FIVE REASONS BUSINESSES FAILPoor customer serviceBad budgeting Lack of staff training Failure to anticipate market trends Poor and inconsistent marketing
1. Poor customer serviceKNOW YOUR TARGET MARKETIMPLEMENTATION
WRITTEN POLICYREWARDS AND DEMERITSCREATING A CUSTMER QUESTIONNAIRE
2. Bad budgetingBUDGETING PROBLEMS
NO ONE SOLUTION
2. Bad budgeting cont.UTILIZE A PROFESSIONAL
BE CREATIVE: USE YOUR OWN PERSONAL EXPERIENCE
3. Lack of staff training STAFF RESPONSIBILITIES
4. Failure to anticipate market trends STAY EDUCATED
5. Poor and inconsistent marketing IMPORTANCE OF MARKETING DOWN ECONOMY MEANS OPPORTUNITY AND COMPETITIVE ADVANTAGE STAY AT THE TOP OF YOUR BUYERS MINDS
Some benefits other than staying on the buyers mind include:
The THREE Rs SPEND TO RECEIVE CREATE A PRESENCE
5. Poor and inconsistent marketing cont.
The 7 ways to become the most popular business of your kind USE ONE MESSAGE
The 7 ways to become the most popular business of your kindADD CREDIBILITY
The 7 ways to become the most popular business of your kind TEST EVERYTHING
The 7 ways to become the most popular business of your kind BE EASY TO CONTACT
The 7 ways to become the most popular business of your kind TARGET TARGET TARGET
The 7 ways to become the most popular business of your kind CREATE CURIOSITY
The 7 ways to become the most popular business of your kind CONSISTENCY
Advertising Media (in a nutshell) There are many forms of media for you to advertise with. Understanding them will help you decide on the right ones for your marketing campaign.
Advertising Media Yellow pagesThis is a very straight forward and easy to use form of advertising and it is also very trusted. The draw back to it however is that there is many books and people tend to use the internet these days. The high cost can also make this not a very cost effective source of advertising. The cost is around $2000 for a business card size ad per year.
Advertising Media InternetMost people are on the web searching for something and if you want to be in front of them advertising your website is a great way to go. The draw back here is it can get very expensive and staying on top of search engines can prove to be very difficult.
Advertising MediaRadioWith this you hit a very specific target audience and you are with them at home, at work and even in the car. The problem is that most people dont stick around for commercials and a lot of people listen to CDs, mp3 players or satellite radio these days. It is usually less expensive than TV at about $100 per 30 seconds; plus production costs.
Advertising Media TVHere, as with radio, you hit a specific target audience but again only if they watch. With the advent of hundreds of channels and TiVo we are finding this to be less effective as it was in the past. But its still a great visual and audio way to get your message across. This runs about $200 per 30 seconds; plus production...plus or minus depending on time of day and channel.
Advertising Media NewspaperThis is a great way to advertise because it is visual and allows you to give the customer a coupon. It will hit your local target market and is well respected. The only draw backs here are that sometimes your ad is unread. A lot of people go on the net for news and the ad only runs once in one day. Approximately $180 for a business card sized ad.
Advertising MediaDirectmailThis will very specifically hit your target area and gives them an incentive to use the coupon they receive. The problem is that this kind of marketing is inconsistent by coming out at a maximum of once a month, 85% of the envelopes get thrown away without being opened, AND your ad competes with hundreds of other advertisers many of which advertise the same product or service. $400 per ad per month.
Advertising MediaBillboard advertisingThis form of advertising might be an old one, but it is still one of the best. It hits a very specific target area, stays in front of customers for long periods of time so it works for you all day every day, is highly impressive, creative, they cant change the channel, turn the page or throw it away. Most large companies use it and therefore it is also respected. $2000-12,000 depending on location per 2 month period.
SMALL BUSINESS FACTSAccording to the SBA Office of Advocacy, as of September 2008: 637,100 new businesses open per year 96% of these businesses fail within the first year80% of those remaining businesses fail within the second year
Also, businesses that have been around for a while fail to recognize key elements to success and many businesses that survive through the first few years are then squashed because of their inability to contend with a highly competitive marketplace. There are roughly 560,000 business closures per year; 28,000 of which are bankruptcies. How can you keep from becoming one of these horrible statistics? In order to avoid such a fate for your company, you need to know and understand the five reasons businesses fail
SMALL BUSINESS FACTS
Business Start-Ups Vs. Closures
Business Start-Ups Vs. Closures
Openings Per Year670,100
Closures Per Year560,000
To resize chart data range, drag lower right corner of range.
SMALL BUSINESS FACTSFrom an article by Apryl Duncan: McGraw-Hill Research conducted a study of U.S. recessions from 1980-1985. Out of the 600 business-to-business companies analyzed, the ones who continued to advertise during the 1981-1982 recession hit a 256-percent growth by 1985 over their competitors that eliminated or decreased spending. American Business Press analyzed 143 companies during the economic downturn back in 1974 and 1975. Companies that advertised in those years saw the highest growth in sales and net income during the recession and the two years that followed. The numbers aren't a fluke. They prove there's a reward for companies who are aggressive with their advertising efforts in a recession.
SMALL BUSINESS FACTSEven more reasons to advertise your business in a bad economy:Your Competition Wont Most small businesses have a limited advertising budget. During a recession, it's easy to make up some of those dollars by holding back on advertising. All that really does is open up the marketplace for that company's competitors. The presence the business has spent ad dollars on to build up is now an open field for the competitors that are willing to advertise.You Can Create a Long Term Position for Your Business Standing out in the marketplace is hard enough when you and your competition are battling it out in the ad world. As your competition cuts back on ad spending, your advertising can cut through that clutter. Consumers may not be spending as much but they are still spending. If you're not the company they think of when they do spend, your sales will decrease. You Can Speak Directly to Customers Looking for BargainsDon't be afraid to address the bad economy in your advertising. Customers are looking for good deals. Some national advertisers are a prime example of this. Travelocity aired a simple commercial to announce its Silver Lining Sale. In the first three seconds, you see the words, "We know times are tight.Wal-Mart is running an effective ad campaign where the ads focus on very specific items and how much you'll save over a year by purchasing these items directly from Wal-Mart. The world's largest retailer posted its best sales performance in nine months, with a 5.1-percent sales gain in February 2009 as a result.In a bad economy, there are many opportunities to expose your business to new customers that aren't always possible in a good economy. Every one of them can be explored to help you solidify your place in business and stand out from your competitors.