The Ultimate Small Business Marketing Guide of 2020

You know you need to market your small business, but how?

You might think word-of-mouth and shares on social media is all you need. But you can’t get past the desire to reach a wider audience and grab a bigger share of the market. And if you’re new to small business marketing, you’re concerned about mistakes, return on investment, and how to stretch your limited funds.

In this guide, I’ll share marketing recommendations for small businesses. The suggestions cover free marketing tactics, effective online marketing strategies, and eight small business marketing mistakes to avoid.

Why small business marketing?

You may wonder why you need to market your small business. The simple answer is to get the word out about your company. Although you may have the perfect solution to an existing problem if no one besides you knows about it, what’s the point? 

The most common concern small business owners have about marketing is their inability to compete against larger companies with huge marketing budgets. But the Internet has leveled the playing field for anyone to compete, regardless of their marketing budget.

Marketing a product is not the same as selling a product. When you sell an item, you make a profit and you recover the costs associated with acquiring the product. Another reason owners are hesitant about marketing is the lack of an immediate gain. However, people aren’t buying products or services unless they know about them.

You also don’t want to throw money into marketing efforts without a logical plan for what you’re trying to accomplish. 

For each marketing strategy, there are techniques to follow and metrics used to measure results. For instance, success on Social Media is typically measured by the total number of likes and shares. Data collected from Google Ads will refer to metrics such as click-through, or conversion rates; and Content Marketing is measured by the number of subscriptions or new registrations. 

As engagement among potential clients increases, so does your chances of seeing a positive return.

Your target audience determines the best way to market your small business. If you’re trying to reach baby-boomers, more than likely, they’re not snapping pics and sharing the latest filters on Snapchat. That would take using a smartphone, which brings up another reason to know your audience. 

An ideal place to start is to establish your unique selling proposition. You need to articulate why your company exists and why I should want to do business with you. Ever heard of the elevator speech?

Self-promotion builds your brand message and explains why your company is different.

Self-promotion = marketing your small business

Yes, you get permission to toot your own horn. Let’s face it, no one knows your product or service better than you. So identifying your unique selling proposition is a great place to promote your products and services. No one cares what you’re selling unless it solves a problem. 

The better your brand relates to your potential buyers, the higher the likelihood they’ll become loyal customers. So Your messaging needs to be specific about your company and how you provide cost-effective solutions to their challenges. This is also your chance to separate yourself from the competition.   

Word of mouth is the cheapest form of advertising, so the easier your customers can relay your brand message, the better. Brand recognition enhances your marketing and increases the overall ROI.

Small business marketing doesn't have to break the bank

Large companies have large budgets for advertising. So their marketing executives wouldn’t stress about spending $1000 on advertising, but for small business owners, that may not be an option.

Fortunately, you can execute an effective marketing strategy for as little as $100. If you’ve never created a marketing plan, you’re wondering where to start, right? 

A budget is essential to outlining costs. So start with a budget for your marketing strategy. Don’t be afraid to be generous. It's better to overestimate marketing costs than it is to miss out on opportunities because of a hundred dollar shortfall.

To control costs, you must be intentional, and it's never a good idea to use what’s left after other expenses to pay for marketing. For example, businesses that do less than $5 million a year will allocate 7 - 8 percent to cover the costs for promotion, collateral, brand development, and events. 

No doubt reaching your business goals is important to you. Therefore your marketing budget should align with and support your business goals. 

Answer the following questions to base your marketing budget on the goals of your business: 

• What are your primary business objectives for the year? How about for the next two years?
• What are your objectives for the current quarter?

Steps to your small business marketing plan

• Set Goals
• Establish Key Performance Indicators (KPI’s)
• Determine the benchmarks to Analyze the Results 

Goal setting can sometimes be intimidating, so make a game of it. Let’s say your goal includes; increase web traffic by 20%, conversions by 50%, and newsletter subscriptions by 10%. Use those benchmarks as targets you’re striving to hit, and focus on those daily.

