SMALL BUSINESS STRATEGY: Every Startup Needs Marketing
A prospective client came into our office last week and began by telling us that his previous SaaS was Dropbox before Dropbox existed, but because they marketed their software and he did not, they received the $10 billion prize and he was left empty-handed. Needless to say, it’s a sore subject.
He proceeded to pitch me on his new software which he believes will make millions. When asked for detail on his objectives, he explained: “I’m looking to acquire 2,000 users in the first year.” Naturally, this led to the elephant in the room: How would he let people know about his service this time?
To our surprise, he went on to dispute the value of marketing his software, telling us that he would only be hiring a part-time sales rep. Despite our best efforts to convince him that he needed to market this time around, the meeting concluded with an ill-mannered request which provoked synchronized face-palms from my staff: “just sell the software for me when you pitch your consulting services to other businesses.”
…Some people just never learn.
Marketing 101
The basic premise of marketing is to obtain the greatest revenue in the most effective and efficient way possible. Essentially, you need to be matching the products or services you provide to the people who want or need them. To avoid getting sidetracked in the beginning, just remember the foundational four P’s of marketing: product, price, place and promotion.
Strategy Development
The best campaigns begin with a concentrated effort on the big picture. We’re talking about looking at the overall goals and objectives of your company, and developing an integrated marketing communications strategy which will guide your company to profitability. What are a few components that go into developing a strategy? Without diving too deep, during the development phase you can expect to be conducting market research, constructing your brand’s identity, defining your point-of-difference, and developing a messaging approach to communicate your company’s value proposition.
Although it can be tempting to move straight into the shiny bells and whistles of marketing tactics, understand that developing strategy is the most important step in the process. Overlooking the strategy and moving straight into tactical planning is akin to casting a huge net with many holes in it — you’ll catch a few fish, but it will require a huge amount of time and money for a lesser payoff. In our experience, the most successful startups spend most of their time and money cultivating a tight, comprehensive strategy so that once the net is thrown, there is no doubt of the results to come.
Marketing Tactics
Seemingly what everyone wants to talk about are the actual tactics used to achieve the goals and objectives of your plan. To give an idea of what is out there, we’ve provided a list of a few of the tools available to the modern-day marketer:
· Advertising: Digital, Broadcast, Print, OOH, Product Placement
· Social Media: Facebook, Instagram, Twitter, LinkedIn, Snapchat, Pinterest, YouTube, Yelp, Google+, etc.
· Website
· E-Mail Marketing
· Events
· Earned Media
· Influencer Marketing
· Direct Mail
· Fusion Marketing
It is easy to become overwhelmed with such myriad tools at your disposal. My suggestion (if you are not working with a professional) is to take the time to learn and understand a few common mediums used in your industry, build a plan to use them, and then commit to staying the course. Also important is to make sure you can track the results of each method. The takeaway message: do not feel pressured to use every tool in the shed — pick a few, be devoted to them, and continuously measure your results.
Putting it all Together: Integrated Marketing Communications
At TF West, we use a process flowchart which illustrates the various components of successful campaigns:
Return on Investment
Startup companies are often hesitant to make a commitment to marketing and promotion, citing concern over the expense and return on investment. This brings us back to our unfortunate friend. As a new business owner, the question you must ask yourself is: what price did he pay by not marketing his software? In this instance, making an investment of $250,000 could have been his ticket to $10,000,000,000. That’s a tough pill to swallow.
Gaining traction as a startup is undoubtedly difficult. The marketplace is cluttered with companies who believe they can disrupt entire industries with their innovative creations; and they’re not wrong, it can be done. Give yourself the opportunity to flourish — commit to marketing your startup and watch your dreams become reality.
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