Our expert panel is well-suited to answer this month’s reader question on marketing:
"I haven’t done much marketing to date because I have had a steady flow of business through word of mouth. I’m opening a second office interstate and want to know where I should start in terms of marketing, and how can I make my financial planning business stand out from the competition – how do I know what will work and be most cost-effective?"
Richard Evans: CEO, Franchise Council of Australia (FCA)
It’s hard to know exactly which marketing or communication tools will help particular businesses without testing different methods but when you’re moving into a new geographical market it’s a good idea to get to know your competitors. Which marketing tools have worked for them? Which have failed? Why? If word of mouth has helped so far, it’s a fair sign your business has a good reputation.
So, find out what sets you apart from the pack. Perhaps it’s your demographic or a unique product or service offering. Identify your difference and communicate it. But be strategic about your choice of marketing tools: think local not global. It’s better to target the right market with the right message than blanketing the area with an expensive or aggressive ad campaign. Get to know your local media, including business journalists. A business launch is a great way to receive local attention. And direct mail campaigns may also be a good way to introduce your business to your target markets in the area. Remember, associated costs will increase demand on the current operation. Have a good plan and ensure it doesn’t suffer.
Robert Gerrish: co-author, Flying Solo
Clearly the success of your work relies heavily on who you are and how you present yourself and your services. Your achievements in word-of-mouth marketing are testament to this. Your focus at this stage should be less about marketing and more about understanding where and how to position yourself. Spend this time adopting the persona of a ‘researcher’ not a ‘promoter’. Observe your competition, (meet with them even), talk to their customers, immerse yourself in this new market and most importantly asks questions and listen intently.
By focusing on these actions, opportunities to stand out will present themselves. Alternatively, you could throw lots of money at marketing and use trial and error to see what works. I know what I’d do.
Sarina Russo, managing director and founder, Sarina Russo Group
If you want to grow your business, you must build up your brand. Branding has been a crucial factor in my business success. I’ve been in the business of brand building for more than 27 years and can tell you this: the stronger the brand the stronger the business.
I also discovered early in my business career that it wasn’t enough to just manage a business. I realised that if I were to grow the business, I had to take myself outside the business and look for inspiration. I was inspired by the message of Jim Rohn, the doyen of motivational speakers: "To have more, become more. Work harder on yourself than on your job. The major key to your better future is you." I needed to learn how to be a leader, not just a manager. So build your brand and become a leader to make your business stand out.
Jason Baker, general manager (Australia), IBISWorld
Before you begin developing a marketing strategy, it’s critical to understand which audience you are directing your message to, and know clearly what that message is. When moving into a new location, it’s also important to understand the level of competition you expect to face, what services are currently being offered, and what services people are most likely to need in that area.
The IBISWorld report on Investment Advice in Australia found the geographic distribution of the advice industry is largely determined by the distribution of population and, to a lesser extent, distribution of wealth. Pushing growth in the past has generally tended to be high-net worth individuals or individuals near or in retirement. Looking ahead, IBISWorld believes investors and individuals seeking financial advice will increasingly constitute individuals who still have some time to retirement. Awareness of issues such as retirement savings gaps have become well entrenched with average householders, and these are expected to increasingly seek advice. Tailoring your marketing efforts to reach this audience may therefore help achieve the greatest results in the long term.
Siimon Reynolds, co-founder, Love Communications
The trick is to test, test and test again. Nobody knows what marketing will work, you just have to try stuff. Try advertising in unusual places, like a lawn bowls newsletter, or at a car wash. Slowly develop an email list and start sending monthly financial advice newsletters. Do a local mail box drop, with a simple one page ad leaflet. Do joint ventures with local stores,and organisations, maybe offering to speak at functions for free. And copy what your competitors do in the area, then drop what doesn’t work for you. Marketing is all about trial and error. Try enough things and a few of them will work a treat.
Need advice on a vexing business issue? Our experts can answer questions on any business topic, from finding finance and improving cash flow to marketing tips and IT management. Send your questions to asktheexperts@dynamicbusiness.com.au
