There are many different reasons why marketing is important for businesses. You can learn more about these reasons by clicking here.
As a small business owner, you’re likely hounded each week by various advertising companies looking to tell you why marketing is important for your business and how they can help.
However, as an entrepreneur, you must also concern yourself with your budget. For startups especially, every dollar spent counts, especially with a 50 percent five-year failure rate.
While there’s no doubt that marketing is important for your business, the question is why. Do you really need to invest important resources (time, money, energy) on telling consumers about your brand? The answer is a resounding yes.
Why Marketing is Important for Your Business
The answer to this question is simple.
Consumers have to know that you exist, what you do, and why they should choose you over your competitors. Advertising is the only way to get the word out. Without it, you may as well not even bother opening your doors.
For a more in-depth explanation, here are nine key reasons why you need it for your business.
1. Improve Brand Recognition
To gain a further understanding of what brand recognition is, we’ll give you an example of a company that’s mastered the concept. When you think of adhesive bandages, you call it a “Band-Aid.” However, “Band-Aid” is the company’s name, not the actual product.
In truth, hundreds of companies make adhesive bandages, but there’s only one “Band-Aid”, and they have a monopoly in the market because of their brand awareness.
Similarly, the importance of marketing for your business is to become recognizable to consumers. When they hear your company name or see your logo, they must immediately associate it with your products or services and vice versa.
2. Build a Relationship With Consumers
Learning why marketing is important means recognizing the significance of your company’s relationship with the public. The more you advertise and spread your message, the more consumers will learn to trust your name.
This builds a level of credibility in your community, online, and among other local businesses. Focus your efforts on explaining how and why you serve the best interests of consumers and why you’re business is good for the community. You can read this blog post to know more.
3. Create Your Company Image and Reputation
One of the most important purposes of advertising can be discovered by asking the right questions. For example, “What role does marketing play in our society?”
For most businesses, marketing provides a way to create and establish your company’s image within the community. By taking the initiative to describe yourself to consumers, what you do, and your qualifications, you maintain control.
Alternatively, if you have experienced some bad press due to errors, poor customer service, or faulty products, you can use advertising for damage control. You can create a campaign of ads to apologize, offer discounts to people who were affected, and more to rebuild your reputation.
4. Let Consumers Know About New Products or Services
Another reason why marketing is important is that it’s the primary means of alerting consumers to changes in your company. A good use of marketing is to promote new products or services you didn’t offer in the past.
For example, it wasn’t that long ago that Wal-Mart stores were simple department stores. Then they started creating “Wal-Mart Superstores” that carried groceries as well. After excessive advertising and promotion, Wal-Mart is now most peoples’ go-to store for grocery shopping.
5. Boost Sales
The most common reason companies use marketing is to boost their sales. They wouldn’t invest money if there wasn’t the opportunity for a high ROI or return on investment. The key is learning how to marketing effectively to minimize costs and maximize revenue.
Marketing will to the right audience will draw in new and repeat customers.
6. Tell People What Your Company Does
Whether you’re looking at direct-mail advertising or considering an audio marketing strategy, you need to help people understand what your company does. This is especially important if your company name or logo is somewhat vague or non-descriptive.
For example, a gym named “The Asylum” may not be immediately recognizable as a gym. Whereas “The Asylum Gym” leaves no doubt in people’s minds. If your logo and name leave questions, make sure your marketing strategy aims answers them.
7. Attract Affiliate Relationships
Small businesses thrive on networks and affiliate relationships with other companies. One of the reasons why marketing is essential is because it puts you in the spotlight for other companies with whom you can form mutually beneficial relationships.
For example, if you’re a nutritional/fitness supplement retail store, your advertisements may catch the eye of local gyms who want to affiliate with you and send their members your way.
8. Stay Relevant
The average person sees nearly 5,000 advertisements a day. If your business isn’t standing out in the crowd, consumers are going to forget about you. This is why marketing is essential for your business – you need to maintain relevancy in a competitive industry.
In terms of online relevancy, the stronger your online presence is, the more easily consumers can find your website through ads, search engines, social media platforms, and more.
9. Grow Your Business
Finally, understand that marketing is vital for any business looking to grow, expand, or thrive. You can’t expect your business to do well if people don’t know about you. You need to advertise your products and services to the community.
If you’re a roofing company, your name needs to come to mind when homeowners need roof work. If you have a frozen yogurt shop, people need to think of you when they’re out on a hot summer’s day with their families.
Consistent marketing establishes your presence in your community, which is vital to your growth.
Looking for More Business News and Advice?
We can’t express enough why marketing is important for your company!
But, with this article in hand, you should have a thorough knowledge of the basics. Remember, it’s all about getting your brand out there, controlling your image, getting leads, and boosting your sales.
If you’re looking for additional help, we still have more to offer. Check out some of our other videos and blogs to learn more about small business practices, opportunities, news, and more.