The recession has significantly changed the way customers behave. But how will small businesses cop
Added: (Thu Aug 19 2010)
Pressbox (Press Release) -
Press Release
Date: 19th August 2010
Immediate release
The recession has significantly changed the way customers behave.
But how will small businesses cope?
The recession and last Budget emphasise that we live in a very different economic world today compared with just a few years ago. And that applies to customers and businesses alike.
Customers are ever more careful about how they spend their hard earned cash; they want value for their money. Although price is important, this doesn’t always mean cheap, but it does mean customers want to make sure that the product or service they buy is really what they need, at the right price and of the right quality.
Businesses are also ever more mindful of how they spend their tight budgets. Their customers are the life blood, but even more than ever, they need to find the right customers for their product or service and then hang onto those valuable customers.
The problem is that many businesses are still trading in yesterday’s market, when customers were easier to find and more eager to part with their money, rather than the very different market of today.
In particular, small business owners have often been forced to cut back on budgets, which often includes marketing, despite knowing new customers are often harder to find. Either that, or they are working so hard to just keep their business afloat, they don’t have the time to do marketing, or more likely, to do it effectively.
There are 4.8 million small businesses in the UK and they are a vital part of the economy, employing 13.7 million people and contributing 50.1% of the UK turnover. (Source: Federation of Small Businesses May 2009)
But the challenge is that around 400,000 UK SMEs cease to trade per year - about 10 per cent of all SMEs - with a similar number being created. A typical SME has a ‘half-life’ of around three and a half years. (Source: Cabinet Office briefing paper by the Performance and Innovation Unit (PIU) and Small Business Service (SBS) updated 2010)
The bottom line is that a healthy SME sector is an economic imperative if the UK is to trade itself out of the current economic doldrums. Effective marketing is the tool they need to not just survive but thrive.
Staffordshire based marketing adviser Andrew Kinnard, owner of Fresh Ideas Marketing observes:
“Talking with sole traders and small business owners it’s clear many know the importance of marketing, but just don’t have the time to do more than the basics,” He continues, “Too often that means they are not sure what marketing is working and what is not, which means they end up wasting valuable time and money.”
One solution is the use of an outsourced marketing service.
Andrew’s own experience of two redundancies in four years reflects this need.
“Both my previous employers were SMEs and when financial push came to shove they had to make cut backs. Despite recognising the importance of marketing, both felt they could no longer afford an internal marketing function in their businesses, hence my redundancies.”
He continues, “The irony is that during difficult economic times, marketing needs to increase not reduce. Finding the right customers and making the most of existing customers is the life blood of any business. There are a lot of small business owners who are so busy running their businesses they just don’t have time to invest in building their business, nor recognise the changes in customer behaviour the current economic climate has brought. The result is that in so many cases they struggle just to survive rather than thrive.”
Andrew believes many small business owners are crying out for a marketing mentor, in effect an outsourced marketing manager to be an additional resource. He observes, “It’s all about empowering a business owner to have the opportunity to work on their business rather than just in their business.”
Time, as well as expertise, are two important issues, and business owners need to realise they cannot do everything if they are going to take the opportunities to grow their business rather than just survive.
Many businesses are familiar with outsourcing other business functions, so marketing should be no different. Of course building a personal relationship based on trust and the ability to have close contact are vital when choosing who you are going to trust your marketing to.
By setting up Fresh Ideas Marketing Andrew is following his belief that a local hands-on marketing service is a valuable resource that the bigger marketing agencies can’t match.
“My ethos is that local businesses need not just advice, but also help with the practical side of marketing to their customers, which means they can spend their marketing budget on what really works for their businesses and they will have more time to do what they do best, selling their product or service.”
“I feel there is a need amongst local business communities for local practical, proven marketing help, advice and support, rather than just theoretical marketing consultancy.”
ENDS
Notes for editors:
With over 27 years in sales and marketing in both business to business and business to consumer markets, Andrew has the passion, knowledge and experience to help local businesses grow. He has worked for large Plcs, small to medium enterprises and been self-employed himself.
Andrew’s experience stretches from creating marketing strategy, writing business plans, right down to writing direct mail letters and website content, as well as stuffing letters and making telemarketing calls. He has written editorial copy for over 60 media titles.
With such hands on experience he especially recognises the marketing challenges faced by sole traders.
Andrew Kinnard is a sole trader trading as Fresh Ideas Marketing at 491 Stanton Road, Burton on Trent, Staffordshire, DE15 9RW.
Andrew can be contacted on 01283 539685 or 07740505492 or by email at andrewkinnard@freshideasmarketing.co.uk
Website: www.freshideasmarketing.co.uk