In yesterday’s post we investigated how, from the point of company formation, businesses should endeavour to find out as much information as possible about what their customers want. However, demographic profiling and research is only one dimension of a successful customer loyalty strategy. The other crucial aspect is building brand vales. As we have already discussed today’s consumer demands more than price satisfaction, they want to have a personal relationship with a brand that they can relate to ethically. In today’s post we consider the importance of brand value.
Brand integrity
In the current context of uncertainty consumer’s move towards brands that offer reassurance and integrity. This provides a very useful platform for the small business owner, they are able to present their brand as an anecdote to large, faceless corporations and develop a personal relationship with their consumer base.
According to Jack Walker, of Walker Brand Consultants, recent consumer behaviour studies indicate that sharing a common set of ethical values is one of the key drivers of customer loyalty;

“Consumers are increasingly gravitating towards brand’s which have a clear set of ethical and social values.” However, warns Walker “if you are basing your brand identity on ethical values, you better make sure that you stick to them. Trust is a main factor of customer loyalty and if your brand appears to have misled its consumers, it could have disastrous consequences.”
Similarly, brands without a clear identity or set of values risk confusing their customers, or even worst, appearing shallow and transient.
Product and proposition
We have discussed the many opportunities the decline of the advertising industry offers the SME sector on many occasions. However, if your company’s product and proposition is not right, all the advertising in the world won’t help you inspire customer loyalty.
Make sure your product is right, your customer service is good and your brand is responsive to changing market conditions. A customer raving about an excellent brand experience to other people is worth hundreds of column inches.  
Report and review
Mark Bateman, founder of online gardening website Green Fingers, recognised that regardless of the fact that his businesses had invested significantly in advertising; they had a poor customer retention rate. As a result of this he has implemented a customer loyalty card. This card not only gives him access to demographic information, it also provides him with details of every item each customer buys and allows him to market to them in a bespoke and more effective way.
Bateman says “ We now have unrivalled knowledge of what customers in our sector want, we know who they are, what they buy and what form of communication they respond to . As a result, we can quantify our marketing spend and increase profitability.”

We have mentioned on a number of occasions, the importance of marketing to your established consumer base, as a means of maximising their existing spend. From the point of company formation, it is vital that you have an understanding of your customer and their key purchase drivers. It may seem obvious, but making sure you have a clear and comprehensive knowledge of your consumer is key to every element of forming your own company, from writing a business plan, to creating an effective marketing strategy. While in the current economic climate, the fundamental objective of most businesses is to drive incremental income by appealing to everyone, you don’t actually want to market to everyone. Instead, establish the demographic profile of your most commercially valuable customers, get a clear understanding of what form of communication they respond to, and market to them. Not only is this more efficient, it will also help you make informed decisions about your company’s future growth.
But where do you start when attempting to define your typical consumer? The obvious answer is to carry out some market research. There are a various methods of doing this from establishing their demographic profile, to establishing what they have bought from you and the key drivers of purchase. Try and identify a correlation between your customers; do they share a geographic location, do they purchase from you in the same way or buy a similar range of products and crucially why do you think to buy from you instead of your competitors?
Regardless of the sector you operate in, whether it is business to business or business to consumer, ultimately, your product or service is bought by a person. Once you have been through the process of establishing your customers demographic profile and buying behaviour, you need to ask yourself the following questions; what does your customer want that you don’t currently provide? Do they have any problems with the service they currently receive? How can it be improved?
Once you have established this information, not only should it inform how you position your marketing and sales strategy, but it should also define how you grow your company

In previous posts, we have investigated the way in which the advertising industry has changed during the recession. The fundamental reason for this change is the changing culture of consumerism. Gone are the days of excessive consumption, WAG spending and dramatic ad campaigns. In a recession consumers are gravitating towards brands that inspire loyalty and reassurance. While this may be problematic for marketers, it provides a number of interesting opportunities for small business owners, who are in a better position to establish a more personal relationship with their consumer base. Loyal customers have a higher average spend and become brand ambassadors for your business.  But where do you begin when trying to increase brand loyalty? Have a look at our guide to making sure your customers never go elsewhere
Give them what they want

