Small business marketing: 10 questions answered

• Marketing can be key to growing a business
• Most small businesses need a digital presence
• It’s important to look after your existing customers

Marketing is about raising the profile of your business and building qualified leads that convert into sales. But where do you start? Here are a few ideas to inspire you.

1. Firstly, what is marketing?

Put simply, marketing is letting people know what your business offers.

While there’s no set formula, a traditional marketing mix is based on 4 Ps:

1. Product (what you’re selling)
2. Place (where you’re selling it)
3. Price (how much you’re selling it for)
4. Promotion (how you’re selling it)

2. Why does my small business need marketing?

Without marketing, it’s hard to grow your business beyond your circle of family and friends. If people don’t know about your products or services, they can’t buy from you.

“Marketing is essential for growing any business in a meaningful way. It’s your pathway to growth." says David Hirsch, QBE’s Head of Marketing.

1. Embrace failure – Don’t be afraid to try new things. Any successful business will have its fair share of failures. We learn by our mistakes so it’s better to have a mentality of failing fast and often, rather than fearing failure. Playing it safe won’t get you far.
2. Know your customer – Find out what they’re looking for, what they need (but don’t yet know they need), and what problems you can solve for them.
3. Leverage marketing technology – There are many ways to save time and money by using technology to your advantage. Can you automate or outsource anything? Is there any data you can analyse to gather insights? Is flexible working an option? But do your research before you invest in it.

3. What’s a marketing plan and why do I need one?

A marketing plan is an essential part of any business plan. It’s a framework to plan your marketing activity, expenditure and performance targets. It can include a summary of your marketing goals, a timeline of when you want these goals completed and how you will measure success.

In today’s changing world, the marketing plan needs to be a dynamic document that flexes as business needs change. Take the pandemic for example.

Hirsch recalls, “When COVID first hit, we ripped up our marketing plan and started again. We adapted to working from home with virtual meetings. We embraced new technology. We learned that the more you pivot, the better you become at it. There are some real positives.”

“Successful companies know how to be responsive. In our industry, brokers have the ability to change very quickly – and this gives them an advantage.”

Related article: The power of pivoting: How to embrace opportunity in a crisis

4. Do you need a website?

These days, most businesses need some form of digital presence¹. This could be a website, a social media page or another platform.

A website is your virtual shopfront, open for business 24/7. It’s often the first experience a potential customer has with your business. Think about the last time you were looking to buy something, did you do any research? For many people, the first point of call is Google, so it can pay to have a presence there.

For tips on building a site, the government has put together a guide on how to set up a website.

5. How does social media marketing affect small business?

Social media can be a great marketing tool. To learn how it works, consider following businesses you admire and see how they promote their products and services. Then you can take the time to develop a profile of your own that reflects your business and professional style.

If you’re offering business services, LinkedIn can also be an effective way to communicate to a lot of people. To showcase your expertise, consider writing an article on a subject that aligns with your business. For example, if you sell car insurance, you may want to offer tips on why regular servicing is important.

Facebook and Instagram are also useful. It’s about engaging with customers, not constantly selling to them. The key is providing value – your customers consume a lot of information on these platforms, so make sure what you share is valuable. Think tips, information or even a glimpse into the people behind the business. It can be also be a good idea to encourage customers to share their experiences with your business to drive word of mouth and positive sentiment.

To set up your business on social media, these resources may help:

• Facebook and Instagram – Free tools for small businesses
• LinkedIn – Action plan for small businesses

There’s also the option of hiring a social media marketing company who can help you set up your accounts and help you create engaging content.

Related article link: How to use social media for business: 7 tips for success

6. How do you promote a business in your local community?

This generally takes an old-school approach.

Marketing options could include:

• Word of mouth
• Referral programs
• Attending local events
• Advertisements in local papers
• Being active on local social media pages
• Letterbox drops
• Sponsor local teams or clubs
• Run competitions

7. How do you find the right partner to sponsor?

“The key to any good sponsorship is a genuine alignment of values and purpose. If you find a partner that aligns to your business, it will be mutually beneficial,” says Hirsch.

Let’s say you offer insurance to farmers. Supporting a local farm-related charity could be a natural alignment. Sponsoring a local sports club, particularly if you have a personal connection to it, can also be a popular choice.

8. Are marketing emails worthwhile?

“A marketing email can be immensely valuable if you’re targeting the right people with the right content,” says Hirsch.

The role of a newsletter isn’t a hard-sell. Like social media, it’s about giving customers and prospects something useful, interesting or entertaining, which will then paint your business in a good light.

You could include helpful tips, a few words about an organisation you sponsor or a story about how your business helped a customer. Special offers, discounts and competitions tend to go down well too².

There’s also no point in reinventing the wheel – if you’re creating content for your social media pages, use these same ideas for your newsletter, or vice versa.

9. What about networking and word of mouth?

“Even in a digital-first world, word of mouth and networking are thriving. There are few marketing tools that can compete on a one-to-one basis,” says Hirsch.

“But if time is money, they’re expensive tactics with limited reach. So, while word of mouth is powerful it will only get you so far.”

So while word of mouth is often a tactic that has a high conversion rate, it can be hard to scale. This is why a digital marketing presence can help you reach a broader audience in a more cost-effective way.

10. Do you need a plan for existing customers?

The Association for Data-Driven Marketing & Advertising claims it costs up to 25 times more to acquire a new customer than to sell to an existing one³.

That’s why it’s important to look after your customers and make them feel valued. Personalised service, regular catch ups, loyalty discounts or gifts, and sneak previews and events could make all the difference. After all, repeat business is your bread and butter – a valuable income stream for any small business. And remember a happy, existing customer could refer you your next customer.

¹ https://www.smallbusiness.wa.gov.au/marketing/digital-marketing
² https://www.campaignmonitor.com/blog/email-marketing/2019/05/creating-marketing-offer-emails
³ https://www.adma.com.au/iq/customer-experience/course/retention-marketing-strategy