There’s a lot of news in the December 2009 issue and other recent issues about the businesses that have closed shop in Ladera.
There are far too many reasons why some businesses survive and others do not to cover in one column.
But one reason many businesses succeed is because they advertise and market their products and services.
Businesses that depend primarily on walk-in traffic are at best not doing the level of business they could and at worst are failing. So here are the Top Ten reasons to advertise your business.
1) Communication: Let people know you’re in business. Don’t assume everyone who walks past your store knows that you are in business or what you are selling. And don’t rely solely on word-of-mouth or Internet hits to get the word to everyone that you’re in business. You have to tell them.
2) Repetition: Tell them again . . . and again. You have to remind customers you are in business. Repetition is the hallmark of effective advertising. And never was the saying "Out of sight, out of mind" more appropriate.
Businesses that advertise once or twice are often disappointed in the results and blame the publication. However advertising experts say the advertising you do today may not fully pay dividends for three to six months. And, remember, people don’t always make decisions the first time they see an ad.
3) Show reliability: Communicate a consistent message over and over. Consistency builds confidence and loyalty to you and your products and services.
4) Build Loyalty: Give customers a reason to come again and again. If you’re holding a sale, offering new products, going "green," or cutting your prices 25% to draw customers during a recession, you have to tell them about it. Otherwise, your customers may go somewhere else to save money, especially during a recession.
5) Create exclusivity: Brand your business. Even though Intel is only a component in personal computers, extensive advertising "Intel Inside," it drives business toward companies that carry their chips.
One of the greatest examples of branding is the Trump name. Donald Trump isn’t a business, he’s a brand and other businesses pay big money to have the Trump name associated with their product or service.
6) Think strategically: Build for the future. Many small business people think advertising is an expense only big chains can afford, but they really can’t afford not to advertise.
In 1948, eight years after two brothers started a one store business in San Bernardino, CA, they created the "Speedy Service System," now known as "fast food," and that one store has since grown to 31,000 McDonalds worldwide. And it was all done by advertising. And despite their overwhelming success, they’re still one of the biggest advertisers in the world.
View advertising as a strategic resource and build it into your annual budget.
7) Adapt or die. Many businesses have lowered their prices to weather this recession. For example, Infusion, Roma D’Italia, and Beachfire all offer special "recession meals" to attract customers who might otherwise opt to stay home to save money. But they also heavily advertise their specials to ensure that their customers get the message.
8) Don’t fall into the "one big splash" trap. Unless you’re offering an unbelievable deal that everyone will want to take advantage of, don’t fall into the trap of running one big ad once or twice a year. It doesn’t work.
If you have a limited advertising budget, you’re better off running a smaller ad in every issue than one or two big ads a couple of times a year. And some publications – like the Ladera Times – offer substantial discounts to consecutive advertisers.
9) Tap into the human shopping psyche. Even during a severe economic downturn, most people are looking for ways to spend their money. They may not realize it, but they are. That’s why consistent advertising works. If you don’t advertise, you’re missing out on a chance to tap into this human desire.
10) Think of advertising and marketing as an investment, not a liability. Advertising is an ongoing investment in the long-term success of your business. Even successful businesses that don’t advertise would be surprised if they knew how much more additional business they would receive if they did advertise.
All of your costs – rent, utilities, insurance, equipment, and so on – are up front. Allowing for the cost of goods sold and for the advertisement itself, each added sale that occurs as a result of advertising is pure profit. Think about it!