Customer Attraction

Over 40% of new businesses set up in the UK each year fail within their first two years of business.  Enterprise North East Trust (Enterprise) is warning businesses that they should increase their chance of survival by making sure that they are targeting the right client base for their product; carrying out targeted promotional activities will help a business to establish their identity both in the business community and also with potential customers.

“Someone might have what they consider to be a sure-fire winner in terms of a business idea, however if they do not market their business effectively then the likelihood of their business failing increases.  Prior to starting a business it is imperative to carry out research to determine which sector of the market the product should be aimed at,” says Joyce Duncan, director of operations of Enterprise.  “Once a business has identified its target demographic it is then necessary to determine the best way of reaching them.  There are many ways to achieve this and the most appropriate way will vary from business to business.  Targeting the wrong sectors with promotional activities is a waste of valuable time and money.”

Joyce has this advice for entrepreneurs regarding promoting

• Know your customer

Once you have identified the product or service that you are going to sell you need to carry out research to determine who your product is going to appeal to.  Joyce says “One of the first things is recognising whether you will be marketing your product directly to the public or to other businesses as this will have a direct effect on the type of promotion that you will need to carry out.”

• What to do

There are varying types of promotional activities most of which fall under the headings of marketing and public relations (PR).  Items that you might consider using as a vehicle for promoting your business include the following:

• Mail shots
• Brochures
• Website
• Press releases
• Free give-aways
• Advertising
• Publicity stunts

• How to do it

All businesses need to establish their identity and for new businesses it is particularly important to build awareness regarding the availability of their product or service.  Establishing the identity of a business takes time and business owners need to remember not to expect this to happen over night.

Joyce comments, “The promotional activity that a business is able to carry out will be determined by the level of budget that they can commit to this goal.  Even for those with a small budget it is important to remember that it is better to have a small but regular presence in appropriate media sections rather than blowing the budget in one go.  A regular presence is more likely to firmly establish the business in the minds of their target demographic rather than a one off activity which has impact at the time but is soon over and forgotten.”

“Any promotional activity which is carried out by a business should be done so with the specific aim of reaching the target demographic; for example there would be no point in a business selling baby clothes placing an advert in a computing magazine,” continues Joyce. 

The same is true for any mailing activity or press releases, in order for them to have a chance of achieving the goal of promoting the business such items should always be sent to relevant contacts.

Joyce adds, “Finally businesses should not underestimate the value of word of mouth recommendations.  As always customer service is important and the adage that ‘the customer is always right’ should be remembered - a happy customer is more likely to recommend your business to their contacts.”

Enterprise delivers business support and advice through the Business Gateway service which is supported by Scottish Enterprise.  Telephone 01224 289725 for any aspect of business advice or visit www.enetrust.com.

Ends

Picture Caption:  Joyce Duncan, director of operations, of Enterprise North East Trust warns that businesses need to make sure that they are targeting the right client base for their product.

For further information contact:
Lyndsay Brackenbury
Tricker PR
9 Victoria Street
Aberdeen
Telephone  01224 646491
Direct Line 01224 654086
Mobile  07780 680751
Email  lbrackenbury@trickerpr.com