Good marketing is a prerequisite for each and every business. In order to succeed in the competitive markets and win customers, an effective marketing strategy is a must. Small businesses cannot afford to go for the elaborate and expensive marketing tools and strategies.

They need strategies which are inexpensive yet effective, to promote and publicize their products or services.

Given below are the top three cost effective marketing strategies for small businesses:-

1. Focus on a target customer – Small businesses must build that extra-edge that will set them apart from their competitors. Hence, they should focus on who their ideal target customer would be, and design their products accordingly.

Thinking from the customer’s viewpoint often helps you identify the much needed edge, allowing you to put in the specific benefits in your product, which will meet the unmet needs of your customers. And then you can use this USP to popularize your products, amongst the target group. All this will help you in building a strong and a loyal customer base.

2.   Build up a consumer contact list – Contacts and tentative consumer lists are an asset to any kind of business; more so, for the small ones. For effective marketing it is essential to put down a list of your prospective customers as well as competitors, in black and white. Contact the customers through emails or on the phone. Entice them with free gifts.

Simply put, make them aware of your product or services. You can also take the help of another similar or complementary business counterpart by making a reciprocal arrangement for marketing, which would mean exchanging tentative customer lists. Alternatively, you can promote each other’s products.

This will help you to get a wider customer base or reduced selling efforts, depending on which strategy you choose. You can also join some local trade association or some chamber of commerce, in order to build a prospective list of customers.

3.    Inexpensive yet catchy advertisements – Advertising is a big part of marketing. Since, small businesses cannot afford to opt for elaborate advertising techniques; they need to opt for cheaper yet effective means.  You can advertise on your business or even personal vehicles, with your brand name, phone numbers and also a blurb of the product or services painted on the rear of the sides of your vehicle.

Advertisement in brochures and leaflets distributed by local trade associations or event organizers etc. are also cost effective options. You can personally market you business while you are at social gatherings or relaxing at your favorite club.

Some clubs may even allow its members to put up product displays or small banner ads, for a very nominal fee. For more just talk to your friends and neighbors. Remember, there is no marketing strategy as inexpensive and as effective as a positive word-of-mouth.