A 2015 Lloyds bank research report found that 47% of UK SMEs don’t have a website. Common reasons cited were my trade doesn’t use them, it costs too much, I don’t have the time and/or I don’t know how. In 2016 there were 2.5 million UK SMEs of which 2.3 million are micro-businesses employing less than 5 people.
You probably think I’m mad trying to address this issue in my blog! But don’t assume that, because an SME doesn’t have a website, the owner doesn’t use the internet. Nearly 88% of adults (45.9 million) in the UK have used the internet in the last 3 months. Within this group, the figure rises to 99% for those aged between 18-24.
Here are 10 reasons SMEs should invest in a website to sustain and grow their business.
1. The 24 x 7 marketing medium
Your existing customers know you through experience, but how are you recruiting new customers? All of your customers use the internet daily for a variety of reasons. A website is a multi-purpose, marketing platform showcasing your business 24x7x365 days a year.
2. Enable prospective customers to find you
So what if I don’t know anyone who knows you, but I live locally and I need your business service now? I grab my smartphone and I search for your trade or service near me. Would I find you if you don’t have a locally optimised website?
3. A website will add value to your business
Have you heard the expression: “Never judge a book by its cover”? Well we do and it is human nature to make value judgements. You can directly influence value judgements with a good website. And that includes positively influencing your suppliers, your bank manager as well as other business associates and customers.
4. Lower your business costs
That’s right. You can replace a physical location for your business with a virtual presence. No rent charges, just an annual web hosting fee. This can greatly cut the setup and recurrent costs of your business. You can also trade globally while still operating locally. Having a website will reduce your overall marketing costs.
5. Let your customers work for you
If you garner good reviews from your customers you can post them online. A recommendation is your most valuable marketing asset and your website enables you to extend the power and reach of personal recommendation.
6. Join up your social networks
Almost all websites now come with preloaded social media icons that enable you to connect your website and social media networks. Your website has become a powerful tool to integrate all of your online activities with the potential to grow the business with digital marketing.
7. Better customer communication
You can update your customers with your special offers, promotions, new products and services. The website can offer potential customers various options for contacting. You can monitor all of these from your own smartphone meaning you need never miss potential new business.
8. Email marketing
With your own website, you can have your own email. What’s more, you can capture all your customers’ email contacts and then use your database to further promote your business through email marketing. It’s easier and more cost effective to sell more to existing customers than it is to generate new customers.
9. Competitor advantage
So we know that 48% of other SMEs don’t have a website. Get one and instantly you have a competitive advantage! Develop and utilize your website effectively and you can even run rings around your bigger competitors.
10. A website is easy to build
You don’t need to have any technical knowledge to build your own website as most domain sites like GoDaddy and 123-reg.co.uk provide simple cost-effective, pre-designed sites. These static websites can be up and running in as little as one hour. Alternatively, you can build a larger portfolio site using WordPress which comes with industry-specific themes or templates.
Finally, if you can’t afford the time, hire a good website designer.
Public Relations is one of the most under utilized of tools deployed by Small to Medium Enterprises (SME) in the communication mix.
I believe there are three reasons for this:
1. A lack of knowledge of how to engage with media
2. It’s easier to advertise
3 The rise of social media
What is Public Relations?
Public Relations is any editorial coverage you receive without having to pay the publication or media. As an SME you’re used to engaging with local publications trying to sell you advertising space. You may also be invited to purchase advertorials, that is a feature that includes a certain word count along with a picture or advertisement. This is not PR, you are paying the media directly for your coverage when, for a little bit of effort, you can obtain good coverage in the press for free.
Why is PR important to business?
Earlier, I mentioned that one of the hot marketing trends of 2017 would be executive branding, essentially coverage focused on you. We are interested not just in the product but in the people behind the brand and their story. PR is a good way to tell your story and to reach potential customers.
Readers also read and retain information from the stories and articles they read much more than advertisements they may see in the publication. For example, a good review in a newspaper of a dining experience is worth so much more to a restaurateur than any amount of advertising.
Customer relations is about trust, reputation and confidence. Public relations is a great way to build customer confidence and brand identification.
How do I get PR coverage in the press?
