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Name: THE AUSTRALIAN SMALL BUSINESS BLOG
Location: Melbourne, Victoria, Australia

The Australian Small Business Blog has been created by Dr Greg Chapman, MBA, to provide education & support to Small Business Owners. If you would like to contribute to this blog, please email us. If you want to comment on an article, click on the speech bubble at the end of the article. If you want to see other comments, click on the hyperlinked time of post. Send a copy of the article by clicking on the envelope. Dr Greg Chapman is also the Director of Empower Business Solutions and The Australian Business Coaching Club, which provides business coaching and advice to small business owners. He is the publisher of The Small Business Achiever Dr Greg Chapman is The Business Brain Surgeon.

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Saturday, October 03, 2009

Advertising - Can We Live Without It?


Imagine you walked into a supermarket, and you recognised almost none of the brands. There was aisle after aisle of goods to purchase, and you had to stop to read every single packet to see whether you would like this cereal or those biscuits.

This could only occur if you had not been exposed to any advertising before you walked into the supermarket. In our current world, of course, that is impossible, as we grow up with advertising around all around us, but yet this has happened to me.

I have encountered this situation a number of times when I have shopped in a supermarket in another country. I had no exposure to the local advertising and was confronted by a large variety of brands which were literally foreign to me. I was overwhelmed by choice. A simple buying decision, which might have only taken me a few minutes at my local supermarket while I located my favourite brands of particular categories, was greatly extended while I tried to determine which of these new brands would satisfy my needs.

Without the advertising, I did not know what the benefits of each brand were. I couldn’t find out the ingredients without lengthy label examinations. In a number of cases I just opted for the cheapest because I didn’t want to waste more time.

This is an interesting experiment you can try if you are travelling internationally, and you are looking after yourself, rather than just living in a hotel where everything is provided. I believe you cannot understand a country if you have not done your weekly shopping in one of its supermarkets.

Without advertising, there would be no range. Most products would become commodities with no points of difference. There would be only the most basic features. There would be no niche products for special needs. We would be unaware of all the benefits. Prices would probably be higher as there would be no competition.

So when your product is discovered on a store shelf, or on your website, can your buyers readily determine the benefits your product provides and for whom and your points of difference? Is your offer clear, and do you have a call to action? Ideally when they have found your product, they will have already been exposed to your advertising, so the final decision is quick and painless unlike the confusing frustrating ones I had to make without the benefit of advertising.

Enjoy this wonderful paean to Advertising – but a strong language warning at around second 6, after which all is ok and very funny.




May Your Business Be - As You Plan It.

Over to You. What do You Think? Post Your Comments Below.

Dr Greg Chapman is the Director of Empower Business Solutions and The Australian Business Coaching Club and is Australia's Leading Advisor on Emerging Businesses and provides Coaching and Consulting advice to Australian Small Business Owners in Marketing & Business Strategies Planning & Systems. He is also the author of The Five Pillars of Guaranteed Business Success.


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Wednesday, December 24, 2008

Tips to Help SMEs Target their Advertising

Economic conditions are tough at the moment for small businesses, there is no doubt about that… In our latest Sensis® Business Index we found business confidence at its lowest point since we started the survey over 15 years ago.

Australia has been enjoying many years of strong economic growth, so if your business is relatively new, this will be the first period of significant economic slowdown that your business will have experienced. So you are not alone if you are looking for new business ideas to get you through this period.

The first thing to remember is not to panic – you will be hearing bad financial news every day in the news at the moment – remember that the majority of this is coming from financial markets – you probably don’t make your business decisions on what the Dow Jones did last night. The decisions that you make now for your business need to be able to see you through the next year and beyond.

The good news is that the Australian economy is in a much better position than most other advanced economies. We saw positive growth in Australia’s GDP in the September quarter and recent data on housing finance commitments and retail sales indicate that Australian consumers might be starting to regain confidence before the Federal Government’s economic stimulus package began distribution.

