Can I Bootstrap Without $$$ Ads?
In the post "How Branding Can Kill Your Profits", one reader commented that my critique of traditional "branding" didn't help him with his problem, which was launching a business without much of a marketing budget.
This is a pretty common problem and it's one that requires a level of marketing expertise that I, frankly, don't have. So I consulted somebody who DOES understand these issues, Audrey Sendrowski-Breuer of Hersh Marketing Group, Inc., a boutique advertising firm.
Audrey is the antithesis of the 1950's ad agent. She doesn't allow anyone in her firm to use the term branding. I've been trading emails with her and I think she really knows her stuff.
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In the post "How Branding Can Kill Your Profits", one reader commented that my critique of traditional "branding" didn't help him with his problem, which was launching a business without much of a marketing budget.
This is a pretty common problem and it's one that requires a level of marketing expertise that I, frankly, don't have. So I consulted somebody who DOES understand these issues, Audrey Sendrowski-Breuer of Hersh Marketing Group, Inc., a boutique advertising firm.
Audrey is the antithesis of the 1950's ad agent. She doesn't allow anyone in her firm to use the term branding. I've been trading emails with her and I think she really knows her stuff.
Here's the original comment:
My company makes a very tasty all-natural herb-based seasoning called chimichurri. It can be added to host of foods to season, spice, saute, simmer, marinate, condiment, and even can be used as a dip.The reader has a very real (and very tough) problem here. Even if he spends a lot of money, he'll probably be disappointed with the results. And he'll probably have problems getting shelf space without being able to show that he's doing something to create demand.
Since I'm a start up with a non-existent marketing budget people are not aware of the benefits of this product and do not know how revolutionary it is. Without marketing there is no brand awareness. Without brand awareness my sales team can go out there and sell tons of the stuff, but it will just sit on the shelfs as without branding the average consumer will walk right by it.
If and take your advice and do not invest in traditional marketing and branding, (and I don't go out of business), I may be able to count on the benefits of positive word-of-mouth and wait for that to tip the product.
But guess what even that grassroot tactic is a form of marketiing that leads to brand awareness - a critical component that influences the consumer at the purchase point -the point that directly determines brand profit by ending in a SALE.
So I asked Audrey what she thought. Her advice, I think, is applicable to a wide range of businesses -- not in the specifics as much as in the general approach:
Word of mouth is going to be the major source of exposure and consumer awareness building - for now. The trick is to think strategically. Leverage the exposure as much as possible. Just as radio advertising is "word of mouth" multiplied by hundreds (so you" talk" to more people, faster), selling your product to companies that have niche food/gift departments like Bloomingdale's, Macy's, William-Sanoma, and a host of others, including distributors who specialize in gourmet food basket customers, will provide more leverage with consumers while not requiring a real advertising budget. Don't overlook the power of online selling through a good website, too, which every company ought to have.So, there you have it. While Audrey does recommend some advertising once you've established yourself, it's not the ridiculous kind of "branding" exercise that wastes money, but rather a way to further spread the "word of mouth." That's good advice, IMHO.
Small businesses don't have the time or capital to invest in [big name-style] branding. Spend the time and money making an excellent product, put it in front of the consumer via your local markets, the right distributors and distribution points. and let the product do the branding for you.
Many well-known companies started this way and boot-strapped their way into the hearts of a small but loyal following. But don't kid yourself - most of them plowed the profits back into the company, which included developing an effective advertising strategy that eventually including traditional advertising, which helped make their "brand" what it is.
The one exception that comes to mind is Ben and Jerry's ice cream; they opted out of the traditional media route but boy, did they capitalize on publicity-drawing efforts, such as showing free movies once a week on a wall outside the ice cream stand, turning the parking lot into a miniature drive-in theater and a lot of attention to their product. This is a good example of promotional marketing, which in turn, built the foundation of their "brand": non-traditional, laid back, give back to the community ordinary guys. The secret was two guys who had a vision, had a natural talent for marketing, and who happened to have the best ice cream anyone had ever tasted.
READERS: Any other suggestions for this reader?