One of the most important things to uncover, when trying to establish a long term relationship with your customer base is what informs their purchasing decisions.  In the past, market research suggested that one of the main key drivers of customer loyalty was price satisfaction.
Brand consultant Matthew Turner, agrees that historically this was the case. However, he suggests that the contemporary consumer demands more.
 “It is no longer enough to be price competitive, your brand must engage emotionally with the consumer, establishing a trust and integrity. One of my clients operates in a incredibly saturated market which is dominated by discount retailers and yet though his competitors sell the same product as him at a lower price, his company maintains the largest market share, because they offer their consumers a personal relationship not a faceless marketing campaign” 

If you are in a position to know what a customer really wants, you can take a look at your company and work at providing it.
Feedback
Though market research has its place, the best way to find out what your customers want is to ask them. Mark Thomas, founder of the restaurant chain Bakersfield, comments “From the point of company formation, our business was informed and driven by customer feedback. We never miss an opportunity to ask what they think about our service and how they feel we could improve. Some of the major new initiatives we have implemented are the direct result of customer opinion.”
Analysis
We are not suggesting rigorous data interrogation here, but taking the time to look at customer feedback strategically allows you assess market trends and react accordingly.
Thomas agrees “We assess data frequently, but if we are considering a major development we ask our entire database what they think before implementing the proposition. Not only do consumers feel they are part of our brand, they feel they have a say in its future.”
In tomorrow’s post we will consider the way in which a brand’s values influence customer loyalty.

In yesterday’s post, we investigated the various pros and cons of in-house and outsourced PR for a recent company formation. Regardless of which direction you choose, the relationship between a PR and a journalist is a complex one and there are certain attributes and skills a PR person must possess if your campaign is going to be a success. Today, we will consider what to look for when you are looking to recruit a public relations professional.
Getting under the skin of your brand
That age old cliché, ‘you only get one chance to make a first impression’, is completely true when it comes to PR. The person representing and pitching your brand to journalists should have a full and comprehensive understanding of all aspects of your brand, proposition and products.

According to journalist Rose Miller, there is nothing more annoying than a poorly briefed PR, “It is a waste of my time and theirs” says Miller.
Know who you’re pitching to

PR is completely based upon and functions around relationships. If managed correctly, the relationship between a journalists and a PR can be symbiotic. Managed poorly, it can have far reaching consequences for your brand.

Knowing the background and nature of the publication you are pitching to and having an idea of where the brand you are working on fits into it, will encourage the journalist to listen to your ideas and help you establish a productive relationship.

According to Miller, you should even take your research a step further and endeavour to find out about the individual journalist. What fields are they interested in? What publications have they worked on in the past? What would interest them personally about the brand you are pitching?

Select your target, aim, FIRE!

As we have previously concluded, the culture of advertising has changed; the days of mass promotion and blanket targeting are over – the consumer is now in control of the messages they see and the brands they respond to. The same changes have occurred in PR, it is no longer appropriate to sent out one press release on mass.
“Gone are the days when you could draft a release, send it round to all of your contacts and establish the level of interest within a couple of days. Now, I draft individual releases informed by my knowledge of the journalists I plan to send them to. It takes a lot longer, but the results are better and the dynamism of the industry demands it.”
Adopt an integrated approach

The digital age demands a cross media approach. A good PR will approach all Medias from broadcast and print to radio and online.
Whether you choose to keep PR activity in-house or outsource, consistent communication with your PR team is integral to the success of your campaign. As Miller concludes ‘Set the objectives for your campaign, have a working knowledge of how the will be achieved and ensure you constantly review all activity and results.”

