Applications for Business Consulting in Marketing

This article will focus on how an individual may effectively market a new consulting practice. The development of creative and unique marketing strategies to be the lifeline of business for start-up consulting companies. Although the budding entrepreneur may be an expert in his or her field, the individual needs to make sure that others understand the benefit of doing business with the new consultant. Most consultants utilize the basic marketing plan that everyone else uses. However, in order to be successful, consultants must distinguish themselves from the pack.

Keywords Cold Call Pitching; Guerilla Marketing; Home Based Business; Marketing Plan; Marketing Strategy; Networking; Niche Marketing; Relationship Marketing

Marketing > Applications for Business Consulting in Marketing

Overview

Finer (2002) suggests that new businesses have a marketing budget of $10,000 in their first year of business. A typical first year budget would include budget items such as (Finer, 2002):

• Website

• Web hosting and maintenance and url
• Search engine positioning (expert)
• Newsletter — either e-distribution or print
• Logo design
• Letterhead
• Business Cards
• Brochure design and layout and some writing
• Brochure printing for 200 pieces
• Advertisements
• Memberships
• Networking expenses

Levinson and McLaughlin (n.d.) suggest a marketing formula for the budget once the business has been established. It is referred to as the 60/30/10 Marketing Formula. The approach advocates a balanced budget distributed among current clients (60%), prospective clients (30%) and the broader market (10%).

Current Clients. Although this is the smallest group, as a consulting practice is developed, there is an expectation that this group will generate the most profits. Therefore, a significant amount of time and money should be allocated toward cultivation efforts to secure revenue from this group.

Prospective Clients. Consultants should strive to convert this group into current clients. There is potential that some of the targeted clients will have a need for a consultant; therefore, consultants should spend at least 30% of their marketing efforts with securing business from this group.

The Broader Market. This is everyone else that does not fit into the first two categories.

New consultants may adjust the percentages until they have built their businesses up. The distribution will be different among consultants, and each business should customize an approach for his or her practice.

One of the best ways to get the "first" clients is to network. Most consultants find their first clients through networking activities, professional or personal. Relationship building is essential to the business consultant. It is an opportunity for the new consultant to showcase his or her capabilities, strengths, and uniqueness. It helps to distinguish the individual from other people that may offer the same service. Finer (2002) developed a list of tips that would assist consultants with being effective networkers.

Tips for Effective Networking

1. “Have a crisp elevator pitch” that includes why and how your business can add value. Have three or four bullet points “about your background that relate to why you will be successful in this endeavor” (Finer, 2002).

• 2. “Make sure you are having a conversation in which you are listening for ways you can help the other person and talking less than 50% of the time. Give the person your undivided attention” (Finer, 2002).
• 3. “Be proactively helpful — send an email with some info that the person may be interested in” (Finer, 2002).
• 4. “Go to events where people in your industry go and where your clients may go; volunteer to help the organization, write articles, speak on your area of expertise” (Finer, 2002).

Even with following the steps to starting a consulting business, the entrepreneur should focus on how to effectively market his or her craft. When potential clients are looking for a consultant, they want the best. Although it is important to get a consultant exposure, one must make sure that unique qualities of the business are highlighted in order to differentiate one consultant from other consultants in the field. Competition is great in the consulting field. Therefore, it is imperative that a new consultant develops a strategic marketing plan that emphasizes strengths and weaknesses.

Application

Guerilla Marketing

Most consultants utilize the basic marketing plan that everyone else uses. However, in order to be successful, consultants must distinguish themselves from the pack. One way to accomplish this is to employ guerilla marketing techniques. According to Levinson (1984), the following principles are the foundation of guerilla marketing:

Levinson identifies the following principles as the foundation of guerilla marketing:

• Guerilla marketing is specifically designed for small businesses, especially consultants.
• Guerilla marketing should focus on human psychology versus experience, judgment and hunches.
• A consultant should consider his or her time, energy and ideas as the primary investment. Money is a secondary investment.
• Success should be defined in terms of profits, not revenue.
• A monthly goal should be the number of new relationships secured per month.
• Consultants should focus on developing the current client base and getting more business versus soliciting new customers by cold calls. Referrals are an important aspect of keeping existing clients.
• Consultants may want to build relationships with other consultants versus seeing them as competition.
• A combination of various marketing methods is the preferred approach when creating a marketing campaign.
• Staying abreast of technology is crucial in empowering the marketing campaign.

When meeting with potential clients, it is important to keep the sales pitch simple so that more time can be devoted to listening to the client explain his or her needs for the project. The sales pitch could be a one page plan consisting of seven sentences describing:

Sentence 1. : Purpose of the consultant's marketing efforts.

Sentence 2. : How the consultant plans to achieve the purpose by explaining the benefits the consultant can provide the client.

Sentence 3. : Consultant's target market.

Sentence 4. : Consultant's niche.

Sentence 5. : The marketing techniques the consultant will use.

Sentence 6. : The identity of the consultant's business.

