Before your business starts marketing a product, it helps to create an ideal customer who you want to reach with your promotional materials. Once you have your ideal customer, you have a plethora of techniques to pick from. Most of these are low cost/no cost methods (sometimes called guerrilla marketing) and you may use different ones at different stages of your business cycle, or you may utilize them all at once from your business' inception. We'll look at seven of these techniques in more detail. (Do you have what it takes to work in this fast-paced field? This article will help you determine if marketing is for you. Refer to A Career Guide For Marketing Majors.)

TUTORIAL: Starting A Small Business Tutorial

Hooray for Free Advertising
When you build a business, the first thing you want to secure is a customer base. With a decent printer, an answering machine and an average computer, you can put together a fairly extensive advertising campaign without having to pay for space.

1. Flyers
This is the carpet-bombing method of cheap advertising. You find an area that you would like to do business in and you distribute flyers to all the mailboxes within reach. Your flyer should be brief and to the point, highlighting the services you offer and providing contact information. Offering a free appraisal, coupon or discount never hurts.

2. Posters
Most supermarkets, public spaces and malls offer free bulletin board space for announcements and advertisements. This is a hit or miss method, but you should try to make your poster reasonably visible and have removable tabs that the customers can present for a discount. Make each location a different color so that you can get an idea from the tabs where the most leads are being generated. If there is one area that is producing the majority of your leads, you can better target your campaign (flyers, ads in papers catering to those areas, cold calling, etc.)

3. Value Additions
This is one of the most powerful selling points for any product or service. On the surface, value additions are very similar to coupons and free appraisals, but they are aimed at increasing customer satisfaction and widening the gap between you and competition.

Common value additions include guarantees, discounts for repeat customers, point cards and referrals rewards. Often the deciding factor for a person picking between one of two similar shops is whether he or she has a point card or preferred customer card. You don't have to promise the moon to add value; often you just have to state something that the customer may not realize about your product or service. When you are making your advertising materials, the value additions should be highlighted.

4. Referral Networks
Referral networks are invaluable to a business. This does not only mean customer referrals, which are encouraged though discounts or other rewards per referral. This includes business-to-business referrals. If you have ever found yourself saying, "we don't do/sell that here, but X down the street does," you should make certain that you are getting a referral in return.

When dealing with white-collar professions, this network is even stronger. A lawyer refers people to an accountant, an accountant refers people a broker, a financial planner refers people to a real estate agent - in each of these situations, the person stakes his or her professional reputation on the referral. Regardless of your business, make sure you create a referral network that has the same outlook and commitment to quality that you do.

As a final note on referral networks, remember that your competition is not always your enemy. If you are too busy to take a job, throw it their way, most times you will find the favor returned. Besides, it can be bad for your reputation if a customer has to wait too long. (Are your shoulder's wide enough to carry a company's reputation? See The Marketing Director's Pitch.)

5. Follow-Up
Advertising can help you get a job, but what you do after a job can often be a much stronger marketing tool. Follow-up questionnaires are one of the best sources of feedback for how your ad campaign is going. Why did the customer choose your business? Where did he or she hear about it? Which other companies had he or she considered? What was the customer most satisfied with? What was least satisfying? Also, if your job involves going to the customer, make sure to slip a flyer into the nearby mailboxes, as people of similar needs and interests tend to live in the same area.

6. Cold Calling
Unpleasant? Yes. Important? Yes. Cold calling, whether it is over the phone or door to door, is a baptism of fire for many small businesses. Cold calling forces you to sell yourself as well as your business. If people can't buy you, the person talking to them, then they won't buy anything from you. Over the phone you don't have the benefit of a smile or face-to-face conversation – a phone is a license for people to be as caustic and abrupt as possible (we are all guilty of this at one time or another). However, cold calling does makes you think on your feet and encourages creativity and adaptability when facing potential customers.

7. The Internet
It is dishonest to pretend that the Internet is a cohesive whole for marketing – like a community hall you can put up a poster in or a section of the highway were you can buy billboard space. However, it is difficult to overstate the importance the Internet has on marketing. The previous methods of marketing have not changed in the last 50 years. The Internet has been born and evolved rapidly during that same time frame.

