1. 39 Wrentham Drive Medford, NJ 08055  609-636-9893  HarryHecht@gmail.com  www.linkedin/in/harryhecht
The Leader. The Expert. The Source.
Marketing Strategy? You May Be Throwing Your Money Away....
Dealer Principals should avoid a reactionary marketing approach and strategically examine their business to
ensure the best use of valuable resources.
I've been spending a lot of time meeting with executives from small- to mid-market businesses to
discuss their current marketing approaches and goals. In many instances, they already have a
defined what types of services they desire (i.e. ad development, PR sales coverage, website
redesign, social media platforms, etc), although when I inquire about why they need, for
example, a Twitter account, they have no reason other than "that’s what my competition is doing."
That may be the case... or it may not. Just because it’s the ‘cool” thing to do, doesn’t mean you
should copy it. Small businesses in particular need to be strategic in their marketing approach to
ensure every last valuable dollar is spent in the most effective and productive way possible. This is
impossible to do without spending a bit up front to conduct some basic research of your market - in
other words, determine where you currently stand, and where you want to go.
According to the Small Business Administration (SBA), conducting a market analysis, "is the
process of analyzing data to help you understand which products and services are in demand, and
how to be competitive. Market research can also provide valuable insight to help you:
* Reduce business risks
* Spot current and upcoming problems in your industry
* Identify sales opportunities
The SBA continues on to outline the components of an effective analysis:
Industry Description and Outlook – Describe your industry, including its current size and
historic growth rate as well as other trends and characteristics (e.g., life cycle stage, projected
growth rate). Next, list the major customer groups within your industry. Are you a B2b and retail
player, or do you focus on major accounts, government and schools?
Information About Your Target Market – Narrow your target market to a manageable size.
Many businesses make the mistake of trying to appeal to too many target markets. Research and
include the following information about your market:
Distinguishing characteristics – What are the critical needs of your potential customers? Are
those needs being met? What are the demographics of the group and where are they located? Are
there any seasonal or cyclical purchasing trends that may impact your business?

2. 39 Wrentham Drive Medford, NJ 08055  609-636-9893  HarryHecht@gmail.com  www.linkedin/in/harryhecht
Size of the primary target market – In addition to the size of your market, what data can you
include about the annual purchases your market makes in your industry? What is the forecasted
market growth for this group?
How much market share can you gain? – What is the market share percentage and number of
customers you expect to obtain in a defined geographic area? Explain the logic behind your
calculation.
Pricing and gross margin targets – Define your pricing structure, gross margin levels, and any
discount that you plan to use. Are you a “Nordstrom” or a “Walmart”. Price accordingly so your
value is clear.
Competitive Analysis – Your competitive analysis should identify your competition by product
line or service and market segment. A plan of attack that clearly communicates and defines your
differential is important, so that your sales organization can bring this to light on their approach
meetings.
In addition, you should also define what types of marketing activities your top competitors are
doing, and doing well. Once you've gathered this information, you can then develop a plan for
reaching new customers. It may involve an email newsletter, twitter account, or it may not, but
without looking at the relative data, you'll never know for sure. As a successful business owner,
why would you ever spend money on a guesstimate?
Market and business planning isn't just for start-ups, it's also for those businesses who have never
undertaken the planning process. If it has been more than two years, most likely the market may
have changed, it may be time to do a SWOT analysis. Just because you've been successful to date
doesn't mean you won't benefit from strategic planning - and my bet is that you'll find ways to
better spend your marketing dollars that you may have never considered.
In summary, "business without market research is like stepping out onto a tightrope without
bothering to check the tightness of the knots that are holding the rope in place or if there is a safety
net. You’re halfway across when the knots loosen, the rope wobbles; you lose your balance,
and……you know the rest.
About the Author
Harry Hecht, Business Coach and Consultant,has over than 32 years of industry small business operational
experience. His successful track record includes a 22 year distinguished career as the Vice President US Dealer Sales
for Konica Minolta Business Solutions and 5 years as VP/ General Manager for Global Imaging Systems,a Xerox
Company.Harry Hechtis an active member ofthe MPSA has been actively involved for over 10 years in the
development,creation,implementation and growth of Managed Print Services programs throughoutthe independent
dealer channel. www.harryhecht.weebly.com