Why You Need to Invest in Marketing for Your Small Business
- February 19, 2020
- Posted by: Manju Rai
- Category: Digital Marketing News
When running a small business, there always seem to be so many demands on your budget from staff and equipment to product development.
In this context, investing in marketing may seem unimportant, especially when it seems like there are many marketing tactics that are very low cost or even free.
However, this can often be a false economy: for every dollar you “save” but not investing in marketing, you may miss out on many more in lost revenue.
On the other hand, you will find that effective marketing techniques will give you a return on your investment of ten times or more. Here are the key reasons why you should invest in marketing for your small business.
1. Reach a Wider Audience
According to marketing expert, Stuart Britt “Doing business without advertising is like winking at a girl in the dark”.
You know what you are doing, but nobody else does”. You could have the best product in the world, but you need to tell people about it in order for them to buy it. This is where marketing is so important.
Proper marketing efforts will mean not only you get the word out to a wider audience, but to the right audience.
Investing in marketing allows you to identify your target audience and how to best reach them. Your goal here, rather than pushing products or offers, should be to engage with your audience.
This means communicating the information your customers need to know about your products and services in an interesting and useful way.
2. Stand Out From the Competition
Competition is everywhere, and no matter your industry, you will always have competition.
Having the best product of course helps, but you still need marketing to promote it against your competitors. Well, run marketing campaigns can make all the difference in convincing customers to shop at your business rather than with your competitors.
This is especially important when selling in the highly competitive e-commerce sector.
If you are selling on Amazon, there is a range of seller tools that may involve a small investment but you’ll see a return on this investment of many times thanks to being more competitive, and this will bring more sales, and increased profits.
3. Drive Exponential Sales
Marketing, when approached correctly, can have a snowball effect, where one sale turns into two, and so on and so on.
Once you secure a new client, through a great marketing campaign you can involve that customer in your marketing, making them work for you.
When this customer writes a positive review, promotes your product on social media, or recommends your product to family and friends, you gain another new customer.
Each of these customers then does the same, and soon enough, your sales have expanded exponentially.
4. Build Your Brand
Marketing helps you to build your brand, creating not only awareness but also trust in your company.
A creative, smart approach to showcasing your brand will build a strong brand reputation that will lead to more customers, more sales, and more profits.
Ultimately, business life span and growth is intrinsically tied to your brand’s reputation. Marketing, PR and customer relations are all key in building a great brand reputation that will serve you in the long term.
5. Understand Your Audience
Marketing is not just a one-way street. It is not only about you getting your message out to your audience, but also getting feedback from them as well.
This feedback can have many benefits for your business, providing invaluable insights that allow you to refine not just your marketing tactics, but other processes as well.
In doing so, you will be more persuasive, more effective, and more successful.
One of the best ways you can do this is through A/B testing. This is when you try out two (or more) different techniques to see which is the most effective.
This can, for example, let you learn what messaging is more persuasive for your business. This, in turn, will give you a baseline for all of your marketing efforts.
6. Maintain Good Relationships with Your Customers
Businesses can get complacent, assuming they will always have their customers, and that their customers will never look elsewhere.
However, even if you provide a great product and deliver it with great service, there are many reasons why a customer may choose to switch to another brand.
One of the key ways to prevent this is through customer relationships. Brand loyalty is highly persuasive in convincing customers to continue to buy your products and services rather than someone else’s.
Great marketing is instrumental in maintaining strong relationships with your customers so that they will stay your customers for a long time.