Start by having a look in your target publication. What types of story and feature articles do they publish? Are there any stories about business? What angle does the publication report? Begin by tailoring your news or feature story to the publication’s editorial style. Can you provide a great photograph? Pictures are worth a thousand words and often a good photograph or photo-opportunity will sell your media coverage for you. Here are a few pointers:
We read newspapers because we are interested in the human experience and we want to know what other people are doing or experiencing in our community. Who might also be a celebrity, a sports or TV personality that you have invited to your launch.
So what’s happening and why is it newsworthy to the paper’s readers? Maybe you are opening a new business. What is it and what’s different about it? Are you creating more jobs? What’s the size of your investment and what do you hope to achieve over time?
There are two parts to this question, why do you deserve coverage by the press and why are you engaged in whatever it is you’re doing? You’re an entrepreneur but what were you doing before you decided on this venture. And why would you risk secure employment and a steady wage to do whatever it is you’re planning? Why is this so different from every other person’s story and therefore deserving of coverage?
If it’s a local newspaper then what is the local connection?
If it’s a local newspaper then what is the local connection and where is your event happening? It’s amazing how far local newspapers will stretch themselves to find the local angle in a big national news story. However, when it comes to you they’ll want to know if you live locally, is the business local or is the event that you’re running local.
When is your event taking place and at what precise time? Will you be offering a photo-opportunity for the newspaper and when precisely will this be happening. Photographers normally cover 4-5 different events in a day, so a precise time is vital for them. If a photographer is a little late can you recreate the photo-opportunity for him/her?
The News Release
Normally, this is how you contact the media with a carefully crafted written press statement, a synopsis of the above. There is a layout and style you should follow.
(See fictitious example below right).
You should distribute your News Release at least 48 hrs before your event. Where possible, send it via email to a specific journalist on the paper. Add a read receipt to your email. If you are hosting a significant event give your publication at least 5 days notice of the event, the main angle and any photo-opportunities you are laying on. All publications have a news diary and if your event is important enough the news editor will put it into the diary for coverage on the day.
Local weekly press employ few staff but the journalists are always on the look out for fresh news and contacts. A good News Release, story and photo-opportunity should spark a journalist’s interest and garner good coverage. If they want to check the story and develop it further they will contact you on the telephone number you supplied. Be prepared to answer their questions but remember the two or 3 points you want to get across and try and work these into your answers. Ask if they will be sending a photographer and, if not, offer to forward them a photograph later.
A good News Release, story and photo-opportunity should spark a journalist’s interest and garner good coverage.
Of course, we exist in the digital age and there are digital distribution channels for PR copy. One I would recommend for SMEs is Pressat. It is free to register with this service and you can choose a one off distribution package of £110. This allows you to upload your news release and supply all relevant information about your business. You can then select the media sectors you wish to target and Pressat does the rest. This is one way in which a SME can reach publications well beyond their local area. It is particularly good at reaching trade journals thus supporting B2B PR.
Don’t forget, that if you do get media coverage for your event, to draw attention to it in your social media. This is just in case some of your customers missed it. Often you can find the story in the online edition of the newspaper which makes social sharing so much easier. There is also a range of online only publications these days, so don’t forget to target these with your PR. My favourite local one is the Down News which actually receives over 14,000 visits per month, which is more than its local rival, the longer established Down Recorder.
These days you need to do more than just have a static website to promote your business. Here I explore some essential website marketing tools and tips to drive traffic to your site & increase your sales conversion ratio.
In June 2006, Matt Mullenweg launched WordPress: the open source website development and publishing platform. Little over a decade later it has become the website CMS of choice, used by 28% of all website managers globally. In making it open-source, Matt showed remarkable marketing foresight calculating correctly that the advantages of the system would attract like minded developers, co-promoters and brand ambassadors.
WordPress is free, relatively easy to use and there are literally thousands of “themes” or design templates to choose from
There are also lots of handy tools or “plug-ins” to add that make managing your website simplicity itself.
