You may not know that there are multiple levels of advertising and promotion that correspond to your intent and stage of business. Small businesses can make more money because their promotion and ads are tailored to the proper purpose when they understand these levels.
Being Aware
One of the biggest threats to small business is the fact that there may be thousands of people out there who need what they offer - but don't know they exist.
The principle 'if you build it they will come' is where this stage will work. It's good if you don't have much competition, or if you are an established brand opening a new location.
This is the most basic form of advertising and it has its uses. But never moving past this level are most small businesses.
How to Gain Market Share
This stage is very important in promotion and advertising. In order for people to choose you over a competitor, this is where you put your unique selling proposition out there. Being compelling in a way your competitors aren't is what you need to be.
Most advertising (even from a lot of the big guys) just doesn't go this far. Your job includes compelling action from a customer.
Increase Consumption
You still need to bring your old customers back even though gaining new customers is very important. What kind of advertising or promotional tactics will increase the frequency and the size of your average purchase.
Advertising to your current customers is not a waste of money. In fact your ROI is likely to be far higher than advertising to get new customers.
Think about ways to get customers to come back more frequently and spend more with you when they do. If you get these components working, you can realize an exponential growth in sales.
Capitalize on Opportunity
You use opportunities to increase sales during this stage. Any ideas what these opportunities are? These would include long weekends, holiday sales, and current events.
But when it comes to promotion, careful about using bad news. Being seen as too mercenary can come back to haunt you. However, offering deals to offset rising gas prices or beat the heat of summer deals can be great was to promote all kinds of things.
You can boil these stages down into finer points of distinction, but mastering just these basics will give you a head start for a more profitable future.
Being Aware
One of the biggest threats to small business is the fact that there may be thousands of people out there who need what they offer - but don't know they exist.
The principle 'if you build it they will come' is where this stage will work. It's good if you don't have much competition, or if you are an established brand opening a new location.
This is the most basic form of advertising and it has its uses. But never moving past this level are most small businesses.
How to Gain Market Share
This stage is very important in promotion and advertising. In order for people to choose you over a competitor, this is where you put your unique selling proposition out there. Being compelling in a way your competitors aren't is what you need to be.
Most advertising (even from a lot of the big guys) just doesn't go this far. Your job includes compelling action from a customer.
Increase Consumption
You still need to bring your old customers back even though gaining new customers is very important. What kind of advertising or promotional tactics will increase the frequency and the size of your average purchase.
Advertising to your current customers is not a waste of money. In fact your ROI is likely to be far higher than advertising to get new customers.
Think about ways to get customers to come back more frequently and spend more with you when they do. If you get these components working, you can realize an exponential growth in sales.
Capitalize on Opportunity
You use opportunities to increase sales during this stage. Any ideas what these opportunities are? These would include long weekends, holiday sales, and current events.
But when it comes to promotion, careful about using bad news. Being seen as too mercenary can come back to haunt you. However, offering deals to offset rising gas prices or beat the heat of summer deals can be great was to promote all kinds of things.
You can boil these stages down into finer points of distinction, but mastering just these basics will give you a head start for a more profitable future.
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