When you start a new business, especially a small business, you will have nightmares about two areas:

• Obtaining new business
• Continuing sales through existing customers

The answers to these problems are commonly misunderstood. Most new entrants into business will answer both the above questions with "advertising". The problem with this answer is that advertising is only one part of many options that can be used to obtain new custom, and maintain sales from your existing customer base. To be successful in business you need to understand 'marketing'.

What is Marketing?

Marketing comprises a number of disciplines:

• Direct Mail/Marketing
• Telemarketing
• Printing
• Exhibitions
• Survey/research
• Internet Web Site
• Design
• Public Relations
• Photography
• And 'Advertising'

An example: you took a space at an exhibition to show your range of wares, as promoted on your web site to improve your public relations and sales, you had some leaflets designed and printed that advertised your goods through photography. You ask each visitor a few survey questions about industry, product and needs. At the exhibition you sought leads for a direct mail and telemarketing campaign.

You get the point.

What the above scenario is saying is that:

• You went to an exhibition where you knew your potential customers would be
• You accepted that the exhibition is as much about building your company's public relations and brand, as gaining sales
• You designed your leaflets specifically for the attendees of that exhibition
• You ensured that interested parties who came to you had quality printed photographic advertising and a way of contacting you
• You gained valuable network contacts, and customer/client names for your mailing list
• You sought information to help plan ahead to meet industry and customer needs
• Your time at the exhibition left everyone with a good feel about your business standards and wares

This scenario is not just for business's that have large marketing budgets. Your local business or industry group (and they are there wherever you are in the world) run a number of affordable exhibitions. As long as you can accept that attending an exhibition is an unbeatable opportunity for feedback, and not just about imminent sales.

Marketing is also about knowing yourself and your potential and existing customer. If you fail to understand what type of customer buys your goods you cannot market your goods to them: you then end up buying advertising space in general publications with little prospect of a return for your investment. If you do not understand what you are good at, and what you are not so good at, you cannot adjust or compensate your actions. The greatest craftsmen will not be successful if they are terrible are pricing their wares. Likewise, if you cannot communicate you will fail to sell in sufficient numbers.

If you are willing to invest in a serious marketing campaign (relative to the size of your business) and you feel that you lack knowledge and experience in any area, you must accept the need to involve professionals:

• You could decide to get a design agency to add their expertise to your direct sales talents.
• Buy targeted direct mailing lists and use your telemarketing skills to back up the mailing.
• Get an agency to identify your target customer and use your design and communication skills.
• You design and mail out your sales literature and use a telemarketing company to follow up your mailings after two to three days.

You do not need to totally outsource your marketing campaign. It is most important that you have control of output and costs.

The best small business marketing strategy is to allow a 'few' hours every week to:

• Talk to existing customers
• Talk to past customers
• Talk to possible customers (talk to at least 10 of the above [in total] per week)
• Send all the above your latest offers
• Check out what your competitors are doing - talk to them (openly or covertly)
• Talk to your staff
• Find out what is the latest technology and advances are in your industry
• Look out for opportunities to promote your product

What is an even better strategy is to spend that 'few' hours a week over the whole week, thereby, building marketing into your routine and spotting opportunities in 'real time'.

What is Advertising?

Advertising is placing a notice in a newspaper, magazine, periodical, or even on radio and television to mainly a general audience and with a general message "we sell cars for £******"

Advertising is totally wasted if you do not ask the reader to do something in response to what they are reading: the basis of this is that only a certain amount of people will be looking to buy a car, or whatever, at any one time. However, the reader will be interested in cars. A car advert that said "come down this Sunday and sit in a Ferrari", or "you look at our cars, and we will valet your car for free", will have much more impact. This type of advertising may not get you any extra sales immediately, but will eventually.

Simple advertising ("we do this, for that") is dead. Computers are sold with free software, printer's etc. Cars are sold with holidays, and even free cars! What the big supplier's marketing departments know is that the customer will look for a whole package of benefits with just about every sale (which is why we buy). The customer seems to want more than what is on offer: as such, simple advertising will not stimulate interest. If there is nothing in your advert that is interesting to your target audience your advert becomes two-day-old fish & chip paper.

Look through a publication about, say, computers and you will usually be able to spot the less professional advertiser: in this type of situation, if the advertiser could not afford a professional advert they should advertise in a less costly publication and spend the difference on design agency fees. Marketing has much to do with affordability as with quality: balance the two, but not to the detriment of either.

Where to get the Knowledge

If you read a popular sales/marketing book (i.e. written for the novice) you will become sufficiently knowledgeable to avoid many costly mistakes. Ask the people around you who have/do run a small business (successful or not) if they have also read a book about marketing - I bet the answer is less than 1/10 that have: amazing, but true!

Marketing concepts and strategies change with world culture, with the Internet as the prime example. Business is not about survival, but about success. Successful business's both large and small adopt 'today's' marketing methods. It is far better to buy that book before you try to market your product: build your business plan on current marketing knowledge and customer trends.

Finally, if someone asks you if you advertise to get sales, you will say 'yes' but only as part of our marketing strategy!

DATA PROTECTION AND DIRECT MARKETING When the Data Protection Act 1998 came into force, on 1st March 2000, the Telecommunications (Data Protection and Privacy) Regulations 1999 came fully into force at the same time. These Regulations enacted the requirements of the European Directive on data protection and telecommunications. Those requirements were previously covered under the Telecommunications (Data Protection and Privacy) (Direct Marketing) Regulations 1998 and were in force from May 1999. What's it all about? Well, the main effect is to allow individuals to opt out of receiving unsolicited phone calls and/or faxes to their home numbers. They opt out by registering with the telephone and/or fax preference schemes. By a quirk in the system, businesses can opt out of receiving unsolicited faxes (but not phone calls). A business wishing to make an unsolicited call has to check to see if the recipient has opted out. They should ring: 01932 414 161. The Direct Marketing Association currently operate the register and can advise on the charges for list cleaning services. A business making unsolicited direct marketing calls will be acting illegally if calls are made to individuals who have opted out unless the individuals were not on the register at any point in the 28 days prior to the call.

© ROK Associates Credit & Debt Management Limited 2000

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