News
2009
as seen in
Crains New York
Tactics for Cheap Marketing
by Elaine Pofeldt
02-08-2009
Low-cost mailings, no-frills help, networking sites get the word out.
With only $1,000 a year to spend on marketing for Tedde, a company that makes one-of-a-kind bears, Sky Khan knew she needed an image with a lot of impact.
That's where poor Headless Ted came in.
Around Halloween, Ms. Khan put a decapitated bear on the cover of 1,500 fliers a distributor handed out near toy stores in Manhattan. It cost her about $100 for printing, plus about $165 for the distribution.
In another ultracheap promotion, her husband, co-founder and fellow marketing industry veteran Ben Flammang, hung "Lost Teddy Bear" signs, modeled after homespun posters advertising missing pets, around Chelsea. The signs directed passersby to the company's Web site.
Now, the couple is hiring up-and-coming videographers to make videos for $60 a pop featuring their creations–such as the recent Annoying Bear–for posting on YouTube, MySpace and other sites.
"We're hoping that creates a little bit of mystery around the product," says Mr. Flammang.
Sales at Tedde, based in the garment district, have increased 50%, month over month, since the company began selling actively in September. The couple aims for $40,000 in sales this year. About 1% to 2% of the people who visit its Web site actually buy something. In tough times, marketing is essential for small businesses that want to win new customers and keep old ones coming back, say many experts. "It's not about spending the most money, but being the most unique and innovative," says Jon Margolis, president of Manhattan-based Michael Alan Group and author of Guerrilla Marketing for Dummies.
Here are some inexpensive marketing strategies that New York City small business owners are using with success.
Tip 1 – Send postcards.
Manhattan-based Sharmen Lane, who runs the four–person motivational speaking company SharSpeaks, used to send out direct-mail letters advertising her services and events. Now she spreads the word through postcards, which cost about half as much to mail. "People have no choice but to read them," she adds. "They’re open."
Tip 2 – Keep postage costs low.
Consider a low–priced service such as the U.S. Postal Service’s Click2Mail, where you can design customized direct mailings and apply the precise postage required, advises Lauren Hand, marketing coordinator at Market News International, a financial news service in Manhattan. Because Click2Mail will match your mailing list against the USPS’s database and alerts you about invalid addresses immediately, you can make corrections before printing up missives that would otherwise get returned, she notes.
Tip 3 – Hire no-frills marketing help.
Lease a Sales Rep, a Raleigh, N.C., firm that has an office on Fifth Avenue at 27th Street in Manhattan, will make cold calls for clients in fields such as advertising, construction and IT to set up sales meetings for their staff or even handle face–to–face contacts with customers. The company has entry–level programs for small businesses that start at about $1,500 a month, says Gilbert Pagan, chief executive. "If you do the math, a salesperson who’s worth their weight, at a minimum, is going to cost you about $40,000 in base salary."
Tip 4 – Use social networking sites.
Social networking sites are growing into a real marketing alternative for businesses, which can use them to target customers based on their interests. They are also great ways to keep in touch with regular customers, says Shaun Clancy, owner of Foley’s New York, a midtown sports bar with 15 employees. He helps keep the place full all week by inviting members of Meetup groups for fans of teams such as the Boston Red Sox and the Pittsburgh Penguins to special events.
Apply the less–is–more approach to sending out promotional messages by e–mail to avoid annoying customers, advises Rachel Weingarten, president of Octagon Street, a marketing and promotions firm in Brooklyn. And respond promptly if any write back. "You have the right balance when you have a conversation going," she says.
Tip 5 – Use Twitter.
Thomas Degeest, owner of Wafels & Dinges, a five-employee firm in Chelsea, sends e–mail alerts to about 400 customers via Twitter and Facebook that tell them when his gourmet food truck will be in particular neighborhoods. "It has become an essential part of the business infrastructure," says the former management consultant at IBM.
Social networking sites aren’t just useful for mobile businesses.
Iridesco, which makes software, began using Twitter several months ago to post free-trial deals for Harvest, which helps professionals track the time they spend on projects. Results were good, says Michael Dolan, who handles marketing for the Manhattan-based outfit. Iridesco’s employees also reach out to Twitter users who mention the need for a program like the one they offer. "I’d say about five people a day whom we’ve spoken to on Twitter go on to try the software," he says.
Tip 6 – Establish connections.
To build a flow of traffic to Beekman 1802, a four–person retail Web site that sells goat’s milk soap and other products, co–founder Brent Ridge posts comments in discussions on blogs that cover subjects such as beauty products and crafting. To avoid the hard sell, the Manhattan entrepreneur, who started out as a physician, avoids mentioning his company in his comments, including his site’s address only in the line where he is asked for that information along with his name. "I’m very indirect," he says. Often, the bloggers and their readers click back to his site anyway.
To build on the company’s personal connection with customers, Dr. Ridge and business partner Josh Kilmer–Purcell also run several of their own blogs for Beekman 1802, such as one on craft and cooking projects called How Too, which they link to the company Web site and vice versa. Since Beekman 1802 launched its site in April, it has served about 5,000 customers. "We’re very pleased with the progression," he says.
Original Article