We are also measuring some turn around in consumer sentiment in the latest Sensis® Consumer Report – when we look at how consumers are feeling about the year ahead, they are now telling us they think things might be starting to improve moving forward.

Economic downturn mainly means one thing to many businesses – fewer customers. When we asked the businesses that had been impacted by economic downturn what they were doing about it, most told us that they were either cutting costs or advertising more – strategies aimed at addressing the two critical factors for any business – getting customers through the door and money in the bank.

Cutting costs aims to at least keep some money in the bank, and advertising more aims to bring businesses the ingredient they need most – customers.

So here are some key tips to help you target your advertising to keep bringing customers through the door during the current economic conditions:

  • Your print directory listing is the core listing on which the majority of people search – you can use innovative solutions like mobile codes that people can scan to take them to your latest offers on their mobile phone

  • ­ Make sure all your advertising, both print and online, have as much information as possible to make it easy for potential customers to choose your business – giving customers a good feel for the products and services they can expect from you, as well as locations, opening hours, payment methods and accreditation can all help customers call you first

  • ­ Measure the return you get from your advertising to make sure it works for you – develop strong relationships with your advertising account executives so that you can tap into the knowledge that they have built up working for many customers over the years.

Christena Singh is the author of the Sensis® Business Index, Sensis® Consumer Report and Sensis® e-Business report. For further commentary from Christena or for some smart business ideas, visit http://www.smallbusiness.sensis.com.au/.


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Friday, October 24, 2008

Does Advertising Work?



There has been a lot of controversy about the latest ads from the Australian Tourism Commission by Baz Luhrmann which many commentators say won’t work. These are ads that tie in with Luhrmann’s new film Australia. The general comment is that these fairly depressing ads won’t work, compared with the exciting ads by the NZ Tourism Commission which do appear to work. They are just too arty and self indulgent to actually attract any US tourists to Australia.

I would also suggest that Luhrmann has put one over the Tourism Commission. Think about it. Luhrmann is releasing a film in the US and he has effectively got the Australian taxpayer to pay for cross promotion of his film in a very expensive market place.

Nice. Where do I apply?

The Australian Tourism Commission has form in producing ads that please the Australian film critics, who would be the last people I would call for advertising advice since most the Australian films they praise bomb at the box office. The key in creating advertisements is not whether you like it, or your friends like it, it is whether it causes people in your target market to buy your products and services. That is the only test that matters.

Some critics of this campaign hark back to the wonderful days of the Paul Hogan promotions in the US. (I think Hoges must have been the first to cotton on to the scam of getting the taxpayer to promote his films which I am sure many more saw than will see Luhrmann’s.) However, John Richardson, the former assistant general manager of the Australian Tourism Commission, says Hogan was useless as Luhrmann.

Australia had a salutary lesson with the Hogan campaign in the United States in the early 1980s. That campaign aroused enormous interest in America, awareness of Australia went sky-high and was still high a decade later. And in that decade the growth in tourism from the United States to Australia was the poorest of any of our major markets – by far. Almost all of the growth you referred to came from other markets, where the Hogan campaign was not shown.

Too often, ads are made to feed the vanity of the people who commission them, and also to promote the agency that produces them. Agencies like to win awards with their ads, so they can charge more. Getting pats on the back from your friends is not what you want, unless they are also your buyers, and certainly you aren’t in the business of producing promotion pieces for your advertising agencies.

Awareness of your products or services is only of value if it results in sales. If you can’t measure the sales impact, there probably isn’t any.

The most successful ads seldom win prizes, and for you, the advertiser, it’s not about you or your agency, it is about your buyer. If the ad does not appeal to them, you are wasting your money.

May Your Business Be – As You Plan It!

Dr Greg Chapman

Over to You. What do You Think? Post Your Comments Below.

Dr Greg Chapman is the Director of Empower Business Solutions and The Australian Business Coaching Club and is Australia's Leading Advisor on Emerging Businesses and provides Coaching and Consulting advice to Australian Small Business Owners in Marketing & Business Strategies Planning & Systems. He is also the author of The Five Pillars of Guaranteed Business Success.

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