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Upsize on Tap: The scoop on M&A

Jay Sachetti joined Jeff O’Brien, partner at Husch Blackwell and Dyanne Ross-Hanson, president of Exit Planning Strategies talked about the market for mergers and acquisitions, exit planning opportunities for companies that don’t end up for sale and how companies can maximize their eventual sale price during an early October panel at the first Upsize on Tap event at Summit Brewing Co. in St. Paul.

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by Glen Frechette
February - March 2010

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To gain business, take up a cause dear to customers

Conventional marketing of products and services has often focused entirely on the products or services being offered. Injecting a simple variety of cause marketing has proven to be very effective for many local outfits seeking to lure new business.

Cause marketing or cause-related marketing involves the cooperative efforts of a for-profit business and a non-profit organization for mutual benefit, Wikipedia says.

Cause marketing shouldn’t be complicated. Don’t throw out your current marketing plan; just attach your organization to a cause in which you believe.  Better yet, understand your target audience and support what they believe in.

No exclusions

If you take a broader approach, like supporting schools, community events or the military, you have a reduced chance to exclude potential customers.  There is no limit to the value that these kinds of gestures can have that will ultimately deepen the emotional connection between you and your audience. After all, sales are directly related to the perceived character of an organization.

As an example, have you seen any of the infomercials that inundate cable TV?  We have probably all seen the one about the knife that can cut through a broom handle and then cut a tomato perfectly without effort. Who doesn’t need one of those in their kitchens? Well, not so fast. Take a moment and ask yourself why you have not bought one of those  kings of cutlery quite yet?  Often times those infamous items fall below most of our thresholds of trust and character.

Another example is the recent multi-level marketing craze. While many products sold this way are truly worth the price tag, all too often there is an alternative agenda and the “sell”  is not necessarily in the customer’s best interest. A lack of trust exists and it’s obvious.

What’s relevant?

Focus on those that you seek to attract. Today, you must understand that a marketing plan void of an emotional commitment to give back is a marketing plan that is designed to fail.

Try to pick something relevant. You cannot take care of everyone, but choose to support something that pertains to your target market’s passions in return for their support of your business.

Here is one more way to look at it.  When was the last time you ran into an old friend and greeted him or her with a huge smile and a hug or a handshake.  Chances are one of the first things you said was, “How have you been? How are you? How are teh kids?”

It is almost automatic for us to ask how a friend is doing, but we all too often forget to ask the very same questions to the people we depend upon to appreciate our work.

Unknowingly, most smaller and younger businesses misunderstand a simple purchasing psychological truth: consumers will purchase goods and services from organizations that care about how they are, how they’ve been, how their family is. If you are in business today, you cannot afford to ignore this any longer. Never underestimate the power of personal relationships with your clients and prospects.

Learn from the big players. Target Corp. spends over one million dollars a year to make sure we are aware that they give back to our schools. They post their local contributions on huge banners on the walls that we walk past when entering and exiting the store.  They mention it in print and TV ads.  They simply would not do this if it was determined to be of minimal importance to their shoppers and ultimately to their success. This wonderful initiative fills a financial void across America.

Get the word out

If you are helping the community in a valid and productive way, don’t hesitate to communicate this to your prospects and customers.

Whether it’s a press release on your Web site that you distribute via e-mail to your contacts, an update to your corporate blog or a quick message on your Twitter page, your commitment to the community will benefit your business relationships.

Consider partnering with the organization your business is involved with in order to cross-market your relationship. It never hurts to ask if there are ways to collaborate that will be mutually beneficial. In this vein, you are reaching out to multiple markets at once.

Seek external resources to help build your campaign. For many smaller companies and start-ups, your marketing team may consist of one person, or perhaps it’s one of the many hats you wear yourself and the idea of a multi-faceted marketing campaign may seem overwhelming. Since cause marketing is growing at a rapid pace, be sure to research and analyze third-party resources that can help you. It will save you time without pilfering your checkbook.

Be seen without breaking the bank. It is a common misconception that in order to support local organizations or causes, you have to open your checkbook and give substantial monetary sums. This is exactly what you don’t have to do in order to engage in cause marketing.

In fact, by going a step beyond merely supporting a charity financially, you are demonstrating your generosity with your time. For example, once you have determined which organizations mean the most to you, simply get in touch with them and offer your help at their next event. No role is too big or too small.

Resonating gestures

Ask about committees within the organization that may need assistance. For example, if they put on industry events and need help encouraging attendees, use this as an opportunity to reach out to your customers and prospects. If they decline to attend, it does not matter as you have thought of them outside of the typical business transaction and such a small gesture will resonate as your relationship grows.

Traditional marketing is obviously necessary, but it pays huge dividends to spark an emotion of trust and uncover your character.  Turn the spotlight onto something, even if it does not immediately benefit you. Give yourself a better chance to succeed by supporting a local charity, booster club or family going through hard times. Make generosity not only a marketing priority, but also a business mission.

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