So, I’ll assume as a SME you have, or soon will have, a shiny new website. Now what are you going to do with it? It’s a bit like your first car purchase, you love the fresh polished showroom look and don’t ever want to get it dirty. But you didn’t buy it just to park it in your garage, right? Yet that’s effectively what many website owners do failing to integrate the site it into their business marketing strategy. This article will show you:
6 ways you can promote your website and utilize it as a vehicle to drive web traffic and business growth
Step #1 – Market test your website
Before launching and promoting your website to the world, it is worth checking that your website is fully functional and user friendly. Test it out by inviting trusted friends to visit the site and give you critical feedback. If necessary, ask them to fill in a questionnaire using Survey Monkey. In this way you will be able to determine if critical feedback is just one person’s opinion or the informed view of many.
What should you be looking for? What do they think of the overall design? How does the content read to them? Is the tone right? Can they easily navigate their way around the site? Is anything missing? Remember, web designers tend to focus on design rather than content, on features, rather than customer experience and utilize stock, web sourced images rather than shooting photographs unique to your business.
It’s easy to end up with a wonderful looking site only to discover down the line that you’re driving a Mondeo. Don’t be afraid to be different!
Step #2 – SEO the race for speed
When it comes to websites, speed is of the essence. A 2016 study on page loading times suggested that a 1 second delay in page loading could lead to 7% loss in conversions, 11% fewer page views and 16% decrease in customer satisfaction. Viewer attention spans have dropped to an average of just 12 seconds, so time spent waiting for your site to load may reduce time customers spent on the site. With good SEO your site will be more Maserati than Mondeo.
So let’s begin by checking your site loading time. Just because your site loads quickly on your computer doesn’t mean it will on everyone else’s. Check from an independent source such as Pingdom. Anything over 3 seconds is problematic, while under 2 seconds is ideal. You’ll also be able to read a report highlighting areas you need to address to speed up site loading time.
What if your loading time is seven seconds? Well, as Corporal Jones would say, “Don’t panic!”
There are generally 3 issues you can fix quickly. These are: graphics; website caching and coding.
Step #3 – Create compress & cache
Photographs and graphic images take up the biggest part of your page size when requested. Often photographs have been saved at too high a resolution for website viewing. Another common mistake is that they’ve been saved at the right resolution but are being resized on the page rather than installed at the right size. These are small matters and easily fixed once identified. You can use a programme such as TinyPing to further compress your images before uploading them to your site.
WordPress pages are “dynamic,” meaning they’re built on the fly every time someone visits a page on your website. To construct a page, WordPress has first to request it, then process the received information, build a unitary page and finally display it. However, you can address this by utilizing a caching tool like WP Super Cache. This will save the last version of the page or cache from the first request, to serve to each subsequent visitor, thus reducing loading time.
Once running, cache loading should speed up page loading time by 2X to 5X
I know very little about coding, but fortunately you don’t have to either, to fix some common problems.
Step #4 – New content attracts visitors
You remember that new car I mentioned at the start of this article? Well, it’s nearly time to take it out of the garage and go for a spin. But just before you do, remember that on longer journeys you may need to stop to refuel! It’s just the same with your website, every so often you need to add new content. The best way to do this is by publishing a blog or news section. In fact, a business with a blog will receive 7 times as much traffic as one without.
A business with a blog will receive 7 times as much traffic as one without
So what at are you going to blog about? Tell your customers about why you started your business. What motivated you and what you are passionate about. Remember, for sole traders and SMEs, in many ways you are the brand. Write about new products or promotions and invite your reader and customers to give you feedback. If you provide a professional service, why not blog about tips and tools your customers can use to use to make their lives easier. We are all on the same journey after all, just traveling in different cars!
Step #5– Use social media to drive traffic
The rise of social media has transformed marketing, creating new opportunities for customer interaction and the relatively new field of digital marketing. Indeed, many SMEs have a business Facebook page but no website. I believe this is short sighted. You own a website and over time it will become as valuable a resource to you as a bricks and mortar site. It therefore is worth investing in to maximise your competitive advantage.
You own a website and over time it will become as valuable a resource to you as a bricks and mortar site
Use your social media to drive traffic to the website, to promote your blog and to engage in two way conversation with your customers. Facebook is particularly good for B2C marketing and its advertising features lend themselves to sales promotion. You should combine it with other marketing campaigns to reinforce the brand.
