Aardvark Consulting : Marketing Consultancy in Worcester

Survive and thrive - get your marketing strategy right

Most small and medium sized businesses are working hard to survive, especially in the current economic conditions.  Many of them will be actively considering changes to where they spend their marketing budget and how much they spend.  Whether it is reducing advertising, switching money from leafleting to e-mail marketing or trying networking, many business owners and directors are looking for ways to improve the results of their marketing investment.

Whilst these tactical changes may deliver some minor improvements, it is a well established principle that the real key to a significant improvement in return on marketing investment lies in finding the right marketing strategies.

The diagram above shows the relative impact of marketing strategy and tactics.  In the top right corner, we can see that a company with a strong strategy and good tactics will thrive - not very surprising.  Equally, it is not a shock to see that a company with a weak strategy and poor tactics will face a quick death.  What is perhaps more surprising is that an effective strategy, even when supported by inefficient tactics will ensure a business survives.  However, if a company has ineffective strategies, even good tactics will only slow down their demise.

In summary then, for a business owner or director looking for a significant improvement in results from marketing, finding the right strategy is far more important than changing tactics.  Aardvark Marketing Consultants, a  Worcester-based consultancy specialises in helping small and medium sized businesses develop effective, measurable and affordable marketing strategies to ensure they survive and ultimately thrive.  Whether it is finding the right positioning for the business or brand; improving customer understanding or improving brand image, a no-obligation meeting with Aardvark Marketing Consultants will be the first step for most businesses to getting their marketing strategy right.

To take that first step, please send us an enquiry or phone Chris Hutchinson on 01905 622 206

You don't have to be the cheapest

Confidence is in short supply and money seems to be equally scarce.  It's tempting to think that every consumer in the West Midlands is going to be looking for the lowest price and search for ways to cut costs and margins to become the cheapest amongst the competitive set.

However, I urge you to consider the following before taking such drastic action:

• Focus on value not price - customers buy on price when they perceive no other relevant difference.  Even in a recession, the rule holds.  What changes is how customers judge value; in other words what is relevant.

• Service and customer relationships are still important.  When we are surrounded by bad news and the future looks bleak, being 'looked after' and treated properly can be even more noticeable.  This is especially true if competitors are visibly reducing service levels in order to fund price reductions.  We love the new Norwich Union TV advertising, offering to compare their prices with their competition, even if the competition is cheaper.  It's a great statement of confidence in their product and value plus an absolute transparency which I'm sure their customers will respect.

• New opportunities - changing customer priorities will create new opportunities.  For example, DVD rental shops are seeing a significant increase in business as customers shift from a trip to the cinema to staying home with a good film.  The rental shops haven't had to cut prices to achieve this.

• What happens when the recession is over?  Of course short term survival is critical, but for most businesses there will be a recovery and we need to think about our strategy to take advantage of it.  if we cut costs, staff salaries and customer service now to fund a price cut, will our suppliers, staff and customers be ready and willing to help us when the good times return or will they be looking elsewhere?

However, it may be that price cuts are the right strategy - the real key is to understand your customers & their changing needs in the current climate.  There has never been a more important time to establish and maintain a dialogue with customers.  Aardvark Marketing Consultants have significant experience in helping businesses find out what their customers think - for a free discussion please send us an e-mail or call Chris Hutchinson on 01905 622 206

Cutting marketing budgets - where and how much?

Well it's been another fantastic week in the global economy hasn't it!  Do remember though that the main thing that is in genuinely short supply is 'confidence'.  As business owners, managers or consumers we all have a choice about how we react to this situation.  We can choose to be concerned about our futures and further reduce the level of confidence in our community, region, country and the world, or we can look for the opportunities that the economic changes provide, take positive actions and retain our confidence.  The one thing that is clear from the last 12 months, and especially the last few weeks is that confidence is contagious - if we lose confidence, it's likely to spread to our customers, suppliers and bank managers; if we exude confidence it makes other people more confident too.

Whether your 'glass' is half full or half empty, it's undeniably a great time to review your marketing budgets.  Some businesses will want to reduce their spend; others will be wondering if now is the time to increase their marketing presence, especially with some great deals on offer to advertisers.

The best way to approach both situations is to review where money is being spent right now, and most importantly what returns it is generating.  I have listed below a short checklist that you might find useful:

Aardvark Marketing Consultants Spend Checklist

1. Do you have clear, measurable annual marketing objectives for your business?
2. Do you have an annual budget for your marketing activity?
3. Is your annual marketing plan phased across the year?
4. Do you have indicator measures that show you if the marketing activity is working throughout the year?
5. Do you review these indicators and your marketing activity every month?
6. Are you running any marketing activity without knowing if it works or not?

