Small Business Marketing Manual

Forward:

08/30/04

This book was written ten years ago in 1994 prior to the popular commercialization of the internet. Many of the concepts outlined here are still very useful and can be applied to any small business. Using these concepts in addition and in conjunction with internet based marketing can create very effective results.

- WW

Chapter 8:  CO-OP ADVERTISING

COST: MEDIUM
“Co-op” advertising is a fantastic way for small businesses in the same community to save money. The way it works is simple: By jointly advertising, you split your cost in half - or some portion thereof.

For example let’s say that John Doe’s Home Repair Service is located down the street from Bob’s Pizza Parlor. Bob’s Pizza Parlor delivers on average 120 pizzas per night. On his pizza boxes he puts a flyer with coupons for pizza. So John Doe calls up Bob and says that he will pay for 25 or 30% of his flyers if he can put a small ad/coupon for his home repair service on the pizza flyer. So Bob simply removes one of his coupons and has 5 pizza coupons instead of 6 and John’s Repair Service goes in its place.

Now if Bob gets 5,000 flyers printed and it costs him $200, he now saves $60 (30%). John Doe pays only $60 and 5000 people see his ad. That is roughly a penny each.  If only four people respond to John’s ad he will probably still double his investment.

Another example: Frank Is an architect. He joins his local chamber of commerce and at one of the meetings he meets Jeff who is a general contractor. Since both Frank and Jeff could probably recommend each other on new projects they decide to split the cost and jointly advertise their services in a local paper. Their services complement each other since when remodeling or building you need both an architect to design and a contractor to do construction. By making it convenient for customers by contacting both services at once they will double their ad response and eventually enlarge their customer base.  

If you own a pizzeria you may want to seek out another non-competitive type business such as a home repair service or a retail store to pay for space on your pizza box ads.

The key here is to have businesses that are not competing with each other join forces and cut advertising cost. It’s a win/win situation. Chances are your business is located near other businesses and there are always local business associations. Just ask around.

“Co-op” advertising can be applied to all forms of media: newspapers, radio, T. V., etc. With four or five businesses going in on advertising you could buy a whole page for the price one of you would pay for 1/8th of the page.

APPENDICES:  Marketing Plans

APPENDIX A:

Restaurant / Food Services

• Announce daily specials in your phone greeting.
• Have servers suggest appetizers, drinks and dessert.
• Include coupons and new menu items on carry out bags and doggie bags. These can also be distributed along with menus to all the businesses in the area. People are always looking for somewhere new to eat lunch.
• Use signs inside and out showing daily specials or special menu items.
• Expand the decor of your restaurant to add to the total experience. If you have a bar area put in video games, a juke box, televise sporting events, or invite small music groups during dinner. One very popular restaurant in Columbus has a flute player and cellist perform during dinner in add ambiance. A macrobiotic cafe in Detroit has a solo acoustic guitar player perform for lunch.
• If you have a family-oriented restaurant, give away balloons with your logo on them. Kids love balloons. See advertising specialties.)
• Offer “dinner for two” specials, group dinners, etc. on your menu.
• Have your customers sign up for your mailing list to receive monthly coupons.
• Hold drawings for free lunches and dinners. Leave a fish bowl for people to drop their business cards into for the drawing.
• Promote business lunches. Offer incentives such as reserved tables, service from the head waiter, or having the head chef come and cheek on the guest. Put this information in a brochure far local businesses. When they want to impress a client they will know where to take them in your Yellow Pages ad, mention your best and most unique dishes.
• Co-Op advertise with local retailers: “Come down to the Main Street Cafe, have lunch and shop at Barbara’s Fashions. Mikes Antiques etc.”
• Sponsor local theater and musical entertainers. Invite them in a free dinner after their performances.
• Advertise your specials in local entertainment publications.
• Use coupons/flyers as inserts in a 2-3 mile radius of your location.
• Have after dinner mints and matchbooks with your restaurant name printed on them.
• Give away dinners for contest winners on a local radio station.
• Have eye-catching artwork on your menu. The price of short-run full color reproductions has come down drastically with the introduction of color laser copiers. A full color menu can add much to the ambiance.
• Print placemats that can he colored with crayons to keep the kids busy while waiting for their food.
• On your customer’s birthday give them a free birthday cake with candles and have your servers singing happy birthday. If it’s their twenty-first birthday, give them a free cocktail or bottle of wine. Just put a sign in your lobby that says “Let us know if it’s your birthday!”
• Make your customers feel special.
• All servers should wear similar outfits (if not uniforms). Everyone should wear name tags at all times, and smile at all times. The first thing servers should do when seating a customer is to introduce themselves. This is a golden rule.