LinkedIn is a professional networking social media that’s better suited to B2B marketing. Together with Twitter, these have the greatest number of subscribers in Britain and Ireland. My advice would be to focus on no more than 2 or 3 media that match your customers’ profile, rather than spread yourself too thin. Ensure that the social media icons are prominently placed on your website and particularly in your blogs for easy sharing purposes.
Step #6 – Using search engines to rank locally
When you are ready to launch your website, make sure you promote it across the web. Register your site with key search engines. A quick way to do this, is with Entire Web which will notify multiple search engines for you. Remember too, that when you publish each new blog posting you should use Entire Web to notify the search engines of fresh content. Do this by submitting your blog URL, in my case linengreenmarketing.com/blog
Think about promoting yourself locally. You can do this on the web with online directories like:
Each offer additional paid for premium services but the basic registration is free and very effective.
You can very quickly achieve a good ranking on local searches
There are many more but I’m in danger of developing repetitive strain injury. If you follow the above simple steps you will soon be driving traffic to your website.
What’s the best advice you received as a business start-up?
I can think of two pieces of advice that I’ve cherished throughout my career.
The first I learned in accounts class when doing a postgrad in marketing while working full-time as a PR. Of all the topics I was due to study as a mature student, accounting was the one I was least looking forward to. I did economics for my first degree and most of my peers went on to become accountants. The fact that I didn’t, tells you all you need to know about my enthusiasm for figures.
The lecturer was in full flow. As she was want to remind us, she was teaching in 8 weekly, modules what she’d normally teach in one year! Then she said, “Of course, 90% of businesses that fail are inherently profitable . .” I’m not sure what she said next, but I quickly shot up my hand and asked her to repeat what she’d just said and maybe expand her explanation.
90% of businesses that fail are inherently profitable
Focus On Income
She looked mildly annoyed. Then she said, “Most businesses that fail are, or were, profitable. But they get themselves into financial difficulties because of their inability to manage the money supply. In layman’s terms, they’ve overreached themselves, they have paid out more than they’ve brought in.”
Then, warming to her subject,
“In the short term they can get by because of the natural business cycle, when sales pick up, for example. But often what happens, particularly at a time of rapid expansion, is that they lose focus on accounts paid. You generate sales but you don’t make money until you actually receive income. Perhaps they borrow to bridge the gap, paying back on a high interest loan which further erodes profitability.”
“More often they misread what is really happening and can compound the situation by assuming that expansion equals profitability. This can lead to bad decision making based on poor forecasting. Businesses often hire in expectation that growth will increase profitability. Unfortunately, too late they learn that they’ve only succeeded in making a bad financial situation worse.”
Businesses often hire in expectation that growth will increase profitability
When I started my first business, in marketing & PR, back in 1996, I was armed with this piece of advice. Consequently, I paid particular attention to income receipt from my customers, managing creditor payments and profit followed.
Sell more to your existing customers
The second piece of advice I received was from Frank Dologhan, of Mentor consultants, Newry. Just over a year into my first venture I was frustrated that my business, while steady, had not grown as rapidly as I’d hoped. I picked up the phone and asked Frank for a meeting. Frank listened patiently. He asked me a few pointed questions about my business, the services I was selling and who exactly my customers were. He had a look at my balance sheet and the forecast figures in my business plan.
“Well, it seems to me that you have a profitable business which, one year in, is better than most start-ups. Looking at your figures you’re running about 4 months behind your forecast which is not unusual. Most entrepreneurs underestimate how long it takes to generate income as opposed to sales.” I smiled and recalled my accounting lecturer.
Most entrepreneurs underestimate how long it takes to generate income as opposed to sales.
Then he asked,
“Would I be right in thinking that your initial customers knew you before you were a private business?” I nodded.
“So do they know you for one thing or are they aware of all the other services you can deliver?” I looked a little nonplussed. “Do you have a service portfolio capability statement?” When again I looked somewhat vacant he opened a drawer in his desk and handed me a document.
Serice portfolio capability statement
“Come on Fergus, you’re the one who’s supposed to be the marketing guy. This is our portfolio statement outlining all the services we can provide. You must know that it’s easier to grow your business by selling more to your existing customers than it is to find new ones.” I flicked through his company portfolio statement and I was both enlightened and embarrassed.
