The Importance of Marketing Investments for Small Businesses

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Investing in marketing is a crucial aspect that should not be overlooked by small businesses. However, it is essential to understand the underlying reasons behind this necessity.

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Several years ago, I embarked on a freelancing journey after transitioning from working in an agency to a client-side role at a major bank in the UAE. During this time, I encountered a problem that struck close to home – my uncle's oil blending business, which he had started with an investment of nearly USD 8 million in Sharjah back in 2011. Despite his extensive experience working for renowned oil companies in India and the GCC, successfully setting them up and running them, he now faced a new challenge as an independent entrepreneur. Recognizing the issue at hand, I decided to dedicate three months to studying the lubricants business and developing a marketing strategy to kick-start his venture.

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During my research, I observed several issues with the company's marketing efforts that needed to be addressed:

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1. Reliance on Gut-Based Strategies: Many experienced entrepreneurs tend to rely on gut instincts when making strategic decisions. While this approach may have worked in the past, the rapid pace of technological advancements and market changes demands a more adaptive and data-driven approach to marketing.

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2. Confusion between Sales and Marketing: Although sales and marketing are closely related, they are distinct functions within a business. Marketing's primary role is to identify consumer needs, promote awareness of products or services, and establish the brand positioning. Sales, on the other hand, involves closing deals and bridging the gap between the prospect and the offering. Understanding this distinction is vital for small businesses to leverage the full potential of both disciplines.

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3. Overemphasis on Visual Identity and Websites: While having a visually appealing brand and a well-designed website are crucial components of marketing, they are not the sole elements. Modern marketing requires a comprehensive and intricate approach that encompasses the entire lifecycle of a product or service. For instance, in the case of the oil lubricants business I was assisting, I delved deep into understanding the regional and global lubricant landscape, identified best practices from leading players, and identified gaps in customer touchpoints. This holistic approach allowed us to develop a clear roadmap for filling those gaps.

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4. Unrealistic Expectations of Immediate Results: Like most worthwhile endeavors, marketing takes time to yield results. Small businesses that have relied solely on personal networks and word-of-mouth referrals may find it challenging to grasp the need for substantial investments in marketing. However, just as a solid foundation is crucial for the stability of a building, establishing a strong marketing foundation is essential to withstand unforeseen challenges such as new government regulations or competition from well-funded market entrants.

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Based on my experience, even though I had limited time for in-depth market research, I commissioned an overall brand identity revamp for my uncle's company and its two anchor lubricant brands. This exercise proved pivotal for the next phase of their business growth. They participated in numerous trade events, onboarded distributors across the GCC and the Sub-Continent, and ultimately positioned themselves for acquisition by a well-known Italian company operating in a similar space.

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In conclusion, it is evident that small businesses must adopt a conscious and strategic approach to marketing. It is crucial to address misconceptions prevalent among established businesses and recognize the need to revise and adapt marketing practices in order to stay competitive in today's dynamic marketplace.

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Disclaimer: The views and opinions expressed in this blog are solely those of the author and do not necessarily reflect the official policy or position of any organization. The information provided is based on the author's personal experiences, observations, and insights. While the author strives to present accurate and up-to-date information, it should be noted that the content is not intended to be a substitute for professional advice or guidance. Readers are encouraged to consult with relevant experts and conduct their own research before making any decisions or taking any actions based on the information provided in this blog.

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