Kuravlev, V.

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Scientific hub Dnipro University of Technology

Kuravlev V.Peoples’ Friendship University of RussiaEFFECTIVE MARKETING FOR SMALL ENTERPRISESBig  companies  can  afford  spending  much  money  for  advertising  andattracting customers. This type of expenses will be covered even if 50% of theadvertising fails. However it is totally different for small enterprises. The ownersof small enterprises have to make accurate calculations about the amount of moneythat  they are ready to spend for  advertising.  They have to foresee the possiblefeedback. For example they have to know how much it will cost them to attractevery other customer, let alone the balance between expenses and sales amount. Returning customers bring the main income, then it is possible that the firstsales can be arranged with a little profit or even at a cost price. It’s a common thingwhen high yield enterprises bear loses after the first sales with the goal to attractcustomers  and perform first  sales.  If  we know how much  it  costs  to  attract  acustomer and the amount of the revenue he can bring us during a known period ofsales, we can look at the customer solicitation as follows: How much (X) we should spend on advertising to get the certain (Y)revenue.A good product or a qualified type of service cannot sell itself. The productcan be upgraded, but it will not be sold until customers learn about it. The mostimportant thing is to get the customers learn about it. Nowadays we see increasedcompetition  in  almost  every  market.  Most  market  niches  are  occupied  with  aleading company in it. We can’t just put a We’re open! banner, it obviously will benot enough. Nevertheless the owners of small enterprises have to accept that advertisingis an expensive way of attracting customers. It is the reason why small enterprisesshould try using means of low-cost marketing and even do without any expenses atall. By saying low-cost marketing we mean the following:1.  Partnership programs. To make a quick start  in a market  and increasesales it is possible to use clients’ database of other companies in the market for acertain percentage of the sales turnover.2.  Selling articles on themed places. A trading company can advertise  insuch places where its target customers are. If a company sells garden tools it canadvertise itself in forums and magazines on the gardening.3. Up-sell, Cross-sell, Down-sell.  Up-sell is an offer to buy more or withmore money. For example, you customer chose to buy $500 tires and you suggesthe should add $100 more and buy better tires with longer service life.  Cross-sell –is an offer to buy an extra product. For example, your customer has bought tiresand you offer him wheel disks. Down-sell  is an offer to buy a less expensive but ahigher-margin article. For example, you can sell $600 tires, which purchasing priceis $400, or offer to buy $400 tires, which purchasing price is $100. In the secondcase  you  obviously  get  higher  profit.  Additional  sales  technique  can  raisecompany’s profit to 30% or even more.  4. Testing period of a product for a certain period of time.  You can offeryour customers to test your product. For a trial you can offer a light or a limitedversion of your product,  depending on what you sell.  This is the tactics of thecompanies who sell software. The customers get used to the product during thetrial period, then find it hard to leave it and finally buy it. 5. Advertising on the expenses of suppliers, partners and contractors. Thesmall enterprise can make use of an effective way of attracting customers, whichare references. Ask your partners to mention your company before the customers.Your suppliers will benefit  from your increase in the number of customers andsales turnover as you would obviously do more purchases. Both sides benefit fromthis.  You can also ask  your  suppliers  to  advertise  you while  you are  going toadvertise  them.  It  is  reasonable  to  offer  your  contractor  a  percentage  of  eachcustomer after their references. 6. Identification of a market niche. Strategy is that a narrower niche wouldincrease the sales turnover. It is of vital importance for beginners. If your productis for everyone then it’s actually for no one. A company should be determinedwhich direction it is going and with which customers.  7. Marketing research and survey. If you are going to expand your productlist  or  present  new  product  to  the  market,  don’t  do  this  only  because  yourcompetitor does so. Firstly do a survey among your potential customers to find outif  they  are  interested  in  the  product.  In  any  case  this  survey  would  be  morereasonable than producing a big amount of a product which nobody would want tobuy. 8. List of benefits for customers. When we buy a product or a service we buya solution to our problem. Customers do not buy drills but holes in the wall. Youshould totally be aware of why your customer would need your product. It wouldbe perfect  if  you have a list  of  advantages of  your  product,  which all  of  youremployees  know and  when  been  asked  why  do  I  need  this  they  could  give areasonable answer.

EFFECTIVE MARKETING FOR SMALL ENTERPRISES

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EFFECTIVE MARKETING FOR SMALL ENTERPRISES

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