Dr. Neil Hair

As promised a viewpoint I have published in the Rochester Business Journal (6th Jan 2006) entitled: Guerilla Marketing: A Small Firm’s Revenge on the World of Big Business. As ever, thoughts and comments are appreciated.

For years we were taught the importance of gaining new customers, exploring new markets, developing new products and services and that being bigger meant being best and being best meant being first. My own experience as a consultant and professor of marketing is that many smaller firms are increasingly frustrated with out of date thinking in this regard. Enter the Guerilla Marketing era. Largely defined as unconventional marketing aimed at achieving maximum results with minimum effort, the phrase is often attributed to the work of Jay Levinson. The concept mirrors that of guerilla warfare, rather than battling big business with conventional tools of the marketing arsenal, the guerilla marketer snipes away with their limited resources for maximum impact choosing which market, where and when to strike. Several points help distinguish between traditional and contemporary practices: the investment required of the old, versus the enthusiasm, energy, creativity and imagination of the new; a focus on the sale, versus the development of the continued relationship; adversarial approaches to achieving objectives versus cooperative arrangements and finally, the ability to embrace new technology in pursuing low cost methods that achieve results. I’d like to focus on two of these issues as they often form the bedrock of any Guerilla Marketing campaign; the concepts of Relationship Marketing and Viral or Buzz marketing.

Relationship Marketing is built on the maxim that it is on average five to seven times more expensive, time consuming and more wasteful to pursue new customers than it is to keep existing customers happy. This makes good sense for a number of reasons. Existing customers often have the best insight into what makes your business competitive - why they keep coming back. Smaller firms can rely on their highly sensitive touch or contact points with the customer to create a more personal relationship. Use this to understand what makes you different, inform your marketing messages accordingly, enhance your product or service offering and ultimately deliver stronger value propositions than the larger competitor. Existing customers also tend to be more loyal and trusting, and eventually they become advocates of your business. This leads us to Viral marketing which denotes the use of word of mouth, often with a focus on the internet, in spreading the word of the company’s product or service. The idea is simple - get others to talk about you. A range of low cost high impact technologies are available such as the use of special interest electronic forums or communities. I recall working with one highly specialized manufacturer of wood turning tools in the UK whose managing director made a number of associated newsgroups his first port of call in the day. He would answer questions about techniques, offer advice on maintaining equipment (not just his own brand but that of competitors), and point consumers in the direction of further reading, experts in the field and other resources on the internet. An hour a day might initially seem a waste of limited resources; however the small sales department noticed an increase in overseas and internet orders almost immediately. News of this helpfulness also spread to other forums, e-zines (electronic news letters) of hobbyists, and blogs (online diaries) both in the UK and overseas. It is by no accident that his major internet based consumer market is now the United States. Opt in email lists are another cheap way of staying in touch with your customer. A regular newsletter announcing new features, coupons, demonstrations or networking opportunities, creates compelling content that demonstrates your value added.

There are a few caveats to consider when negotiating this new territory. Any Guerilla Marketing campaign needs to follow from a well thought out marketing plan. While it is relatively straightforward to identify possible tactics, one should question the relevance of such approaches to one’s own business. A critical and impartial review is therefore vital and therefore often forms the starting point of any sensible plan of action. Calling on outside help in this regard is often insightful and you don’t have to spend a lot of money on exorbitant day rates to get good advice. As a first port of call consult your best customers; understanding them is critical. Consider the use of those training to become the guerilla marketers and consultants of tomorrow. Enlist the help of students from one of Rochester’s many colleges, MBA programs and design schools. This constitutes assistance from those undergoing relevant training, who tend to be masters of achieving a lot from very little. Don’t discount undergraduate students - in my experience they often have significant creative insight and skill sets, the ability to look at an old problem with fresh eyes, and are most able to employ the technology in achieving our marketing aims and objectives. Consider the use of a student project, or a co-op or intern looking for experience. These are often win-win scenarios for both parties at little to no cost. Enlist the advice of local business groups and possible partners to work with you. Consider pooling resources with those of associated products or services. As Kenichi Omae, one of the world’s top management gurus often noted, in times of trouble, just like nation states, it is better not to go it alone. A sensible plan also requires a sensible set of objectives to achieve. Keep these realistic, time related and where possible, measurable. One problem with Guerilla tactics is the difficulty with which you measure impact. Consider your alternatives and employ a selection of criteria that will guide your final decision on a course of action. Finally, perhaps the most important success factor is making sure you enjoy the process. Guerilla marketing requires passion, energy, enthusiasm and commitment. Having fun is, after all, the ultimate form of revenge on the world of big business.