The strategy you incorporate depends on your target audience and the data collected from marketing research. 

A Key Performance Indicator is a measurable value that shows how effective your company is at achieving key business objectives. 

Key Performance Indicators are measured in several ways, such as

•  Website visits per month 
• The time a visitor remains your website 
• New subscriptions each month
• The number of webinar registrations

If you don’t measure it, it can’t be improved.

Marketing success or failure comes down to tracking and analyzing data. 

The simplest way to read a map is to figure out where you are (current situation). Afterward, you can determine how to get to your desired destination. Therefore, your defined goals will act as a ‘roadmap’ and assist you with data analysis.

By definition, data analysis is a means of inspecting, transforming, cleansing, and modeling data with the goal of uncovering useful information. That information helps develop conclusions and supports decision-making.

We can compare analytic tools to the instrument panel on our vehicle’s dashboard. You can check your fuel level, oil pressure, and water temperature at a glance. The right tools provide quick access to key indicators for your business. 

Marketing does not happen by accident, you need a strategic plan.

The marketing plan serves as your blueprint for building the next phase of growth for your business.

How to create a small business marketing plan that doesn't stink

The marketing plan is a significant part of your overall business plan. Most importantly, the plan identifies your target audience, and it defines your marketing research objectives. 

A marketing plan is not as important as getting investors and funding, but it can help you come up with a strategy and keep you on track. 

The most successful marketing plans include these essential elements:

• Description of your service or product
• Market analysis
• Pricing details
• Advertising plan
• Marketing goals and objectives
• Marketing budget

The goal is to position your company as the go-to solution in the marketplace. Marketing research reveals the challenges your potential customers face and their points of frustration. The research data also uncover failed marketing attempts and minimizes investment risk.

Additional Benefits of Marketing Research 

• Create an effective pricing strategy that adds value to the customer
• Understand the marketplace and your competition
• Realize emerging trends
• Identify potential threats and opportunities

The benefits of marketing research outweigh the investment, saves frustration, and you’re better equipped to weather marketplace fluctuations.

Effective Small Business Marketing Strategies

The ‘one-size-fits-all’ marketing strategy doesn’t exist. So your marketing strategy needs to be as unique as your brand. 

At first glance, the suggestions may feel overwhelming, and that’s okay. Focus on three to five options to get started and build your confidence.

Online Small Business Marketing Strategies 

The top online marketing strategies help companies take advantage of the growing number of consumers that use the internet to research products and services before making their buying decisions. 

Some of the most common types of online marketing are: 

• Search engine optimization (SEO): Google rules the search engine space. According to Google’s recommendations, an optimized website means the potential to rank on page one of search results. Ranking on page one requires good content, and relevant keywords.
• Pay per click (PPC): Advertisers pay a fee each time someone clicks a link in one of their ads. So they’re paying to drive traffic to their site, or landing page. Keyword research is critical to get the best return on PPC advertising. 
• Facebook Advertising: Facebook gives you access to over 2 billion people. Those who are engaged on social media are in their cheerful place and are more receptive to brands. The cost-effective strategy is a good investment considering that 84% of online shoppers visit at least one social media site for recommendations before shopping online. 

• Retargeting: Have you ever wondered how that shirt you checked out last week continues to show up on every website you visit? Spooky, huh? No, it’s not you. Re-targeting keeps your products and brand in front of recent visitors to your website. That’s good news since only 2% of website visitors complete a purchase during their first visit.           
• Referral Marketing: Referral programs are effective at attracting more customers. Everyone likes discounts and free stuff. Reward your customers for recommending new clients.
• Email marketing: The power of automation allows your email campaign to work while you sleep. And you can expect to earn a return of $51 for every $1 you invest. 
• Social media marketing: Every second of every day, eleven new people use social media for the first time. So that’s one million new users every day. Regardless of your target audience, marketing on social media gives your access to an ever-increasing audience.

