Marketing and Promotion - Plan and Track Your Expenses
Marketing and promotion can be the difference between success and failure for your company. That's why one of the most important things to know when starting a business is which marketing tactics work best for your products, who you want as customers, and what kind of message you want them to receive.
The first step in formulating an effective marketing plan is researching what's out there in terms of successful marketing tactics. The second step is finding out how well your product or service fills a need, and whether or not that need is one the market is receptive to. Once you know the lay of the land, it's time to decide what methods of marketing will be most effective for your company.
You should also look at which mediums will work best for your message. Will ads in a magazine do your product justice? Or are you better off putting up signs at local businesses or on street corners? What about a newsletter to current customers, or an e-newsletter for potential customers? All of these questions should be answered before you launch any kind of marketing campaign.
Once you decide what methods of marketing you want to focus on, make sure you know how much each will cost. There are three main costs to consider: your production and design costs, your marketing and promotion expenses, and the cost of customer acquisition.
Production and design costs for ads will include the cost of the ad itself, any travel or lodging that may be needed for a shoot, an art director's time to come up with the best possible ad design or layout, assistants needed to help with set-up or calligraphy work, promotional materials such as postcards or flyers that need printing or folding, and postage to mail out your inserts.
Marketing and promotion expenses include magazine subscription cards, postcards to mail out with your newsletter or promotions, the cost of renting a mailing list with mailing labels, sending out direct mail pieces to potential customers, and setting up a toll-free telephone number.
Finally, the cost of customer acquisition includes everything from buying a list of customers you want to reach, placing an ad that will pull in new customers—whether in a local paper or online—to giving away free samples at grocery stores or through mail orders.
It's important not to overlook any expense that might have an effect on your bottom line. Being aware of the financial impact of each marketing tool you choose can help you make the most informed decision.
The first step in formulating an effective marketing plan is researching what's out there in terms of successful marketing tactics. The second step is finding out how well your product or service fills a need, and whether or not that need is one the market is receptive to. Once you know the lay of the land, it's time to decide what methods of marketing will be most effective for your company.
More often than not, new business owners get stuck somewhere between choosing a method and actually deciding how much it will cost to use each one, especially when they're unsure about which tactics will work best for their products or services.
When marketing a product or service, it's important to know what you want the market to think of you. For example, if your company makes high-end handbags, it might make more sense to use advertisements in upscale magazines instead of in local newspapers. That's because handbag sales aren't exactly booming at all of the popular grocery and boutique stores in your area—if they were, then glossy magazines wouldn't be so necessary for advertising them. Magazine ads are also more likely to get larger circulation numbers than a standard newspaper ad since people tend to receive their mailway on a regular basis.
If you plan on using television commercials or radio ads, however, you'll want to consider your target market. If there are no high-end stores in your target area, then it may be a better idea to advertise in the local newspaper as well. If, however, there are tons of upscale boutiques and shops in your area, you may be better off targeting an online audience instead of a local one through print ads.
The best marketing is one that not only reaches the right people but also convinces them to become customers. That's why it's important to find out what makes people want your product or service. If you don't know, it's probably a good idea to hire a market research company. Most will charge anywhere from $100-$400 or more for the research, depending on how many questions you want answered. Some will also provide promotional materials for you to use in your marketing campaign, such as door hangers or business cards.
Once you've determined which customers to target and what messages will best reach them, the next step is developing an effective marketing plan that covers everything from customer acquisition to production costs and design work.
The first thing you should do when planning a marketing campaign is brainstorming with other board members or investors. You'll want to come up with a creative way to convince potential customers that your product or service is something they want. You'll also need to know how well you can reach customers through your potential marketing methods.
For example, if you're advertising in a magazine, it will be important to determine the number of readers who are likely to find the ads interesting and who would be willing to read them. You may want to check the demographics of your market perusing the magazine in order to find out which demographics are most likely to notice your ads and act upon them.
Once you've determined what customers you're trying to get and what type of messages will be effective for them, it's time for research. You'll need to assess how much it will cost to reach potential customers, what kind of marketing campaign will draw them in, and who can help you with the campaign.
For example, if you're trying to get people to use your product, you might decide that a mail-order brochure is the best method. But if you're looking for someone to pay for a subscription or a special deal through an online account, direct marketing is probably the way to go—indirect mailings may not reach your target market as easily.
Once you've figured out what method(s) of marketing will be most effective for reaching your potential customers, it's time to pick up the phone and call them.