In a recession the culture of consumerism changes; not only are people spending less, they are also more selective about the brands they buy from. Consumers are more attracted to brands with integrity, they no longer respond to gimmicks or mass market advertising.  Obviously, this has a major impact on the way a business talks to its consumer base and many small businesses are looking to the PR model to communicate their brand in a positive way. In this post, we look at the challenges many small businesses face when trying to devise a successful public relations strategy and consider whether it is better to keep PR in house or to outsource.
The agency dilemma
At the beginning of the company formation process many business owners may decide to manage all PR activity themselves, however, as their business grows many find they do not have the time to spare. At this stage they must decide if they want to outsource or keep the process in house. Appointing a PR agency will obviously come at a price. Most agencies charge a monthly retainer, which will by devised according to the amount of time you want them to spend on your campaign.
Though most agency’s do over service accounts, to secure results , Daniel Roberts , owner of e-shop ‘Jumble’, warns that  if you choose to outsource, good results are often contingent on a big budget
“At the beginning we were on a monthly retainer of £1000 a month and agreed with the agency that as our business grew so to would their fee. However, we found that our budget was not enough to secure the coverage we were expecting.”
Instead of cutting his losses, Roberts increased his PR budget and remained at his agency. “Though our previous budget didn’t result in much coverage, the leads we did get were excellent and I felt that the editorial endorsement PR provides would be extremely important to the progress of my company. Therefore, I decided to increase the budget to £3,500 a month. This allowed the agency to spend a lot more time on the account. It also enabled me to see the level of results possible and make an informed decision on whether we would continue PR after our six month contract expired.”
 Roberts has now been employing his PR agency for one year and is extremely pleased with the results. “I have received a large amount of coverage at, what I believe to be, a low cost relative to what I would have spent on advertising placements. The leads we have received are targeted and almost always convert.”
If you are willing to invest in PR, Roberts believes that a good agency is crucial to the success of your campaign. He says “Obviously, doing PR in house would be cheaper, but I honestly feel that it would be a false economy. Our PR success is a result of the experience of the agency and the established relationships they have with journalists. I honestly believe that there is no way we would have achieved the same resultS if we had chosen to take PR activity in-house.”
Rachel Harrison has a different opinion. Harrison, was recruited as an in-house PR manager by expanding design company ‘Orchid’ three years ago. All PR activity is managed solely by her and they have some great results. Having worked within an agency and now as an in-house executive, Harrison has the experience of both sides and believes that dealing with PR in-house guarantees the hard work and focus need to get good results  
“I began working at a well known PR agency, right from university and was there for two years. I had so many accounts I didn’t feel the clients were getting the most out of their investment. Now I am in-house I have a level of passion for our brand and an understanding of our consumers that you only really get when you work somewhere. I also have the focus and time to exhaust every available PR opportunity; you just don’t have that sort of freedom at an agency.”

We have established that the main result of the recession for marketing is the widespread availability of bargain basement advertising. We have reviewed the change in consumer behaviour and investigated the importance of getting your recessionary message right. But what media should you choose? In yesterday’s post we suggested that just because a media was cheap, doesn’t mean that it is the right platform for your brand.  Today, we will look at some of the different mediums available and identify the opportunities and risks they each pose to your brand.
Get Online
Historically, marketing has always been hard to quantify. As a result, the small business and company formation sector have been reluctant to dedicate a huge amount of budget to it. However, all of this changed when Online Advertising – search and PPC- was added to the marketing mix.
Throughout the recession, online advertising is the only media that has remained robust. The success of search and PPC can be attributed to one factor – accountability. Online advertising allows you to select the audience you want to communicate with, serve your message and only pay for users who interact with your advertisement.  It also provides a level of tracking and transparency that allows you test what works ,what doesn’t and amend your strategy accordingly in real time.
For Adam Leary, CEO of e-commerce Company Boothby Fireplaces, online advertising accounts for 80% of his marketing spend and he suspects he competitors are the same.
“Even in hard economic times, small businesses are comfortable allocating budget to online because you can account for every penny you spend and assess your return on investment.” he says. “Though this has always been the case with online, the credit crunch has forced all businesses, big and small, to look at what they are spending their money on and focus on efficiency.”
In conclusion, it would seem that the transparency and accountability of online media has forced previously reluctant marketers to take a fresh look at the digital sector as a vital part of the mix.
Let’s Go Outside . . .
A few years ago no marketing strategy would be complete without some element of planned outdoor media. However, it has been confirmed that outdoor ad spend is down 20% year on year and as the country plunges deeper and deeper into recession, that figure is likely to increase.
Historically, brands wanted a marketing campaign that provided blanket, mass audience coverage. Demographics, reporting and return on investment were all still considered though not on the scale the recession demands today.
Kevin Hudson, sales director for Channel Outdoor, says ‘In the current climate advertisers are demanding the tangibility of digital advertising. This is something we cannot offer. Brands are still using outdoor advertising, though it accounts for much less of the mix than it use to.As a result, we have become more flexible, not only on price but on the way we plan campaigns and the space we offer.”
Hudson concedes that integration is the key “Use outdoor as part of your broader strategy to get your message out there and then give your customers a home online.”
Ultimately, a definitive marketing medium doesn’t exist. The recession has forced all businesses to take a fresh look at the different Medias available, the key is to ensure that before embarking on any new advertising campaign you establish your objectives and what the return on investment is likely to be.

