Web marketing Favors Small Businesses – Less is more

Mike Moran has written an interesting article on “Why Web marketing Favors Small Businesses” for the Small Business Unleashed. We found it interesting because it relates to ourselves, that we have deepened it a bit further.

Marketing was dominated by large companies

The world of marketing used to be dominated by large companies having large budgets.
Thanks to the web, small businesses can use the Web to do more marketing than ever moreover the Web actually is an environment that allows small businesses to succeed, even against larger competitors.

1) Ideas
Having ideas that customers care about are the most important success factor in Web marketing.
Money can’t generate ideas.
Even when having multiple ideas, the more money you pit behind the ideas, the harder it will be to decide which idea is the right one.
Due to the amount of money involved, the safest idea will be selected instead of the best one.

2) To impress in house
Large companies spend money for impressing the CEO or President of the company.
Even if there is no relation between lead generation or customer retention and the marketing campaign on the Web.

3) Failing
Failing to experiment and to innovate are typical for larger companies.

How are small companies favored by the Internet?

In our view:
- Reaction speed:
A small company can react almost immediately upon an happening or an event, whereas in a larger company the campaign or budget needs to get signed of.

- Focus:
A small company has its focus on one market segment or/and has limited number of products or services.
Whereas large companies need to address different market segments and have different products or services to offer.

- Daring to experiment:
Trying out a new channel or method can be done easily on the Internet and the result can be measured. A small company will dare more than larger companies.

- Closer to the potential customer:
As the small company is very near or close to its customers, the marketing manager or the leaders of the company are able to think and write with the mindset of their customers.
Working in a large company makes you think differently and the distance to the customer companies is greater.
Most customer companies are small: they outnumber larger companies many times.

- One clear message:
A small company can succeed with one clear message, whereas the large company needs to explain the different offerings.
One message is enough for marketing. Multiple messages confuse the audience.

- Content rich:
As the leading managers of a small company feel very close to their business, their passion and knowledge is in the content of their publications or communications.
In a large company the content needs to be written by someone “working from 9 to 5″. This person has certainly less passion and knowledge about the offerings and the market.

- Press releases and communications: freedom
These messages don’t require getting approval and censoring of the legal department, the VP of Sales, the CEO office.
Fewer constraints for press releases, presentation, speeches and interviews.

- Shorter decision times:
If someone in a small company has an idea, the hierarchical decision can be taken ‘next door’, not in the head quarters far away.

- Multiple communication channels:
As there are many communication channels on the web, a small company can use them just like large companies.
Probably the small company will use these channels even more efficiently.

- Free communication channels:
As many of the channels on the Internet are free, there are no limitations or constraints by budget anymore. Just the time invested.
Channels: Press releases, blogs, forums, comments on blogs, directories, award participation, even video or Instant Messaging
Of course smaller companies will use advertising too and spend money.
Still a lot of interest can be generated through free channels.

Conclusion points:
Equal chances or winning by shorter, faster decisions

The Internet has brought equal chances for large and small companies.
It is not so much the money to be spent, but more the effort and the effectiveness of the marketing.
The small company can take advantage by being smaller.

Content counts – money less

Of course a large company can pay an impressive country-wide or continent-wide ad campaign, which will have its effect and will generate leads.
However the small company with the right catching message, propelled over one or more Internet communication channels can have equal or even more impact at a minimal cost compared to the ad campaign.
Small companies just need the right idea with the appropriate message at the best moment.

Less is more

Probably “Less is more” applies for the marketing of smaller companies:

Less money, less constraints, less messages, less advertising, less waste of time.
More content, more initiatives, more innovative, more focus, more close to customers and leads.