Sentence 7. : The consultant's marketing budget (Levinson & McLaughlin, n.d.).

Once the plan has been developed, the consultant may start to discuss the different techniques and strategies he or she may use in order to solve the client's problems.

Viewpoint

Home Based Business Consulting

Entrepreneurship has grown into a very lucrative business. Although the general classification for a small business is a company that has $5 to $100 million in annual sales, Tunwall & Busbin (1991) describe a small business as one "with both moderate size and managerial sophistication" (p. 16). Making the transition from a full-time permanent job to the entrepreneurship can be difficult for thriving entrepreneurs. However, many will start their business on a part-time basis and work from their homes in order to minimize overhead costs. In order to grow the business, an entrepreneur should develop a strategy for how he or she intends to solicit new customers.

Ted Harwood was a college professor when he decided that he wanted to use his expertise to start a consulting business. He understood that potential clients would be interested in how he could use his skill set to add value to their organizations. As he developed his home based consulting business, he reflected how gaining visibility was as important as having an established client base. Harwood (1996) recognized that he needed to create a visibility strategy for his specialty niche consulting business, and some of his tips include:

• Networking. Networking provides advantages to the work at home consultant in two different ways. First, it gives the individual the opportunity to get outside of the house and mingle with people. Working at home can be a lonely experience so it is important that these individuals get outside and mingle with the public. Secondly, networking provides the budding consultant an opportunity to make verbal sales pitches, follow up on leads, get a pulse on the environment and make sure that they are positioned to be in alignment with the current trends in the field. Finer (2002) suggested having an elevator pitch that highlights who you are and what you do.
• Cold Call Pitching. One recommendation would be to invest in a current database directory in order to get initial leads. The next step would be to create a letter introducing yourself and discussing your credits. When you send your publicity piece to the identified companies, it is essential that you include a business card so potential clients can put it in their rolodex or contact list. If an individual is new to the business, it is best to send this type of introduction package prior to attempting to schedule a face-to-face meeting.

If the consultant is new to this process, Galper (n.d.) suggests seven tips on how to reap the most benefits from cold calling. The seven steps are:

• Change your mental objective before making the call. Potential clients can pick up when the consultant is only concerned about what he or she needs. Therefore, it is important to the consultant to shift into thinking about what the needs are for the potential client.
• Understand the mindset of the person that is being called. The consultant should put themselves in the place of the consultant and think about how to engage the potential client in a conversation versus getting the sales pitch out.
• Identify a core problem that can be solved. As the consultant listens to the potential client, he or she can determine key issues that the potential client may be facing.
• Start with a dialogue, not a presentation. Create a two-way dialogue that engages the potential client in the conversation.
• Start with a core problem question. Introduce a topic that may be problematic for the business and ask the potential client if he or she has identified the issue as a concern for the organization.
• Recognize and diffuse hidden pressures. Make the conversation natural versus a sales pitch where the potential client may be placed on the spot.
• Determine a fit. Once the consultant and potential client agree on the problem, the consultant needs to determine the appropriate time and importance of resolving the issue. For example, the client may agree on the problem, but may not have the budget to contract a consultant to fix it at the time of the conversation.
• Writing. Another way to attract potential clients is to start writing. Some individuals have contacted journals to find out the guidelines for submitting articles, created a newsletter and sent it via email to potential clients or developed a website and posted a regular newsletter section on the site. Another good idea would be to link the business' e-mail address and homepage information to the work that you submit and post. Potential clients must have the ability to get in touch with you. Also, if a website is to be used, having it reviewed by some friends would be valuable. They could provide constructive feedback as to whether or not changes need to be made. Levinson and McLaughlin (n.d.) provided seven questions that should be asked about the site, and the questions are:

1. What is distinctive about the site?

• 2. Is the content valuable?
• 3. Does the site convey a clear understanding of what the business is about?
• 4. Is the site's content helpful in addressing the clients' issues?
• 5. Is the site focused on the clients' needs?
• 6. Would a potential client bookmark the site?
• 7. Would a potential client be encouraged to call based on the material located on the site? (p. 8).
• Presentations. Many successful consultants have found that they were able to solicit business when they engaged in speaking events. A budding consultant can identify different trade organizations and offer to speak for a low fee. At the presentation, the consultant would share generic tips on a topic with the hope that members from the audience would request additional meetings with their organizations.
• Business Cards. Business cards are a way to stay in a potential client's mind. The client would have the information even when you are not in the person's presence. In addition, the client could be a source of additional referrals as he or she passes your business card around. Finer (2002) also recommends putting a slogan on the business card. It can be short and describe the image that the consultant wants to leave in the mind of potential clients.

Conclusion

Harwood (1996) provided some valuable tips on how consultants can market their business when they are first starting out in their business. In addition to the basic tips, he stressed the importance of setting a fee structure that is fair and realistic. He believed that every consultant should charge at least $70 to $80 an hour. However, once a consultant has been established, the individual can move up to charging $100 to $120 an hour for stable clients who do business on a regular basis. This practice will encourage steady cash flow into the business.

