Calling something a best kept secret is usually a compliment, but this isn’t the case when it comes to the world of business. The truth is that customers can only make purchases from companies they are aware of, and that have an established reputation for reliability, quality, and trust. While many sectors have embraced marketing and especially in a big way in recent years and are reaping the benefits, the manufacturing sector, unfortunately, continues to lag behind.
The result is that in every manufacturing niche a small handful of large and marketing-savvy companies secure the best customers and dominate the market, with too many SME manufacturers slipping underneath the radar. If your business forms part of this silent majority, you could be missing out on sales and find it difficult to reach your growth targets, or even to sustain your current position.
Despite the global superior quality position held by the UK manufacturing sector, and the widespread recognition that UK SME manufacturers make and offer world-class products and services, it is equally acknowledged that British companies are almost universally poor at marketing themselves. Because of this weakness, I estimate that up to 80% of SMEs fall short of their potential annual revenues to the tune of up to 20% shortfall each year. As an economy, this equates to £24 billion of potential revenues lost each year, simply through businesses being unaware of marketing best practices and investments.
The problem is not that SME manufacturers are inherently unaware of how to market their services. Most SME owners are passionate advocates for their companies. The issue, instead, is one of resources and knowledge: resources because of the way that time and money are always stretched in small companies; and knowledge, because of widespread misunderstandings about the best ways to market a business and equally important what not to do.
Running a business with a small number of staff and assets leads to a warped business structure, in the sense that the vast majority of resources are focused on operational service, delivery and production, with very little left over for marketing. The opinion of most manufacturing SMEs about marketing is that of an optional nicety, where we do a bit of this-and-that marketing whenever we get time to do it. This undisciplined approach is a waste of time and money and is unlikely to make many sales, let alone deliver a positive ROI.
The solution is to turn this attitude entirely on its head, from a place in which marketing is undervalued, to one where marketing plays the core role in creating value and driving sales. The new marketing environment requires a disciplined and focused approach to marketing that, if implemented effectively and in sync with your business model, is guaranteed to be the best investment you can make in the future of your company.
There are several steps you can take immediately to turn the situation around, starting with a good hard look at your current sales practices including how much they cost, how much money they actually bring in, and how they could be improved. They are:
JDR Group specialise in marketing for manufacturers. This includes web design, social media, and marketing strategy.
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