Marketing tips to boost morale and profits—even in a down economy

By Jane Applegate

By now, you know the sky is falling and the economy is in a tailspin. But successful small-business owners always find the upside of down times. In these challenging times, you have a real opportunity to shine—especially if your competitors are cutting back on promoting their products and services.

Here are some cost-effective marketing tips to boostmorale and profits:

1. Ask for discount advertising rates. Newspapers, radio and cable television stations are selling a perishable commodity and need to keep the cash flowing. Many newspapers will discount ad rates at the last minute, so be ready to send your ad over just before deadline. Ask for a better rate for all forms of ads; you have nothing to lose.

2. Cut through the email clutter by sending an old-fashioned letter to current and prospective customers. Save money by purchasing several hundred 41-cent “Forever” first-class stamps before the rates go up again in May. Offer a discount on certain products, free shipping or a two-for-one promotion with a short expiration date. Use this mailing as a way to update your database. It pays to use a first-class stamp because if you do, the post office will return undeliverable mail and note address changes. Bulk mailing doesn’t provide this service. Plus, your customers and clients will appreciate receiving a piece of mail that isn’t a bill.

3. Sign up to participate in a local trade show, community fair or charitable event to generate free publicity. Rent a booth and show off your products or services. If you sell a food product or beverage, give away free samples. (You can also hire in-store demonstrators to promote your products year-round). If you have a retail store or are located in a building with foot traffic, put out a big, brightly colored barrel or basket to collect clothing or nonperishable food for a homeless shelter. My mother asks local businesses to ask their customers to donate soap, little bottles of shampoo and bath gel from hotels. She and her friends pack them into colorful party favor bags. They add a disposable razor, a toothbrush and toothpaste, then donate hundreds of these “personal care kits” to a shelter for battered women and a church program for homeless men. The local newspapers love stories like this.

4. Turn your best customers into salespeople. Don’t be shy about asking your customers or clients to recommend you by making an email introduction. Volunteer to draft the email. Be sure to include a link to your company website and your contact information and ask them to send you a copy of the message. This way, you can follow up directly a few days later.

5. Get on the horn. Spend at least an hour a day calling current and former customers. These aren’t cold calls because you know the people. It’s a good way to reconnect, and you may generate new business. If your contacts have changed jobs, ask for current information so you can keep your contact list current. We do business with people we know and trust. It doesn’t matter what company they work for. Leave detailed voice mail messages. Even if they don’t call back, you’re back on their radar.

Jane Applegate is the founder of The Applegate Group Inc. (www.theapplegategroup.com), a multimedia communications company specializing in the small-business market. She’s the author of four books on small-business success and a popular keynote speaker.