Franchise Money Maker

This article is written and owned by Mona Abdulla

The ideal situation for an entrepreneur starting a business is to hire a market research firm to assist in locating customers. While some small businesses and start-ups may be able to afford this service, it can be expensive. A well developed market research effort is likely to cost between $25000 and $500000. Consequently, alternative methods may have to be used for locating customers and determining the level of demand.

One good way to start is by assessing the various types of marketing activities in terms of their ability to generate leads and then the probability of the leads turning into sales. If possible, it is often helpful to examine the market for comparable goods or services to gather an approximate estimate of the market size.

Locating customers involves finding a road map to them that is cost effective. Doing so with limited resources is challenging, but can be done. One approach, known as Guerrilla Marketing, focuses efforts on low cost, creative strategies to reach the right people. The approach was first introduced by Jay Conrad Levinson following his success in changing the image of Marlboro cigarettes from a woman’s product into the now famous - - Marlboro Man - - approach.

Guerrilla Marketing is not so much a method of marketing as a mentality or approach to marketing. It looks at ways of reaching individuals and small groups with a unique message that will cause them to take notice. Most small businesses do not have the money to send a marketing message to millions of potential customers. Consequently, the owner must look for ways to make an impression. Every Dollar that is spent on marketing should have a strong potential for locating potential customers. Techniques that can be successful include: - Participation in trade shows - Involvement in sponsorships - Participation in public relations programs - Use of alternative media

Depending on the type of business, trade shows can be a major source of locating customers. The key though, is to follow up on sales leads created at the show. For example, an exhibitor may offer - show prices - which are discounts given if trade show participants make purchases within 30 days of the exhibit. The goal is to generate names of perspective customers in addition to generating interest in the business and the company’s products. Leads obtained at a trade show make an excellent start for a database while also leading to some purchases.

Sponsorships can be another creative way to locate customers and place the name of the company in the consumer’s mind. For a small business, a sponsorship program should be a local event or organization. It is important to make sure the image is consistent with the IMC theme of sponsoring company. When established carefully, various goals may be reached such as winning new customers or creating a positive image to attract new employees.

Public Relations programs are often closely tied to sponsorships. They may also be separate. For example, a company that offers an in house cancer screening for employees may wish to notify the local paper and count on word of mouth to send the signal that the firm cares about its workers. Public relations can be heightened when the owner or manager agrees to speak at a public event or writes articles for local news papers. An article about a new or trendy event in a particular industry and how it affects consumers can be an effective means of getting some free news or coverage. For example, a construction company owner may offer some tips about roof safety just before a forecasted major snowstorm.

Alternative media are an excellent resource for small businesses. These include company logos on vehicles, ad on small kiosks, billboards on little league baseball parks and soccer fields, T-shirts or baseball cap giveaways and any other creative method for reaching potential customers.
Many local firms will fax coupons or special deals to targeted customers. Restaurants may use faxes to offer specials to employees of various businesses.

Locating customers must involve both traditional and nontraditional elements. The marketing team cannot simply pursue standard methods such as advertising because of clutter and cost problems. Creativity and energy are tremendous assets in the introduction of a new good service or company to a local community.

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