8 advantages of being small in marketing industry
1. Follow the leaders
If you are small, you can always follow well-trodden route and use experience of top companies. Economists often refer to so-called “Varian Rule” stating that you can forecast future just looking at what rich people have today. At one hand, these companies spend tremendous resources on market researches to study consumers and their needs. On the other hand, they always seek for higher-margin activities, that often results to risk-aversion. Practically, it is impossible to predict precisely what would be the next trend. Thus, agencies that are closer to a client have more chances to hit the bull's-eye.
2. Be flexible
Another advantage of being a small-medium company is flexibility. In practice, it means that you can easily switch from one strategy to another without facing high costs or risks. We live in the fast-moving world, where new ideas spark and fade, while only some of them become extremely popular. Thus, to be competitive, small companies can get additional scores being flexible towards specific needs or trends on market.
3. Focus on your core
The third advantage of being a small-medium agency is ability to be focused on your core. It does not necessarily mean sticking to your core service or product. Ask yourself, what activity brings most of the value to your work? What problems it solves and what pain it relieves? Only by remaining faithful to your core beliefs and values, a company can build a trust to your services. Another way to stay focused on your core is to use outsourcing. The only question is “What to delegate?”. The answer is that you need to delegate everything that is beyond your capabilities to accomplish it with greatest value and significance to build long-lasting business relationship.
4. Use technologies
We live in the dawn of golden civilization. Today’s smartphones have much greater processing power than what NASA used during its first Apollo launch back in 60’s. Modern technologies serve solving a complex tasks for purposes of business, personal life, education and sport, etc. The good news is that today even small companies can afford to use progressive technologies providing more value in their products and services. Classical marketing tools combined with web and mobile technologies allow to directly influence targeted audience, convincing them to love your product and buy from you again.
5. Choose right partners
It is clear that strong network of partners that share your values is crucial for a success of small-medium companies. Moreover, such cooperation becomes very fruitful in the long-term if it is based on simple principles of comparative advantage. When each of partners focuses on the most significant tasks that he can accomplish with greatest value, then overall work would be done with lower costs/results ratio. A right partner becomes a multiplier of everything you do if he focuses on your overall effectiveness rather than on your projects itselves. He must free up your time and save money - not waste it. You can achieve great success only by delegating responsible tasks, being completely sure that it will be done with desired effectiveness.
6. Be global
Today, in globalization century small companies cannot be limited by local market anymore as technologies allow us to produce, sell and consume worldwide, overcoming physical distance and transaction barriers. Each geographical location has its specific advantages. Outsourcing companies in Asia or India are able to provide simple IT services with lowest possible costs. But when it comes to advanced ones, they require specifications of every step of the project. It is caused by the lack of clarity in work, communication problems and cultural differences. EU companies share same law regulation, operate within same timezone and understand the market needs better. With the use of modern technologies one can build an effective model of cooperation regardless of distance and being global to some extent determines leaders.
7. Choose right strategy
Unlike big agencies, small-medium companies are more flexible to focus on the short-medium term goals to achieve higher results. Ask yourself, what are the most important factors that determine success of your company? Some companies aim to increase revenues by
- doing more projects in the same time
- seeking for a ways to cut costs
- to increasing the value of work
- providing more advanced services or technologies.
The best strategy is to achieve all these objectives all together. Leading companies in marketing industry use external teams as an instrument of company’s growth. For example, to increase the speed of work, these companies enable more resources from abroad to accomplish tasks with same or lower costs.
8. Use Winning Edge
You are one step away from being the leader. Despite the tremendous investments on R&D done by biggest companies in marketing industry, the highest growth is always achieved by companies that constantly improving and focus on what they can do best. Your skills, expertise, and values are more important than the size of a company. Every top leading company has started from the bottom one day. However, in modern world, it requires to be just a little better to gain competitive advantage over stagnated giants. Remember that a winning horse is always a half-nose ahead of others.