• Content marketing: Content marketing is not the humorous posts found on social media, but well-researched and informative articles. The content is published as blog posts, infographics, or videos. Content marketing is useful for a long term strategy because it continues to influence people’s thoughts and actions long after their encounter with it. 

Now you might ask, ‘‘what if I want to take advantage of local marketing strategies?’ 

Brilliant question.

Local marketing is any strategy that targets customers in a specific location such as a neighborhood or city.

Local Small Business Marketing Strategies 

Small businesses use such strategies to reach customers closest to them to develop relationships and conserve resources. 

Even though local marketing results are not as available as digital, analyzing and measuring results is still recommended. Local marketing strategies include:

• Events: Hosting an event doesn't have to be a big production and could draw a crowd. You could plan your event on the same day as a holiday, like Small Business Saturday. You could set up a table outside of your store, pass out coupons, or invite people to take part in a raffle.
• Local media marketing: Submit a press release to the local paper when you reach a milestone, or to announce new products.
• Distribution: Create partnerships with other small businesses, i.e. a flower shop may partner with a wedding planner and videographer.
• Promotion: Get a local celebrity to endorse and pitch your services or products.
• Sponsorships and community involvement: A donation to the little league baseball organization could mean your business is mentioned several times during each game.  

8 Small Business Marketing Mistakes to Avoid

What could be better than learning from your mistakes? 

To learn from the mistakes of others. 

The Internet gives you access to tons of expert advice and case studies, however, here are some of the biggest mistakes you DO NOT WANT to make:

No Website

Considering that 97% of consumers conduct online research before making a purchase, and eight out of ten people will go to a company’s website before visiting the store in person. So not having a website could be fatal. Don’t allow not knowing where to start cause you to miss lucrative opportunities. You can take advantage of several free website builders and get started today.

No marketing plan

Someone once said, when you fail to plan, you’re planning to fail by default. The marketing plan gives you a defined guide to help you achieve your ultimate business goals. Without a marketing plan, it’s like trying to drive a vehicle without a steering wheel. Without information like target audience behaviors and marketplace trends, you can lose out on opportunities.

No tracking

The only thing worse than not having a marketing plan is not tracking results. Not tracking results blinds you to what’s effective and how to make improvements. Unless you have money to burn, track your marketing results to pinpoint weak areas and gaps in your marketing.

No Idea & an unrealistic budget 

Short-sightedness results in an unrealistic budget. If you think $500 a month covers the eCommerce site, social media marketing, and new sales materials, you’re wasting your time. Since you’re relying on digital marketing to increase revenue, consider investing in marketing like you’d pay a top salesman. 

Not studying the competition 

How do you define your unique selling proposition and not know your competition? It’s never been more challenging to distinguish your company from others. You don’t want to be mistaken for a company with a poor reputation. And even one with a great reputation could mean you’d lose more business to them if your target audience doesn’t know the difference.

Not recognizing the importance of social media

Do not underestimate the power of social media marketing. Social media users grow by one million every day. Invest the time to research which platforms your target audience hangs out on. Keeping in mind that platforms like Instagram and Facebook are an effective means of gaining momentum.

Not knowing your audience 

Not knowing your audience is like not having one at all! By defining your target audience, you uncover opportunities that might have been lost. The insight provides a starting point for where to communicate your unique selling proposition. And since you understand how to solve their problems, potential clients are more receptive. 

Not considering your current customers 

It’s more cost-effective to maintain a customer than it is to acquire a new one. Conduct ongoing customer surveys to find out how to keep your customers loyal to your brand. Send out a monthly newsletter to your existing customer base and include company news, updates, product reviews, promotions, and customer testimonies. As a consumer, we remain loyal to brands that meet our needs or make life easier. We are also more inclined to recommend those brands to friends, family, and colleagues.

Mistakes increase your experience and wisdom, they also empower you to make better choices. Mistakes are essential for growth. Don’t beat yourself up. Success is built on mistakes.

To help avoid making mistakes, start with asking the right questions.

