read through thehighlights below, take a look at the samplemarketing strategy for the fictitious IrishFishing Supplies, and you will be ready togo out and sock it to them!

20 TIPS TO REMEMBER

✧ The main goal of your business is tocreate a coherent marketing strategythat will drive the engine of yourbusiness.

✧ Understand the business context inwhich you operate.

✧ Make time for keeping up-to-date onthe latest developments in yourmarket.

✧ Your customers are the lifeblood ofyour business – without them, yourbusiness will not survive.

✧ It’s not enough for your customers toneed your product or service, theyhave to want it.

✧ Once you have achieved your short-term goal of acquiring new customers,devote most of your efforts topampering your existing customers.

✧ Guide your customers fromunawareness through awarenessthrough knowledge throughpreference through conviction toaction.

✧ Develop a positioning statement thatexpresses the core message you wantall your internal and externalcommunications channels to deliver.

✧ Develop a USP that communicates apowerful statement of the uniquenessof your service or product.

✧ Formulate the marketing messagesthat will attract customers andpersuade them to do business withyou.

✧ Convince yourself of the value of yourproduct or service before you try andconvince others.

✧ Think of yourself as a walking andtalking marketing vehicle, dedicated24 hours a day to projecting a positiveimage of your business.

✧ Your business card can be your mostvaluable marketing tool – the nextcard you give out could land you yourbiggest customer yet.

✧ Resist the temptation to write yourown marketing literature or designyour own visual communications.

✧ Look for opportunities to get a storyabout your business in the local,national and trade media.

✧ Find out if your potential customerswill use the web to find you beforeyou invest in a website.

✧ Always match your message to yourmarket using the right medium.

✧ There are professionals out there whospecialise in creating andcommunicating your visual andtextual marketing messages.

✧ Explore the power of word-of-mouthreferrals and the potential of jointventure marketing.

✧ Make your marketing efforts standout from the crowd by daring to bedifferent.

13 Creating a Marketing Strategy

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Sample Marketing Strategy for Irish Fishing Supplies

Overview

Product Line Description ✧ A range of three fishing tackle boxes for attaching to the hull of a fishing boat.

Made of tough plastic, the tackle boxes are available in small, medium and large.

Business Description ✧ A manufacturing company located in Ballyhoo on Ireland’s North West coast.

✧ Wholly owned by the founder, initial capital investment: €10,000.

✧ The company imports components and assembles them locally.

The markets to be served are:

✧ Short-term (first year): North West of Ireland.

✧ Medium-term: National.

✧ Long-term: Export.

Target Market ✧ Leisure fishing boat owners.

Market Conditions ✧ Growth market – overall number of potential users has risen 20% annually since

1999 (quote source). The total number of outboard motor boat sales 1998-2003 were10,000 units (quote source). Projected sales at the same level over the next fiveyears = 50,000 units, plus 75% of units sold in the past 5 years still in use = 37,500units, gives a total potential market of 87,500 units in the national market. Theestimated share of the North West region is 20% of this, giving a potential marketof 17,500 units.

MARKETING ISSUES

Customer Profile: Fishing boat owners ✧ Currently own fishing tackle boxes.

✧ Read or subscribe to fishing magazines.

✧ Listen regularly to fishing programmes on the radio.

✧ Regularly attend boat shows.

✧ Occasionally participate in fishing contests.

✧ Male head of household.

Product Positioning ✧ The fishing tackle box is positioned as a new convenient accessory that provides

added convenience for the boat fisherman.

✧ Product benefits: compact modern design, convenient, safe storage for fishingtackle, added value to the fishing boat.

64

Pricing Issues ✧ The pricing reflects the product’s added value compared to the tackle box they

now own.

✧ The retail price of the boxes has been set at €15 for the small version, €25 for themedium size, and €45 for the large.

✧ Wholesale pricing will be 40% below retail pricing.

Packaging Issues ✧ Products will be shrink-wrapped, and will be accompanied by a brochure that

includes features, benefits and installation instructions.

✧ Boxes are packed six per cardboard shipping container.

✧ Shipping container must include name of product, name of manufacturer, productcode number, and gross weight of case, and must conform to EU regulations.

Distribution Issues ✧ The business is centrally located for easy access to target markets.

✧ Tight procedures in place for coordinating orders received, production scheduling,shipping, and invoicing.

✧ Shipments to retail stores via company’s own delivery vehicle.

✧ Wholesale orders: either shipped via commercial road transport, or collected bywholesale customer from factory.

✧ Raw materials/components from suppliers.

✧ All components are imported directly from Far East, and will be stored in plant orin local, outside warehouses.

✧ Finished goods will be stored in plant or in local, outside warehouses.

✧ Inventory control system will provide efficient goods in/good out.

Marketing Channels ✧ Marinas.

✧ Fishing tackle stores.

✧ Wholesale/chain: Boating supply houses, chain hardware stores, fishing tackledistribution.

Sales Targets Short-term (first year):

✧ To attain 10% of the market = 1,750 units.

✧ To attain distribution in 50 retail outlets.

✧ To attain distribution with one national retail chain. Long-term (five years):

✧ To attain retail distribution in 250 retail outlets.

✧ To attain distribution with five national retail chains.

✧ To reach a sales volume of 15,000 units by the end of the fifth year.

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65

Marketing Strategies✧ Preliminary sales promotion programme in local market.

✧ Direct sales and media campaign targeted at areas with lots of fishing andboating.

✧ Media plan that includes ads in fishing and boating magazines as well as localnewspapers.

✧ Publicity and advertising to be timed for just before and during the fishing andboating season.

✧ Provide adequate staffing to supervise sales efforts and ensure high levels ofcustomer service.

Marketing Tactics ✧ Contact local retail outlets for initial sales, analyse dealer reaction, project sales

after 90-day test.

✧ Establish a reporting system to track sales efforts and results.

✧ Produce a sales brochure for use in all sales presentations and direct mailings.Brochure should describe all features and benefits of the products, price andordering information, pictures of the products, and installation instructions.

✧ Develop ads in various sizes for the different print media.

✧ Develop media releases describing new product, its features and benefits.

✧ Meet editors of local press and local radio, invite them to cover the launch of thebusiness.

✧ Sponsor the weather forecast on local radio.

✧ Send media release to fishing/sport editions of local/national newspapers andappropriate magazines.

✧ Schedule participation in any boat and fishing events (fishing contests, festivals)in the region.

✧ Prepare suite of promotional material, including brochures, photographs, productsamples, testimonials.

66

14 Useful Contacts

Central Statistics Office www.cso.ie

Enterprise Ireland www.enterprise-ireland.com

Government Publications Office

Government Departments & State Agencies www.irlgov.ie www.basis.ie

Business Innovation Centres www.sebic.ie

County & City Enterprise Boards www.empower.iewww.etradebusinessireland.com

Area Partnership Companies www.adm.ie

LEADER companies www.irishleadernetwork.org

Chambers of Commerce www.chambersireland.ie

Golden Pages www.goldenpages.ie

Business websites www.startingabusinessinireland.comwww.kompass.iewww.mii.ie