Start Your Own Business (85 page)
Read Start Your Own Business Online
Authors: Inc The Staff of Entrepreneur Media
What should your ad say? The Newspaper Association of America (NAA) recommends listing your product or service’s main benefit. Does it make people money? Improve their self-image? Use a catchy statement, such as “Feel Good Now!” to create an impact. Not every reader is looking for the same benefit, so list as many as you can afford. The more readers know about your business, the more they’ll trust you.
Experts also recommend using white space to make your classified ad stand out from the competition. White space works especially well in newspapers, which sell ads for pennies a word or by the line. If you place just a few words in each line—the first line listing a benefit, the second the name of your company, the third your address, for example—you have a striking, centered ad surrounded by white space.
“The workplace should
primarily be an incubator
for the human
spirit.”—ANITA RODDICK, FOUNDER
OF THE BODY SHOP
These brief ads work best when they offer a commonly sold product or service such as tax preparation or catering. Listing the benefits of each isn’t essential because the public knows what to expect. White space in classifieds is also effective when you offer a catalog or another form of literature describing your product. In this case, you might place the main benefit in an opening line that’s designed to grab the reader’s attention, and below the benefit list how to send for the information, noting its price, if any. For example, “Play Backgammon Like a Pro” would be a good benefit line in an ad offering free information about a booklet that shows backgammon players how to improve their game.
Ads that use white space are less common in magazines since these ads are often twice as costly as a typical newspaper classified. However, they are often more effective as well—even more so than in a newspaper because few other white space ads will be competing for the attention of the readers.
Before placing your classified ad, contact the publication and ask for a media kit. They should include guidelines that will help you construct your ad and give you tips on choosing the main benefit, consolidating words, or determining whether the tone should be boldly stated or instead employ a conservative description and a list of benefits. Most media kits also list demographic information about the readers—essential information to determining if the publication is right for you.
Finally, repeat your ad as often as possible, so long as it brings in enough money to justify its expense. Repeating ads helps customers gain familiarity with your product or service and helps break down sales resistance. Once the ad stops pulling in new accounts, it’s time to develop a new ad. A classified that uses fewer words will cost less to run, so it doesn’t have to pull as well to justify itself. But sometimes adding more words can help your sales, too. It doesn’t hurt to experiment.
How much profit do you need to make on classifieds? Unless you’re running a one-product, one-sale business, you can build a profitable operation through classifieds just by breaking even, or even by coming in a little under the money since many of those buyers will become your repeat customers.
Co-Op AdvertisingHow can small retailers or distributors maintain a high profile without spending lots of money? One answer is co-op advertising.
Co-op advertising is a cooperative advertising effort between suppliers and retailers—such as between a soda company and a convenience store that advertises the company’s products.
COUPON CUTTERSI
f you want to attract and keep customers, you need to offer an incentive. A coupon for a free sample or service or a discount on your normal prices can be just the nudge a customer needs to try your new business. Coupons help you achieve many goals: introducing a new product or service, increasing repeat business, beating the competition and more.One of the most powerful ways to use coupons is through direct mail. This method is especially good for occasions such as grand openings or new product/service introductions. How to make the most of your direct-mail coupon campaign? Keep these tips in mind:• Coupons can be offered as a “Thank you for buying from us” or a “Stop by and try us” message.• A coupon can be a single item for a one-shot promotion or used in combination with other offers.• The value must be substantial enough to make it worthwhile. Better to err on the side of giving too big a discount than to seem cheap.• Use coupon promotions sparingly. They wear themselves out if overused.• Be clear. State exactly what the offer is, how long it lasts and the terms of redemption.• Color-code your coupons if a variety of groups will receive them. For example, if you’re mailing to six ZIP codes, color-code them differently so you know how many were redeemed from each area.The newest way to distribute coupons: on the internet. Add a registration box to the main page of your website so people can sign up to receive coupons. This way, you can build a permission-based e-mail list of people who want to receive ongoing offers and rewards. Or consider using a web coupon service, which offers coupons in booklets by mail or online for consumers to download and print out themselves.
Both retailers and suppliers benefit: retailers because co-op advertising increases the amount of money they can spend on ads, and suppliers through increased local exposure and better sales.
Although each manufacturer or supplier that uses co-op advertising sets up its own individual program, all co-op programs run on the same basic premise. The retailer or distributor builds a fund (called accrual) based on the amount of purchases made by the supplier. Then, when the retailer or distributor places ads featuring that supplier’s products, the supplier reimburses all or part of the cost of the ad, up to the amount accrued.
To start using co-op advertising, begin by asking your suppliers what co-op programs they offer. Follow their rules to be sure you get reimbursed. Some suppliers require that ads feature only their products, not any other supplier’s. Others ask that no competing products be included.
