After months of preparation, an eager entrepreneur hangs the “open” sign in front of the store and waits for that first customer. Without a marketing plan in place, however, waiting is all that business owner may do. “Too often marketing is sort of an afterthought for small businesses,” said Charlie Boyd, owner of the Tucson marketing firm CA Boyd and Associates. “They are deep into the business before they start thinking about it. Too often it’s left to chance.”
A marketing strategy should be built into the initial business plan, Boyd said. Before the business opens, the owners/operators should have a good idea of who their potential customers are and how they will be able to attract those potential customers to the business.
“There are many ways to make a marketing plan,” Boyd said. “You shouldn’t assume that if you build it, they will come.”
A marketing plan should contain a general statement of goals, along with identifications of the target market, the timeline and the budget for the plan. Marketing plans are not just used to bring customers into the store; they are useful for budgeting, making people aware of changes to a business, and more.
“There are a lot of reasons to start a marketing plan than to increase sales,” said Doug Myers, a partner in Hilton & Myers Advertising. “(For example), they may not understand whether they really have a product to sell.”
A marketing plan can be very detailed, said Michael Bolchalk, a local marketing professional. The plan can include elements such as Yellow Pages advertisement templates, employee input, sales input and a customer service plan. Even policies for first contact with a customer may be part of the plan.
“Today, referrals are more precious than ever,” Bolchalk said. “Customer service is an effective marketing component.”
A marketing plan also should contain a budget allocation for marketing. While there is no set amount or percentage for how much a business should spend on marketing, business owners can’t know what resources are available until after they’ve decided on a budget.
“A budget is really important,” Bolchalk said. “It should really be viewed as an investment. You have to invest wisely.”
Research is an important factor in developing a marketing plan. Entrepreneurs should study industry trends and check for other documentation to find out what the market for their products is like. Marketing research can help business owners make sure they are differentiating themselves enough from the competition.
“You want to look at all the available quantitative and qualitative research,” Bolchalk said. “There are a lot of ways to learn about what goes into a plan.”
When looking at the market, business owners can either gather information themselves or they can use previously published market research, Bolchalk said. Research performed by the business owner is often better than third-party information, which may be out-of-date or less applicable to local circumstances. Other market information can be gathered from a variety of sources.
“A lot of times they can go out and check what their competitors are doing,” Myers said.
Of course, one of the best tools for developing a marketing plan is experience marketing in a particular field. Before developing a marketing plan, business owners can also consult any number of sources for advice about the structure and details that should be included in the plan. There are more resources today than ever before, Bolchalk said, including industry associations, books, the Internet, peers, friends and professional consultants.
“Many of them can do a lot of it themselves but need help sometimes,” Boyd said. “Often they would be better off to talk to someone who understands marketing.”
Business owners that plan to hire a marketing consultant should talk to a few first, Boyd said.
Myers said the decision to hire a marketing consultant really comes down to budget, and added that a business owner shouldn’t hire a consultant until they are spending at least $100,000 annually on marketing.
“There are other resources that you can tap on a lower level,” Myers said.
Lower level resources include public relations, direct mail to nearby potential customers and taking advantage of free help, such as university programs or industry groups. As the business develops and revenues increase, the business owner can always change the marketing plan to account for circumstances.
Boyd recommends updating a marketing plan annually. A lot can happen in a single year, such as business changes, customer changes, marketplace changes and product changes, which may alter the way a company needs to market its product or services.
“It’s like servicing an automobile: It has to be constant,” Bolchalk said. “Marketing evolves. It is always changing. It is never static.”
Phone Etiquette
A good marketing plan starts with customer service, said Michael Bolchalk, a local marketing professional. And good customer service starts with first contact, often over the phone. According to national research on companies that offer shopping by telephone:
79% companies did not ask for the caller's name
86% didn't ask for the caller's address or telephone number
52% took 8+ rings to answer the phone
44% gave a price without trying to make an appointment
28% put the caller on hold for 2+ minutes while looking for an answer
38% gave the price; when caller said "thank you" the business hung up
A good marketing plan should detail how employees deal with inbound calls to make sure that customers get good service without these pitfalls, Bolchalk said.
Kyle Schliesman may be contacted at kyles@azbiz.com or 295-4238. |