It’s easier to grow your business by selling more to existing customers than it is to find new ones
I thanked Frank for his help. Three days later I had a 7 page service portfolio capability statement listing 6 defined separate but related services. I also used the opportunity to price the services differently. Within a week I had placed the portfolio statement in the hands of all my existing customers and almost universally heard them each say, “Oh, I didn’t know you did this . .”
By the end of my second year I had tripled my turnover.
So what’s the best business advice you’ve received?”
Creative Marketing and the Painted Forest
Why did I include a picture of the Painted Forest on my Website? Where is it and what’s it got to do with marketing?
In April 1994 I travelled to a peace conference in Gernika, in northern Spain. My host was Gernika Gogoratuz, the Basque peace research institute. The time that I spent there, participating and learning about conflicts and peace-making, was to change my life. However, that’s a story for another day. For now, let’s focus on communication and its importance in all human interaction and relationships. This is why effective marketing communication is so important to building your brand. Indeed, it serves twin purposes, establishing customer relationships as well as communicating the availability of a product, service or idea.
Not far from Gernika, in the province of Bizkaia, is the forest of Oma. There is much to admire there. For Agustin Ibarrola , artist and sculptor, has transformed the natural beauty of the forest into a living canvas.
Artist and sculptor Agustin Ibarrola has transformed the natural beauty of the forest into a living canvas
It is now known as Bosque Pintado, the Painted Forest or Bosque Animado, the Animated Forest. Ibarrola’s anthropomorphic shapes and symbols challenge us to think more about our interaction with each living tree. They help us see each tree on its own, and in relationship with others, questioning our perception of the forest and our interaction with the natural environment. As the trees and forest continue to grow, so the installation will change and evolve. It is very much, a living canvas.
Art can be appreciated by everyone, yet each of us will react and interpret it differently. It is both a medium of communication and a communication message. Our interaction with art is based on what we see, what we feel and what we think. For what we feel and think is often stimulated by memory and association. Put another way, what we see is denoted and what we think is connoted.
In early Christian times, when few people could read or write, art was used by the church to teach people the bible stories. At that time church and state were one and the monasteries were the universities of their times. Monks spent their time creating and copying books by hand. The Sovereign gained his or her power and legitimacy from the church. This is why the symbols of state and church often mirror each other and why the great masters were so often commissioned by both.
I included a photograph of the Painted Forest on my website as a symbol of how creative design and marketing campaigns can transform business. They can take the ordinary, add value and change how we perceive a product or service.
Great design can stimulate desire, motivate purchasing decisions and even add to the customer’s level of satisfaction.
They have a role to play in helping us sell more, to build relationships with our customers rather than just one-off transactions. Great design can stimulate desire, motivate purchasing decisions and even add to the customer’s level of satisfaction. The commercial transaction is now transformed into a mutually satisfying experience, like Ibarrorola’s Bosque Pintado, This is the essence of great marketing and the key to Brand building.
Recently I read an article on LinkedIn by a business consultant and mentor. It was about sales leads and how to nourish them. I think the blog was meant to be about personal selling. and how to cultivate the sale by building a relationship first, before pushing the product. Unfortunately, it was full of jargon, and with me, jargon jars!
The blog should have positioned the consultant as a genuine thought leader. However, it was obviously a pre-authored article that she was supposed to top and tail to make her own. Sadly, she topped and tailed too much and this reader soon high tailed it!
3 Tips for a better Blog
It was a pity, because I actually know this lady and have heard her engage a live audience. Her presentation was good and she must have spent some time preparing it. So why didn’t she apply the same endeavor to her writing? I’m sticking my neck now and if you want to write a better blog here’s my three tips.
1. Share experiences
First, there are very few truly original thinkers. The best you can hope for is to take one truism worth sharing, then find a novel way of writing to promote and share it. As people we relate to other people and their experiences. Share your experience. It’s amazing how many blogs I’ve read lately that are full of faux-bon-mots, without even the smallest, redeeming anecdote to hold my interest.
