Top Ten Advertising Mistakes Small Town
Businesses Make
By Tom Egelhoff
As I travel the county talking to small
town business owners the most common question I get is how to
advertise effectively and inexpensively. Some time you can combine
the two but in most cases advertising is either effective or
inexpensive but rarely both. As I repeat often on this site your
advertising must be an investment, not an expense. It must generate
more in business profit than it costs.
Most business owners are experts at their industry or service
but novices when it comes to putting their message out to customers.
There is certainly nothing wrong with that. Most people couldn't
walk in off the street and run your business so why should anyone
expect you to somehow be an expert in advertising and marketing.
Advertising and marketing takes study and input from people
who know that industry. If you are going to do you own advertising,
and most small business owners do, then you need to know what
to do and not to do. So, here are the top ten mistakes I see
most often.
Mistake
#1 - Not knowing if your advertising is working
This is by far the biggest error most small business owners
make. They just throw advertising in the local paper or on the
radio and hope and pray it works. In many cases they have no
idea how to track results and adjust their advertising efforts
to be more productive.
Solution: Key your ads.
Put something in each ad that will alert you to the fact that
the customer is doing business with you because of your ad. The
most common key is a coupon. If the customer returns the coupon
that is a key that the ad is working. No coupons redeemed means
the ad is in the wrong place or the coupon offer is not what
customers are looking for.
Another way is to educate the customer and make yourself an
expert at the same time. Ask customers to call, write or stop
in for a free brochure of the "13 Things You Should Know
Before You Buy Tires." The response to the brochure will
give you an idea or how many people ask for the brochure and
how many are transformed into customers. See:
Here's Why Your Advertising Isn't Working
Mistake
#2 - Testing, Testing and more testing.
I am a firm believer that if something is working leave it
alone. Advertising in small towns is not seen by everyone every
day. The fact that the ad may seem old to you may not mean it's
old to others. Many people are seeing it for the first time.
Did you look for tire ads in the paper today? Chances are
you didn't unless you needed tires. So if you didn't look are
the ads old to you? Probably not.
Solution: Because of competition
and the general economy times and attitudes of customers change.
It is important to test new products and services from time to
time. Just remember that you can't be all things to all people.
Your advertising should project a family theme which I'll cover
in a moment. Make sure that you keep the consistent look of your
business with your testing. See:
How And Where To Find Small Business Information
Mistake
#3 - When to advertise
On your first day of business did you advertise? Chances are
you had a grand opening, balloons, radio, TV, newspapers, contests
and anything else to attract customers to your business. Can
you keep this kind of advertising up all year long? Chances are
you can't. So when should you advertise?
Here, in my opinion, the big mistake is spreading advertising
out evenly over the entire year. A constant amount spent each
month in the same places. I know that's the easy way to budget
your advertising expense, but remember, we don't want advertising
to be an expense we want it to be an investment. In the stock
market we want to sell high and buy low. Do the same with your
advertising.
Solution: If you budget
consistently what are you going to do in case of an emergency?
Your competitor runs a big promotion. Will you have the funds
to combat it? Your industry gets some bad publicity. Will you
have the funds to defend your company? As you can see there are
times and events that may affect how and where you advertise
during the year. Make sure you keep a little in reserve to combat
any adverse condition that may occur. See:
How To Know When And When Not To Advertise
Mistake
#4 - Advertising in the wrong place
I love KMMS-AM 1450 here in Bozeman. Talk radio. So if I love
it I'm sure my customers love it too, so that's where I'll advertise.
Sound familiar? That logic might be right but generally it isn't.
If you are spending your advertising dollars in the wrong place
suddenly your advertising is an expense not an investment.
Solution: Get to know
your customers as much as possible. Create a survey for them
to fill out. Ask them what radio stations they like. What newspapers
or magazines they like. You need to construct a profile of your
target market. Then the advertising media can match you up with
the right stations or the right sections in the newspaper. See: Target
Marketing: Who They Are, How To Find Them.
