I received the following question from Jamie Nicholas of Jamie Nicholas Printing and Graphics:
Thanks for the question, Jamie! The answer is: "it depends." Step one is to understand how ENORMOUSLY important marketing is. Peter Drucker said,
1) Educating the right audience on the unique and superior advantages, benefits, value, and results your business provides.
2) Presenting credible evidence that supports supports and defends your promises.
There are 5 ways for a company to grow organically:
1) Keep the customers you have
2) Attract new customers
3) Increase the average transaction size
4) Increase the frequency of purchase
5) Say "no" to bad customers/prospects.
A well designed and well executed marketing plan that covers all these is critical. Advertising is an excellent enabler of steps 1-4. You can advertise to existing customers, you can advertise to attract new customers, you can advertise to increase transaction size, and you can advertise to increase the frequency of purchase. Advertising is one tool in your tool chest, but it's a darn good one because it multiplies your efforts. There are only so many people you can tell about your business one-on-one. Advertising is a "force multiplier" that gets the word out faster and cheaper than going "door-to-door" and telling everyone individually what you do.
So, you don't need to advertise in business, but you do need to market. If you can find a more effective method for your business than advertising, do it, but remember that if you aren't marketing, your business will fail.
Grow Strong!
Coach Grev
"I also find that one of the first things to be cut in a slow economy is advertising. This is probably the worst place they can cut their budget. What do you see as the best ways to spend advertising money?"
Thanks for the question, Jamie! The answer is: "it depends." Step one is to understand how ENORMOUSLY important marketing is. Peter Drucker said,
"Because its purpose is to create a customer, the business has two and only two functions: marketing and innovation. Marketing and innovation produce results. All the rest are costs."Pretty straightforward. Marketing is about educating your market on the advantages of doing business with you and the reasons why they should trust you to deliver on your promises. Broken down even more:
1) Educating the right audience on the unique and superior advantages, benefits, value, and results your business provides.
2) Presenting credible evidence that supports supports and defends your promises.
There are 5 ways for a company to grow organically:
1) Keep the customers you have
2) Attract new customers
3) Increase the average transaction size
4) Increase the frequency of purchase
5) Say "no" to bad customers/prospects.
A well designed and well executed marketing plan that covers all these is critical. Advertising is an excellent enabler of steps 1-4. You can advertise to existing customers, you can advertise to attract new customers, you can advertise to increase transaction size, and you can advertise to increase the frequency of purchase. Advertising is one tool in your tool chest, but it's a darn good one because it multiplies your efforts. There are only so many people you can tell about your business one-on-one. Advertising is a "force multiplier" that gets the word out faster and cheaper than going "door-to-door" and telling everyone individually what you do.
So, you don't need to advertise in business, but you do need to market. If you can find a more effective method for your business than advertising, do it, but remember that if you aren't marketing, your business will fail.
Grow Strong!
Coach Grev
Great topic. Breaking through the clutter is key in today's heavily integrated advertising landscape. Making a compelling offer to the right person, at the right time gets results. Test, test, test.
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