Recently, my colleague Dennis, and I stopped at a coffee and donut shop to discuss business strategy. During that visit, I noticed that the display which included photos, trophies, and memorabilia of a little league that they sponsored was no longer there. The back of the establishment that was a TV lounge with pillowed chairs was closed off, obviously due to the Covid-19 pandemic. Those of us that frequented the establishment were impressed by the owner’s support of youth sports. Sports events are the most popular by far at an estimated 69% of sponsorship.

As the states of New Jersey and Pennsylvania start to relax restrictions in the coming months, sponsorship is a PR strategy that enhances the reputation of a business within its community. Sponsorship is one of the fastest-growing forms of marketing promotions.  Causes require a for-profit business to partner with a non-profit organization. This strategy includes contributing a portion of the sales to the non-profit.  The attendees of the event are informed that a set percentage of sales will be donated and a deadline given for the purchase. Sponsoring events to improve the stature of a company by being linked to a worthy cause, and resulting in increased sales and profits.

Another advantage of sponsorship is that it is a cost-effective way of reaching your targeted customers. With traditional advertising, you are paying the media to promote your products to a mass audience of consumers that have no interest, this is referred to as the shotgun approach. Sponsorship allows you to target the customers that you are trying to reach.

Courting local media gives the non-profit and your company coverage that is free advertising with much more credibility than paid promotions.

A hypothetical example is a sporting goods company specializing in tennis equipment, sponsoring a tennis tournament, supplying equipment to top players for endorsements, and donating a percentage of sales to the charity fundraiser. This is a WIN-WIN for all parties involved.

Reference:

Weigold M, and Arens W. (2015) ADVERTISING, 3e.   Dubuque:  McGraw Hill 

This blog post is from my lecture notes based on the textbook ADVERTISING 3e, by Arens & Weigold with a little help from Wikipedia.

Public Relations for Small Business

The role of public relations is to foster goodwill in the community and gaining public approval for your organization. The long-term goal of PR is to manage the reputation of the company.

Different PR tactics can be implemented by entrepreneurs to gain acceptance by the community they serve.

Press release, information issued to print and broadcast outlets.

Press kit, a package of publicity materials informing the press at staged events.

Website, containing information about the organization. Company blog to facilitate relationships with their consumers and other publics.

Publicity, the generation of news about a person, product, or service that appears in the media.

Community involvement, a local activity sponsoring or participating in an event.

Public speaking, giving speeches to local organizations, at events, meetings, and conferences. It is a very powerful way of presenting your operation and what you represent.

In future articles, we will discuss how to use these tactics, but in this post, free releases and the press kit will be covered.

The press release (or news release) is the most widely used PR tool, consisting of information issued to generate or shed light on a subject of interest. Topics may include the announcement of a product launch, new store opening, or community involvement by the firm.

A press kit (or media kit) is an excellent tool to announce the information for your press release. Traditionally the press kit was a folder that enabled the business person to present printed information, photos, contact information, and collateral information. Today, the press kit is digital using a flash drive, CD, DVD, and video.

There are many sites offering information on how to create a press kit, but I recommend you look at https://www.canva.com/media-kits/templates/.

Canva Media kit templates

Create stunning media kits with the help of our free media kit templates that you can customize and download. Highlight your brand and services and get people to partner with you.

Marketing Your Business With Video

The current trend in small business marketing communications is video. I’m sure that most of us can agree that we enjoy watching videos on our computers. We view videos for entertainment, learning new skills, and research. YouTube and Vimeo offer a plethora of videos about many topics. An example is my recently canceling my gym membership and watching TRX exercise videos to make sure I’m using proper form with my at-home exercises.

If you have a website you can place your video on your landing page explaining what you do and the benefits that you can provide to your customers. There are many platforms available for businesses to highlight their videos and create brand awareness. Social networks are ideal platforms for communicating and engaging prospective buyers. Get your customers’ attention by emailing a short video or a link.

There are different levels of production, the first being the advertising agency. These agencies will give you the most sophisticated and polished product with excellent results, but there is a high cost.

Some companies will produce a promotional video for under $2,000. Most of these companies are staffed by videographers, not Don Draper’s (Mad Men), who will need your guidance and input.

The easiest and most cost-efficient method is to use software that is available online. The cost of producing a video has become negligible, and the technology ranges from moderate to very easy depending on the software. The easiest way to create a marketing video is to use a template format that uses photos to tell your story and a VoiceOver.

One of the simplest editing tools to use is Animoto < https://animoto.com/business/promo-video >. Animoto will walk you through the production process starting with a storyboard template where you can create your big idea. You can upload your photos and video clips or select from their stock library. Edit the video and customize it to fit your organization’s identity. Viola, you have produced your video and are ready for distribution.

In my previous career, I taught marketing at a major university. One of the courses that I taught was Advertising. I am a firm believer in hands-on learning and my students were required to produce a promotional video for a local small business as their final project. I created an 88-page project manual to guide them through the process. If you would like a pdf copy of this manual send your request to nick@kbizbrokers.com.

Identifying Unique Business Opportunities

Successful entrepreneurs have a special talent for identifying unique business opportunities. They can identify market trends and navigate their resources to capitalize on these market transformations. When a gap or problem is identified a business owner should seek a solution, such as a product or service to fill this void.

All market indications are that this pandemic will be with us for many months, possibly another year. Some of the results of the changes we are experiencing will be permanent. Many companies will be downsizing their organizations. Employees will continue to work from home saving companies huge sums of money in office rentals. Commercial property owners in downtown city locations will have to reinvent their business model. They will have to convert their offices to other uses or perish. Recently, I heard about a motel that transfigured its rooms into mini-office suites. This is an example of a motel owner taking advantage of the market change to fill his empty rooms to long term leases.

If you’re in a business that has been affected by the current economic downturn try brainstorming with your partners and employees and discover an opportunity that can be beneficial to your operation. Use social media to get the pulse of your customers’ wants and needs. There is a wealth of information on the web, trade publications, and industry reports if you search and analyze your findings.

Once you have found a target opportunity the next step is to formulate a marketing strategy. When developing your strategy analyze financial startup costs, target market size, and market potential.

The best way that I’ve found developing a marketing plan is to purchase MP software that is available online.

https://www.capterra.com/marketing-planning-software/.

If you have any ideas or comments, please contact our manager.

Dennis Hassis, Agent Manager

dennis@kbizbrokers.com