Minority Businesses Are Encouraged To
Brand, Brand, Brand
22 year-old Dante Lee, one of LA's youngest Black entrepreneurs says that he spends $50 - $100 a day on marketing his company. Lee is the CEO of Diversity City Media, a multicultural marketing and public relations firm based in Long Beach, CA. He is also the co-founder of the Minority Business Rewards Program. Last year, his company posted revenues of nearly $200,000.
Long Beach, CA -- According to the KIP Business Report, blacks are 50% more likely to start a business than whites. Despite this, companies owned by African Americans are still more likely to fail.
There are plenty of reasons to blame for this: inadequate access to capital, lack of support from black consumers, and even lack of business know-how. However, the number one reason why black-owned businesses fail is because most of them don't build brand awareness.
What is branding? Branding means to distinctively market your company so that customers and prospects are thoroughly familiar with who you are and what you do. Ultimately then, when a consumer sees your logo or hears your company name, they should be able to identify you.
"You have to spend money to make money," comments Dante Lee, president and CEO of Diversity City Media. "Most people don't realize that it's okay to re-invest most of your profits back into your marketing plan; It's the only way for business to flow continuously."
Black-owned Turning Point Communications in Los Angeles builds their brand by hosting national and regional events, distributing monthly magazines, and being involved in community projects. Pat Means, CEO and president of the company comments, "Branding is so imperative because if you aren't constantly telling people who you are and what you do, how are they going to know and remember what you're about?"
An article on MarketingProfs.com says that visionary companies are always brainstorming of ways to find loyal customers. When a customer is gained, the idea then is to keep them loyal. So in a nutshell, branding is a series of creative strategies that keep your company fresh in consumers' minds.
Many times small business owners will only make one attempt to market to a potential customer. However, successful companies are constantly marketing to the same people. "For example," says Lee, "Nearly every week I receive pre-qualification letters and promo materials from American Express and Capital One. Apparently, they are going to keep marketing to me until I open an account with them." While some may find this type of repetitive strategy pointless and a waste of money, it actually works. "Think about it," Lee adds, "If that strategy wasn't working for them, why would they spend so much money on postage every week?"
In reality though, a company's branding capabilities depends on their advertising budget. Not every company can afford to mail out promos every week. However, whether you are on a shoestring budget or not, there is always something that you can do to build your brand. The key is to be creative and innovative; Think outside the box. Whatever you do, don't think that branding is just for big companies. "Any company, regardless of its size, must take an active role in shaping its perceptions among customers and prospects," says marketing expert John R. Graham. •
5 Ways To Build Your Brand
By Diversity City Media
1) Host An Event. Every year, try to host and/or sponsor at least one conference, seminar, or workshop that's relative to what you do. If you can't do this, be sure to at least attend one of these events, and and network with as many people as possible.
2) Talk To The Media. Distribute press releases to local and national newspapers on a monthly or bi-monthly basis. Let the media know who you are and what your new developments are.
3) Keep In Touch With Customers. Whenever you gain a new customer, be sure to get their contact info so that you can either mail or email them updates about your company.
4) Advertise Non-Stop. At any given time, you should always have at least one advertisement that is actively promoting your company. This could be a magazine ad, newspaper ad, web site ad, billboard, street team, etc.
5) Don't Give Up. - Be patient. Branding is a slow process, especially on a shoe-string budget. However, in due time, you will see everything pay off.
About Diversity City Media
Diversity City Media is a multicultural marketing and public relations firm based in Long Beach, CA. The company, headed by 22-year old Dante Lee, produces BlackNews.com, BlackPR.com, BlackStudents.com and the Minority Business Rewards Program in partnership with Los Angeles-based Turning Point Communications. . •
