So often people delve into advertising their business, without much thought to the process. This not only a huge waste or precious $$, but it leaves your business vulnerable to cash flow problems. Taking the time to research exactly who your most profitable customer is, will ensure you receive a higher return on your advertising investment.
- How many products or services do you have? Is it 1-2, or 30-40? Write them all down individually.
- Write down who buys each product. It’s ok to overlap a few people here. Try to make it as detailed as possible. For example, mothers with children 0-2 yrs, men who like golf, etc, rather than mothers and men. The more detailed you can get it, the more profitable your advertising can be!
- Work out your profit margin for each of your products. For example, how much would you make if someone bought your product. Again, the more detailed you can get, the better.
- Take your top performing product and have a look at who buys this. You may have more than one type of person on that list. Choose one person to start with, and think about the type of person they are. Do they shop online, do they read magazines- if so- which ones??
- Do lots of research!! Find these people and ask them! Ask them what type of magazines they read, ask if they prefer to shop online of offline etc. Don’t try to skip this step; otherwise you will be flying blind in your advertising. These have now become one of your target markets. Do this for all of those who purchase your products.
- Once you know more about them, you can start looking around for places to advertise. Don’t be tempted to go for the cheaper option- always make sure that it is getting directly in front of your target market
- Start with one product at a time and one customer type at a time. Always start with your most profitable product or service, and this will ensure you get a higher return on your advertising investment.
Today’s guest blogger is Emma Rhoades.
Emma owns advertising business Diva Promotions. She aims to give women with their own micro business highly targeted, cost-effective advertising campaigns. Visit www.divapromotions.com.au today to book into your next campaign and start growing your business! Emma can be contacted via the website, admin AT divapromotions DOT com.au or 1300 76 36 76.
#1 by Steve Gray on October 11, 2007 - 8:35 pm
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Great article Emma, lots of great points to consider for the new to business or those who have been in it a while, well done!
#2 by Stacy on May 9, 2011 - 2:09 pm
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How true, many of us do skip that research bit. Most times we just go along with whatever we feel like advertising when we should have done research first. These tips will certainly go a long way in helping any company to advertise effectively.
#3 by Dan on May 17, 2011 - 4:17 am
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Well said Emma,
I would say that 9 out 10 the reason a business flop is due to a lack of research or not being through enough with the research.
As Sun Tzu would say,
“…if you know your enemies and know yourself, you can win a hundred battles without a single loss.
If you only know yourself, but not your opponent, you may win or may lose.
If you know neither yourself nor your enemy, you will always endanger yourself.