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  Economic Development Resource Library Newsletter Subscribe Here >>
  2006 | November

ED-Central


In This Issue


The Rural Economic and Tourism Development Seminar is coming up December 18-19 in Van Horn, Texas. Discounted registration is available for all participants who register by December 5th. Visit www.ed-central.com/retd and click on registration for more information.



It is hard to imagine anyone busier than a small business owner. This is often a key reason that more time and energy is not spent on Marketing. The good news is that a small business owner can develop a marketing plan with little or no budget and experience significant returns. Before developing a marketing plan, it is important to: determine if a marketing plan is necessary for your business, clearly define your business and target market, and determine what messages you want to convey.





- Ask Family and Friends What You Do
- Ask Customers What’s Important to Them






The Rural Economic and Tourism Development Seminar is coming up December 18-19 in Van Horn, Texas. Discounted registration is available for all participants who register by December 5th.

Register by December 5th and save $200

Early Registration Cost - $590 (includes all meals and activities)

Bring a second (or third) representative from your community or county and save an additional $100 off all of your registrations. Receive full conference registrations, meals and activities for just $490.

Visit www.ed-central.com/retd and click on registration to sign up today. Continuing education units available.





It is hard to imagine anyone busier than a small business owner. This is often a key reason that more time and energy is not spent on Marketing. The good news is that a small business owner can develop a marketing plan with little or no budget and experience significant returns. Before developing a marketing plan, it is important to: determine if a marketing plan is necessary for your business, clearly define your business and target market, and determine what messages you want to convey.

Is a Marketing Plan Always Necessary?

The owner of a small store is constantly juggling many different responsibilities. It is very easy for someone in that position to overlook the importance of Marketing. This is one of the biggest mistakes a small business owner can make. Simply put, Marketing is all about understanding what your customers want. People buy products because they want them. The function of marketing in your company is to determine what it is that people want (i.e. more time, more money, etc.). Once you know what your customers want, you have a better idea of how to advertise your product.

Define Your Business.

One of the best ways to generate more sales without spending any money is through word of mouth. The key to making the best use of word-of-mouth advertising is to create a clear idea of exactly what service you provide, how that benefits the customer, and what makes your business unique. It is imperative that you have a preplanned statement that communicates this to potential customers. This statement should be 35 words or less and as specific as possible.

Consider asking several friends and relatives for their input. You may be surprised how few people are clear on the answers. If you want to make effective use of word-of-mouth advertising, your friends, family, and customers must easily be able to explain your business in terms that someone unfamiliar with the industry would understand. They must also be able to say what makes your business unique.

Define Your Target Market.

In order to create a more profitable business, you must know who you are trying to attract as customers. The more specific you can be, the more effective you can make your marketing plan. For example, a gift shop may target women age 30-60 with an annual income of $50,000 or more.

Once you have identified your target market, you can begin thinking about things from their point of view.

• What do they want (i.e. convenient shopping, unique gifts, gift wrapping)?

• What are their concerns (i.e. return policy, quality of product, prices)?

• Where do they shop and why (i.e. online for convenience, larger city department store for selection, local gift shop for regional products)?

• Where do these customers usually get their information (i.e. newspaper, friends)?

The answers to these questions will help you determine the best way to create a desire for your product/service. It will also help you determine the best way to advertise.

When in Doubt, Ask!

Once you have defined your target market, you are ready to match the benefits of your product with what your target market wants to create an effective message. When disposable diapers were first introduced, companies focused their message on the convenience for the parents. It wasn’t until they started talking to prospective customers that they understood their mistake. As it turns out, the important benefit to their target market was that disposable diapers kept their baby more comfortable by keeping them drier. When the companies shifted the focus of their advertising message to the benefits that mattered most to their prospective customers, sales skyrocketed. Learn from their mistake. When in doubt, ask your customers what benefits of your store/product/service are most important to them.

By taking the time to lay a strong foundation for your marketing plan, you will be able to make the best use of your resources. All that is necessary to build that foundation is a clear and simple definition of your business, target market, and advertising message.

About the Author: Allison McKee is a marketing intern with the Texas Engineering Extension Service and currently pursuing her MBA with a focus of marketing brand management at LSU. Information sources for this article include: Running a One-Person Business by Claude Whitmyer, “Your Seven-Step, One-Day Marketing Plan” by David Frey, and “Give to Get Marketing” by Joe Gracia.





Ask Family and Friends What You Do

Ask a friend or family member what you do and they may struggle to give an answer. To make effective use of word-of-mouth advertising, your friends, family, and customers must easily be able to explain your business. Invite a friend to coffee and take the time to explain your product or service but resist going into the details. (As the business owner, you know far more than your friends and family need to know to promote your business.) Ask your friend to tell you what you told him and see if his response captures the essence. If so, write it down and start using it to introduce your business.

Ask Customers What’s Important to Them

As a small business, it’s critical that you focus your energies on those activities (products, services, amenities) that are going to return the greatest dividends and there is no one better than your customers to help you determine those activities. Sometimes, asking one simple question is all it takes. “How can I serve you better?” or “How can I improve my product?” You can ask this question on your web site and invite an email response or you can ask it as your handing them a package over the counter. Be sure to document the responses and then take the time to mull them over. Are you focused on the right services? Do you need to add a complementary product? Are you creating the right customer experience? Ask, and your customers will tell you.





 
Get On TARGET
 
TARGET (Technical Assistance for Regional Growth in Economic Development) taps into a wealth of resources found within TEEX and The Texas A&M University System to help your community reach its economic development potential. To find out more about TARGET click here.