Hopefully, you answered 'yes' to the first five questions and 'no' to the last one!  If not, and you would like some help to turn your answer around, or you just want to understand why the questions is so important, I will be delighted to discuss it with you.  You can call me, Chris Hutchinson on 01905 622 206 or send me an e-mail

Don't take George Osborne's advice

Don't worry, we're not getting into party politics (or any type of politics for that matter), but you might have been influenced by an excerpt from his speech at this week's party conference when he said that "in the private sector, when times are tough...the advertising budget is cut."

Of course some companies do cut their marketing budgets, but numerous studies have consistently shown that the businesses which sustain their marketing investment through 'tough times' achieve greater increases in profitability than those that cut back (especially when it's your competitors who cut their investment).  It was interesting to note that in today's trading statement, Marks & Spencer announced a reduction in capital expenditure but not in advertising and marketing, and their share price rose 8% on the day.

This is not an excuse for continued spending on ineffective activities though - whether in good or bad times a marketing plan should have clear objectives and regular review of results to ensure maximum returns.

Even with the very best of intentions it may occasionally be necessary to reduce marketing investment - then the key question is "where to cut?"  A thorough review of marketing effectiveness by an independent expert is a good first step - no vested interests and no emotional ties to previous decisions.

Our general advice therefore is to keep the effective marketing investment as high as you can afford; for more specific advice for your particular situation, call Chris Hutchinson on 01905 622 206 or send us an e-mail.

Battling bigger competitors ... and winning

Throughout military history there are countless examples of battles being won against the odds.  Despite fewer soldiers or poorer equipment, sometimes the apparent underdog has won the day.  Often this is due to superior intelligence - information about the enemy, knowledge about the battlefield or event the climate.

Business is often likened to warfare, and indeed many small and medium sized companies often feel like the underdog, battling against bigger competitors with more resources and more up to date equipment.

As with the military example though, good intelligence can go a long way to restoring the balance or even giving the smaller company an edge.  In business this is often referred to as research, although at Aardvark Marketing Consultants we prefer to call it insight.

Research is what we do - insight is what our clients get.  Insight is a new understanding of a problem or situation that allows our clients to make a good strategic decision and improve the competitiveness of their business.

Aardvark Marketing Consultants is experienced in many types of research - surveys, focus groups and interviews; using post, telephone and on-line methods.  We have conducted research amongst customers, end-users, suppliers and employees.  One of our most common research assignments is customer surveys - these can reveal a great deal of valuable information for a very modest investment.

If you would like to find out how insight could help your business become more competitive, please call Chris Hutchinson on 01905 622 206 or send me an e-mail.

Demand - creation or fulfillment?

A recent quarterly survey of marketing budgets showed a "Rate of decline gathering to a pace not seen since budgets were hit in the immediate aftermath of the 9/11 terrorist attacks".  Interestingly though, Internet advertising was showing growth, particularly amongst search advertising.

Internet advertising is generally more cost-effective and accountable than many other forms of advertising, which makes it less risky and in uncertain times this will make it more attractive as an area in which to invest scarce marketing resources.  The cost-per-click model effectively directs interested potential customers to the advertisers site, and all the conversion rates can be measured to show return on the advertising investment.

However, whilst this is a very effective way to fulfill demand, search advertising does little or nothing to create demand, and too heavy a retrenchment into this form of marketing can have its downside.

If a business isn't investing in creating demand, then overall demand reduces and more may have to be spent on attracting and converting the lower levels of demand in the market place.  In other words, if you switch too much money into search advertising, you might have to spend even more to secure the sales you need.

As with many things in life, it comes down to a question of balance - reduced marketing budgets means difficult choices; taking the obvious option might not deliver the expected result.  For assistance with this or any other strategic marketing challenges, you can always rely on experienced and impartial advice from Aardvark Marketing Consultants.  If you would like a no-obligation discussion of your company's needs, and how we can help, please call us on 01905 622 206 or send us an e-mail.

Babies and bathwater

The forces of doom and despair seem to shout louder every day about the threat of recession, and real or not, it seems some large businesses are responding by cutting back their marketing expenditure.  The owners of the Daily Mirror reported some very disappointing advertising revenue figures last week, which I'm sure are driven by fear and uncertainty amongst some of their big brand customers.

So, should small and medium sized businesses follow this lead?  Not necessarily - some markets are yet to see any signs of slowdown in sales; others traditionally boom in times of economic hardship.  But yes, it is likely that there will be businesses where it makes sense to keep a tight control of costs, and marketing is often an area where cuts are made, as the impact of a reduction in marketing activity is often not felt immediately.

However, there are a few important things to consider:

Firstly, if there is a time lag between your marketing activity and sales revenue, then this will also be true when the market improves; you could be giving your competitors a head start when better times return.  Also, think about who you spend your marketing investment with; if other companies are cutting back on spend too, they may be prepared to negotiate - extended credit terms or lower prices might be sufficient to deliver your targeted savings, without sacrificing the activity and the associated sales benefits.

if you do decide that you need to make cuts, how will you choose what to keep and what to stop?  Do you know what works and what doesn't?  Do you know which activity works well against the customers who are still buying your products?  When marketing investment is limited it is even more important to know where to spend for best effect, and how to choose a range of activities to get a combined effect which is "greater than the sum of its parts".