Though procedures may vary, there are three basic steps to filing a claim for reimbursement. First, show “proof of performance.” For print ads, this is just a copy of the ad exactly as it was printed. If you buy TV or radio ads, you’ll need a copy of the script with station affidavits of the dates and times aired.
Next, document the cost of the advertising—usually with copies of applicable invoices from the publication or station where you ran the ad. Third, fill out and submit a claim form, which you can get from the supplier.
Other steps to make the most of co-op advertising:
• Keep careful records of how much you have purchased from each supplier.
• If you try something unusual, such as a sales video or a catalog, get prior approval from each vendor before proceeding.
• If you’re preparing your own ads, work with an advertising professional to prepare an ad you think will appeal to the manufacturer. Keep in mind the image the manufacturer presents in its own ads.
• Make sure your company’s name stands out in the ad. Your goal is not so much to sell the supplier’s product but to get customers into your store.
• If there’s no established co-op program, pitch your ad campaign to the vendor anyway.
• Expect vendors to help out; after all, you’re bringing them business. If your vendor doesn’t offer advertising co-op money, you should look for another vendor that does.
• Be sure to follow up. Money goes only to those who submit claims.
TIPYour marketing plan is an ongoing process. Market conditions change. Some of tomorrow’s challenges you can predict today, while others you can never anticipate. You should take a look at your plan at least every three months and on a formal basis every six months. If you aren’t on track, why not? Has your thinking changed or has the market thrown you a curve?
Just as important as creating a strong marketing plan is following through on the results. How will you know which ads are working if you don’t analyze the results? Check the effectiveness of your advertising programs regularly by conducting one or more of the following tests:
•
Run the same ad in two different publications with a different identifying mark on each one.
Ask customers to clip the ad and bring it in for a discount or a free sample. Or, if you are running an ad that asks customers to order by mail, put a code in your company address such as “Dept. SI.” By looking at the marks on the clipped ads or the addresses on the mail-in orders, you’ll be able to tell which ad pulled better.
•
Train everyone in your company who answers the phone to ask customers where they heard about you.
Create a one-page form with checkboxes so this process is simple to follow and the results are easy to evaluate. Just bear in mind that customers will sometimes get it wrong—they may say they saw you on TV when you don’t run a TV campaign. But overall, asking for this information will be valuable.
•
Offer a product at different prices in different magazines.
This has the added benefit of showing whether consumers will buy your product at a higher price.
•
Advertise an item in one ad only.
Don’t have any signs or otherwise promote the item in your store or business. Then count the calls, sales or special requests for that item. If you get calls, you’ll know the ad is working.
•
Stop running an ad that you regularly run.
See if dropping the ad affects sales.
•
Always check sales results.
This is especially important when you place an ad for the first time.
“No person can get
very far in life working
40 hours a week.”—J. WILLARD MARRIOTT,
FOUNDER OF MARRIOTT
INTERNATIONAL INC.
Checks like these will give you some idea of how your advertising and marketing program is working. Be aware, however, that you can’t expect immediate results from an ad. Advertising consistently is important, especially if you run small-space ads, which are less likely to be seen and remembered than larger ads.
One study showed that attention to an ad is significantly impacted by its size—in fact, a 1 percent increase in ad size leads to the same percentage increase in attention. You must also run your ad in multiple issues (at least three) before readers will notice your ad and buy what you’re selling.
Advertising ChecklistOverview• Have you defined your advertising objectives and written them down?• Have you developed an advertising strategy?• What exactly do you want to communicate to your potential customers?• Are you communicating buyer benefits?• Is the timing right?• Do you have a planned advertising budget?• Are you prepared for a successful response?• Have you asked suppliers about cooperative programs?• Have you made sure that employees (if any) are informed of your goals?• Have all appropriate employees been familiarized with your advertising and trained how to respond to customers?• What is your lead time for ad placement? Some newspapers require only a few days; some magazines require two months or longer.• How will you measure the effectiveness of your ad?Specifics• Does your ad present a central idea or theme?• Does your message require a response?• Have you told customers where and how to reach you?• Is your ad clear and concise?• Is your ad consistent with your desired business image?Files• Are you keeping files on all aspects of each ad?Advertising Checklist, continued• Where did the ad run? What were the results? (Number of sales? Sales increases?)• Have you reflected/brainstormed/evaluated?• What variables (the economy, competition, etc.) have you targeted for further study?Competitors and Customers• Are you watching competitors? (If advertisers repeat ads, try to determine why.)• Are you listening to your customers? What do they want? What’s important to them?• Which media are most cost-effective for reaching your customers?
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