10 Ways to Stretch Your Marketing Budget
Free Book Preview Entrepreneur Kids: All About Money
Most small businesses have modest marketing budgets, which means you have to make every dollar count. Here are 5 ways to get big results from a small budget:
1. First, use your ads for more than just space advertising. Ads are expensive to produce and expensive to run. But there are ways to get your advertising message in your prospect's hands at a fraction of the cost of space advertising.
The least expensive is to order an ample supply of reprints and distribute them to customers and prospects every chance you get. When you send literature in response to an inquiry, include a copy of the ad in the package. This reminds a prospect of the reason he responded in the first place and reinforces the original message.
Distribute ads internally to other departments--engineering, production, sales, customer service and R&D--to keep them up to date on your latest marketing and promotional efforts. Make sure your salespeople receive an extra supply of reprints and are encouraged to include a reprint when they write to or visit their customers.
Turn the ad into a product data sheet by adding technical specifications and additional product information to the back of the ad reprint. This eliminates the expense of creating a new layout from scratch. And it makes good advertising sense, because the reader gets double exposure to your advertising message.
Ad reprints can be used as inexpensive direct mail pieces. You can mail the reprints along with a reply card and a sales letter. Unlike the ad, which is "cast in concrete," the letter is easily and inexpensively tailored to specific markets and customer groups.
If you've created a series of ads on the same product or product line, publish bound reprints of the ads as a product brochure. This tactic increases prospect exposure to the series and is less expensive than producing a brand new brochure.
If your ads provide valuable information of a general nature, you can offer reprints as free educational material to companies in your industry. Or, if the ad presents a striking visual, you can offer reprints suitable for framing.
Use your ads again and again. You will save money--and increase frequency--in the process.
2. If something works, stick with it. Too many marketers scrap their old promotions and create new ones because they're bored with their current campaign. That's a waste. You shouldn't create new ads or promotions if your existing ones are still accurate and effective. You should run your ads for as long as your customers read and react to them.
How long can ads continue to get results? The Ludlow Corp. ran an ad for its erosion-preventing Soil Saver mesh 41 times in the same journal. After 11 years it pulled more inquiries per issue than when it was first published in 1966.
If a concept still has selling power but the promotion contains dated information, update the existing copy--don't throw it out and start from scratch. This approach isn't fun for the ad manager or the agency, but it does save money.
3. Don't over present yourself. A strange thing happens to some entrepreneurs when they get a little extra money in the ad budget: they see fancy four-color brochures, gold embossed mailers and fat annual reports produced by Fortune 500 firms. Then they say, "This stuff sure looks great--why don't we do some brochures like this?"
That's a mistake. The look, tone and image of your promotions should be dictated by your product and your market--not by what other companies in other businesses put out.
Producing literature that's too fancy for its purpose and its audience is a waste of money. And it can even hurt sales--your prospects will look at your overdone literature and wonder whether you really understand your market and its needs.
4. Use "modular" product literature. One common advertising problem is how to promote a single product to many small, diverse markets. Each market has different needs and will buy the product for different reasons. But on your budget, you can't afford to create a separate brochure for each of these tiny market segments.
The solution is modular literature. This means creating a basic brochure layout that has sections capable of being tailored to meet specific market needs. After all, most sections of the brochure--technical specifications, service, company background, product operation, product features--will be the same regardless of the audience. Only a few sections, such as benefits of the product to the user and typical applications, need to be tailored to specific readers.
In a modular layout, standard sections remain the same, but new copy can be typeset and stripped in for each market-specific section of the brochure. This way, you can create different marketspecific pieces of literature on the same product using the same basic layout, mechanicals, artwork and plates. Significant savings in time and money will result.
5. Use article reprints as supplementary sales literature. Marketing managers are constantly bombarded by requests for "incidental" pieces of product literature. Engineers want data sheets explaining some minor technical feature in great detail.
Reps selling to small, specialized markets want special literature geared to their particular audience. And each company salesperson wants support literature that fits his or her individual sales pitch. But the ad budget can only handle the major pieces of product literature. Not enough time or money exists to satisfy everybody's requests for custom literature.
The solution is to use article reprints as supplementary sales literature. Rather than spend a bundle producing highly technical or application-specific pieces, have your sales and technical staff write articles on these special topics. Then, place the articles with the appropriate journals.
Article reprints can be used as inexpensive literature and carry more credibility than self-produced promotional pieces. You don't pay for layout or printing of the article. Best of all, the article is free advertising for your firm.
6. Explore inexpensive alternatives for lead generation, such as banner advertising, organic search and PR. Many smaller firms judge marketing effectiveness solely by the number of leads generated. They are not concerned with building image or recognition; they simply count bingo-card inquiries.
New-product press releases lead the list as the most economical method of generating leads. Once, for less than $100, I wrote, printed and distributed a new-product release to 100 trade journals. Within six months, the release had been picked up by 35 magazines and generated 2,500 bingo-card inquiries.
Post all your press releases in a media or press section of your website. Optimize your press releases with key word phrases to draw more organic search traffic.
7. Do not overpay for outside creative talent. Hire freelancers and consultants whose credentials--and fees--fit the job and the budget.
Top advertising photographers, for example, get $1,000 a day or more. This may be worth the fee for a corporate ad running in Forbes or Business Week. But it's overkill for the employee newsletter or a publicity shot. Many competent photographers can shoot a good black-and-white publicity photo for $200 to $250.
When you hire consultants, writers, artists, or photographers, you should look for someone whose level of expertise and cost fits the task at hand.
8. Do it yourself. Tasks such as distributing press releases or creating simple squeeze pages can usually be done cheaper in-house than outside. Save the expensive agency or consultant for tasks that really require their expertise.
If you do not have a marketing manager or assistant, consider hiring a full-time or part-time administrative assistant to handle the detail work involved in managing your company's marketing. This is a more economical solution than farming administrative work out to the agency or doing it yourself.
9. Get maximum mileage out of existing content (text and images). Photos, illustrations, layouts and even copy created for one promotion can often be lifted and reused in other pieces to significantly reduce creative costs. For example, copy created for a corporate image ad can be used as the introduction to the annual report.
Also, you can save rough layouts, thumbnail sketches, headlines and concepts rejected for one project and use them in future ads, mailings and promotions.
10. Pay your vendors on time. Why? You'll save money by taking advantage of discounts and avoiding late charges when you pay vendor invoices on time. And, you'll gain goodwill that can result in better service and fairer prices on future projects.