Top 10 Marketing Blunders for Small Businesses

At some level, we all feel like we understand marketing because we "know what works for us." Personal preferences and assuming that what attracts us will attract others are major obstacles for small business operators when they try to implement an effective marketing program.

My top 10 Marketing Blunders for Small Business are:

1. Lack of a plan.

• Many successful business owners I've worked with have a one-page marketing plan that they refer to constantly to ensure that they stay on track. The key is what is behind the plan. They understand their value proposition, the competition, who the target customer is and what their objectives are.

2. Not understanding who the target customer is.

• Technology and demographic data allow for targeting strategies that were unthinkable just a few years ago. Build a profile of who your customer is and focus on getting in front of just them as much as possible. Selling to b2b calls for difference strategies and tools than selling b2c. Take the time to understand and lay out your plan.

3. Failing to understand the difference between frequency and reach.

• The goal of marketing is to reach top of mind awareness. This occurs after trial use and that typically occurs only after multiple exposures to the brand. This is the key to frequency. Reaching the masses may be right for some businesses, but not when the target is specific. It is possible to spend to much reaching the wrong people.

4. Inconsistency in your efforts.

• Business operators get bored with the look and feel of their marketing materials and they assume that the public feels the same. Mixing up colors, logos, images and layouts misses the goal of building a consistent image in the minds of consumers.

5. Expecting money spent to deliver overnight results.

• This circles back to frequency. A retail strip center business operator once told me that his marketing plan was "word of mouth". He said he "tried a direct mail piece once and it didn't work so never again." He was doing 20k a month and the top unit in that system was doing over 100k monthly in a similar space. So sad.

6. Personalizing the business with family photos, personal pictures, commercials featuring the local operator.

• Ma & Pa businesses are known for the family photo in their ads. While this warm and friendly approach has a feel good quality about it, this will KILL your exit strategy if you ever want to sell the business. Promote the brand, sell benefits, not personalities.

7. Trying to communicate too much with advertisements.

• In today's crazy world that is bombarding us with advertising everywhere we look, less truly is more. Simply your message. "Just Do It!"

8. Not getting feedback and not measuring results.

• To maximize returns and minimize wasting dollars, you have to measure the effectiveness of ads. Many marketing companies have automated ways that make this easy. Always find out how your customers heard about you to the very best of your ability.

9. Putting all your eggs in one basket.

• This speaks for itself, but it is important to include the fact that over 70% of purchasing decisions are now being influenced by the internet. There are many tools including search engines, social media and advertisements that drive activity. Diversify your efforts.

10. Doing nothing! (or spending too little)

• 16 years of my career was spent with a company that dominated the market share in the upper Midwest markets we occupied. We did this with aggressive, relentless marketing.  Fear and uncertainty often prevents spending.  The greater fear is failing to generate revenue and this is the fear that must dominate.

The top three reasons businesses fail are poor management, undercapitalization and lack of an effective marketing plan. All of these reasons are directly tied to running a smart marketing plan. Smart businesses are always marketing in every thinkable way. All contacts with your facilities, vehicles, personnel, products and services must be a branded experience. Be bold and implement relentlessly!



Jim Pascale is a 20+ year veteran of consulting with small business owners and has comprehensive knowledge of small business management and franchising. Contact Jim at jimpascaleminnesota@yahoo.com.