A Targeted Marketing Strategy is Key to SMME Growth

One factor that defines small, medium and micro enterprises (SMMEs) is the fact that they are owner-managed, usually the founder, unlike other corporate businesses. Sources have indicated that SMMEs account for approximately 40% of South Africa’s Gross Domestic Product (GDP), and half of the country’s employed workforce. Additionally, most of these businesses fail within the first year or never make it beyond the start-up phase because they are not prepared for growth.

With SMMEs being in dire need of growth, institutions such as IMM Institute has made attempts to improve the support available to these entrepreneurs.

IMM Institute launched its Innovation and Creativity Hub for SMMEs early in November 2024. This is a space where the vibrant SMME community can meet in collaborative workspaces, discover professional development opportunities, as well as find resources, mentoring and networking.

In conjunction with new SMME Associateship membership offering, the hub will empower small businesses, entrepreneurs and start-ups. During the event, Bernard Jansen, Firejuice founder delivered his keynote address focussing on the need for SMMEs to use 2025 to unlock growth with a targeted marketing strategy.

Marketing is a Must for SMME Growth

“Most entrepreneurs don’t take marketing seriously, seeing it just as a function that adds to expenses and, to cut costs, can be handled by a junior employee,” Bernard highlighted. However, this is an erroneous assumption. A company’s approach to marketing is directly related to its business strategy.

“Marketing (the four Ps of product, price, place, and promotion) is vital to any SMME because it is a business strategy. It shares the message that you are open for business.”

Bernard explained that without marketing, it’s like an entrepreneur opening a shop and just waiting for customers to walk in through the doors without telling anyone it even exists.

“SMMEs need to define a marketing strategy that is practical. This can include using social media where it is relevant to your business,” he adds. “It sounds simple, and it can be if small companies determine which products or services should be a focus. Either an item or offering that needs some more love, or maybe one that is new, and nobody knows about yet.”

Bernard notes that businesses that are small or young might not have access to large amounts of data, but that shouldn’t hold them back. According to him, a marketing (and business) strategy should be built from the bottom up based on data points that are accessible. This can be information such as which products are selling. “Marketing can’t deliver without numbers,” he says.

“Companies need to determine what their goals are. Is it to expand the sales network to a new province? Add other products to the mix that are complementary to an item that is selling well? Sign up new partners to distribute products?”

The Key to Targeted Marketing Strategies

Targeted marketing is different from other approaches as it focuses on delivering a curated message to the clearly defined target audience. It effectively helps you to grow your business, generate revenue, and improve your overall return on investment.

It starts with small companies looking at what the business aims are and how to build a brand. Once that is completed, they can target their market based on those key principles, ultimately tying the marketing strategy into sales. This process should be seen as a golden thread that runs throughout the company.

Some advice about improving your targeted marketing includes:

1. Create a consistent visual identity: Your logo, colours, fonts, and overall aesthetic should all work together to create a cohesive brand image.
2. Develop a unique value proposition: What makes your business different from the competition? What unique benefits do you offer your customers?
3. Craft compelling messaging: Your brand message should resonate with your target audience and clearly communicate what you stand for.
4. Be authentic: Don’t try to be something you’re not. Let your personality shine through in your marketing.
5. Engage with your customers: Use as many marketing platforms as you can to communicate your message consistently and continuously to your target.

If you are looking for more advice to help scale and grow your business, book an appointment with one of our experts on SME Advice.