21 Top Marketing Mistakes Small Business Owners Make | Bids By Pros 2
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Lets continue on our discussion on the marketing mistakes.
5- Not Having analyzed the market for correct pricing.
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If your business offers product or services then certain cost and fees involved in buying the product or service. Setting the price according to the market needs is very important and is a major failure for many small businesses. The root and source to find a perfect price is your business plan. It is necessary for every small business owner to investigate:
A) The demographic income of the targeted niche and audience:
In your business plan states the average income of the targeted audience and your niche market. Set your prices based on the factual statistic and spending ability of your potential clients.
B) Market needs and economy balance:
An involved business owner always is aware of the market needs and economy balance. Based on your niche market, always be on top of the factors of change in economy that can impact your client’s ability to spend. If you deal with bankers and investors, keep up with stock market news and its daily changes and adjust your prices.
C) Competitive market prices:
A good businessman is always on a lookout for its competitors and their side of story. It is necessary to know your competitors and adjust your prices based on their offering and similar services.
D) Demand of the product or service:
Before putting a price tag on your product and service, investigate the demand for it. You can find this information through the data in your business plan. Balance your prices based on the market demands.
- If you projecting a good volume of sale based on the market demand, price it competitively lower than your rivals.
- In the contrary, if the demand is lower and the project of volume is slow, price higher to accommodate the distance between each sale.
E) Uniqueness of the product or service:
The value on the unique product and to price it effectively is directly related to the above point for product demand in the market.
F) Acceptable profit margin range in the area:
Profit margin’s acceptability is always decided based on the market and economy as well as the market demand for the product.
- Consider a big city. If you have a product or service that is unique, but projecting a high volume of demand, based on the economy and your targeted niche, the profit margin should be set higher than normal.
- If you are investing in a small community on a product with high demand and higher project of demand, go conservative on your profit margin.
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6- Not having any budget for the marketing plan
Many small business owners make a big mistake and do not place any budget for daily, monthly or yearly marketing plans. Whatever the profit and loss data projects on your business, it must include a set budget for marketing plans that are realistic, doable and traceable. Unfortunately small business owners mostly have no budget and deduct the cost of marketing plans from their profit data. This particular budget assignment is very effective in the future of business growth. If your business slowly reaches a peak and the demands for your product and services increases, so as the budgeting for the marketing needs.
7- Spending money on non-traceable ads
In continuation of the point above as every small business should have an assigned budget for marketing plans, then there exist a marketing plan to follow. In the marketing plan, the desired way of effective approach are assigned and carefully examined. As the market changes, so as the marketing plan, pricing and target audience. Invest and assign marketing plans that are traceable. By traceable it means that offers follow up charts to see whether the plan was useful or did not produce results.
The worst mistake of marketing is to spend money on a plan that cannot be traced and measured. This marketing mistake is throwing money in the trash or in other terms is shooting in the dark.
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8- Do not trace the marketing result
Many businesses have assigned a budget for the marketing plan but sadly do not follow up on the result and do not trace it. This is exactly as spending time and money and not knowing whether it produces result and again is shooting in the dark.
Summarize:
Marketing and development is like a battery that can lose its charge. Keep the charge constantly to increase the performance of the business. A good business owner studies the market and analyzes its business plan basing the price of the product and service on the market demand, competition and economy fluctuation. To continue the consistency of the marketing, planning a suitable and realistic budget is necessary. Analyze the chart of data for the result of the marketing plan to avoid spending money on untraceable. If you are not sure how to set a marketing plan, which involves many analysis, contact a market researcher by posting your inquiry and need of a professional marketer in Bids By Pros project format and let the local marketing firms and pro marketer individual bid on your service project.
Stay tuned for the continuing series of the marketing mistakes small business owners make.
Don Z