The Rules of Business Marketing

Trade publication Advertising Age said that in 2004, companies spent $264 billion on advertising through direct mail, print, broadcast, Internet and other media.

While there are multiple marketing strategies for new and existing businesses to choose from, local experts agree that there are some rules to help businesses simplify the process.

Rule No. 1

Know who you are.

Before any other marketing decisions are made, Missouri State University marketing professor Sarah Smith said a company needs to have a clear vision of what it is and who it serves.

“When you start making tactical decisions, like budgeting and advertising plans, if you don’t have a sense of where you’re going to go, you can easily make mistakes,” she said. “If you do have a clear sense of where you’re going, it makes it that much easier to plan the right strategy.”

Dennis Marlin, president of The Marlin Network, said companies often overlook the importance of outlining their goals and being consistent with their brand.

“A lot of times, we’re so caught up in doing what we do, whether it’s making sandwiches or fixing cars, that we don’t understand what our brand means – it’s just the name on the door,” Marlin said. “But you look at the successful businesses and you know what they stand for. It’s not just that they fix cars; they make you feel good being there.”

Rule No. 2

Have a marketing plan.

While having a business plan is crucial to attain initial financing for a new business, Lisa Nally, owner of ACR Nally Communications, said a marketing plan is just as crucial.

The plan should include advertising ideas and the company’s target demographic.

“New companies will throw a bunch of money at advertising without a strategy behind it, and then all of a sudden they’re upside down because they spent all this money in one area that didn’t really reach their target audience,” Nally said. “I get concerned when people do that – if you don’t plan your work and work your plan, you’re in trouble.”

Don Schilling, president of Schilling/ Sellmeyer & Associates said that many companies get in trouble because they don’t follow the corollary to Rule No. 1: Don’t confuse marketing with advertising.

“(Marketing) is everything from the sign on the door to how the person in front greets visitors to how the phone is answered,” Schilling said. “It’s sales, it’s the way you present yourself, your on-hold music, the advertising in the newspaper. Advertising is just a component of marketing. Marketing comprises everything.”

Rule No. 3

Budget appropriately – and be prepared to start early.

Schilling said that companies often have a hard time allocating the proper amount to marketing, because it’s hard to see the tangible effects of those expenses.

“Sometimes those are the hardest dollars to spend,” Schilling said. “Often times we’ll find out a company is expecting $5 million in sales, and they have a $25,000 marketing budget. That’s a problem.”

MSU professor Smith adds that the tangible measurability of Internet advertising is one reason it is growing in popularity. AdAge reports that Internet advertising in 2005 totaled $6.85 billion in 2005, up 21.3 percent from the previous year.

“If I put an ad on Google, and someone clicks on the ad and makes a purchase, I can track where visits are coming from,” Smith said. “That’s why the Internet has become a more popular tool – it’s more accountable than a 30-second ad on the news.”

Another common mistake new companies make, Schilling said, is waiting until after the business is “established” before beginning marketing.

“Don’t wait until there’s some issue of, ‘We’ve been open for six months, so we’d better start advertising,’” he said. “You have to plan ahead.”

Rule No. 4

Build the brand and be consistent.

Consistency of brand – from a consistent logo to common themes and messages in advertising – creates familiarity for customers.

“When you say Coca-Cola, you think cold and refreshing,” Nally said. “They’ve done a great job of carrying that message through for years. The brand is not just a name – it creates an emotion and experience. It becomes tangible.”

Consistency also includes not being swayed by the competition.

“While I think companies should be concerned with their competition, they get overly concerned with reacting to their competition,” Nally said. “They change their game plan and start chasing. If you stay consistent and work your plan, people will notice you. If you constantly mix your messages, people won’t know what to think.”

Marlin, however, said that companies also should be willing to remain flexible as the audience changes.

“You’ve got to be consistent, but you also have to be aware that the market changes and you have to adapt to those changing needs,” he said. “Keep the consistent message but adapt the focus to a changing marketplace.”

Consistency of brand also allows for what is still the most effective form of marketing: word of mouth. Nally said company owners need to make sure their friends, associates and potential customers know who they are and what they do because those people tell their friends.

“The power of word of mouth when you do something wrong is so much stronger than when you do something right,” Nally said, referring to the old axiom that 10 people will tell someone else about something you do wrong, while only one will tell people about something you do well. “People shouldn’t be afraid to toot their own horn to counteract that.”

Rule No. 5

Don’t underestimate the importance of marketing.

Nally points out that many businesses facing a need to cut budgets often start with the marketing department – which only makes the job harder and more expensive down the road.

“I do believe you can buy top-of-mind awareness,” she said. “But the longer you’re out of the market, the more it costs to get back in the market.”

In the end, Schilling said, the issue is priorities.

Companies often put other aspects of the business ahead of its own image, which leads to problems.

“I tell my clients, ‘If you’re spending more on furniture than you are on marketing, you’re in trouble,’” Schilling said. “And that happens a lot.”