Social media is now infested by bots and I’m beginning to believe that many blogs are too
2. Be yourself
The second piece of advice I’d give is be yourself. Only you are authentically you. Don’t try to be somebody you’re not. Let your own voice shine through. Do you remember back in school when there were all those different cliques? You had your friends right, but you also had people who disliked you. But you didn’t waist your time trying to impress people who despised you.
When it comes to writing just remember that it’s a bit like Marmite. Probably half of the people will love it and the other half? Well, that’s my point. Stop worrying about the other half, over reaching yourself, trying to try to impress them. Stick to what you know and write more from your heart. That’s authenticity, that’s the beginning of style.
When it comes to writing, just remember that it’s a bit like Marmite!
3. Don’t over cook it
My last piece of advice is that originality is more often in the writing, not always in the writer. If you read, or hear, something for the first time, then that’s original for you. Your writing doesn’t always have to be profound. Keep it simple and don’t over cook it!
For example, what’s the best piece of business advice you’ve ever received? Mine was from my older brother, Kevin, a freelance photographer. I’d just left a well paid job and set-up my first consultancy providing marketing communications to non-profits. I’d only one client at the time and I was chasing more.
What’s the best piece of business advice you’ve ever received?
When I asked him for advice he said, “It doesn’t pay you to get out of bed to do a cut price job.” I had to ask him to explain as I wasn’t immediately sure what he meant. “Take me for example. Everyone takes holiday snaps and thinks that makes them a photographer. So when I give them my price some of them immediately ask for discount. If I give them discount this time they’ll expect it next time. And if I give it to them then all my customers will want that price.”
Everyone takes holiday snaps and thinks that makes them a photographer.
As a marketing consultant I’ve often reflected on his statement. It is about pricing but it’s about more than that. It’s also about quality, of ensuring that your customer perceives the quality. Your not satisfied with giving them a product or service which, at a push, they could do for themselves. It’s also about customer relationship, the bond or contract between client and producer.
Today’s take away:
If you are planning to write a Blog be yourself. Tell us about your experience, share at least one anecdote to brighten our day. Just remember, if we wanted jargon, we’d read a textbook!
Technological change and digital innovation are having a revolutionary impact on marketing. The average SME and business start-up can easily become lost in a digital blizzard of marketing information. But what are the essential marketing trends emerging in 2017 that they should know and exploit? Here are 4 I think all SMEs need to be aware of.
1. Marketing trends: Creative Visual Content
Differentiation is vital to marketing success and creative visuals are becoming even more important in digital marketing. According to HubSpot, “B2C marketers still place more emphasis on the importance of visual content in their marketing portfolios. But B2B marketers are catching up quickly.”
the really big trend in 2017 will be video
The primary driver is the desire to make content more compelling and shareable. The more we use social media and digital channels, the greater the need to use creative visuals to differentiate and communicate. Social media posts already share and combine photographs, images and text, and companies increasingly use info-graphics to simplify and share complex information. Free online design packages like Canva can help SMEs maintain branding while coping with the diverse posting sizes of various social media. But the really big trend in 2017 will be video.
2. Marketing trends: Make Websites Mobile Friendly
In 2014 mobile devices officially overtook desktops as the preferred method of viewing web content. By 2017 over 64% of website views were from mobiles, yet many small SMEs have still to adapt their websites to the viewing technology. Almost all CMS now allow you to view your website as it will look on a desktop, a tablet or a mobile phone. By the end of 2016, 50% of all B2B companies had implemented a responsive design for their websites. Unfortunately, SMEs are lagging well behind. One thing you can do in 2018 to improve access to your business, is a quick redesign of your website. Ensure it’s optimized for all viewing formats and linked to your social media channels.
3. Marketing trends: Personal Narrative – Executive Branding
Executive branding is one of the growing trends of 2017. The internet, mobiles and apps have revolutionized delivery systems and increased product and service innovation. However, what can really make your business standout from the competition, is a focus on your people.
It’s not just the Steve Jobs and Alan Dyson’s of this world whose stories we want to know. It’s you as the business owner or senior executive we want to hear from.
