The role of Business Triage has never been more important than in the world of marketing. Many authors, speakers and consultants will tell you to feed your business money, lots of money. While money is needed to start a new business and make a business grow, in a resource-limited environment, undirected money is NOT the food your business needs.
You feed your business a balanced diet from the 4 business food groups:
Education
Public Relations
Marketing
Advertising
Many of you are wondering how to get four groups out of what most business owners see as two spending categories. Be assured, these MUST be 4 spending accounts in your ledger, if not you’ll have empty bank account.
Education:
The concept of the highly educated business professional is not new, but education is so much more than course work and technical expertise. Education includes investing in mentoring for you and being a mentor to others. It also includes becoming a member of your Professional Associations.
How much should you spend on education? It is recommend 3% to 5% of your gross business income. If you are still in the first 2 to 3 years of a new business, double that! If you are still operating off your business loan or investment funds, 6% to 10% of total yearly expenses should be budgeted to education.
Public Relations - Marketing - Advertising:
When it comes to Public Relations (PR), Marketing and Advertising, the situation becomes a little more complex. The first problem is that in most small business owner’s minds, these are synonymous terms. THEY ARE NOT.
“Public Relations” is the establishment of you and your company as THE recognized expert within a specific demographic, geographic and/or professional group. This is also known as “Branding.” Thus Public Relations is the process of Branding. At this stage, it is almost irrelevant what your PR says as long as it positions you as the expert’s expert.
“Marketing” is association of your established brand with products and or services in the mind of a particular person, demographic, geographic and/or professional group. A “market” is that identifiable person, demographic, geographic and/or professional group. While Public Relations is the process of “Branding,” Marketing is the process of “establishing the Brand.”
“Advertising” is the establishment of a sense of need for a product or service in the mind of you market. Even if your market knows your name (brand) and your products/services, if they do not know that they need your products or services, they will never buy! On the other hand, if they “feel the need” and you have established your brand, they will seek you out.
So how much should you spend on PR, Marketing and Advertising? The answer reflects the progressive nature of this process. In this case, one sum of money should be allocated for the entire process of PR, Marketing and Advertising. At first, the entire amount will be spent on PR, with little Marketing or Advertising. Your target market needs to know you are the expert. As you become the recognized expert (1 to 2 years), spending on Marketing increases and spending on PR decreases. This will overlap the 1 to 2 years for PR. Finally, you will be established as the expert and your brand will be established in your market by your Marketing. This is when you will begin to shift spending to Advertising. Again their will be overlap, but don’t expect to spend much on advertising until at least 1 year after you begin a well planned PR program and at least 6 months after you begin a highly targeted marketing plan.
How much should you spend on PR, Marketing and Advertising? If you want success, spend 10% to 20% of gross revenue. Again, if you are a start-up still operating on loans or investment capital, budget 20% of that money per year for this process.
Putting It All Together:
Several years ago, in a resort community in the panhandle of Florida, an advertising battle like nothing the community had ever seen took place. Over the years, The Mannis Clinic had become the dominant practice in the county, but a new doctor in town had arrived with a very successful PR, Marketing and Advertising campaign. To counter this new threat, Dr. Mannis began running full page ads for his own clinic. Dr. Mannis hired an ad writer who wrote several ingenious pieces of advertising. Dr. Mannis personally reviewed each ad to ensure it was ethical and in good taste. Every ad ran as Dr. Mannis intended except one. In this disastrous ad, the promise at the bottom of the ad was supposed to read,
“When you visit the Mannis Clinic, you’ll be seen by Dr. Mannis”
Instead, at the bottom of the ad in one inch print was the promise:
“When you visit the Mannis Clinic, you’ll be seen by a real doctor.”
Every physician in town was outraged. The implication was that Dr. Mannis considered himself the only “real doctor” in town. Dr. Mannis was mortified. Before the conversation around town could spiral out of control, Dr. Mannis sent letters to every doctor expressing his sincere apology. He also fired his ad writer and in his letter promised never to run another ad implying that somehow medical care at his office was better.
A few days later Dr. Mannis did however run another ad. It said nothing about doctors or offices, it didn’t even include the office address or phone number. Dr. Mannis simply reprinted his physician recognition award from the American Medical Association. It was a brilliant piece of advertising. The ad implied that somehow Dr. Mannis had done something that nobody else had done and been recognized by the AMA for it. In reality, the physician recognition award is nothing more than a certificate received for completing l50 hours of continuing medical education. Every other doctor in the county received the award but most just throw it in the trash as one more piece of junk mail from the AMA. Somehow Dr. Mannis realized that to people outside medicine, this award actually meant something and by publishing his first, he definitely became the talk of the town.
Dr. Mannis had learned on of the vital lessons from the disaster field office, re-task resources to achieve extraordinary results. Like Dr. Mannis triaged the resources available and the needs his image and marketing faced. He learned that even in the face of a marketing disaster, the lessons learned in the disaster field office provide insights missed by the casual observer.
Dr. Maurice A. Ramirez is co-founder of Disaster Life Support of North America, Inc., a national provider of Disaster Preparation, Planning, Response and Recovery education. Through his consulting firm High Alert, LLC., he serves on expert panels for pandemic preparedness and healthcare surge planning with Congressional and Cabinet Members. Board certified in multiple medical specialties, Dr. Ramirez is Founding Chairperson of the American Board of Disaster Medicine and a Senior Physician-Federal Medical Officer for the Department of Homeland Security. Cited in 24 textbooks with numerous published articles, he is co-creator of C5RITICAL and author of Mastery Against Adversity. Dr. Ramirez invites comments at: http://www.disaster-blog.com