Potential Marketing Idea?

[JamieAllen]

Hi there

I've just got involved with a new start-up biz providing IT related service and support targeting small/medium sized businesses who don't have their own in-house support.

We've come up with the basis of a marketing idea but still thinking it through and would really appreciate others views.

We were thinking of selecting a local charity and doing some form of business raffle, who proceeds going to that charity. The raffle would be marketed to our target customers, so all businesses. Tickets would be sold at something like £10 (for a set number of tickets, say 5) and there would be a selection of prizes from local businesses - free annual IT support from our company and whatever other products/services we could get from other businesses as sponsorship. Got a friend willing to offer free accounting for a year and one or two other biz associates coming up with goods/services include free weekend hot tub hire and free advertising on local business promotion site.

The charity would benefit from the proceeds. The sponsors and ourselves would benefit from the exposure and as it's all in the name of charity, hopefully some free local media advertising. We'd obviously manage ticket sales, which would mainly be done via email on receipt of cash/cheque/electronic payment. Would get a local dignatory (mayor or similar) to draw raffle.

What are the drawbacks that you can see? Is this worth pursuing further or a total waste of time?

Grateful for any feedback.

Jamie

 

[JamieAllen]

Forgot to sale. Also thought about giving away the tickets free without involving a charity and just do this as a marketing campaign for the businesses. However, just thought that the charity element may help with the advertising and media attention.

Aware that licences etc need to be sought.

 

[XanderMarketing]

Hi Jamie,

The prizes you have mentioned have a high value so I would recommend selling the tickets for higher. Despite the proceeds going to good causes businesses get approached all the time about these kind of things and can only give so much. You may not get the response you expect.

Also what is the purpose of it for you? Is to to build your brand or generate leads. For a startup lead generation is more important. From a marketing viewpoint offering a competition where a business can win a year's IT Support if they enter it I think you would get a bigger uptake. Your company could offer the prize, you would be building your brand, not the charities and it should be easier. You would also build up leads and you can market to them.

You may also be interested in doing something similar to our 'Treat' Campaign: http://www.xandermarketing.com/index.php/portfolio/xander-marketing-campaigns/

Good luck.

Alex

 

[JamieAllen]

Hi there

Thanks for the reply. Main reason is to generate leads and gain some exposure for a new start up.

Got some good potential prizes lined up but something like free accountancy (provided by an associate) wouldn't suit those that already have an accountant in place. Our prize of free IT support wouldn't be much good either if businesses already have arrangements in place. So I'm wondering whether the actual take up would make it justifiable.

Alot of IT work is referral based. If we can just get a few clients through the door hopefully it will take off from there. So basically looking at promotions/incentives to get people through the door.

Also the organisation of such a raffle/competition could be quite significant and sidetrack us from the day job which is generating sales!

Jamie

 

[XanderMarketing]

You say a lot of IT work is referral based but there is still a lot to say for the direct marketing route - email marketing, direct mail, tele-marketing. I've worked with a couple of IT Support companies and this direct marketing approach does work. Referrals will come from that as those happy clients will refer new clients...

 

[directmarketingadvice]

Thanks for the reply. Main reason is to generate leads and gain some exposure for a new start up.

In the words of Lord Nelson, "Never mind the maneuvers, just go straight at them".

I know the IT support business is a tough one to market. In particular, it's difficult to identify and segregate good prospects.

All this charity stuff may be a partial solution to the problem, but it'll be a lot of work and, unless you can repeat it over and over, won't really get you where you want to go.

I'd suggest you think about something more direct like direct mail or telemarketing.

Steve

 

[Craig Dewe]

Hey Jamie,

Your first post pointed out a problem... your target market being "all businesses." So you would provide services to both McDonald's and Bob's Building Services that he runs by himself? Segment your market so you know exactly who you're speaking too and what you can offer them.

Then look at a direct mail type marketing campaign. Most IT work is referral based only because most IT companies don't do any effective marketing. If you can combine effective marketing with referrals then you're golden.

But it starts with your target market and an offer they can't refuse.

 

[willitbe]

Hey Jamie,

Your first post pointed out a problem... your target market being "all businesses." So you would provide services to both McDonald's and Bob's Building Services that he runs by himself? Segment your market so you know exactly who you're speaking too and what you can offer them.

Then look at a direct mail type marketing campaign. Most IT work is referral based only because most IT companies don't do any effective marketing. If you can combine effective marketing with referrals then you're golden.

But it starts with your target market and an offer they can't refuse.

Actually young man, Bob the builder is nearly as big as Macdonalds!

http://www.hitentertainment.com/corporate/PRPDFs/HIT_Appoints_Four_Communications_FINAL.pdf

 

[Craig Dewe]

hehe I stand corrected...

I almost typed Bob the Builder when I did it but figured that would happen

 

[writecombination]

If I were running a business (which I am!) I'd be sceptical of the value of free IT support. I work on the principle that, in general, you get what you pay for.

Think about it from the business owner's perspective. Free support is low cost, but what's the incentive for you to deliver when they have a critical IT issue? Or how do you prioritise your resources when you have two customers with critical issues, one who's paying real money and one who's on a freebie?

And what's the cost to you of providing a year's support for free? It could be very high. I suggest a magnum of champagne is probably cheaper and makes a more attractive prize.

Just some thoughts.