Here Is the Best Marketing Strategy for Newly Started Small Business

Best Marketing Strategy for newly started small business or start-ups can be divided into two parts, is as follow:

You may like I want to start a Small Business but I have FEAR of unknown!

1. Flyers, brochures, booklets

2. Freebies, Gifts, Discounts

Best Marketing Strategy for Start-ups

Flyers, brochures, booklets

Why ? Because

1. They are way cheap compared to other mediums like mass media, internet, radio etc

2. They have greater life & utility compared to other mediums.

3. They are used as reference (people hardly throw them to waste bin!) for future buying decisions unlike other mediums which are available for a specific time to specific target audience.

4. They provide detailed information (for long time) about the product, service, brand thus answering almost all the relevant questions in target customer mind while other mediums do it for specific time to a limited number of audience (though information, answers are not detailed like printed advertising/marketing).

5. You can use them for precision targeting, with specific message for each target market segment which is not possible with other mediums. And that helps you in making customized offer, message for each target market segment thus resulting in more customer interest, attention, involvement consequently more sales!

6. They can effectively target bottom of the pyramid or majority (80%) of your usual customers.

7. They are easier to design, doesn’t require team effort, a bit of photoshop skills and that’s it.

8. They are the best option because in most cases newly started small businesses can't afford other mediums of marketing.
  

Freebies, Gifts, Special Discounts

   

Why ? Because

1.       They target the reaming 20%, top of the pyramid customers (TPC) or the customers with high life time value + high network value.

Notes:

Lifetime Value means: customer lifetime value (CLV) (or often CLTV), lifetime customer value (LCV), or life-time value (LTV) is a prediction of the net profit attributed to the entire future relationship with a customer (Wikipedia).

Network Value means, ability of a customer to influence his/her social circle (friends, family, colleagues etc) to purchase a given product/service, brand.

2.       Since gifts, freebies, special discounts results in a memorable experience, make your TPC feel special, highly satisfied thus results in increase in Word of Mouth Marketing (Research shows that in case of extreme customer satisfaction WOM occurs more frequently [1]) which results in greater amount of profits because of Pareto principle 80/20, where 20% of your customers results in 80% of your profits.

3.       Gifting, giving special discounts, cool freebies to your best customers is way too cheap, feasible for any small business, considering the huge ROI.

This simple yet effective strategy will not only allow you to carry out trial & error approach with minimal cost but will also help you to start working on marketing from elementary, basic level thus making you more marketing savvy in the longer run.

Plus it can help you in effectively training your sales staff in product/service, brand promotion, sales and also in relationship building (via gifts, freebies, special discounts) that will result in more beneficial business dealings in the long run consequently leading to more brand exposure or awareness plus more skilled/experienced sales team.

Kind of like shooting two birds with one stone! isn't it ?!

Brand awareness or exposure means the extent to which a brand is recognized by potential customers, and is correctly associated with a particular product. Expressed usually as a percentage of the target market, brand awareness is the primary goal of advertising in the early months or years of a product's introduction (Wikipedia).

Lastly the most important fact is, this strategy can target, cover all of your target market effectively & efficiently like

Bottom of the pyramid customers (80%) with flyers, brochures, booklets
Top of the pyramid customers  (20%) with special discounts, freebies, gifts

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References:

1. Anderson, E.W. (1998), “Customer satisfaction and word of mouth”, Journal of Service Research, Vol. 1 No. 1, pp. 5-17.