A few random thoughts about the value of advertizing in a competitive marketplace.
In order to survive in a highly
competitive market, a small business needs to use most every trick
in the trade in order to survive. No where is this more true than in
the restaurant industry where eatery's can be stacked check to jowl
even in small towns, such as I find myself in. Forsyth Missouri has a
population of something like 1300. It's small by most small town
standards and is basically laid out on one highway – Hwy160. From
one end to the other, is not much above 4 miles and most of the ten
eateries are all situated along about a one mile distance.
Of course, all these venues stay
competitive price-wise within the framework of like establishments.
The two fast food joints watch each other price points as does the
two meat houses, two American, two Asian and two specialty houses.
Each sub group offers up a unique eating experience to be sure, but
the shear numbers (10 establishments) crammed so close together mean
that garnering the money from a particular diners pocket will be
challenging!
What sets each establishment apart and
either make the more or less attractive, in my mind, is as follows:
Good signage – are they easy to
spot from the road!
Cleanliness – are there any
rumors of disease?
Ambiance – how the venue makes
you feel when you enter!
Service – are they fast to get
and create your order?
Parking – can you find a spot
during typical rush times?
Menu – does the venue offer a
wide choice of food?
Prices – is the place
affordable?
Longevity – Has the venue been
around for some time?
Amenities – does the venue have
something extra like a bar, specials, wifi or a drive thru?
Advertising – What media
channels does the venue employ to garner business?
This last item in the list is, to my
mind, one of the most important
and yet most often abused of anything else on the list!
Some establishment do everything right with the exception that the
advertising of their presence really sucks! The five channels that
are realistically available to them (TV is not for most) would
typically include:
Word of mouth – Getting people
to talk about an establishment is very effective!
Radio – Expensive, but also
effective over the long haul!
Local newspaper – Helps to
announce, maintain interest, promote specials, etc.
Flyers – Time consuming and
marginal in overall effectiveness.
The Internet (web pages, Facebook,
Blogs, etc.) - Can make or break a venue, in my view.
Very few of the local establishments
make use of all five outlets or exploit them to full advantage. To my
mind, the one that comes closest is Fat Daddy's, followed closely
behind by Charlie's and perhaps the Mug. All three are visible on the
Internet and use Facebook extensively. What about Sonic and
McDonald's? I don't really like to count national chains as they are
in a whole different ballpark when compared to the small business
owner – even when they are individually owned they typically have
access to a very well run advertising machine!
Today's eating crowd is a whole lot
more techno-savy than they were even just a few years prior. Even
grandpa and grandma jump on the net, without nary a thought, when
they want to check out a new or exiting eatery. In today's very fast
paced and hi tech world, a well maintained Facebook, web page or blog
can sell what you got for literally pennies a day! In additional,
establishments that actively promote the collection of Email
addresses have a ready made method of communication without resort to
expensive snail mail! After all, one email blast to a thousand
customers costs exactly zilch!
Disclaimer: I'm sure there are many other aspects to helping a business succeed. The ones presented here were off the top of my aging head!
