What To Know
- Planning, which includes marketing and competitive analyses, and a competitive marketing strategy can make the difference between a stalled or stagnant business and one that is growing and expanding.
- In the short term, the balance sheet may appear to be favorable, but as competition heats up, these businesses may fall behind or even collapse as a result of aggressive and successful competitors.
Asia is “hot,” with unicorns and a thriving ecosystem of startups and innovations. Nonetheless, according to some data, 30% of startups in places such as Singapore fail within 5 years, and many startups in Asia fail compared to the global market. Putting aside costs and capital, what are the causes of failure, and how can Asian businesses thrive?
Small businesses power the world
Small businesses are the world’s backbone, despite the media’s portrayal that large technology companies rule the world. Small businesses employ 70% of people worldwide and contribute 70% of global GDP. Despite this, small businesses struggle to generate profits on par with larger corporations, compete for more lucrative deals, and attract top talent. Small business founder CEOs frequently express concern about survival and growth.
So, what are the main reasons small businesses fail?
According to this article, the four most common reasons small businesses fail are funding, staffing (leadership), planning, and marketing (or lack thereof). Planning, which includes marketing and competitive analyses, and a competitive marketing strategy can make the difference between a stalled or stagnant business and one that is growing and expanding.
Marketing during a recession
To those who are less initiated, marketing to them may appear to be an expendable program. During a recession, such businesses may cut marketing programs, employees, and research and development. In the short term, the balance sheet may appear to be favorable, but as competition heats up, these businesses may fall behind or even collapse as a result of aggressive and successful competitors.
The smarter businesses understand that during a recession, when your competitors are cutting back, you spend even more. In a recession, when fewer businesses spend money on advertising, media owners are willing to offer better discounts and privileges. Event venues are willing to provide discounts and perks in exchange for hosting conventions and conferences to attract leads and customers. And, because your less-savvy competitors spend less, they become less visible to your customers and prospects, allowing you to nurture and earn them much more easily if you invest more in marketing.
I’ve seen it firsthand. During the pandemic, I saw two Asian health supplement companies aggressively promote their products in national and online media through sustained advertising campaigns. Their advertising campaigns are still active today. The mindshare and brand recall are clear. The fact that these two companies continue to invest heavily in broadcast and online media demonstrates equitable returns. Who would spend without expecting a return, right?
How should small businesses plan their marketing budgets?
Small businesses may struggle to attract top marketing talent in-house, so founder CEOs should hire the services of professional and qualified agencies instead. For the cost of a junior manager, professional external agencies can handle a wide range of communication and marketing tasks, such as public relations (PR), social media marketing, and event planning. If you’re lucky, you might find highly sophisticated and experienced senior teams at independent agencies that have been around for decades. Consider these agencies to be extended marketing teams.
While online advertising appears “easy” to begin, the days of simple and profitable online campaigns are over. The reason is simple: too many competitors are doing the same thing! To stand out in your area, you must implement 360-degree full-spectrum marketing programs, ranging from online to offline, broadcast to on-site activation events. Get your public relations and marketing agency to assist you in strategizing and executing such comprehensive marketing programs.
The times ahead may be bleak and difficult, with global tensions and regional wars still simmering and brewing. However, now may be the best time to outperform and outrank your competitors through aggressive marketing and public relations campaigns. Don’t get left behind!
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