Everybody makes mistakes and entrepreneurs are no
exception. But for an entrepreneur with a limited budget,
committing mistakes too often can be very costly. It is an
open secret in the business world that most of the mistakes
that can be committed in business have been committed; so
why not just learn from them, saving you the agony of
committing them yourself.
With that said, here are 7 costly small business marketing
mistakes every entrepreneur must avoid:
1. An Incongruent Marketing Message
To effectively sell your product or service, your customer
has to "get" the marketing message. A customer-centric
marketing message educates your prospects and persuades
them to become customers. Too many small businesses make
the mistake of focusing their message on the product or
company, instead of how the prospect would benefit by
purchasing their product. Prepare the right marketing
message with some of these in mind:
• Identify the prospect's problem.
• Explain to the prospect why the problem should be solved
immediately and explain why your product or service is the
right solution to their problems.
• List the benefits your prospects would enjoy upon
purchasing your product and provide an unconditional
guarantee to allay any fears they may have.
2. "Spray-and-Pray" Marketing Instead Of Precision Marketing
The days of marketing as a zero-sum game are over. You
must demand accountability from your marketing efforts,
expecting tangible results in the form of a healthy ROI
(return on investment). Differentiate your marketing
messages and target them to meet the specific needs and
wants of your prospects and customers.
Many small businesses are guilty of the dreaded
"spray-and-pray" marketing ideology, which inevitably
drains their resources to the point where it very often
leads to their demise.
Do not commit this same mistake, but instead practice
precision marketing, where every aspect of your marketing
and advertising efforts are measured and tracked for
maximum returns.
3. Failing To Realize Marketing Is About Value Creation
To create a sustainable small business, you have to market
something of value to the prospect and customer. Marketing
is your business and creating value for your customers
should permeate through all your marketing efforts. Strive
to always over-deliver because customers love to receive
more than they expect and the easiest way to do so is to
develop a thorough understanding of their wants and desires.
4. Selling Instead Of Educating
You must have heard about the age-old principle that
"people love to buy but hate being sold to." It is a
principle that will continue to hold true for ages to come,
but unfortunately, many small businesses still fail to
adhere to it. The fastest way to get rid of a prospect is
to try forcing a sale out of him or her.
Education-based marketing, however, is a powerful marketing
strategy to overcome this problem of being sold to. This
strategy makes use of giving away valuable information,
educating your prospect about the benefits of owning your
product or using your service, offered to them as free
reports, video cassettes, CDs, or DVDs in exchange for
their contact information.
It is a strategy that builds trust with the prospects
resulting in a much higher closing ratio. So, forget about
throwing a sales pitch and try educating your prospects
instead for a higher conversion rate.
5. Failing To Test
The biggest mistake any entrepreneur can make with their
business is the failure to test every possible variable
most important to their customers. This applies to both
online and offline marketing efforts.
I can understand if small businesses faced more difficulty
with market testing because of limited budgets years ago,
but the Internet has done away with this excuse. It has
become so cheap to conduct price tests and sales copy tests
and identify what campaigns, keywords, and metrics give you
the best ROI online that not testing any of these has
become a cardinal sin.
6. Not Following Up With Prospects Or Customers
Small businesses spend a great sum of money acquiring
customers, which makes it all the more difficult to
understand why many of them don't follow up with their
customers, or even their prospects after the "front end"
sale.
It has been well documented that true riches are to be
found in the backend sales and the reason for this is
simple. If a customer or prospect raises his or her hand
to do business with you, it means an element of trust has
been established and a business relationship is ready to be
formed. They are more then likely to buy from you
repeatedly if you make it a point to capture their contact
information and develop a follow-up system for
communicating with them frequently.
7. Selling To The Wrong Target Market
Never assume that your product or service will appeal to a
general audience because this assumption has profoundly
resulted in many small businesses shutting up shop. Large
businesses are guilty of this too, but you can save
yourself from committing such a rash mistake by asking
yourself these two questions:
• Who are your customers, or who is your target market?
• Who will use your service, or who will buy your product?
Answer these questions with absolutely clarity and segment
these markets by demographics and psychographics to zero in
on your ideal customer. The time spent doing this
correctly will add nicely to your bottom line.
Just remember that to succeed, you must be prepared to
fail, so don't fear the eventual mistake but learn from it.
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Robert Moment is an innovative small business coach ,
speaker and author. Robert specializes in teaching
entrepreneurs how to start a small business that profits
and grow. Visit http://www.howtostartyoursmallbusiness.com
and sign-up for the FREE Small Busines Coaching 7 day
e-course.