FAQ

How can I market my small business for free?

The better question is, how can I be more cost-effective while marketing my small business?

I recommend using the following suggestions as a supplement your overall marketing strategy: 

• Content Marketing

Content marketing is a strategic approach to creating and distributing relevant and consistent content to attract a defined audience. The purpose is to drive profitable customer action. Instead of pitching a product or service, you deliver information that adds value and helps your buyer become more intelligent. So the expectation is by providing consistent valuable content to buyers, they will reward you with their business and loyalty. 

The value of good content cannot be overstated. Relevant content is the easiest way to engage potential customers. The goal should be to wow your audience with great content on your About Us page, blog posts, and the Services and Products pages of your website. 

• Search Engine Optimization (SEO) 

Google rules the search engine space, and SEO drives ranking results on Google. Not sure how to approach SEO? Check out this handy guide for beginners.

SEO is the practice of increasing the quality and quantity of traffic to your website through organic (non-paid) search engine results.

• Press Release 

Anytime your business does anything newsworthy, brag about it in a press release. PR’s are powerful media tools to help generate publicity, and there are several free distribution services to help. To get started, we suggest you check out PRLog.

• Networking & Industry Events

You’re already using social media to grow your online network, in-person events allow you to make personal connections. People prefer to do business with those they trust, and it's a great way to get referrals. Check out the calendar of events for your local chamber of commerce and other business networking organizations.

Here are a few small business marketing ideas to start with

Google My Business

GMB is an effective way to promote your business, to your local audience. GMB is free, and it gives your company immediate local credibility and visibility. You have control over the information that Google users find when they search for your business. When people find you on Google maps, they get access to your website, hours, and street address.

Email Marketing

Most of your website visitors don't become customers on their first visit, so ideally you’d capture their email address. One way to get their email address is to capture it with a lead magnet. A lead magnet is a fancy way of saying, a compelling offer. Such as a free report, an invitation to a webinar, or a coupon. This can be used to nurture them until they’re ready to buy from you.

Facebook Advertising

Over two million small-to-medium-sized businesses use Facebook to advertise their business. Because it's a strategic and cost-effective way to reach your target audience. The basic recipe for excellent results is; a good headline, a few descriptive lines of text, an image, and a link.

Four key elements of small business marketing

The right marketing mix will guarantee success with your audience, like the perfect blend of your morning coffee. If you cannot get the mix right in either case, it leaves a bitter taste in your mouth.

What is in the marketing mix? The 4 Ps. Pricing, Promotion, Product, and place;

Product:  Start by figuring out what you’re marketing, so you can determine the rest of the Ps. The product is more than what you’re selling, it includes:

Company image

Value

After-sale service

Brand name

Pricing: The quickest element to change, but to cover your costs and profit margin, you need to consider:

Material Costs

Product value

Market conditions

Competitor pricing

Promotion: This is how you’ll persuade, inform, and remind potential customers of a product. To bring your product to your customer’s attention, we recommend the following methods:

Sales promotion

Advertising

Public relations

Personal selling

Place: When deciding where and when your customers will buy your products, here are a series of questions to consider:

Who are your potential customers?

How do they buy?

Where do they buy?

What do they buy?

The perfect small business marketing mix does not exist. Yet, you can copy what others have done, learn from their mistakes, and create the perfect strategy for your unique situation. 

Put your small business marketing strategy to work and reach your next level of growth

Effective small business marketing opens the door to new opportunities.

The importance of marketing cannot be overstated, however,if you don't know where to start it easy to dismiss. Don’t let the fear of mistakes hold you back.

Just remember, no one starts with all the answers, so step out and go for it!

Take what you’ve learned, define where you want your business to be in the next five years, then break it down by year. Take advantage of the resources to craft a marketing plan based on your business goals. And be ready to tweak some things along the way. 

 Nothing adds a sense of pride than reaching your goals. Imagine reflecting on the prior five years and knowing you stepped out and did it.