Question

Topic: Advertising/PR

Should Small Businesses Adv Or Do Direct Mktg

Posted by Anonymous on 8/7/2005 at 6:43 PM ET 250 Points
I have set up a small agency in Western Carolina focused on small businesses. Based upon the power of advertising and the targeting of direct marketing, what should small business America use?

Listed below are general facts about these clients:
1) many of these businesses are restaurants, dry cleaners, service businesses (pest control, landscaping services, security companies, etc)
2) The average budget they have to spend to promote their business is under $10,000 per year.
3) Many of these businesses are targeted to reaching consumers in specific geographic areas

What do you think? Should they advertise using local media or spend their money in direct mail marketing?

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RESPONSES

  • Posted on 8/7/2005 at 6:50 PM Member
    Limited budgets like those just aren't appropropriate for advertising. I'd spend my money first on my current clients. Make sure you are treating them great and then ask them for referrals.

    Next, pair up your compementary businesses. Get them to swap customer lists or do joint promotions...pest control and landscaping seem to be a good pairing.

    Finally, consider ReachLocal - https://www.reachlocal.com/?aid=402 - for geographically targeted online advertising.
  • Posted by mgoodman on 8/7/2005 at 7:31 PM Member
    There's no single right answer. It depends on the target audiences, the specific market(s) and media costs, and each company's business objectives and capacity for risk tolerance and investment.

    The most important variable isn't the medium, it's the message -- the positioning, benefit promise, and careful identification of a highly targeted market. Great advertising can succeed in almost any medium, and lousy advertising will fail in almost every medium.

    Net: It depends on a lot of factors. There's no simple, single answer to your question.
  • Posted on 8/7/2005 at 8:36 PM Member
    Hello Bob,
    I agree with others that a joint marketing effort will help your clients. Try to pair companies that offer complementary services. I dont see the budget as an issue. At least they have something to start with. Think about the most effective way you can utilize their $10,000 effectively. I strongly believe it is not the money it is the message you're putting out there.

    Another avenue is to do some market research and see how best you can utilize your clients money for maximum reach. In this way you will be helping them achieve their goals. I wish you luck.

    Aria
  • Posted by chough on 8/10/2005 at 5:09 AM Member
    Also depends on how you define advertising. $10K can buy a lot of local press space, if that is appropriate to your business. And a small budget can be a great creative spark to producing innovative and interesting advertising solutions!
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