Marketing mistakes small businesses need to avoid

Marketing is critical to the success of every business but can be a life or death struggle for a small business. Unfortunately, many small businesses discount the effect it can have and they forgo marketing because they believe they cannot afford it or simply do not have the time or energy to create a plan. This is often why a high percentage of small businesses fail. But you do not have to be a statistic when you approach marketing with the importance it deserves. Here are some of the most common marketing mistakes small businesses make.

• Not developing a marketing plan-Most small businesses are understandably eager to see a return on the investment of time and money they have made in their business. Ready to start cashing in, they either hit the pavement running or they may hire a salesperson to do it for them. But a small business trying to sell a service or product, without first creating a marketing plan, is very much like a marathon runner with no finish line. At first, it may seem like you are moving forward and passing some of your competitors by, but sooner or later these small businesses find themselves running in circles; frustrated, exhausted and sadly disillusioned by an idea that not too long ago created the exact opposite effect. So what is a marketing plan and why create one? You should create a marketing plan because it is the foundation of your business and it helps you design your product and service, identify your target audience, and provide a roadmap to head you towards your final goal of success.But just as important, a marketing plan provides the specific details needed to increase visibility, expand your customer base, and provide quantifiable methods to measure your return on investment.
• Not planning a marketing budget-Most businesses without a marketing plan also lack any marketing budget. And statistics show that small businesses without both have the highest rate of failure. If you own a small business, this can all be avoided by simply creating and living with a well-conceived marketing budget. While you are writing your Marketing Plan, it is also important to focus on the financial costs of implementation. Many financial experts recommend at least 10% of your revenue should be designated for your marketing efforts. That means that you set aside dollars specifically pinpointed for Web site design and maintenance, logo design and brand development, marketing collateral, both print and electronic, and paying someone,(if you do not have the time, skills, or desire to do so), to handle all of your Public Relations needs. You should also make sure when allocating money for marketing that you also have a means for tracking your ROI. If your ROI is low after several months of trying a particular strategy, then you must go back to your marketing plan and look at trying something different. If your ROI is high, you can stay with what is working, but go back to your plan and budget and accelerate to the next phase.
• Not targeting a specific target market-It is important for small businesses owners to realize that they cannot be everything to everyone.That is why identifying your target market is so critical to your success. This way you will know exactly who your true customer really is.Knowing who your target market is, is also critical to choosing the appropriate marketing techniques that will reach potential customers.Knowing who your target market is and how to best reach them (internet, direct mail, trade publications etc.) will mean the difference between success and seeing your products wither on the shelf.