8 out of 10 businesses fail within the first 18 months and approximately 50 percent of those will actually survive through their first five years. One of the major reasons why businesses fail is not because they do not earn well, but because they do not plan well. If you are also such a business person, it is time to rethink your strategy and position yourself to succeed. Here are four common marketing mistakes that you should not commit:
1. Neglecting the Right Marketing Channel
Marketing, though one of the most important aspects of a business, also results in heavy and useless expenditure, according to this report. Many businesses take the “you do not sell what you do not market” mantra a little too seriously, allocating budgets higher than normal to their marketing efforts.
You need to market intelligently and use the right marketing channels for product promotions and audience engagement. These days online marketing seems to be the key since a large portion of users are now on the web. However, you need to be intelligent and use the right online channels ranging from PPC to social media marketing. High expectations with poor execution always leads to a failure.
Almost all businesses that are on the web are on social media platforms as well, but only a fraction of these businesses are using social media properly. With changing scenario, it is important for businesses to change their strategy as well. What worked yesterday can be totally ineffective today.
For example, Facebook has changed its algorithm again and it is now next to impossible to be able to reach all your followers without paying to promote posts. Sadly, a lot of business owners are unaware of this change and continue to use Facebook like they used to.
To counter this, keep in touch with the changing scenario and see what fits your business model best.
2. Not Understanding The Target Audience
It is important to understand your customers and their needs to be able to target them in an effective manner. Only your customer can make you a winner and all your efforts should be utilized in that direction.
But, how do you make your customers happy and provide the best customer service possible? In orders to achieve your goals, you need to understand and study their needs and motivations. Customers are different; some are looking for discounts while some are willing to pay a higher price for their favorite brand. However, remember that you can never make everyone happy, hence it is important to concentrate on your target audience and take steps to earn their business.
Everything from your pricing strategy to your marketing plan should be prepared to keep your target audience in the center of your decision-making process.
3. High Expectations
According to the Small Business Administration, around 30% of all startups fail within the first two years, and the number reaches to 50% within the first five years, leaving only 10% success rate. Even though many businesses start strong, they eventually bite the dust. One major reason for the failure is high expectations.
Most entrepreneurs are in a hurry to get results. They fail to understand the time lag and the fact that profits take some time to come. It does not matter what you do – sell artificial trees online or provide online coaching services – you need to be prepared to wait from six months to two years before expecting a profit. However, your efforts during this period should not decrease.
4. Not Paying Attention to Numbers
It is important to track numbers to see where you’re going and at what pace. Planning is the key. You need to make solid plans and measure your growth at every stage of the achievement. For example, if you are a retail business your goal can be selling 5,000 units in period of 10 months, this is a measurable and attainable goal.
Next, you need to regularly check if you’re on the right path by measuring ROI and checking how close you are to attaining your goal of 5000 units. If it looks like you will be able to meet the goal, then your planning was spot on. However, if the goal looks like a distant dream, then you need to rework your strategy and find out what went wrong. Keeping an eye on numbers will save you from failure and allow you to plan better overall for your company.