Should You Advertise or Market Your Business?
” No matter how substandard you feel your skill or talent may be, if you never produce your art, the world will always remain deprived of it.” – Derek R. Audette
Let’s discuss how and where you should spend your limited budget, your time, and your money marketing your business. As you will read, I have never been a big fan of advertising your business. I think it is both risky and expensive, and it often doesn’t generate a single phone call or lead.
Marketing can be far less expensive (and sometimes even free), and it can create tremendous results for your business. I’m going to share with you how and where to allocate your marketing budget, and I will offer you ideas so you can better market your business.
The Difference Between Marketing and Advertising…
Every guru has his own definition for the most frequently used terms in business, and I guess to some extent, I am no different. Of course, we would all agree that marketing and advertising are components of the same plan. Furthermore, advertising is a component of marketing. However, I like to keep the two actions completely separate. Why, Because I believe one works and the other does not.
Let me explain by first asking you a few questions:
- Do you have deep pockets to throw away your money on advertising?
- Do you have a limited budget to market your business?
- Have you ever taken out a print ad in a newspaper, a commercial on radio or television, and yet never received a single phone call? Not one single phone call?
Well if the answer is what I think it is, then welcome to the club. Struggling Entrepreneurs don’t know any better so they throw their money away on advertising.
By contrast, Affluent Entrepreneurs know that advertising does not work, so they invest their time, energies and resources into marketing. Why? Because advertising is very expensive and often does not work. On the other hand, marketing is less expensive (sometimes even free) and works more times than not.
A comparison of Advertising vs Marketing
Below are six examples of each, with negatives of advertising above and the positive alternatives of marketing below.
- Taking out an ad in a newspaper (costly)
- Paying for a 30-second or 60-second spot on the radio (costly)
- Purchasing an infomercial on TV (costly)
- Getting ad banners on web sites (costly)
- Purchasing sponsorships for events (costly)
- Sending out direct mail pieces (costly)
- Being interviewed in an article in the newspaper (free publicity)
- Being featured as a radio guest on a talk radio show (free publicity)
- Being a guest on a talk show or news show on TV (free publicity)
- Doing social networking on the internet (free)
- Showing up to an event early and staying late to network (free)
- Posting flyers on bulletin boards in high traffic areas (free)
Marketing is the best way you can get publicity for your business. According to Dictionary.com, publicity is defined as, “An extensive mention in the news media or by word-of-mouth or other means of communication.” Getting publicity is one of the secrets Affluent Entrepreneurs use in their business to grow their revenues. These revenues are not so much the result of increased sales due to the publicity, but rather increased credentials and proof among your current prospects, showing them exactly the value of your offerings.
As you ca see from the above comparison, advertising costs a bunch of money while marketing does not. Also as you can see, marketing leads to opportunities for more publicity while advertising does not. However, some marketing will cost you money, but in these cases the money is well worth it. I have one business partner who gets upward of 5 million looks on Facebook for as little as $200 invested. I think that is a solid reach for what he gets in return compared to spending $200 on a local ad in a community paper that you can only hope at least 10,000 readers will see. I think you get the point.
In a follow-up article to this, I’ll discuss some other marketing strategies to help you get publicity for your business.
**This is an excerpt from my book: “The Affluent Entrepreneur”
As a Motivational Keynote Speaker, I can speak on this subject or adapt my subject to your audience.