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Grow Your Business Sales & Marketing

Marketing on a Budget: How to Make the Most of Your Dollars

Marketing on a Budget: How to Make the Most of Your Dollars
Credit: Melpomene/Shutterstock

When you're running a small business that has limited resources, every dollar counts. This is especially true of your marketing budget: You need to figure out which activities will draw the largest amount of leads for the fewest dollars.

Not every type of marketing works for every industry, product or service. Businesses need to identify those methods that are sustainable and that get desired results. However, across the board, social media tends to be one of the most cost-effective methods of marketing.

John Donnelly III, senior vice president of global sales and marketing for Crimson Hexagon, a social media analytics company, said that even conservative companies are thinking about spending a majority of their marketing dollars on social media.

"Social media [can] capture insights [and help you] listen to your audience about what they have to say about the product or service," Donnelly said.

That data can prove invaluable as businesses market existing products or look at launching new lines, he said. Through social media analytics, Donnelly said, "you can see what happened in the past, [discover] what [is happening] now and identify best approaches for the future." [See Related Story: Social Media for Business: A Marketer's Guide]

Social media isn't the only way to reach customers. Mike Boyd, franchise owner and chief operating officer of the Instant Imprints promotional product franchise, said that he and his wife/co-owner, Linda, have stuck to the methods that work best for them. That includes weekly emails, direct mailings and pay-per-click campaigns.

"For many years, we let what we didn't know about that discipline stop us from doing anything," Boyd told Business News Daily. "Once we stopped trying to figure out 'marketing' and instead did things that would make us more visible to the people who wanted to be our customers, stuff started to happen."

The Boyds have also worked at acquiring new customers by becoming active in local networking organizations, such as BNI and the chamber of commerce.

"We knew that sitting within the four walls of our shop and waiting for the next customer to find us wasn't a good plan," Boyd said. "You need to become a business leader in your community."

While it's good to stick with tried-and-true tactics, Boyd said small business owners can't be afraid to alter their plans when some aspects aren't working.

"All of our tactics haven't survived [since we started]," Boyd said.

For example, he said the company originally participated in a business "welcome wagon" program that introduced it to all the new businesses in the community. While this helped the Boyds meet a lot of new people, Boyd said, it never turned into actual sales. So, instead of spending money on that, they repurposed those funds to a Google AdWords pay-per-click program.

"We have had that kind of evolution," Boyd said.

Your small business marketing plan needs to revolve around making yourself more visible to those you don't already know and keeping customers in the fold after a sale is made.  Social media allows a company to reach out before, during and after every transaction and stay engaged.

Weekly emails and post-purchase thank-you notes, like those the Boyds send, are another way to do the same thing.

"That really makes an impression on customers," Boyd said. "They don't expect you to carry on the dialogue after the transaction."

Additional reporting by Chad Brooks. Some source interviews were conducted for a previous version of this article.

Marci Martin
Marci Martin

With an Associate's Degree in Business Management and nearly twenty years in senior management positions, Marci brings a real life perspective to her articles about business and leadership. She began freelancing in 2012 and became a contributing writer for Business News Daily in 2015.