Business Operations 103, marketing basics - simplicity and consistency

After starting your business endeavor and deciding which business entity or entity evolution to use, now comes operating your business. We explored setting forth your goals in a business statement with the WHO, WHAT, HOW, WHERE and WHEN defined therein in a previous article. In operations, let's start out with the axiom that “nothing starts until a sale is made” but before the sale comes marketing.

Marketing for the beginner...

When it comes to advertising your company to your target market, we all love our name on billboards across town, on the front page of local newspapers, and on prime time television. We’re in business so we should show the world that our company exists! Most newly minted companies cannot fund marketing on a large scale. Even if your company could, how long would this campaign last to get the customer to really remember your name or message? A week, a month or even a year could be required before your customers recognize your message and it means something to them. Here are some examples:

Think back for a moment of all the times you first meet new people - you approach them and both introduce yourselves, and then within 30 seconds, you completely forget their name. How could you forget their name? Maybe the real question is how to remember their name? It’s simple, repetition. Next time repeat their names in your mind as many times as you can until you can recall it, and if the person is of significant importance, such as having an interest for them, you significantly increase your chances of remembering their name.

Another example is the famous Head On the headache reliever commercial. All you hear is “Head On, apply directly to the forehead” over 3 times, and if you watch television a lot, you may run across this commercial various times. Throughout the years, Head On came out with the same type of commercials but with a slight twist having someone in the commercial come out and say “Head On, I hate your commercial! But I love your product.” Again, repetition is the key, which got it national attention on the NBC Nightly News.

The key is repetition, repetition, repetition . People will not remember something when they see or hear it once, but repeat it many times and you might get some recall on their parts. You want to make sure that your target market becomes familiar with your message and have it become something they see on a regular basis. Of course having your targets' attention and interest in the ad can greatly increase their chances of remembering it. Make sure to place the ad(s) where it can be read, seen, and heard with the customer in a state of interest and attention for it.

Using expensive billboards or full page newspapers ads which last a few weeks depending on your budget (repetition requires at least seven (7) impressions before target audiences remember your message) defeats the consistent message over time rule. It makes more sense to use smaller ads placed in newspaper or magazines more often – a lot less expensive, more effective, but doesn't stroke your ego as much.

Your message

What should your marketing message be? First, know your target audience. What problems do they face and how can your product or service solve their problem. By presenting a solution to their problem(s), they immediate receive value from reading your advertising message. Secondly, by repeating your solution, your target audience will be able to see your solution in context of their problem. Thirdly, massive marketing doesn't always equate to your target audience necessarily putting “two plus two together and getting five” - smaller messages repeated in context gets more mileage, especially with network marketing or social media networking.

The best way to determine your target audience's demographics is by simply asking them. What a concept – targeted marketing. Get a sample of your suspected target audience and ask them a few questions in regards to where they frequent most. Come up with some simple short questions and ask where they frequently eat out, work, freeways driven on most, or where they like to go out to have fun. Be careful not to ask too many questions with one customer as to not seem as if you’re trying to stalk them.

Executing your marketing...

1.What is your budget?

Make sure to budget your funds to where you can use two or more marketing tools and compare results.

2.Plan on what time of the year you wish to advertise.

Determine what months are best for your product/service to be advertised and how many weeks, days in the weeks, or hours.

3.Who is your target market?

If you just throw an ad out without knowing your customer, you’re just shooting in the dark. Figure out who your audience is by discovering where they dine, routes they travel, where they have fun, what do they see, hear, and tastes. Once you have this information, you can then tailor each ad to their preferences.

4.Create your message with the solution to their problem(s).

People don’t just buy something for fun - they buy a solution to their problems.

5.Which tool(s) will you utilize?

From the information gathered on your current customers, you can figure out which tool will be the best to use to reach your prospective customers. For example, if you discover that your customers read the newspaper and watch minimal television, then you obviously would advertise a little bit more in the paper.

6.Advertise.

If you have done proper research about your customers and have tailored your message carefully to their needs/problems, you’re good to go.

7.Be patient and give it at least 6-12 months before you see results. Remember, repetition is the key.

8.Measure your results.

Make sure when you create an ad and begin to receive calls that you ask the customer where he heard or saw your advertisement. This is very important because this will determine which marketing tools are working and which are not. Tally up which tool is working and which is not so you can eliminate the non performing and focus your efforts.

**Caution! You must be willing to expend money and accept failure during campaigns. Everyone knows immediate success is a poor teacher, and there is no success without failure first. Make sure to learn from each one of your mistakes throughout your campaigns and try not to make the same ones if used again. Once you see which tool evokes the greatest response rate, you can then focus your efforts on that marketing tool or tools.

Marketing Tools

Websites
Personal letters
Telephone calls
Brochures
Outdoor signs, bulletin boards, and exhibitions
Samples
T-shirts
Radio
Printed materials such as magazines and newspapers

In Summary...

Marketing techniques require money. The key is to consistently have a REPETITIVE message so that that when the customers’ problem arises, they know exactly where to find you. The other half is to work with small scale advertising that will last you a long time and will save you money in the long run. Do not waste your money on expensive advertisement lasting less time unless you have the money to do so.

About the author, Joel Rivera

Joel Rivera serves as an marketing consultant for Rhodes Holdings LLC. Mr. Rivera has recently graduated with a BBA from the University of Houston Baeur School of Business, and currently provides marketing related services to the University.

About the editor, Robert C. Rhodes

Robert C. Rhodes serves as Managing Member of Rhodes Holdings LLC (“RHL”), providing management consulting services and financing to small- to mid-capitalization companies embarking on high growth strategies. Many RHL clients become publicly traded as part of the later stages of financing. Mr. Rhodes previously was CEO of Systems Evolution Inc., a publicly held company, from 1993 through 2006 as well as five other public companies and dozens of privately held organizations.

About Rhodes Holdings LLC

Rhodes Holdings LLC ("RHL") provides management consulting services that allow its clients to seek financing through the public markets, either through mezzanine debt, equity, or bank debt. RHL's management consulting is provided within the framework of its copyrighted RHL Methodology and is well documented.

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