Don't Cast a Wide Net: Targeting Just As Important for SMBs

Two of the following three statements are valid.  Do you know which one isn't? 

1. The weak economy is taking a very tough toll on SMBs.  
2. Streamlining is very important, but shouldn't include eliminating your marketing/advertising budget. 
3. In a tough economy, targeting your marketing/advertising is wasteful--you should cast a wide net. 

If you chose number 3, then you're right.  As tempting as it might be to stretch your marketing and advertising dollars by spending it any and everywhere without consideration of your target market, it's a mistake to do so.

It's of critical importance that you identify the consumers who are most likely to buy your product.  And those are the consumers who are most likely to benefit from your product or service.  If you take the approach of buying ad space in the local car club magazine because the price is very affordable, but you are selling shoes, then you're probably wasting valuable ad dollars.  Sure, you may attract a couple of people that will by a pair of shoes, but because you failed to hit your target, your return on investment will likely be negligible. 

Even larger companies can make the mistake of failing to target their marketing efforts.  Simon Dumenco writes in Advertising Age about the likely advertising miscalculations of  daily deal-maker, Groupon, which is currently hemorrhaging cash.  Which makes the point that employing a targeted approach to any marketing or advertising campaign, not only is the best way to reach those who are most likely to buy from you, but it also helps to avoid wasting precious resources on people who are not interested or ticking people off with another "pesky ad".

In a previous post on this blog, 10 Ways SMBs Can Engage Customers in a Tight Economy, in point number two, I said that you should be diversifying your marketing/advertising.  Remember, that means spreading your dollars around--some social, some traditional, etc., but not doing so without a strategy to reach your target--there is a difference.

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