Aardvark Marketing Consultants specializes in helping small and medium sized businesses squeeze more profit from their marketing investment by building marketing plans that are affordable, effective and measurable, and offer an initial free 1 hour consultation.

Why doesn’t marketing activity work?

It’s one of the most common questions I hear business owners ask. And the answer is often because they don’t spend enough time on the most important part of the process.

Some years ago, I read an article about Quality, and although the author was referring to manufacturing, it struck me that one of the most important points he was making was just as relevant to marketing. His assertion was that 80% of quality failures were due to poor briefing. In a nutshell, if everyone involved in creating something isn’t completely clear what it is they are trying to achieve, then it is highly likely that something will go wrong.

It’s just the same in marketing activity – anything short of complete clarity amongst the team who are creating and implementing marketing activity is risking the ultimate success, and the financial returns on the marketing investment.

So, how can we ensure that we get the briefing process right? At Aardvark Marketing Consultants we suggest a 3 step process to briefing marketing activity and allow business owners to focus more of their time and energy elsewhere.

Of course, it also helps to have a robust marketing strategy and clear marketing objectives which provide a framework for individual activities.  Aardvark Marketing Consultants specializes in helping clients build strategies that are affordable, effective and measurable; and then turning these into easy to implement plans.

"The only company that talked about marketing"

I recently spoke to a new client and knowing that they had spoken to several other marketing companies before choosing Aardvark Marketing Consultants asked why they had chosen to give their business to us.  It's important for me to understand why people choose to spend their money with my business, and I encourage all businesses owners to do the same.  The answer my client gave was that we were "the only marketing company that talked about marketing" - we looked at all their marketing activity; he felt the others were just trying to sell him a new website, a brochure or some direct marketing.

It isn't the first time I have received this feedback from a client, so I started thinking about why this happens, and how I could use this to help explain to potential new clients the difference that Aardvark Marketing Consultants offers them.

Imagine you have a problem with your car - a familiar scenario for most of us every now and again.  Sometimes, it's easy to identify the exact problem; perhaps a warning light illuminates on the dashboard, or there are symptoms we have encountered before.  You might call or visit a shop or filling station, get a new bulb, buy some more oil or whatever else is required, make the fix, jump back in the car and everything is fine once more.

However, sometimes the problem isn't as obvious is it?  You just get the feeling that the car isn't running as smoothly as usual; but don't know why.  In this scenario, you'll probably have to consult an expert, maybe the main dealer or a local garage.  They will use their knowledge of all kinds of cars and their experience of many different types of problems to identify what's wrong with your car and then tell you what they need to do to put it right.  Once you have agreed their diagnosis and solution, they do the work and your car is back to full performance.

A similar situation can occur in marketing a small or medium sized business - sometimes as a business owner or marketing director, we can identify a specific issue that needs addressing and buy a solution from an expert in that field.  Perhaps the company brochure needs updating or the website isn't appearing high enough up the search rankings.

However, in many cases, it's a more general concern about the overall effectiveness or cost of marketing that doesn't feel right.  In this situation, an experienced and independent marketing consultant can review the whole marketing effort and identify where improvements can be made to restore or exceed the previous performance and ensure that the business gets the maximum possible return on it's marketing investment.

In addition to helping business owners identify the source of marketing under-performance and implementing solutions, Aardvark Marketing Consultants also offer a fixed price marketing healthcheck for small and medium sized businesses.

To find out how Aardvark Marketing Consultants can help you resolve any marketing issues or concerns, please call Chris Hutchinson on 01905 622 206 or send me an e-mail.

Why do customers buy?

"Why do your customers buy from you?" - it's not a rhetorical question, and when I ask business owners and sales directors that I meet I'm surprised how many aren't sure.  For those who tell me they do know why, my next questions is "Is that based on structured customer feedback or just your opinion?"

The number of small and medium sized businesses that can answer yes to both questions is in our experience very small, and yet this is an area that can unlock massive sales and profit potential in any business, with minimal effort.

The reason your existing customers buy from you is the same reason that new customers will buy from you, so it's really helpful to be absolutely certain and then use it in your marketing communications.  You can find out more about how to generate and use customer feedback by following this link.

Collecting feedback in a structured way allows a business to track it's performance over time and also confirm where its true competitive advantage lies.

In addition, contacting customers for feedback is a great way of maintaining and strengthening your relationship with them.  As a rule, keeping a customer is about six times cheaper than  winning a new customer, so anything that helps you 'farm' rather than 'hunt', is going to improve company performance.

There are other benefits that can be drawn from customer feedback, and if you would like to find out more about how Aardvark Marketing Consultants can help you introduce this into your business, please contact Chris Hutchinson on 01905 622 206 or send me an e-mail