We shouldn’t be too surprised about this. After all, marketing is about satisfying customer needs and building relationships, not just about selling. And all the evidence is that people relate to people. In an increasingly atomized society there is considerable power in the personal narrative. This is actually good news for SMEs where the sole trader or partners are closer to their customers but were previously reticent about executive branding. And social media presents great opportunities for SME business owners to share their stories, challenges and success alongside promoting goods and services. The real challenge is in getting the mix right.
In an increasingly atomized society there is considerable power in the personal narrative
4. Marketing trends: Video and Visual Storytelling
Which leads naturally to the other big trend for SME’s in 2017, video. Over 1 billion people use YouTube on a regular basis, a number that has increased about 40 percent since March 2014. All other social media platforms are cashing in. Facebook launched Facebook Live in April 2016 giving all of us access to broadcasting on the world’s biggest social-media channel. And marketeers have embraced the new capability and are adapting its capability to increase ROI. From webinars to live stream broadcasts from trade conventions, anyone can get in on the act. The cost of entry is low which should help SMEs. However, content and quality will still be king. The real challenge is to ensure where it fits in your marketing mix.
© Fergus Cooper Linen Green Marketing
The Economic Benefits of Marketing
A new report, Marketing Multiplied, cites empirical evidence that marketing communications positively impacts on the economy. What’s more, the report provides evidence of both macro and micro economic benefits.
The authors of the report are:
- Chris Johns, a former economic advisor in HM Treasury;
- Jim Power, former Chief Economist at Friends First Group And Bank of Ireland and
- Alan Cox, CEO of Core Media, Ireland’s largest marketing communications group.
“the evidence is clear about the influence of advertising on economic growth: it is positive and large. The debate is mostly about the size of that effect.”
They cite research that suggests that for every €1 of advertising spend €5.70 is generated within the Irish economy.
The report concludes that marketing communications has a central role to play in a market economy. It informs consumers; increases consumer choice and welfare and develops markets. It enables producers to increase sales while at the same time increasing competition to restrain prices. Increased economic activity also leads to increased employment and opportunity.
Advertising and Economic Growth
The report explores and confirms a strong link between advertising and economic growth.
“Advertising is extremely important for the overall level of economic activity; it oils the wheels of economies, provides jobs and boosts growth in an unambiguously positive way.”
The Irish findings are supported by research from around the globe often citing similar findings though often with larger impact. Economists have paid much more attention to advertising’s relationship with competition, innovation and prices. Again, the evidence points to robust conclusions: advertising promotes competition, boosts innovation and helps to lower prices.
Marketing – Impact on Business
Creative advertising and marketing campaigns can have a significant influence on the growth and profitability of individual businesses. The decisions and level of investment made in creativity therefore, will impact directly on the growth and the profitability of the brand.
Creatively-awarded campaigns are 6 times more efficient in growing market share than non-awarded campaigns. Recruiting new customers is more profitable than trying to increase frequency of purchase. It truly does pay to be creative.
The size of a brand has a major impact on the efficiency and effectiveness of marketing communications. Large brands have inherent advantages over smaller brands; they have higher penetration, better distribution, stronger range and pricing strategies that help to maintain and increase share. Short-term marketing is on the rise and it is damaging the profitability of marketing.
Campaigns sustained over the longer term are, on average, 3 times more efficient than shorter term campaigns.
Short-term initiatives are more effective at driving transient sales effects They are weak at delivering long-term growth. Business needs to employ both strategic and tactical techniques but favouring the longer term.
Campaigns Need Emotion
Emotionally-based campaigns outperform rationally-based campaigns on every business measure. They are:
- more profitable
- better at raising awareness
- stronger at creating differentiation and
- build consumer brand loyalty
On average, marketers should spend 60% of their budget on brand-building activity (long-term, broad reach, emotional) and 40% on sales activation (short-term, tightly targeted and information rich), to achieve maximum efficiency and maximum effectiveness. Brands that use paid media, normally grow up to 3 times faster than those that simply rely on PR and sales promotion.
Who Should Read Report?
Marketing Multiplied is packed full of case studies, facts and figures, that confirm that marketing is central to economic growth both at business and national level. At 130 pages it is an essential read for marketing professionals, academics, economists, politicians and insomniacs.