It is nearly unthinkable that a company, even a local café will not have at least a website with the vital details such as location and hours. Not having a site means not having a point of access for the growing number of people who Google first when they want to make a buying decision. Add to this a social media presence (Facebook page, Twitter account) and the need for good SEO, and it can appear overwhelming. However, the technology has evolved to the point where Wordpress – just one example of a free HTML editor – can meet all these needs.

Bottom Line
More than likely, you will find that the conversion rate on marketing is very low. Even the most successful campaigns measure leads – and converted sales from those leads - in the 10-20% range. This helps to shatter any illusions about instant success, but it is also an opportunity for improvement. Do you want a company to buy your product? Give them a presentation showing how it will benefit them. Do you want someone to use your service? Give them an estimate or a sample of what you will do for them. Be confident, creative and unapologetic – people will eventually respond. (Understanding how to manage business credit is the key to obtaining small business loans. Check out The Small Business Jobs Act: Make It Work For You.)

Related Articles
  1. Active Trading Fundamentals

    The Biggest Private Equity Firms in San Francisco

    Learn about some of the larger private equity firms with a presence in San Francisco, including KKR, the Blackstone Group and Warburg Pincus.
  2. Active Trading Fundamentals

    The Companies of Peter Theil's Founders Fund

    Learn about the major public companies that Peter Thiel has invested in and companies that are on the verge of going public at multibillion-dollar valuations.
  3. Active Trading Fundamentals

    The Biggest Private Equity Firms in Los Angeles

    Learn why Los Angeles is a thriving market for private equity, and identify the five largest private equity firms operating in the city.
  4. Entrepreneurship

    What Does Bootstrap Mean?

    The term bootstrap refers to launching and building a business with little capital and no funding from outside sources.
  5. Professionals

    Small RIAs: How to Level the Playing Field

    In order to compete with larger firms, small RIAs have to get a little creative. Here are a few ways to kickstart growth.
  6. Entrepreneurship

    Top 5 Startups That Emerged in Denver

    Learn why Denver is one of the hottest markets in America for startups, and identify five of the top startups that are emerging from the Denver market.
  7. Entrepreneurship

    Top 5 Startups That Emerged in Raleigh

    Learn about the startup scene in the Research Triangle hub of Raleigh, North Carolina. Discover which startups are the hottest to emerge from this tech city.
  8. Entrepreneurship

    How Does ClassPass Work and Make Money?

    Find out how ClassPass makes money, how the company aims to help both businesses and consumers, and why it has been so successful.
  9. Professionals

    What Kind of Insurance Do RIAs Need?

    Advisors spend a lot of time discussing insurance with clients but they also need to consider their own coverage needs as small-business owners
  10. Entrepreneurship

    Top 5 Startups That Emerged in Detroit

    Learn how startups are changing the face of Detroit, a city long dominated by large corporations, and identify the specific Detroit startups leading the trend.
RELATED TERMS
  1. Brand Identity

    The components of the brand are created by the business itself, ...
  2. Venture Capitalist

    An investor who either provides capital to startup ventures or ...
  3. Enterprise Investment Scheme (EIS)

    A UK program that helps smaller, riskier companies to raise capital ...
  4. Negative Option Deals

    A dubious business practice that involves supplying a typically ...
  5. Drip Pricing

    A pricing technique in which only part of a product or service’s ...
  6. Per Transaction Fees

    An expense a business must pay each time it processes a customer’s ...
RELATED FAQS
  1. What types of capital are not considered share capital?

    The money a business uses to fund operations or growth is called capital, and there are a number of capital sources available. ... Read Full Answer >>
  2. How does a long tail become profitable?

    A long tail becomes profitable because the costs to produce, market and distribute a product or service in a niche are low, ... Read Full Answer >>
  3. How do companies with a large product portfolio use BCG Analysis?

    BCG analysis is used to evaluate an organization's product portfolio in sales planning and marketing. It is specifically ... Read Full Answer >>
  4. Can I buy insurance to reduce unlimited liability in a partnership?

    Partnership insurance is actually quite common. Most of the time, partners buy insurance to safeguard against the possibility ... Read Full Answer >>
  5. What are the benefits of financial sampling?

    Financial sampling allows auditors to approximate the rate of error within financial statements. For accounting purposes, ... Read Full Answer >>
  6. What are the benefits of prorating expenses?

    When a person prorates expenses between personal and business expenses, he is able to capture the maximum amount of tax benefits ... Read Full Answer >>

You May Also Like

Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!