Increasing Your Sales
Unfortunately when things become ‘financially tight’
in a small or medium sized business, the first area to be reviewed
is the marketing budget. Many small or medium sized companies see
this as a luxury rather than a necessity. However, in larger companies
the reverse is the case. If the market is under pressure then the
larger company will increase it’s marketing budget. The main
reason for the difference is that the owners or managing directors
of the small and medium sized business do not understand fully the
meaning of marketing and therefore do not see the benefits that
aggressive marketing can bring to the company.
What is the Difference between Advertising and Marketing?
Lets take a closer look at the meaning of these terms:
Advertising
Advertising is choosing a medium e.g. television, radio, newspapers,
mail shots etc to promote a product, service or combination of both
to a receptive market for that product or service. Most advertising
is aimed at the end user but by no means all. The general idea is
to promote the product or service in its best light to attract a
potential purchaser.
Marketing
Marketing a product or service involves the following issues which
directly influence a buyer:
What is the product? A description of the product
or service very often including technical information. What are
the competitors products or services and has your product any
advantages over that of the competition?
Who is likely to purchase the product or service
and what is the best way to make those purchasers aware of the
product or service?
Where and by what method is the product or service
likely to be purchased?
Why are users of the product likely to purchase
this product instead of a competitors and are there any special
features which would induce a purchaser to buy this product or
service rather than that of a competitors?
When is the product likely to be bought by the
end user?
How much is the product or service to cost the
end user and, how are you to attract that business from your competitor.
So Why Do I Need Marketing?
It is quite rare to be in a rapidly expanding market place. Therefore
the only way to attract more business is to ‘steal’
the business from a competitor. Always bear in mind that the competitor
is trying to do the same to your company. In times of recession
or downturn in the market, then this competition becomes fiercer.
A good marketing plan is essential if you are to compete successfully
against other companies trying to increase their business revenues.
The marketing plan needs to be written bearing in mind the criteria
outlined above. With a good marketing plan in place and being used
correctly, then you are giving your company the best chance to succeed
where others will fail.
So, when things become ‘financially tight’ one of the
last area of expenditure to be reviewed is the marketing budget.
The best way to prevail against financial difficulties is to trade
out of them. This means increasing turnover and reducing costs.
To increase turnover you must attract more customers or sell more
(upsell) to existing customers. ‘Upselling’ can be difficult
so attracting more customers is often the easier option. Spending
on sales and marketing is essential to allow you to do this. 
|
