Definitions

ADVERTISING

Advertising is promotion you pay for. Its most important function is to boost sales. With an ad, you can control your message, its frequency, and in some cases, the placement of your ad. Beware! Your ads compete with hundreds of others for your prospect's attention. You must be willing to run your ad several times until it begins to work. Select advertising media that your audience is likely to read, see or hear on a regular basis, because it is highly likely your prospect will not notice your ad the first time, or even the second.

DATABASE

A database is a collection of information you store in your computer. With a good customer database, you can manipulate the data to create meaningful reports and lists. The most successful businesses keep detailed customer databases and spend a great deal of time and resources to keep their databases up to date. This information can help you:

• print address lists for mailings
• send email or faxes
• determine who your best customers are
• know who bought which products or services, when, how often and at what price
• reminds you when to contact certain customers for various reasons (sending birthday cards, follow-up on leads, etc.)

A good database is essential for your media relations efforts, and for customer retention purposes.

I remember reading an article about a men's clothing store that used its customer database in the most wonderful way. When a customer bought a suit, for example, the salesperson recorded the color of the suit, style, price and other details. When, say, the store received a shipment of new ties, the salesperson would notify the customer that she had a new tie in stock that would beautifully complement the customer's suit.

I wish my hair salon would use its database to more advantage, the way a veterinarian reminds customers of when the next pet vaccination is due. I'm not saying my hair isn't naturally blonde, but let's just say for the sake of argument that if my hairdresser were to send me a note six weeks after each visit reminding me that I'm due to have my hair "done" again, I'm not only more likely to make an appointment, but also return to the same salon. It's a simple process, but I'm surprised at how many business owners lose touch with their customers when it's so easy not to.

DIRECT MARKETING

Small businesses with a specialized focus and community-based businesses should focus on direct and personal marketing strategies. Approaches include direct mail (flyers, catalogs, solicitation letters, contests, etc.); telemarketing, client calls, networking, special events and other such approaches.

MARKETING

Marketing involves all activities related to making a product or service available to the public, from the initial spark of an idea to years after the sale. More simply, marketing is the process of finding, and keeping, customers.

PERSONAL MARKETING

Personal marketing is building your business by getting known by circulating at parties, networking, joining clubs, public speaking and handing out business cards.

PUBLIC RELATIONS

Public relations is the management of information between an organization and its publics. It involves creating positive relationships with the media to encourage them to print your news releases, to show stories about you on television, or send reporters to your events. It involves your organization's positive relationship with key publics (prospects, customers, shareholders, industry analysts, community leaders, etc.).

PROMOTION

Promotion is the use of mass media, direct mail or other marketing options to reach your audience.

PUBLICITY

Publicity is free promotion that you get from the mass media -- newspapers, radio and television. When you attract the attention of large amounts of potential customers, you are getting publicity. Unlike advertising, there are no guarantees that an editor will publish your story, and you cannot control where your story is placed in the publication. However, if you do receive positive coverage on a regular basis, your efforts can be very rewarding in the form of business growth and positive public regard. Generally, people believe what they read or see on television if the message is delivered by a credible source.