APPENDIX B:

Bars / Nightclubs

• Announce drink specials in your phone greeting, announce specials and upcoming events on your answering machine, and use your number as a hotline for weekly events.
• Have servers and bartenders suggest mixed drinks and pitchers, etc.
• Have a sign at your enhance announcing drink specials and upcoming events.
• Make an area for video games, bar type games, juke boxes, pool tables, televised sporting events, a karaoke machine.
• Bring in live music, have local clothing stores hold a fashion show in your club.
• Giveaways are a little different when dealing with bars and night clubs. The best thing to do is give away a round of drinks to your regulars every once and a while. In a bar, your regulars are a large part of your business and probably bring in more customers than you would expect. Treating them special will have definite positive effects.
• Co-op advertise with local clothing stores and eating establishments that your clientele frequent.
• Advertising in local entertainment publications and on radio stations is the best avenue for bars and night clubs.
• Announce your weekly agenda, what kind of music you will have on a specific night, what D.J. will be playing bands, drink specials (most states do not allow prices to be advertised)
• Bring in guest D.J.’s from neighboring cities.
• Get key chains for your regulars for free admission or just to give away.
• The best thing to do is promote special promotions for different nights. Here are a few examples:
  • Ladies night - Ladies get in free and get special drink prices until midnight.
  • Men’s night - No cover charge, have a female revue. Waitresses in bikini’s.
  • Mug night - Bring in your own mug (up to a certain size, say 32 oz, ) and fill it with draft beer for a special price.
  • Theme nights - Pick a wacky movie and have people who dress up as a character from the movie get in free. Play parts of the soundtrack throughout the night.
  • Two for one night - Make drinks Buy one, Get one free up to a certain time. This can help pick up business on a slower night.
  • All you can drink - Beer and well drinks for one admission price.
  • Mexican night - All Tequila drinks at a special price.
  • Import night - Specials on imported beers.
  • Reggae night, Latino night, etc.
• If you have a nightclub you could use your walls for gallery space, have a monthly opening with different local artists, have an opening reception a few hours before you normally open.
• This way your decor is always fresh and interesting.

APPENDIX C:

IN-HOME SERVICE-HOME REPAIR-LANDSCAPING

• Use your vehicle as a rolling billboard. You can have your vehicle painted or use magnetic signs to display your services, logo, and phone number. This is especially effective when parked in neighborhoods you’re working in. All the neighbors see your name and number.
• Classified advertising can be very effective for this type of business.
• One of the most effective ways to market this business is by going door to door and dropping off door-hangers or flyers. Offer a coupon and list your services on the flyer. If possible use pictures of successful projects you have completed. Customer testimonials are also very effective. For instance “Johns repair service fixed my leaky gutters in no time at all and the price was right.” - Bob M. neighborhood resident.  This way you can hit the specific neighborhoods you want to work in.
• Find a pizza or other food delivery service in the area you want to work in. See if you can do some co-op advertising with them.
• Every home you do work for should go on your mailing list. Every month you can offer a special and send out postcards notifying your past customers. You can also buy mailing lists for specific zip codes.
• Inserts are also good for reaching certain areas.
• Mention your specialty in your Yellow Pages ad.

APPENDIX D:

RETAIL MERCHANDISE - CLOTHING - GIFTS

• Announce sales in phone greeting.
• Suggest accessories
• Compile a mailing list by having a giveaway. Mail out monthly announcements of sales, etc.
• Change indoor signage and displays regularly.
• Mention what makes you unique in your advertising, including the Yellow Pages.
• Co-op advertise with other retailers in your immediate area. If you get enough people involved you can purchase an entire page in a weekly paper and promote the area you’re in.  For example, the ad headline could read: “Great Shopping at Fifth and Main” and then divide up the rest of the space to give each participating business section.
• Sponsorship works well with retail business. The important thing is to sponsor events that appeal to your customers.
• Classified ads can work well for specialty items. Classifieds are ideal for clearance merchandise. Offer gift certificates through other non­competitive businesses. If you are close to a florist, make them available to the floral customers. If someone is getting flowers for a friend, have them offer a package that includes a gift certificate for your store. The florist will make money by purchasing the gift certificates from you at a discount.

Copyright 1994