How Effective is your Small Business Marketing Strategy?

The Dunning-Kruger effect is an interesting phenomenon in which the more incompetent a person is, the more he thinks he is adept, efficient and qualified. Don’t get me wrong, I’m not saying that you’re incapable. I don’t know what your situation is. I am merely sharing the information and pointing the effect out so that you know it is possible that you might be wrong in assessing your success. This might or might not be the case for you, but I think it’s always good to question one’s effectiveness and marketing is one of those fields where doing so yields the most favorable results.

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Many companies have been brought down by bad marketing strategies and ignorance induced arrogance. I’ve seen it happen time and time again and I am here to help you avoid it. So how effective is your small business marketing strategy?

Evaluation

Whether you’re running a small business or a large corporation, numbers never lie, and far as marketing is concerned, this is good news. You need to evaluate your marketing strategy in retrospect and see what has worked in the past and what hasn’t. For example, if a promotion in your store led to higher sales, that was a success. If reduced prices have resulted in a higher purchase rate and consequently in higher revenue, then that was a success. If nobody’s noticed your promotion or the sales of a product you’ve launched with a certain ad were low, then the marketing decision was bad. Try another ad and see what happens. If the result is the same, then perhaps the problem is in the product.

You have to learn from your mistakes and adapt but in order to do so, you need to measure the success or failure in numbers. If a strategy doesn’t seem efficient enough, change it. Let me give you an example. When the Playstation 3 was launched in 2006, Sony faced numerous problems. The marketing was from bad to worse and they could hardly figure out what was wrong. The price was too high and they had to compete in an already established market, as the Xbox 360 was released exactly a year before that. However, with a change in their marketing, listening to public feedback and price cuts, the console was back on track and as of May 2013 had outsold the Xbox 360, even though it was released a year later.

Execution

Realizing what’s wrong is the first step toward fixing it, but it’s not the only one. You have to also execute the changes properly. Learn from your mistakes, as well as from your competitors, but don’t think that just because something works for them, it’s going to work for you just as well. Careful marketing moves taken by competent people who have done their jobs and have studied the market are paramount for the success of any marketing strategy. You should know your customers and make sure that you’re selling is going to reach them with a clear message.

One of the biggest mistakes you can make is rushing things. Everything has to be studied carefully in order for your marketing strategy to succeed. This process has to be lead by people who know the market and the customers, so they know how to reach them properly. Don’t try to save a few bucks in favor of cheap marketing gimmicks or bad improvisations. Here is an example of a marketing fail. In 1986, Silo, discount appliance chain, had to sell a large quantity of stereos at very low prices, so they needed something catchy in order to get the viewers’ attention and eventually sell their merchandise. So what they decided to do was to tell people they were selling stereos for the cost of 299 bananas, meaning dollars. You can probably understand the confusion that arose when people literally thought they could buy a stereo for 299 bananas (worth about $40). So numerous customers showed up to claim their stereos in exchange for their bananas. As you can see, this was a bad idea, with even worse execution and not even taking into consideration the fact that many people might take their ad literally. This is what you don’t want to do. Carefully evaluate and execute your marketing strategies and you will be well on your way to running a more successful business.

About July Minor

July Minor is marketing manager of Quality Cleaning London Branch and loves her job. In her free time she reads educational articles related to marketing and shares all her knowledge with her readers