Marketing is a dynamic field, with its scope, scale, purpose and intent shifting per an organisation’s needs and requirements. Whether the business is an established goliath or a new David on the block, both businesses big and small have their unique advantages they can maximise and hurdles they need to conquer in marketing.
1. Differing Objectives
Small businesses have a straightforward marketing objective: generating leads. Due to the limited capitalisation of the business and reliance on revenue for survival, having a decent number of leads is of paramount importance for small businesses. The onus is often on the marketing side of the business to sustain it in the early days by maintaining a healthy flow of strong leads.
On the other hand, large corporates have a different playing field. The focus is more on less tangible outcomes like building customer loyalty, launching new products and improving the public perception of a brand or a company. For instance, an independent accountant starting his own practice would focus on building relationships and client referrals, unlike an established accounting firm like KPMG, which would focus more on strengthening the brand and building its reputation to target big-ticket clients.
2. Resource Creativity
Corporations have separate departments with tens to hundreds of people, from comprehensive marketing teams with a Graduate Certificate in Business Administration online to IT departments, working to optimise processes. Millions of dollars could be spent on swanky billboards, nationwide TV commercials, viral social media campaigns, popular celebs and highly publicised product launches. Conversely, small businesses usually have one person or even the founder himself starting to create a digital presence, craft a new brand identity, figure out the right channels of communication, target the right audience and build one-to-one relationships with customers.
Generalists who know a bit of everything thrive in small businesses, whereas specialists who have very deep knowledge of a particular domain could really help out the behemoths in executing the campaigns. A local bakery would focus only on Instagram and board advertising in the premises where it is located, whereas an established chocolate manufacturer like Mars-Wrigley can afford to have multi-channel mass media campaigns.
3. Global vs Hyperlocal
Another point of difference emerges in the target market of the business. A traditional small business (not focused on e-commerce) would only really care about people in its local vicinity. The focus would be on building awareness and loyalty within this relatively small segment of people. Large corporations, however, have target markets spanning different states and even different countries. Geography is not a barrier because of the scale of operations; this expands the scope of marketing.
4. Reputation Building
Big businesses have the upper hand in consumer perception due to the associated legacy and established brand. Small businesses may not have this advantage, especially if their operations are newly established. Due to this, small businesses tend to focus more on winning the trust of the consumers. It would be advised to pay attention to customer reviews online to get valuable feedback and give a timely response to queries and complaints.
5. Customer Advocacy
Customers are the biggest brand ambassadors for a small business, so there’s a heavy reliance on positive word-of-mouth publicity for a local business to establish itself. While customers are also fundamental for a big corporation, they are not the central cog of marketing. Popular celebrities, innovative adverts and popular loyalty programs drive the growth of businesses on a bigger scale.
6. Scope of Experimenting
One advantage small businesses have is that they have more room for experimentation. Large corporations are always under the scrutiny of the investors and shareholders; they also have a global reputation to protect. The PR risks of an unconventional campaign and marketing strategy are much bigger. Global brand Nike faced a huge blip in its share price when its data-driven strategy backfired massively, leading to declining sales. Small businesses have the opportunity to try new things, experiment with contrasting ideas and course correct without any major PR backlash or share price drop.
7. Strategic Targeting
A smaller business generally tends to have a more niche group of target consumers when compared to a larger and more established company. Going beyond geographic constraints, a business can also restrict a market by the profile of the customer it is targeting. For instance, Adelaide-based dairy company Paris Creek Farms is happy targeting a smaller set of consumers who seek dairy products that are biodynamic and sustainable. They have successfully carved out a space in the market for their milk and yogurt products. This is in stark contrast to an established player like Brownes, who has a more diverse product portfolio targeting a wider section of the market.
8. Organic vs Paid
A major byproduct of the constrained budget is that smaller businesses have to find ingenious and creative ways to increase brand exposure. This is because they don’t have the financial bandwidth to pay for reach on social media or partner with influencers or celebrities. Hence, the only way to spread the brand name is through witty marketing tactics. A classic example of this was how Red Bull used to fill up garbage cans and give free samples at DJ parties in its early days to create hype and echo demand for its products. Big brands have the luxury, as well as the resources, to launch campaigns at scale.