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Assess marketing campaigns 'frequently'

Marketing campaigns need to be constantly assessed and adapted to ensure they are still working, an expert warns.
Jack Wallington, programmes manager for the Internet Advertising Bureau, a non-profit group which helps companies in the industry, says there is so much competition that marketing really needs to be monitored.
He advises each campaign needs to be looked at daily, so the success of it can be gauged and it can be adjusted accordingly.
Wallington adds that online tools make this easier, saying 'the great thing about the internet' is that is offers 'measurability and adaptability'.
'Once a display campaign is running that isn't the end of the story, for the next couple of weeks you can, within minutes, adapt your campaign,' he states.
Recent research from Constant Contact of small businesses found over the Christmas season 60 per cent of these firms opt for email marketing.
In addition, 41 per cent say this approach has the most impact on their seasonal sales, followed by direct mail and advertising.

Half of small firms 'could lose everything'

Almost half of all business owners could lose their home or everything they own if their company goes under, according to new research.

The Federation of Small Businesses' (FSB) survey of 8,600 members found 49 per cent are risking everything to keep their firm going.

Many of the company owners work from home, meaning their abode is tied up in their business assets.

Following this research, the FSB has appointed a professor of small business in order to aid firms in the economic downturn.

Professor Anderson, the new academic to join the organisation's team, says the findings are worrying and another example of how small firms 'put themselves in the firing line'.

He advises companies to 'keep watching your cash flow, get to know your bank manager and give your customers value in the way that only small businesses can'.

Research released this week from insurance firm RSA found 470,000 small businesses have already ceased trading since the credit crunch began.

Banks 'must pass on rate cut'

Lenders must pass on the 1.5 percentage point drop in interest rates made by the Bank of England (BoE) yesterday, if companies are to benefit.

The Forum of Private Business says the rate drop to three per cent yesterday must be embraced by banks.

Phil Orford, chief executive of the organisation, states that previous rate cuts not being passed on means lenders are profiting from the BoE's decision.

The Federation of Small Businesses' chairman John Wright described the reduction as 'unexpectedly large', saying it will make a big difference to companies.

'But all this will come to nothing if the banks do not follow through and pass on the rate cuts to those small firms struggling with increased costs of credit,' he adds.

Chancellor Alistair Darling is also urging banks to pass on the drop, saying it is 'essential', however, the government has yet to reveal whether it can force the banks to do so.

He said the public is right to expect to see the benefit of this move, when a cut of this magnitude has occurred.

Video CVs 'could discriminate'

A rising use of online video CVs to apply for jobs could leave candidates open to a new form of discrimination, an industry body has warned.

The Recruitment Society says the recent introduction of video CVs from job site MultilingualVacancies.com could lead to them being commonly used.

Steve Huxham, chairman of the organisation, states if it became the standard way to apply it could be 'highly unfair on people' as some may not be naturally gifted in front of the camera.

People who are not photogenic or are not very outgoing presenters may be discriminated against, even if their job does not relate to communication, he says.

Huxham comments there is also the possibility of prejudice occurring against the race, age or gender of applicants, which could not occur with a paper CV.

In addition, to create the video CVs applicants would need a webcam and microphone, which many may not already own.

MultilingualVacancies.com says it is using the tool so applicants can display their language skills to potential employers.

Interest rates cut by historic levels 

In a bold move by The Bank of England’s Monetary Policy Committee (MPC), interest rates have been slashed by the lowest cut for more than 40 years.

The MPC announced a reduction in rates by 1.5 per cent, down to a three per cent base rate. The last time rates were cut by more than half a percentage point was in 1993.

John Wright, chairman of the Federation of Small Businesses, says: ‘This unexpectedly large cut will make an enormous difference to small firms and will put money in people’s pockets before Christmas. It amounts to a generous saving for small firms of £750 million on loans and overdrafts.’

However, he adds that banks need to follow through with the move and pass the benefits on to small firms struggling with credit costs.

Andrew Stoneman, managing partner at corporate restructuring specialists MCR says: ‘We needed a shock to the system that only a significant rate cut would provide. Stimulating demand is absolutely critical to avoid a deep and long recession.

‘Interest rates are the right place to start both from a consumer and business perspective.’

The news follows the MPC’s rate cut last month of half a percentage point.

Scottish businesses struggling in crunch

Scottish businesses are not helping themselves in the credit crunch as 30 per cent do not advertise their firm and over a quarter do not ask for advice, both the highest rates in the UK, according to BT Tradespace.

Research from the social networking site found Scottish companies are the second worst-off in the UK in being affected by the credit crunch, beaten only by the south-west.

The survey of 200 small businesses found 54 per cent of firms north of the border were badly affected by the current economic situation.

Ivan Croxford, managing director of BTTradespace.com, says the figures show Scottish businesses are 'really feeling the pressure' at the moment and to survive they must truly stand out against their rivals.

'This means not only running your company more efficiently, but also making sure your voice is heard by the audiences that matter to your business,' he adds.

More than one in five Scottish firm owners also reported only using friends and family to gain advice, while 26 per cent said they do not get help from anywhere.

FSB calls for rate cut

The Federation of Small Businesses (FSB) is calling for an interest rate drop to help small firms, as many begin to cut jobs or stop hiring.

Research from the organisation finds almost three-quarters of small firms would back a rate cut today as 1.5 million companies are set to go bust if the current economic climate continues.

The survey also discovered 14 per cent of these small businesses have already cut back on hours and almost 70 per cent either plan to or have put a hold on employing new staff.

Stephen Alambritis, head of public affairs at the FSB, says: 'The survey means that these are very tough times for small businesses and they'll do anything they can to hold onto their staff.'

He says an interest rate cut of one per cent should be seen this week and if it is not then many firms will have to shed more staff.

Alambritis also urges lending levels from banks to increase, otherwise many firms will not 'hold that positive outlook for much longer'.

Funding given to train staff

Around £27 million of European Social Fund money is being issued to help employers ensure their staff have the right skills for their jobs.

The money is being made available via the UK government, which is aiming to support firms and ensure employers are continuing to fill positions.

Minister for employment and welfare reform Tony McNulty says in the current climate it is essential everyone has the correct abilities to do their job properly.

Some of the money will be directed towards unemployed or disabled people and aid them in getting the right skills to get back into the workplace.

Money will also be given to train and support people setting up new, not-for-profit businesses, while money will be targeted at training older employees and improving computer knowledge.

Organisations can submit proposals for projects to help people train in their job, three of these schemes will then be picked from each region, with each scheme expected to last for up to three years.

The funding announcement comes after skills secretary John Denham revealed £350 million of government funding would be given to small firms to train their staff.

Online marketing aids small firms

Small companies using efficient online marketing can 'punch above their weight' and develop their brand more than other forms of marketing would allow.

Tink Taylor, business development director of dotMailer, an online marketing agency, says small firms can really benefit from having a strong internet presence as it allows them to develop in ways offline marketing does not permit.

He adds: 'Online marketing allows small savvy businesses to punch above their weight.'

Viral marketing tactics, like using link-to-a-friend tools and adding content to social networking sites allows new audiences to be targeted, Taylor states.

'The growth of social media also allows businesses to build their brands and develop market-share in ways that just aren’t possible or effective offline,' he adds.

Recent research from the Internet Advertising Bureau has found online advertising has grown faster than any other medium and between January and June this year was worth nearly £1.7 billion.

Latest figures show the UK advertising market declined by 0.7 per cent year-on-year, decreasing by £65.6 million.

Latest News | small business news and advice Tue, 11 Nov 2008 10:32:50 UTC