September 2007 Edition

MARKETING

Make the Right Investment in Marketing

Effective marketing is as important to a shop's success as having the right machines

By Steve Cooper

For such an important factor in the success of a business, many shop owners don't have the appreciation of marketing they need.

Marketing and advertising are not the same. Although it's the most visible function of marketing, advertising is a subset of marketing. Sales, research, and pricing are just as important as advertising in a successful marketing plan.

At some companies, marketing is a part-timer duty; at others it is handled by a dedicated staff. In most job shops though, the president, owner, or general manager handles marketing on an informal basis in a catch-as-catch-can manner, often pushed to the bottom of the priority list as other, more pressing daily duties take precedence. Besides daily operations, ego, greed, jealousy, and sometimes sibling rivalry can take precedence over marketing.

Unless a shop is the single player in the market, it must rise above internal issues and make marketing as important as operations.

Marketing is the same for all businesses: it's the science of attracting and meeting the wants and needs of customers with competitive pricing, while covering costs and retaining profit. While simple, it's the backbone of business.

Strategic Planning

Successful marketing means gathering information about the company, its competitors, the industry, the economic environment, and then using those factors to develop a strategic plan. Good marketers gather as much information as possible, condense it, and make decisions based on what they've learned in order to grow their business. To beat the competition, a shop must do its homework.

In most cases, a shop doesn't have the time to devote to marketing. Management is usually too busy running the shop, taking care of equipment, and keeping quality employees. When a marketing idea does occur, it can vaporize the moment a key employee gets sick or a vital piece of equipment goes down.

A successful shop owner either makes time for marketing or assigns it to a key person. Assign it too far down the "food chain" and marketing looses importance. Keep marketing in the daily operation of the company. Creating a new marketing project every week isn't necessary, but a shop should keep its marketing plan in plain sight.

Start with the basics, the business name and identity. A company name like "Steptoe and Sons" may stroke the owner's ego, but it tells potential customers nothing about what the company does. A change to "Steptoe Machining and Manufacturing" provides both an identity and a purpose. A company logo — a graphic representation of the business — should tell viewers immediately the business' purpose.

Re-evaluate the company name and image. It may be necessary to spend a few dollars on a clean, simple logo. Then, make sure the branding carries across the business on the sign, business cards, letterhead, and any other item that presents the business to customers.

Look Big to Be Big

Look big. The logo, signs, business cards, print ads, and literature should make the company look large and professional. Create the idea in customers' minds that the company owns the market.

Use advertising wisely. More people see billboards — even small ones — than see newspaper ads. For specialty businesses, such as shops or contract manufacturers, advertise in the trade publications that customer decision makers read. Keep the message simple, clear, and to the point.

Most small companies are unaware of the gold mine of information already on hand: customer records. Customers are the best source of future business. Meet their needs at a competitive price and they will come back. Don't be reluctant to ask them to recommend the shop to others or ask for referrals.

Don't be content with a satisfied customer; follow-up strategies, such as a "thank you" letter within 15 days, will keep the shop name in the forefront. A service survey will not only remind customers of their last transaction, but will aid in determining a customer's future needs. It costs more to develop new customers than to cultivate current ones for future business.

Vary the Mix

While "don't put all of your eggs in one basket," may be a cliché, it has an underlying truth. In formulating a marketing strategy, apply marketing dollars to a range of projects. What are current and potential customers reading, watching, or listening to? Create a marketing mix that uses the full spectrum of media and prioritize marketing projects according to where the best return will be.

Just because the local newspaper is running a special section with great pricing, it doesn't necessarily mean it's a good fit. If the marketing expense doesn't fit the plan, say "no." It's no deal if the message isn't reaching the right target.

Some shops make the mistake of thinking every dollar they spend must provide a two-fold return in 30 days. That's rarely the case. Marketing must provide a return on investment, but it is a long-term investment. Marketing dollars well spent will draw business for years.

Steve Cooper is vice president of White House Marketing, Inc., Lakewood, OH

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What do you think?
Will the information in this article increase efficiency or save time, money, or effort? Let us know by e-mail from our website at www.ModernApplicationsNews.com or e-mail the editor at pnofel@nelsonpub.com.