This year’s study, conducted online during the first week of April, also found that small businesses are planning to put their trust in the power of marketing to help them restore business to pre-recession levels. About 42 percent of those polled are considering increasing spending on marketing and advertising initiatives in 2010, and 30 percent say they may increase spending on sales initiatives – both actions specifically aimed at boosting customer traffic and revenues.
“Small businesses are definitely getting it right when it comes to identifying and investing in the tools that will help them bounce back from a difficult period,” said Randy Scarborough, vice president of marketing for FedEx Office. “From print ads and direct mail campaigns to online marketing programs and a social media presence, small business owners today are smart and savvy about how to maximize their budgets while connecting effectively with new and existing customers down the street and around the world.”
These most recent Signs of the Times survey results further underscore small business owners’ firm belief in the value of traditional and online marketing and advertising. In 2008, before the recession was fully felt throughout the marketplace, 41 percent of those polled were considering increasing spending on marketing and advertising initiatives. In 2009, with the recession in full-swing, even more small business owners (44 percent) reported considering a budget increase in that same area. This year’s survey results show 34 percent made cuts to their marketing and advertising spend last year and 31 percent say that decision had a negative/extremely negative impact on their business results.
Making Marketing Work for Small Business
With a wide spectrum of marketing and advertising tools available to small business owners, it can be a challenge to select those that are best suited to their audience and budget. But there is no confusion about what tools are proven effective in the marketplace. An overwhelming majority (87 percent) of respondents report that printed marketing/advertising tools are somewhat to very effective at driving customers to businesses, and 61 percent believe traditional marketing/advertising methods are more effective than Web-based counterparts at bringing in customers.
To that end, 44 percent of small business owners plan to grow business in 2010 by increasing communication with existing and potential customers via printed materials like newsletters and direct mailings. These entrepreneurs are also actively leveraging other traditional marketing/advertising tools such as brochures (43 percent), Yellow Pages listings (39 percent), flyers and signs/banners/posters (37 percent each) and newspaper advertisements (32 percent).
Interestingly, the small business owners putting the most emphasis in this area may be older than most would expect. Despite their affinity toward the Web, 18-34 year-old small business owners are greater proponents of signs, banners and/or posters (51 percent for 18-34 vs. 36 percent for 55+) and flyers/brochures (57 percent for 18-34 vs. 47 percent for 55+) as cost effective marketing/advertising tools than older owners.
Yet the Web cannot be ignored as a valuable tool – and 46 percent have plans to grow business in 2010 by improving their company’s online presence, while another 36 percent plan to utilize social media/networking websites to build business.
With many small businesses planning to enhance their marketing and advertising efforts across the board this year, a critical component many are forgetting is the development of a consistent brand design and message. In fact, 64 percent say their marketing and advertising materials are, at best, only somewhat consistent in terms of brand, messaging and overall design. However, nearly a quarter (23 percent) of small business owners can’t invest in improving these materials due to budget restraints. Another 13 percent find that they spend more than they should because they don’t have the time or resources to find cost-saving deals.
