Advertising: Part Two!

Using the same article last time (you can find it here) since the topic is the same! How can your business maximize your advertising dollars, especially in the resteraunt/bar industry, so that you reach the most eyes with using the least amount of dollars?

Last blog post I covered the first suggestion made by the article, to promote to the certain "movers and shakers" of a community and watch the others in the community follow their lead if you can coax them to your business. This post will cover another suggestion for generating more WOM (Word of Mouth advertisement) to your company.

Viral marketing is a certain type of marketing used by companies in order to generate mass media publicity about their company. It's been often quoted that "any news is good news" when it comes to companies, and in large part it is right. Getting your company or bar exposure can be one of the most difficult tasks to do as a small business owner, and finding the right way to do it can be key to how your company will be viewed by the large majority of the public.

In my presentation, I cite "Snakes on a Plane" the movie as one good example of viral marketing. The movie was basically made on zero plot and with not a huge budget. Instead, it used a lot of internet marketing including trying to force it into cult status in the American eye (and it worked). The movie was a huge success because while it didn't become the biggest boxoffice hit of the year, it still sold very well despite barely no marketing budget, but simply a lot of media coverage about it (Leno, Letterman, etc).

While getting coverage like that for a bar could prove difficult, offering promotions, sponsorships, having reader reviews in newspapers and other publications, and other things could be used to increase the viral marketing campaign for your business. Doing so can increase the traffic to your company or bar and greatly increase profits at a very low cost.

Drink of the Day (Nov. 28)

This one is a tribute to my friends in the frat house who pretend that they're manly yet really can knock down some strawberry margaritas at El Maguey's on Thursday nights. :) We'll reserve comment for them, but I find myself becoming one of them quickly. What that means, who knows...

Strawberry Margaritas
Check it out from DrinkNation! You can get the salt on the rim of the margarita glass by rubbing lemon juice on the rim and then putting it in salt. Mix a half ounce of strawberry Schnapps, an ounce of white tequila, an ounce of lemon juice, an ounce of strawberrys, and a half ounce of triple sec to a shaker. Shake, and fill the glass, and enjoy!

Advertising: Part One!

Entrepreneur.com is basically feeding this blog. :) ANOTHER link today from them here, about advertising, and more importantly, word of mouth marketing and how to generate it. The article lists three main tools to generate Word of Mouth Marketing (or WOM as it is abbreviated in the article -- there is even a Word of Mouth Marketing Association you can check out here!). While one might think of word of mouth marketing as a simple cheaply cost-effective measure of advertising for a business, the truth is, to generate word of mouth marketing your company can often have to spend quite a few bucks to get the ball rolling.

In the college bar scene, I can't think of anything MORE important than WOM however. When my friends and I decide to go out to a bar, we usually only know drink specials by word of mouth, how good or how packed a bar will be on a certain night by word of mouth, or both of those by personal experience (which we would pass on to anyone interested).

Thus the first way that the article lists, "marketing to influencers," is the best way I think to advertise to a bar. Basically, this option markets to the most influential people in the town to try and pass it down through them that the bar or club is the "in-spot" currently. In a college town there is a few leaders and a TON of followers. I've seen the bar scene go from Big 12 (Campus) to Shiloh to Generic to Fieldhouse or Quinton's simply within the last year or so since I've been 21. Surely this is not by coincidence. Certain people in the college community effect where a large majority of the college community goes (especially in Greek life).

Thus, perhaps a cost-effective way of using this influential marketing would be to get some of the higher ups in certain organizations, especially in the Greek community, deals for the first few weeks or so. Advertise heavily to the Greek community or other organizations you might wish to pursue (Saturdays during football season attract a lot of non-college wealthy alums for example that would be looking to have a good time and spend a lot of money).

Shiloh is one bar that does this in town with a huge setup that they put together especially for Saturdays during football season. During this time, they don't even offer any specials and still pull in a HUGE crowd, so huge that they actually have to expand the bar to the parking lot with tents, and still have a huge line waiting to get in after it's all over. This is the type of influential marketing that can be hugely successful in a college town. No one is going to want to go to a bar that is not very full, but when bars are hopping and long lines are outside, people think that it must be the "in" place to go and will wait a LONG time just to get in the bar in the first place!

I'll post more about this soon, in a second part. Way too much info for one blog post. :)

Lawsuits -- How to Avoid Them!

Another entrepreneur article this time, about a very serious issue for small business owners involving lawsuits. Costly lawsuits can often cripple a business in its startup phase, and figuring out both how to avoid piling up costs in damages as well as what lawsuits are actually realistic and which are just out for settlement money is very vital for a business. One small example from the article shows an example of this:

"In Northridge, California, a woman decided to purchase a new blender from an appliance store and selected one at the bottom of a pile of five boxes rather than ask for help reaching the top blender. When the other four blenders fell on her, she sued the store for not warning customers about the danger and for stacking the boxes too high, claiming she now had carpal tunnel syndrome along with neck, shoulder and back pain."

Another example shows the example of a woman who ran a startup motel which sustained damages that kept her from recouping much of her original startup costs for years and years because of frivilous lawsuits looking for a simple settlement.

The local bar scene can be an awfully rough place for such things. Broken glass, slippery floors, and alcohol do not mix together very well. The threat of lawsuits can pop up on any given night. Not only is the threat of lawsuits from patrons a dangerous one, but the threat of lawsuits from employees who have to deal with the drunken people as well!

The article lists a good group of points to help avoid such lawsuits:

• Make sure you’re adequately covered with the right type of and amount of insurance.
• Post any necessary warnings about safety issues.
• Stay on top of all necessary business codes and regulations is one preventative step
• Attorneys and group fighting such frivolous lawsuits suggest voting for politicians who advocate tort reform.
• If you are sued, don’t panic or make any hasty decisions, since plaintiffs and their attorneys are often seeking a quick buck and may simply move on to someone else if you don’t respond immediately.
• Research the law firm suing you to find out if they have a history of similar frivolous lawsuits. If you find similar lawsuits on the books, contact the office of the attorney general in your state
• Create, print and distribute an employee manual that includes all company rules, guidelines and regulations for your employees. Make sure you include sections on what constitutes grounds for dismissal as well as what’s considered inappropriate behavior. Have each employee sign a form acknowledging that he or she has received it.

Following these points can help your small business get your bottom line back quicker and make sure that you avoid sinking your ship too quickly and unintentionally with a few small slip ups!