Small Business Owners Plan to Increase Advertising

Amidst news that the recession may finally be fading, Kathy Crosett reports Discover’s Small Business Watch unit forecast that small business owners are feeling more optimistic. Discover analyst Ryan Scully reports that “[t]his month we have a few more signs that they may be ready to start trying to grow their businesses again, and that the worst may be over.” The Discover unit’s index saw small business owner confidence rise to 89.8 in August, its highest level since February 2008. For many participants in the survey, it’s a case of conditions no longer deteriorating. For example: • Those who think the economy is getting worse: 43% (this is the lowest reading in 3 years and marks significant improvement) • Those who think the economy is poor: 48% (this is the lowest percentage since February 2008) But other entrepreneurs are feeling more optimistic and say: • Business conditions are improving 30% • They plan to increase spending on advertising and other items 27% As to where this spending might actually occur, it’s a good idea to consider the following list. This represents the entrepreneurs’ best guesses about where growth will occur in the near future: • Green industries 13% • Business services 10% • Energy 9% • Technology 9% • Financial services 8% • Foodservice/restaurants 6% • Manufacturing 5% • Retail 4% • Transportation 2%

The Green Target Demographic

As the environmental culture permeates all walks of life, it becomes nearly impossible to find and define a “green” target demographic group. The once small cluster of “environmentalists” is now part of a larger population, spilling over into a wide range of age groups as well as educational and socioeconomic levels. Sure there are still a group of dedicated environmentalists. However they are now a highly informed, savvy niche segment that needs little, if any, marketing to draw them to greener products and services. The remaining green market is so vast that there is no actual green target demographic group. The other problem that has arisen for marketers is that “the environment” is a very broad term, encompassing greenhouse effects, global warming, disappearing rain forests, sustainability, renewable energy, air and water pollution, and much more. While the vast majority of the buying public is certainly concerned about most if not all of these areas, they are as a group overwhelmed. In fact, while a number of surveys show that 70 percent to 75 percent of buyers will choose greener products if they are available, only 15 percent of those buyers truly consider themselves knowledgeable about most environmental issues. The new green marketing, particularly for small business owners, needs to focus on the same marketing principles that draw customers to buy your products or services now. That remains your core demographic group. They are not necessarily “green” per se but will include that same 70 percent to 75 percent of green-minded customers. It is therefore up to you to find the common denominator that puts “green” into their world. What this means to you is that if you sell clothing, you’ll want to have part of your inventory consisting of organic cotton fabrics and fashions from sustainable products, allowing you to market the benefits of natural fibers and healthy materials to your niche market of clothing buyers. Likewise, if you are in the car industry, selling hybrids and biodiesel-powered vehicles, you will be marketing these specific fuel benefits to car buyers and enthusiasts. Green marketing to a niche audience means not only meeting consumers on common ground but educating them in the benefits of buying green as it pertains to their lifestyles. It is at this point you may be able to extend your marketing into other peripheral products and services again through specific green benefits that pertain to your target market. Your Web site is the perfect place to explain your little piece of the green world, whether it is why you sell natural wood products or what Forest Stewardship Council certification is all about. Green marketing to a niche audience is becoming more effective than trying to teach the car buyer about the rain forests. Going green can be as good for business as it is for the environment, especially if you spread the word about it. The key to successful green marketing campaigns is not to be too forceful; instead simply make potential customers aware of the tangible benefits of thinking environmentally, which they can do by frequenting your business. After all, the consumers your message will resonate with are the same ones who will want to buy from you because your beliefs mirror theirs. For the rest, your green marketing campaign will help them better understand the environmental issues at hand and how they apply to everybody.