In order to differentiate a consulting practice, the consultant may elect to utilize a guerrilla marketing strategy. The guerilla marketing strategy is different from the traditional marketing strategy based on focus (Levinson & McLaughlin, n.d.).

However, some have found it difficult to develop marketing strategies when they are first starting out. Therefore, they have solicited the assistance of professional strategic marketers. Sometimes, it is important to make an investment in order to generate income. Hiring experienced marketers can fast track a new business and provide the company with new clients. In addition, the new consultant must be able to avoid the classic slogans when developing the marketing plan so that the service/product catches the attention of the potential client. Levinson & McLaughlin (n.d.) listed some of the typical clichés (buzzwords) as:

• Quality service
• Best price
• Methods, tools, and approaches
• Service responsiveness
• Consultants' credentials
• Importance of the client
• Testimonials and references

Terms & Concepts

Cold Call Pitching: Using unsolicited calls to potential clients in an effort to create new business.

Guerilla Marketing: Everything done to promote the business from the moment the idea is conceived to the point at which clients are doing business with the organization/consultant on a regular basis.

Home Based Business: Any business where the primary office is located in the owner's home.

Marketing Plan: Document which includes clear objectives for an organization’s marketing strategy; includes budgetary concerns, customer segmentation, price determination, advertising, etc.

Marketing Strategy: Process by which an organization aims to most efficiently allocate resources so as to strengthen sales and find a competitive advantage.

Networking: Forming the relationships and partnerships necessary to better position an individual or organization in achieving their pursuits. social contacts by making connections through individuals

Niche Marketing: The sale and promotion of a product or service to a specific subset of a market; concerns product audience and cost.

Relationship Marketing: The strategy of establishing a relationship with the client which continues well beyond the first purchase.

Table 1

Bibliography

Christensen, C. M., Wang, D., & Bever, D. (2013). CONSULTING ON THE CUSP OF DISRUPTION. Harvard Business Review, 91, 106-150. Retrieved November 20, 2013 from EBSCO online database Business Source Complete with Full Text:http://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=90326068&site=ehost-live

Finer, B. (2002, October 23). Marketing tips for starting your consulting business. Retrieved June 20, 2007, from http://westorg.org/nl/featured%5farticles/marketing%5fbf%5f102202.html

Galper, A. (n.d.). 7 cold calling secrets even the sales gurus don't know. Retrieved June 7, 2007, from http://www.unlockthegame.com/April-Article-2005/

Harwood, T. (1996). Marketing a home based consulting business. In Business, 18, 31-33. Retrieved June 6, 2007, from EBSCO Online Database Business Source Complete. http://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=9609131824&site=ehost-live

Levinson, J. (1984). Guerilla marketing. Boston: Houghton Mifflin Company.

Levinson, J., & McLaughlin, M. (n.d.). A guide to guerrilla marketing for consultants. Retrieved June 7, 2007, from www.guerrillaconsulting.com

Tunwall, C., & Busbin, J. (1991). Consulting effectiveness in smaller companies: Guidelines for the consultant and user. Journal of Organizational Change Management, 4, 16-24. Retrieved June 7, 2007, from EBSCO Online Database Business Source Complete. http://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=6552325&site=ehost-live

Suggested Reading

Benazi?, D., & Došen, ?. (2012). SERVICE QUALITY CONCEPT AND MEASUREMENT IN THE BUSINESS CONSULTING MARKET. Trziste / Market, 24, 47-66. Retrieved November 20, 2013 from EBSCO online database Business Source Complete with Full Text:http://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=78350612&site=ehost-live

Godkin, L., Valentine, S., Mosley, G., Silver, L., & Flores, F. (2002). Marketing orientation and organizational learning Mexican small business: The role of consulting support. International Journal of Management, 19, 68-79.

Industry vet starts marketing consulting business. (2006, September 25). Travel Weekly.

The Boston Consulting Group SWOT Analysis. (2013). Boston Consulting Group SWOT Analysis, 1-8. Retrieved November 20, 2013 from EBSCO online database Business Source Complete with Full Text:http://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=91549806&site=ehost-live

Marketing your consulting services: A business of consulting resource. (2005). Consulting to Management- C2M, 16, 62. Retrieved June 7, 2007, from EBSCO Online Database Business Source Complete. http://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=16310557&site=ehost-live

Nolsøe^Grünbaum, N., Andresen, M., Hollensen, S., & Kahle, L. (2013). Industrial Buying Behavior Related to Human Resource Consulting Services. IUP Journal Of Marketing Management, 12, 27-51. Retrieved November 20, 2013 from EBSCO online database Business Source Complete with Full Text:http://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=91675208&site=ehost-live

Wheals, J., & Petch, M. (2013). A fresh look at consulting and collaboration. International Journal Of Market Research, 55, 320-322. doi:10.2501/IJMR-2013-027 Retrieved November 20, 2013 from EBSCO online database Business Source Complete with Full Text:http://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=86742735&site=ehost-live