Mistake #5 - Not staying unique
One of the most crucial mistakes small business makes is not
sticking with what made them successful in the first place. Does
the McDonald's "Arch Deluxe" ring a bell. Can you still
buy one? It's gone from their menu. Why? Because it was McDonalds
pathetic attempt to gain the "adult" market. That's
not their market. You don't put a playground in front of an adult
restaurant. McDonalds has always been a family restaurant. Trying
to change was a major mistake.
Solution: Instead of changing strengthen the niche that has
gotten you where you are. My book is on small
town marketing. Should I suddenly start writing books
for Microsoft and IBM? No, that's not my strong area of expertise.
Solution: Positioning
your business away from your competition and making it unique
keeps your business strong. See:
How To Develop Your Position Strategy and How
To Make Your Business Unique.
Mistake #6 - How you look to your customers
Small town businesses seem to throw any kind of advertising
out there for customers to find. I'm sure there are several major
companies I could show you that you could recognize with just
the company colors. Could you recognize a Campbell's Soup Can
without the company name? Sure you could. Customers, over time,
begin to feel comfortable with the look and feel of your advertising.
Solution: Create a visual
image for your company and stick to it. Logo, colors, and even
the language of the messages should have the same look and feel.
See:
How To Design And Write A Basic Brochure and build on
that.
Mistake
#7 - Poorly planned promotions and events
Several years ago when George Bush was running for President
he planned a campaign stop here in Montana. Unfortunately for
George his aids picked the opening day of hunting season to stop
by. Needless to say George spoke to very small crowds during
those stops.
Solution: Plan ahead.
Find out what's happening in your neck of the woods before investing
in a promotion that may bomb. See:
How To Create A Promotion For Your Business Or Service
Mistake
#8 - Forgetting the folks who got you there
Many business spend so much time trying to attract new customers
that they forget the loyal customers who made them successful.
I'm sure you've all heard that it takes six times as much to
attract a new customer than it does to keep an existing one.
Solution: If you keep
customer lists or customer accounts and haven't heard from some
of them in a while make some calls and find out what they're
up to. Are they unhappy for some reason? Is your competitor giving
them better service or a better product? Maintaining contact
shows each customer that you are interested in their business.
See:
Customer Service: (How to get first time customers to come back)
Mistake #9 - Listening to the wrong people
When it comes to advertising everybody is willing to give
you advice. And, because you feel that you know so little, you're
willing to take everything at face value. Most media salespersons
are honest hardworking people. Some, however, are just out to
sell you ads. If you think you want to be somewhere they are
more than happy to sell you the time or space.
Solution: The best advice
I can give you is to ask what other businesses similar to yours
have purchased advertising. You can't call direct competitors
but sometimes businesses that are in the same industry will be
willing to share if their advertising is working. For example
a wedding photographer might check with a wedding planner or
florist. Pay a visit to the library and look in the Yellow Pages
for other cities comparable to yours. Call people there who are
in your industry.
Mistake
#10 - Concentration on product features instead of benefits
So many ads I see just talk about what a product has not what
it does. No one ever buys a product for the features it has.
Do people buy a 1" drill bit because they want the bit?
No. They buy it for the 1" hole it will give them. That's
the benefit.
Solution: Evaluate every
product and service you offer. What is the real benefit of each
to the customer? Are you showing these benefits in your ads?
See:
How To Develop Product Benefits That Sell
The last word on advertising mistakes
The advice I usually give to new businesses or those who are
having problems with advertising is this; think before you act.
Make sure that you have identified your target market. Make sure
the media you have selected will reach that market. Take one
last look at your message or offer. Does it really say what you
mean?
Are the benefits there? And, last but not least, learn from
the mistakes of others. Watch what advertising works and what
doesn't work in your town. What are others doing that you can
adapt or change to fit your business? Remember, advertising almost
always works when it's done right.. and almost always fails when
done wrong. Do it right.
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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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