2. Page 2 Project Objectives Assess the overall importance of marketing to small businesses Understand what marketing tools small business owners are currently using, and which tools they plan to or would like to use in the future Gauge marketing spend in 2009 vs. 2008, and what tools small businesses are using more (or less) of because of the downturn Measure marketing budget and time spent
3. Page 3 Survey Methodology 300 respondents 5-minute online survey To qualify, respondents must self-report as either a sole proprietor, independent contractor, owner or general manager of a business with less than 100 full- or part-time employees
8. 17% of small businesses feel that marketing is the major success factor, while a third feel that marketing is not a major success factor2008 Marketing Budget Overall, How Important is the Marketing of Your Business?
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11. By contrast, 41% of single employee businesses feel the marketing of their business is not a major success factorOverall, How Important is the Marketing of Your Business? B BC ABC Significantly higher/lower than corresponding row at 95% confidence level
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13. Decision-makers managing 10+ employees spend almost 7 hours per week on marketing/advertisingOn Average, How Many Hours Per Week Do You Spend on Marketing/ Advertising? SB Average: 4.1 hours BC ABC Significantly higher/lower than corresponding row at 95% confidence level.
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15. Understanding why postcard/catalog marketing has a high dropout rate could help Vistaprint offer new solutionsDo You Use the Following Marketing Devices? In the past, but not currently No, but plan to in the next 12 months Yes, currently
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19. Respondents with a marketing budget over $2500 are more likely to consider TV/radio/print media most important (20%)
20. SB decision-makers who believe that marketing is the major success factor for their businesses are more likely to feel that online advertising/paid search is most important (20%)
21. Unsurprisingly, under-30 SB decision-makers are more likely to think that social online media is most important (33% - caution: very small #)Small businesses see direct email marketing to customers/ prospects as their most important marketing tool Which Marketing Tactic is Most Important to Your Business?
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23. Additionally, companies with marketing budgets of less than $500 are significantly less likely to test their marketing campaigns
24. Decision-makers who believe that marketing is not a major success factor are also less likely to testWhen You Engage in Marketing Campaigns, Do You Test the Results to Determine What Is and Isn’t Working? Significant Difference within Group ABC. Upper case at 95%
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26. “Other” sources of knowledge/ counsel about marketing include ad agencies, networking groups and customersWho Do You Regularly Seek Knowledge or Counsel From with Regards to Marketing Campaigns and Efforts?
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28. Page 17 Small businesses would most like to spend additional money and time building their company websites Which of the Following Would You Do More of if You Had More Money/ Time to Spend? If more time If more money
29. Page 18 Small business decision-makers would do more traditional and direct marketing if they had more money to spend Social media is seen as more of a time issue than a money issue Which of the Following Would You Do More of if You Had More Money/ Time to Spend? One Employee 2-10 Employees 10+ Employees Building Company Website Social Online Media (Facebook, Twitter, Blogging) Email Marketing to Customers/ Prospects Postcard Marketing, Catalogs, etc. Electronic/ Online/ Paid Search Advertising TV, Radio, and/ or Traditional Print Media Yellow Pages None of the Above If more time If more money
31. Page 20 Summary and Implications Small businesses are using more direct email marketing because of the recession – since direct email is also seen as the “most important” marketing tool small businesses use, it may be that small businesses are shifting rather than cutting marketing investment Small businesses are interested in testing their marketing efforts – about half are doing so now When small businesses look for information about marketing, many look online About a third of small businesses would spend more time and money on building websites if they could Only 38% of small businesses have a website currently About a third of small businesses would spend more time and money on building websites if they could Small businesses with 10+ employees tend to spend more money and time on marketing, use more marketing tools, and think of marketing as more important than businesses with fewer employees