Pet Product News Editorial Blog:
Monday, July 13, 2009
Advertise or Bust
By Sherri Collins
Editor, Pet Product News International
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One conundrum (out of many) that every small-business owner faces in a down economy is how to cut costs without slashing potential revenue. Do you scale back on staffing and risk sacrificing customer service? Do you reduce inventory to the point that you’re perpetually balancing on an out-of-stock knife-edge? Do you stop advertising in various forms of local media and chance a drop in name recognition? These are difficult decisions all around, but according to many small-business experts and advertising gurus, the answer to the last question is a resounding “No.” Advertising is even more essential in tough economic times than in better ones.
A recent web article at Examiner.com by Brian Holmes, president/art director for Effective Advertising Solutions LLC, highlights nine top reasons as to why small-businesses need to maintain or expand their advertising, no matter what the economic climate. Granted, advertising is Holmes’ business, nevertheless his points are valid--otherwise Retail Merchandiser wouldn’t have pointed them out as well.
According to Holmes, the No. 1 reason to keep advertising is that consumer awareness equals continued existence. If shoppers don’t know you’re out there, offering the best customer service, the most comprehensive inventory and/or the coolest in-store promotions will be for naught. Advertising in local newspapers, on dedicated cable channels, in area guide books and on the web ensures that not only potential customers know you exist (reason number three), it also keeps your name at the forefront of your existing customers’ awareness (reason number four).
A National Retail Federation survey backs up Holmes assertions (reason number six) that advertising creates customer traffic, which increases sales. “For every 100 items consumers plan to buy, they make an additional 30 unanticipated purchases,” Holmes reported. Advertising brings the customers in and additional in-store promotions and eye-catching POPs helps boost their total purchases.
Holmes’ number-two reason to advertise is to maintain your image. “Your image defines you,” and advertising reinforces your position within the industry and the community.
Jumping past the aforementioned reasons three and four, the fifth reason is ensuring intention is matched with action. Occasional ads are fine, but consistent ads that encourage consumer action via time-limited sales or coupons are better, Holmes explained.
Rounding out the list are number seven: Advertising saves you time and money; number eight: Advertising is an investment in your success; and number nine (which is more of a how to than a reason): The pros do it and so should you. Learn from their successes.
Are you still in doubt about the wisdom of spending money on advertising while struggling through a recession? Then consider this, our 2009-2010 Retailer of the Year and 11 category winners know the value of advertising as all of them promote their stores in a variety of media on a regular basis. Success really does tell.
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Editor’s note: Pet Product News International will be announcing our 2009-2010 Retailer of the Year award recipients in the upcoming September 2009 issue.
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