Author: Katlego Makgareetsa

What is digital Marketing?

You might be wondering why everyone is suddenly talking about digital marketing. Well, contrary to what most people believe, digital marking has been in existence for more than 100 years now. Although it is not a new term, it has gained popularity as a business strategy over the years, challenging traditional marketing as we know it. What comes to your mind when you hear the term? Possibly the word Internet is the first thing that pops up. Well you are right, however digital marketing is not only an online activity, it can occur offline too. The best way to unpack this is to define the term as simply as possible. The term basically means using digital channels to advertise. So, what are those channels? By digital channels we mean things such as radio adverts and social media. Yes! Facebook.

Digital marketing is any form of marketing of products or services which involves electronic devices, like a laptop or a mobile phone. Contrary to what it is known for in the 21st century, digital market does not only include marketing done through the internet only such as google ads or Facebook. It is much more than that and has been used as a strategy that is proving to work, not only for large businesses but also small and medium businesses. In a world full of disruptions, digital marketing offers an adaptation strategy that traditional marketing fails to do.

Why digital marketing matters

Today’s world is changing, and businesses need to keep up with the technological changes, new ways of doing things and most importantly, businesses need to adapt to these changes. This unfortunately, is sink or swim situation in which the technological disruption has made existing larger businesses vulnerable mainly due  to the easy accessibility of products and services on the internet, giving medium and smaller businesses a chance to expand and grow. More businesses are opting for new ways of generating revenue and growing. What better ways to grow than explore the growing marketplace using digital marketing? Digital marketing tools provides businesses with advantages to surpass their competitors, a chance at survival and growth.

The following are some of the reasons why you need to use digital marketing strategy for your small business to grow

1. Digital Marketing is more Cost-Effective than Traditional Marketing

Using digital marketing allows businesses to have resources to perform duties such as sales and marketing in a large scale with international audiences that were previously only accessible to large corporations. Previously, businesses survived through having a call center or a customer service department which dealt with the relationship between the customer and the business, but through digital marketing, a small business is able to function without a call center, can manage to engage effectively with multiple customers locally and internally, not limiting the reach of audiences to branches and physical locations of customers.

Most small businesses in South Africa are already struggling to make a profit, and do not have available resources for traditional marketing as is. In such instances where your business is struggling to make a profit, Digital Marketing can be the best solution to provide you with a cost-effective marketing strategy much needed for your business to grow. Small businesses do not necessarily need to have an expensive digital marketing strategy, Applications such as Whatsapp Business or Facebook marketing might just be a cheaper option.

2. Conversation optimization and more revenue

Businesses can use different techniques such as Search Engine Optimization (SEO), email marketing and social media marketing. These are the top 3 that generates quicker and effective interaction with audiences and deliver better rates. Unlike traditional marketing, Digital marketing offers businesses a form of measurement for their products and services success, for example using a website, one can track incoming traffic which may either generate leads, subscribers, or sales. The traffic however is not significant if there is no conversation generated, that is why its important for business owners to put out their marketing campaigns on the internet to get a bigger audience so they can optimize conversation. Studies show that businesses using suitable digital marketing strategies generate higher conversation rates and have a higher chance of profitability in their business and increased revenue.

3. Brand Reputation

Branding in a business is particularly important for attracting and retaining customers. The advantage of digital marketing is the ability to attract targeted audience. Most of the audiences might already know about your business products and services and potential customers. Using digital marketing strategies to target your audience is more precise than using traditional method of advertising. It is easy to set specific perimeters to target the type of audience you want; you can also use cost-effective campaigns such as social media ad campaign to ensure that only the targeted audience see your ad. By delivering on your promises to your customers, it helps create a trust relationship with potential customers and could see them becoming regular customers. With digital marketing, tools such as websites, having reviews on your website page can create a brand’s reputation and convince potential customers into buying or using your services.

4. Competitive advantage

Competition is one of the biggest challenges in running a small business. Moreover, if you are competing with bigger companies that have been in existence for many years. How can digital marketing help your business compete with other businesses? Many large businesses already have digital marketing strategies and that is why your small business should use it to upgrade to their competitor’s level. If your business is positioned like bigger businesses, then you have a chance to grow and be in competition with them. The traffic that your competitors currently have on their website could be yours, if you position yourself as an option to customers then the traffic might be directed to you and generate leads, and/or  potential paying customers.

5. Better Return on Investment (ROI)

The right digital marketing strategy can allow your business to have a better return on investment. You need to choose what works for you and design your digital marketing strategy tailored to the needs of your business. By investing in these digital strategies, you will get a growing audience, traffic with increased conversation, increased revenue. With better branding and revenue, digital marketing can bring out the best in your products/services and showcase them to the world. There is no limitation in the digital world, more strategies are introduced every now and again, new software’s created, and Applications developed to help improve businesses thrive, something that traditional marketing does not provide. The other advantages of Digital Marketing are the accessibility of personal data which provides businesses with information such as contact information, preference, and the option of an easy purchase option.

Digital Marketing is an incredibly good option for small businesses to grow and explore potential markets online and offline. The strategies can be designed to suit your business needs and your budget. Having a basic website and a business email address is the first step towards integrating into the digital world. Kodeink Group provides digital marketing solutions for small and start-up businesses.