Any company looking to advertise in the current economic context, faces an interesting dilemma; on the one hand, currently, the advertising industry is completely dictated by client demand and as a result there are many bargains to be had, while on the other hand, any advertising must deliver a resounding return on investment. In the next three posts we look at the changing model of traditional advertising and identify the potential and risk of the current context.
Most people working in media will feel concerned about the future of advertising due to client budget cuts and the subsequent decrease in demand.  Major print media titles such as The Face, were left with pages of unsold advertising space and forced to close after marketing spends were cut across most sectors. Even T.V, which people initially thought of as unshakeable, has suffered substantial loses due to advertising cuts. While this is a challenging time for the advertising industry as a whole, the situation presents the small business and company formation sector with a myriad of opportunity.
Falling demand, decreasing audience figures and the emergence of new media, all compounded by the increasing challenges of the recession,have forced the traditional media industry into aggressively cutting prices. According to telecoms entrepreneur, Rachel Stevens “publishers throughout the entire industry have been forced into a corner by the recession – the client now calls the shots.”
“The time is now if you are thinking about advertising; advertising spend is being cut throughout all sectors so now is a perfect time to increase your share of voice.”
Stevens adds “Times are hard; we all know that, but cutting back on marketing at a time when you can really capitalise on aggressive discounting and lack of competition is counterproductive.”
Ian Porter is the CEO of Direct Utilities, a recent company formation.  He agrees with Stevens that the advertising industry is on its knees and companies who were previously priced out of advertising on TV and radio are now able to enter the market “If you starting advertising for the first time, the discounts and coverage you can get is unbelievable. Whether you are interested in radio and TV or print and outdoor, your money will go 50% further than it would have this time last year.”
So as, prices fall and the importance of establishing a market presence increases, it would seem that the recession has provided a perfect platform to grow your company’s advertising activity. But what next? Should you take advantage of the bargain basement prices of traditional media, even though its circulation is falling dramatically? Or should you try new media and risk the unknown? In tomorrow’s post we talk to an entrepreneur who was faced with this dilemma.

In the current economic climate, the media is full of doom and gloom regarding the difficulties many small businesses are facing. However, here at Companies Made Simple we have posted on a number of occasions on how starting the company formation process in a downturn can have many benefits for future business growth and profitability. However, that is not to say we are not aware of the challenges it may pose; budgets are stretched and many key business areas are suffering. Usually, in an economic downturn, advertising budgets are the first thing to get cut and yet an effective and well planned strategy can help generate new business and increase all important revenue. In this series of posts we aim to show you how you can still advertise  and give you some practical advice on marketing in a downturn.
Your Company’s Credit Crunch Advertising Strategy
You can’t fail to notice the increasing demise of the advertising industry. Traditional advertising strategies such as print media and radio have suffered record losses. However, it is not all doom and gloom. Indeed in the context of aggressive price cutting and decreasing competitor activity, now might be the perfect time to review your marketing strategy and look at Medias you previously may not have been able to afford.
Take a Fresh Look at PR
In this post we consider PR as an effective part of your marketing strategy. We ask leading industry experts how PR as part of an integrated strategy can help boost your company profile and generate new business leads.
How to Get the Most out of your Advertising Budget
You may not have abandoned advertising all together, but in the current commercial context it is vital you receive the best possible return on investment. In this post we show you how to make your advertising budget go further.
A Guide to Corporate Hospitality
Is corporate hospitality an indulgence better suited to more profitable times? We investigate its role and look at how it can work as part of your broader marketing mix.