Marketing Your Business with a Small Budget

In the world of marketing, bigger does not always mean better. As a small business, you may be devoting too much of your money to efforts that do not result in the boost to your customer management database you may have wanted.

Instead of pouring your cash into a major campaign, small firms can reap large rewards from consistently and inexpensively targeting their most likely customers.

Create a plan

You will never be able to track how well your marketing efforts are working unless you have first devised a plan. Come up with some reasonable goals for your firm that you think can be achievable within a set time period - then align them with specific dollar amounts.

When you write your marketing plan, it is important to keep your target audience in mind at all times. When you think about customer management, consider where your potential customers look to get information about your sector. What buying criteria do they use?

Give something away

Who can say no to a free sample? Offering a complimentary - and inexpensive - item to the first 20 people who buy a particular item is one method of achieving more sales to log using your customer management software. Or, choose a day to give away a special token, such as a commemorative baseball (complete with your logo) on your firm's anniversary.

A contest is another way to tempt people into visiting your business, while garnering publicity on the cheap. Invite people to name your new mascot or have a random drawing from among the first 500 people to answer a trivia question correctly. You can also use a contest to encourage people to sign up to your email newsletter or to receive promotions.

Reward loyal customers

Existing customers need less convincing to buy your products or services than brand-new ones do. So, it makes sense to devote money and resources towards increasing the quantity and value of purchases made by those already in your customer management database.

You may want to create a customer loyalty program that includes discounts and coupons to keep people returning to your firm's website. Incentives that promise a free item with the purchase of any five - or purchases over a certain dollar amount - are likely to lead to more spending.

You can even turn your loyalty program into a regular email newsletter to publicize monthly offers, as well as giving this select audience a first glimpse at new product lines.

Become an expert

You may not think of yourself as an expert, but chances are you know more about your sector than you realize - and people want to learn from your knowledge. Market your particular expertise to online or paper publications, such as the local newspaper or web trade magazines, so that you are able to supply quotes on a related topic when needed. You may even progress to pitching your own ideas to the writers, if you are aware of a newsworthy trend in your industry.

Developing a reputation as an expert may also lead to opportunities to speak at local events related to your sector. A car parts business can give repair advice. Gardening supplies companies can give tips on what to plant this season.

Every time you are introduced - in print or in front of an audience - your business' name will be mentioned to the public. At talks, make sure you have additional promotional material on hand to distribute.

Network and solicit referrals

Perhaps the cheapest way of getting people to learn about your business is through word of mouth. It is fantastic when this happens naturally, but you can also be proactive to acquire new entries for your customer management database.

Attend trade fairs, association meetings and other events that are ripe with networking possibilities. Have your business card at the ready and your unique selling point on the tip of your tongue. Make sure you follow up on any leads soon after the event, when you are still fresh in their minds.

Similarly, it is a great idea to devote time and energy towards soliciting referrals from existing customers. Offer a set reward, such as $50, for each successful referral and make sure you mention this offer whenever you solicit customer feedback. A satisfied customer is likely to be happy to let their friends and associates in on a good thing.

Team up with others

Creating an alliance with another small firm or a larger company will increase the amount you have to spend, which may give you the opportunity to access new markets.

Look for organizations that may provide a logical match for your firm. For example, if you sell kitchen equipment, find a purveyor of seasonings and spices who will partner with you for an advertising campaign. Or, if you run a janitorial company, look for a window cleaning firm that is willing to offer a joint discount to local businesses that purchase both services.