Why collaboration in business is important

Entrepreneurs go into business for many different reasons although the common ones include profit making, being successful, and making a profit.

One of the ways to build a successful business is to form partnerships. Forming partnerships can be a good business strategy if done correctly.

Find out how you can form beneficial partnerships and cultivate profitable strategies for your business using digital marketing strategies.

1. Join a Local Online Business Group

If you want an opportunity to meet up with business people in your area you can always go to them, but the power of social media has allowed business people from around the world to have a platform to collaborate.

There is a growing trend of entrepreneur groups where you might potentially meet your business soulmate, much like with a dating app, you can easily get into contact with those you are interested in doing business with.

An example of this is a Facebook Marketplace. Most areas now have online marketplaces where customers and business people meet, advertise their work as well as share ideas with the intent to collaborate. The best thing about this strategy is the affordability and accessibility of it.

It also helps that using this strategy you can see what other businesses are doing and emulate some of the ideas in your own business. Online Business groups are ideal for identifying some growth areas for your business.

Using the information obtained from the group, you might be able to identify some gaps in terms of what is not being offered and use that as leverage to expand your business.

Regular networking is quite hard, think about it this way, you do not have to sit in a boring seminar or function just to connect with people. You can just easily log into your social media application and find what you are looking for. In most cases businesses include their contact details, much like a digital business card.

This strategy depends on your preference, whether you prefer meeting online for offline, business groups are a great way to make new connections in business. If you do choose the online route, then you can decide if you want to meet face-face or continue communication through digital platforms. If your goal is to have a partnership, then this is an easy way to go about it.

2. Use a Business Applications or Software

The possibilities are limitless in partnerships. Depending on what you want, you can make a partnership work for your business. Larger businesses have mastered the art of partnerships and use them to get value for money. Look at what Uber did, by collaborating with restaurants and doing deliveries, both businesses get a bigger audience and more sales.

You can target other businesses around you that can help with a product/service you require and form a partnership, much like picking a vendor and both parties can benefit from the partnership.

Your business can thrive from a partnership, you can view this as a form of teamwork, which is better than working alone sometimes. Teamwork can drive growth and innovation, helping your business stay relevant.

Who does not want their business to be relevant?

An example of a partnership in a small or informal business is a Shisanyama. Shisanyama’s are mostly informal small businesses that operate in the townships and sell braai meat. You get large and formal ones that have a range of services, but the majority is small. Such businesses can partner with a delivery venture to get food to customers quicker, due to this partnership the business can extend its working hours to accommodate the customers that want food late.

This can also help the business continuity in instances where the weather is bad, and people are unable to go out to buy braaied meat.

3. Use branding to attract other businesses

Branding is like an identity of a business. A business brand should be associated with the service/product it offers. When going into a partnership, a business should think about what that means for the brand. Partnerships with too many businesses at the same time can be confusing for your customers, you might hurt your reputation in the process if you are not careful.

Therefore, it is importance to be clear in identifying exactly what you want out of a partnership and stick to what is practical and attainable. Of course, flexibility is an important factor for growth and innovation, however you should be careful not to overdo it.

Think about your goals and objectives, write them down, use them as a guide to keep you focused on the scope of work.
It is important to know your business very well before seeking out a partnership because you can find yourself very confused and things can become blurry.

4. Get value for money

Try take some time to reflect on your business. Ask yourself how many businesses you depend on now for services/products which keeps your business afloat. Think about where your business would be if it were not for your current partnerships.

The truth is most businesses are already in partnerships, the company that provides you with internet and a telephone line, the finance business that helps with money, the bank that gives you credit when you need it, the property business that lets out offices for your business.

The list is probably long but all these businesses are providing a service you need to keep your business going and without their services your business would probably be struggling. The aim is to make the most out of your partnerships.

The first step is to acknowledge the businesses you are already in business with as your partners, think about the kind of relationship you have and how you can make it valuable and beneficial. Ever thought that maybe banking with a different bank might provide you with more services to benefit your business. Small changes in partnerships can save your business money and time.

5. Transparency is key

Entrepreneurs are always willing to grow their businesses using different strategies. You know what they say, different strokes for different people. Your thinking should not be limited to the norm as a businessperson, the growth of your business depends on your level of innovation, thinking out of the box.

However, it is crucial to be as transparent as possible in your limitations, be honest about the services you can offer and those you cannot offer. This is significant in finding partnerships that can help you grow
your business in the areas where it lacks.

Being dishonest with your capabilities, might cause you to miss out on good partnerships who could have filled in the missing links to your business puzzle.

6. Be ready for disenchantment

In business there is always disappointments and sometimes they come unexpected. Gloomily, you need to be able to deal with them as they come along.

Trying new things is demanding and for this reason, small businesses are reluctant to take risks. Failure is however inevitable at times.

While difficult as it is, cutting your losses when partnerships do not produce to your expectation is foreseeable. When it happens, be ready to move on and try something that might work for your business. Giving up is not an option if you want to succeed.

The business world is not easy to infiltrate and sometimes owning a start-up business can be really demanding. Therefore, it is important to do partnerships in the smartest way possible, keeping your expectations at a normal level and finding what works for your business.

When done right, partnerships have proven to grow small businesses and put them in a better position. Remember to be intentional, clear, and informed when going into partnerships and have partners whose goals align with yours