Even word-of-mouth doesn't happen on its own

One of the big news stories in the US this week is the purchase of XM by Sirius Satellite Radio. It's big news because of the discussions around competition and how the consumer is affected by Sirius buying up their competitors.

But I bring it up here because their marketing tactics could have foretold who was going to come out on top. A couple of years ago, I was working with a large financial institution on a project in which we needed some prizing. I chose a package from Sirius as the major prize and had to defend this decision with the senior executives. Their big question was, "How do you know Sirius will be around in a few years and that everyone won't have gone with XM?"

My answer was, "Their marketing". Now, beyond a shadow of a doubt, marketing has to be interpreted here as more than just advertising. I was never a big fan of the Sirius advertising, but they were managing their budget well. They became a supplier to Canadian Tire and other large retailers. They sponsored some great events. They had a terrific PR machine keeping them in the forefront of people's minds.

Where was XM?

And this is my point today for small and rural businesses. You have to get out there. It doesn't always have to do with advertising.

This week, I heard a story about a group of small business owners lamenting that they had made no sales. When asked what they planned to do to change this, they all said, "Nothing, word of mouth will get me sales eventually."

For those of you who have read some of my other blogs, you can probably imagine the screaming going on inside my head when I heard this. Word of mouth doesn't happen on its own. You have to start the cycle of referral with planned tactics.

Similar to Sirius, rural and small businesses can increase their sales, and their chance of still being in business a year from now, by getting out there with whatever means are possible. I'm not talking a huge advertising campaign. I'm talking specific, economical tactics that have an excellent chance of returning the investment.

Event-based marketing is a good example. Develop or sponsor an event and promote the dickens out of it. Use media releases, posters in your neighbourhood variety store and post offices, develop an inexpensive postcard to carry with you and hand out everywhere you go.

You don't have to spend a fortune to get your business into the front of people's brains. But you do have to be creative with your tactics and messages. As a rural or small business owner, you have to set the ball in motion so word of mouth can develop. Take advantage of networking opportunities like your local Chamber of Commerce. Attend their events and hand out your postcards or business cards and talk up your business like crazy.

Once you have a few satisfied customers, then word of mouth marketing stands a chance. But if you can't get a few people talking, word of mouth will never do you justice.