Internet Marketing for Small Business – Why?

Internet Marketing for Small Business – Why?

Nov 17, 2009
Internet Marketing

Most of the marketing channels that small business have used in the past are dying right before our eyes.

It’s got me thinking about why so many small businesses aren’t utilizing more Internet marketing tools today.  It can’t be cost, since most of these things cost very little in the way of monetary investment.  Perhaps it’s a perceived lack of time.  However if you knew your success depended on it I know you would make time. I guess it could be a lack of knowledge on how to use these tools or how to get started. Quite frankly there is a ton of great stuff on the Internet that answers a lot of questions you may have.

So, I’m left with two reasons that small businesses choose not to utilize these tools a) their current lead generation and cultivation system works just fine b) they don’t believe Internet marketing will work.

Current System For Attracting Leads

Let’s look at the first one. How do you attract customers today?   Here’s a list that I came up with, perhaps there are more.

  • Word of Mouth (Referrals)
  • Print Advertising (Newspapers, Yellow Pages, etc)
  • AM/FM Radio
  • Trade shows
  • Direct Mail
  • TV
  • Outdoor Advertising
  • Phone

I’m sure there are other ways that you attract customers to your small business, however this probably covers most. Now, based on trends what do you think each of these channels will look like 5 years from now in terms of consumption and engagement.

Trends For The Next Five Years. What’s Up? What’s Down?

Based on the past and current trends I see the following from above trending UP.

  • Word of Mouth (Up) – I’m not sure how to measure “Word of Mouth” but I would say it is going up in terms of consumer consumption.  There is no doubt in terms of effectiveness in the consumers mind. This is one of the reasons Social Networks are so important.
  • Outdoor Advertising (Up) – With the increase in cars, travel and people the consumption is bound to be up.  Now there are more strict laws continually coming forward limiting this area, however I would say overall it’s fair to say that it is up.

Now for the channels that we see trending Down in consumption and engagement.

  • Print Advertising (Down) - Nearly every channel, magazines, newspapers, yellow pages, etc are all down.
  • AM/FM Radio (Down) – This is an interesting one. While AM/FM radio listeners are down, digital radio, Internet radio continue to climb. I put down since we are talking about AM/FM Radio specifically.
  • Trade Shows (Down) – Both attendance and participation of nearly every industries trade shows have been steadily declining.
  • Direct Mail (Down) – This has been on a downward trend for some time, more in the sense of effectiveness than consumption.  We certainly haven’t seen a dip in the amount, but more in the success rates.
  • TV (Down) – viewership continues to decline
  • Phone (Down) – Every since caller ID this channel has been on decline.

So we have an overall general look at how the consumption and engagement trends are shaping up and I think its fair to say that over the next 5 years these trends will continue.  If anything the “Down” channels may move downward with increasing speed.

The question is if a majority of these channels are down, then what are you going to do to replace them?  The answer should be Internet marketing.

Tomorrow Ill look at what Internet Marketing can do for your small business. By the way if one of the reason you aren’t more engaged in Internet marketing is because you just don’t know how, follow my free newsletter where I cover this topic more in depth.

Read part 2 to this story HERE

photo credit

  • http://dickmanmarketing.wordpress.com/2009/11/17/internet-marketing-for-small-business-%e2%80%93-why/ Internet Marketing for Small Business – Why? « Mike Dickman

    [...] PDRTJS_settings_505742_post_280 = { "id" : "505742", "unique_id" : "wp-post-280", "title" : "Internet+Marketing+for+Small+Business+%E2%80%93+Why%3F", "item_id" : "_post_280", "permalink" : "http%3A%2F%2Fdickmanmarketing.wordpress.com%2F2009%2F11%2F17%2Finternet-marketing-for-small-business-%25e2%2580%2593-why%2F" } By Rich Lazzara (richlazzara.com) [...]

  • ckourtakis

    Rich,

    You bring up a great point that not matter what isze your business is, there is no reason not to be using internet marketing. In fact, with the internet, is there such thing as a small business anymore? This global economy has changed the way everyone does business and unless you provide a service in your local area, you want to be using internet marketing.

    Times have changed and the ones who adapt will succeed. So, whether it is time, lack of knowledge or other, the small business needs to figure it out and quick, because their competition already has.

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  • karlhummel

    Hi Rich,

    I couldn't agree with you more. The advertising and business building tactics that you mentioned as being on the downward trend are definitely in a backward spiral. I believe that this is primarily because of the Internet. Your advice is sound and your blog post was excellent. Thanks for sharing.

    To Your Success!

  • http://www.RichLazzara.com Rich Lazzara

    Chris, love the comment “is there such thing as a small business anymore?” Your right, there really shouldnt be. Small business is defined by employees #'s (under 100), BUT it shoudnt be. This is a change in the global economy going forward. In fact being “small” is now considered an advantage in many areas.
    What ways are you using to gain knowledge? and figure it out?

  • http://www.RichLazzara.com Rich Lazzara

    Karl, I love that term “backward spiral”, crack me up ;) I agree the Internet is wreaking havoc on many industries. Thank you for the compliments and comments.

  • ckourtakis

    Rich,

    I was going to define that a small business is under 100 people, but you are correct, the smaller companies may have the advantage now with overhead costs or other. Look at how many companies apprear large due to their web presence, but when you see their faciliteis, they are in someone's backyard or a small one room office.

  • http://www.RichLazzara.com Rich Lazzara

    Chris, yeah that will continue to be the norm. thx for comment

  • John Lilla

    Thanks Rich,
    I have been sensing this right along. You have encapsulized it and put straight forward the items that need be addressed. I have been nibbling around the edges for too long. You are helping me focus, which will aid in going forward. It is indeed important to invest the time necessary to move ahead in this elctronic age.
    John

  • http://www.RichLazzara.com Rich Lazzara

    John, that's great that it helps you focus. The fact that your around the edges means you are MILES ahead of most. For many small businesses this stuff isnt even on the radar. Let me ask you a couple questions if you don't mind. What type of industry are you in? What one or two things could you use help on? I just like to get a feel for whats going on in the small biz world.

  • John Lilla

    Thanks Rich,
    I have been sensing this right along. You have encapsulized it and put straight forward the items that need be addressed. I have been nibbling around the edges for too long. You are helping me focus, which will aid in going forward. It is indeed important to invest the time necessary to move ahead in this elctronic age.
    John

  • http://www.RichLazzara.com Rich Lazzara

    John, that's great that it helps you focus. The fact that your around the edges means you are MILES ahead of most. For many small businesses this stuff isnt even on the radar. Let me ask you a couple questions if you don't mind. What type of industry are you in? What one or two things could you use help on? I just like to get a feel for whats going on in the small biz world.

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