How To
Advertise Against Wal-Mart, K-Mart, Target And Win
By Tom Egelhoff
 Over and over business owners
will tell me, "We just don't have the advertising budget
to compete with our bigger competitors." Sorry, that argument
just won't hold water.
I know that you don't have the millions of a Wal-Mart®
or Microsoft® but that doesn't mean you can't compete against
them. Let's explore some quick advertising fundamentals then
I will show you some ways to win against these giants.
Why advertise
In order to compete with larger competitors you must first
understand why a company, any company, advertises in the first
place. There are three primary reasons.
1. You must let customers know that there is, in fact, an
existing business. You have products are services and are available
to do business.
2. To entice people to buy from you. You present the benefits
of your products and services in the form of advertising in the
hopes of convincing your target market that your product will
solve their problem. (See:
Understanding Why Customers Buy)
3. Advertising is also used to establish, or in some cases,
change a companies image.
My #1 Iron
Clad Advertising Rule
If you are a regular here you have heard the following over
and over again. That's because it's the true secret to beating
the big guys. That rule is, Advertising must always be an investment,
never an expense.
I realize that it sure seems like an expense when you are
signing the check to the radio station, newspaper or printer.
But the end result of all advertising must produce paying customers.
These customers must generate more profit than your advertising
costs. When this happens your advertising actually becomes free.
It pays for itself and you can continue to do it forever. And
as your business grows so does your ability to advertise more
often to your target market.
My #2 Iron Clad Advertising Rule
My number 2 rule is; "When emotion and logic come into
conflict, emotion always wins." What that means is that
we buy based on emotion not logic. We may pretend to compare
the merits of two products but we really don't. We make an emotional
decision then create a logical argument to support our decision.
Using these two rules in your advertising will further separate
you from the bigger competition because most do not adhere to
either rule.
How to
create a plan to take on the mass merchants
On the surface it may seem that you see your competitors advertising
everywhere. TV, radio, newspapers. But the truth is that most
of that advertising never really reaches their target market.
A large portion of their ad budget is wasted and the cost of
advertising to produce a customer is higher than it would be
for you.
In short, if your advertising is in sync with my "iron
clad rule" you can compete with anyone. Now, let's explore
an advertising plan that works.
Creating
a plan to beat the mass merchants
As I mentioned above, most larger companies advertise inefficiently.
They do national advertising which doesn't account for the diversity
of individual small towns and cities. You, on the other, hand
have the ability to direct your advertising to your local target
market.
Major advertisers will also reach this market but not with
the same home town flavor you can. Most small town people prefer
to support local merchants whenever they can.
Here are some steps to think about as
you create your advertising plan.
- Know your market and
your customers - As stated above, most large companies
use the "shotgun" method of advertising. They hope
some of the buckshot will reach their customers. You, on the
other hand, being local, can use the rifle approach and target
your advertising only to your specific target market. (See:
Target Marketing:Who They Are, How To Find Them)
- What do you want your
advertising to accomplish? - In order to comply with
my "iron clad rule", your advertising must have very
specific goals. When you have clearly defined goals it's much
easier to create a plan which will accomplish those goals.
- Create an advertising
budget - It may be several thousand dollars or as
little as $25.00 a week. Create a budget and stick to it as much
as possible. Some months you may do less other months you may
do more. But at the end of the year you should be within your
budget. One of the most popular is a "percentage of anticipated
sales." You assume your plan will work and the business
will grow. You spend a percentage of sales you expect the advertising
to create. See: How To Advertise: Planning
Your Ad Budget Strategy
- Be creative
- To most people this means funny commercials. Don't try to be
humorous in your advertising. But there are creative ways to
say your message. Ask your employees and/or friends and customers
for suggestions on how they see your business. You may be surprised
at how they see you.
- Choose the right media
- In order for advertising to be an investment it must reach
the right people...your target market. Do the research from the
Target Marketing article above and make sure you know who you
are trying to reach and how to reach them. The more effective
you are at this the less per customer your advertising will cost.
- Don't get discouraged
- This is probably a new venture for you. It takes time to get
it right. If your plan doesn't seem to be working, don't give
up. Try and evaluate what happened. Ask customers if they saw
or heard your ads. Rome wasn't built in a day. Few successful
businesses where built on their first ad strategy.
The last
word on beating the big guys
Keep in mind that successful advertising is knowing and reaching
your target market with your creative message. Also, you don't
want to forget the two iron clad rules when creating your ad
plan.
As long as you are doing those two things you can compete
with anyone.
(Return
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Listen
to a radio interview with Tom and Entrepreneur Magazine - Click
Here!
This article may be reproduced for your non-profit
group or organization provided it is not altered in any way and
the following is attached:
©1998 - 2004 Eagle Marketing PO Box 271 Bozeman, MT
59771-0271
http://www.smalltownmarketing.com - (406) 585-0219 - Toll FREE
(888) 550-6100
email: tommail@smalltownmarketing.com
Based in Bozeman, MT, Tom Egelhoff is the author of How To Market, Advertise & Promote Your
Business Or Service In A Small Town, and The
Small Town Advertising Handbook: How To Say More And Spend Less.
He is also a seminar and workshop presenter
and trainer. He may be reached at 888-550-6100 or PO Box
271 Bozeman, MT 59771-0271
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