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Blog posts tagged small business marketing trends

Word of mouth tops survey of SME marketing

May 09, 2011 by John Straw

Linkdex recently ran a survey in the UK and USA to find out which tools were most important to small and medium-sized businesses when it came to marketing the products and services they sell.

Perhaps to validate the recent increase in online networking platforms, which work on the basis of peer-to-peer recommendation, the most important marketing tool for SME businesses is word of mouth. In fact a massive 81 per cent of the companies polled said that referrals and recommendations were the most important marketing method.

The second most important promotional method for SME organisations was “Google or another search engine”, followed by direct sales teams and PR.

The least important promotional method for the companies surveyed was passing trade.

In terms of trends, 60 per cent said that they would increase spending on email in the next 12 months, 57 per cent will increase spending on social networks and 54 per cent would invest more in SEO or being on the top of search engines.

These new marketing tools will gain at the expense of more “traditional” promotional methods. Thirty per cent of companies surveyed said they would spend less on print advertising and 26 per cent will spend less on directory listings, including the phone book.

The perceptions by companies match the changing ways in which consumers find information about the products and services they want to buy. Evidence suggests that search engines like Google and Bing are the first place people look. As smartphones like the iPhone become more popular and get faster and more powerful, searching on the internet becomes more integrated and immediate.

When these results are backed up by peer recommendation, consumers will trust them more and be more inclined to make a purchase.

It shows that search engine optimisation (SEO) should not be seen as a technical function, but an essential business capability that sits at the heart of the marketing mix. If 54 per cent of businesses plan to spend more on SEO in the next 12 months, then chances are some of those companies will be your competitors.

Making SEO part of your organisation’s workflow and measuring it alongside other key marketing goals can help deliver long term growth. It’s not about search results, but business results.

 

John Straw is an expert contributor to Marketing Donut and the founder and VP of Business Development of Linkdex.

 

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