Business Education

Guerrilla Marketing: Risky Gimmick or Good for Business? (And How To Use It in the Age of Social Media)

To stand out in today’s crowded market, brands often need more than traditional advertising. Guerrilla marketing—a creative, surprise-driven approach—offers companies a unique edge by using imaginative tactics to make a lasting impression. From striking street installations and pop-up events to engaging public performances, guerrilla marketing pushes the boundaries of audience engagement. However, effectively capturing attention requires balancing boldness with caution, especially in today’s digital world dominated by social media.

These boundary-pushing campaigns can be as risky as they are memorable. While some brands score big, others face backlash, legal issues, or even damage to their reputation. So, is guerrilla marketing a smart strategy for brand visibility, or does it risk crossing the line? Let’s examine the benefits, challenges, and long-term impact of guerrilla marketing on today’s business landscape—and how you can apply these tactics in the social media era.

How Did Guerrilla Marketing Begin?

Guerrilla marketing was first popularized by Jay Conrad Levinson in his 1984 book Guerrilla Marketing. Levinson emphasized that small businesses could achieve major results through creativity rather than costly campaigns. His strategy empowered businesses with limited budgets to focus on originality and surprise, sparking attention and engagement. By thinking outside the box, brands could create unforgettable experiences that resonate deeply with their audiences.

How Does Guerrilla Marketing Work?

Guerrilla marketing is very different from traditional advertising, which includes familiar methods like television, radio ads, and internet banners. Instead, guerrilla marketing relies on surprise and unconventional tactics. Here are some common approaches:

Street marketing: Using public spaces to create attention-grabbing displays or interactions.
Ambient marketing: Placing advertisements in unusual locations, like elevator doors or bathroom mirrors, to catch people off guard.
Experiential marketing: Creating immersive experiences that directly engage consumers, such as pop-up shops or interactive installations.
Viral marketing: Crafting content meant to be widely shared on social media, often using humor, shock, or surprise.

These campaigns are typically low-cost but require a high level of creativity and careful planning to be effective. They aim to generate buzz and word-of-mouth marketing, often relying on the audience to spread the message organically.

What Are the Risks of Guerrilla Marketing?

While guerrilla marketing can yield substantial rewards, it also carries risks. Proactively planning and implementing effective risk management strategies can help mitigate these challenges and enhance positive outcomes.

Negative public reaction: Unconventional campaigns may be misunderstood or deemed offensive, leading to public backlash and negative press.
Legal issues: Using public spaces without permission or engaging in activities that disrupt public order can lead to legal action.
Brand mismatch: If the campaign doesn’t align with the brand’s image or values, it can create confusion or dilute the brand’s identity, potentially harming its reputation.
Resource drain: Despite being low-cost, a poorly executed campaign can waste resources and time without delivering the desired impact.
Ethical concerns: Some guerrilla tactics may be seen as manipulative or deceitful, which can erode consumer trust—difficult to rebuild once lost.

Guerrilla marketing offers a unique approach to capturing attention in a crowded marketplace, but its success depends on balancing creativity with appropriateness. Brands must consider potential consequences carefully to ensure they enhance, rather than harm, their reputation.

Mitigating Risks When Using Guerrilla Marketing on Social Media

To make guerrilla marketing effective on social media while minimizing risks, it’s essential to understand your audience and plan with care. Here’s how to proceed:

Research thoroughly: Understand your audience’s preferences, cultural sensitivities, and interests to create campaigns that resonate positively.
Test on a small scale: Test your campaign with a small audience segment before a full-scale launch to gauge reactions and adjust as needed.

Consistency is crucial across all channels and media to maintain brand trust:

Stay true to your brand: Ensure your guerrilla tactics align with your brand’s image, values, and voice for cohesive messaging.
Avoid controversial content: Steer clear of potentially offensive or sensitive topics that could backfire.

Securing the necessary permissions and adhering to regulations helps avoid legal issues:

Respect regulations: Obtain appropriate permissions to use public spaces and follow copyright guidelines.
Legal compliance: Understand local laws and social media platform policies to avoid legal complications.

Transparency and ethics build trust and minimize risk:

Honesty is key: Avoid deceptive practices and disclose any sponsored content or paid partnerships.
Respect privacy: Ensure you aren’t violating privacy laws or individuals’ privacy in your campaigns.

Monitoring and engaging with your audience in real-time allows you to address potential issues quickly:

Track reactions: Use social media analytics to monitor engagement and sentiment.
Be ready to act: If you receive negative feedback, address it promptly and make amends if necessary.

Prepare for possible setbacks by having a contingency plan ready:

Prepare for backlash: Have a crisis communication strategy in place to manage any negative reactions.
Crisis management: Train your team on crisis management and ensure they are equipped to respond promptly.

Using Guerrilla Marketing Tactics in the Social Media Age

Incorporate guerrilla marketing’s core elements—creativity, surprise, and engagement—into your social media strategy with the following tactics:

Viral Challenges

Create a unique, fun challenge that encourages user participation. Offer prizes or shoutouts to encourage sharing.

User-Generated Content

Encourage followers to create content related to your brand, such as photos or testimonials, and share their contributions to build a community.

Flash Sales and Pop-Up Events

Announce surprise flash sales or pop-up events on social media with limited notice to create excitement and urgency.

Interactive Content

Use polls, quizzes, and other interactive posts to engage followers and foster connection with your brand.

Creative Visual Content

Use unconventional visuals—like animations or humorous short videos—to grab attention and showcase your brand personality.

Storytelling

Share behind-the-scenes stories, customer successes, or your brand’s origin story to build an emotional connection.

Collaborations and Takeovers

Partner with influencers or brands for social media takeovers or collaborations, reaching new audiences and creating buzz.

Contests and Giveaways

Run contests or giveaways to encourage sharing and engagement, with easy entry requirements like likes or comments.

Unexpected Content

Surprise your followers with humorous posts, thought-provoking questions, or acts of kindness to keep engagement fresh.

Localized Campaigns

Target specific locations to make campaigns more relevant for businesses with physical locations or events.

Want to Accomplish More?

Do you want your company to grow faster and earn more while you spend more time with your family doing all the things you started your business to do?

We can make that dream a reality. Give us 30 minutes and we will show you how to get your life back. Skeptical? Good! Put us to the test.

You can call us for your free appointment at 480-636-1720, or, if you prefer, send us an email. You can also visit us at Waters Business Consulting Group to learn more about us and the services we offer.

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Here’s What Small Business should Really Know about Retained Earnings

March 24, 2022 No Comments

The world has gone crazy. Well, it certainly seems that’s the case. Inflation continues to push up prices on just about everything. There’s a hot war in Europe that’s seriously impacting the free flow (and cost) of energy. All of this, not to mention an ongoing labor shortage, materials shortages, and plenty of other madness, wreaking havoc on day-to-day life. Of course, businesses aren’t immune to this madness — particularly small businesses. What this chaos does teach any entrepreneur or current business owner is the importance of retained earnings. But, what are retained earnings and how can small businesses build them up for difficult times that will inevitably unfold in the future? What are Retained Earnings Anyway? Retained earnings are an important part of any business. They are the funds that a company sets aside to cover expenses during tough times or to reinvest in the business. (Like now, when the entire world is topsy turvy and the economic circumstances are unstable and unpredictable, to say the least.) Retained earnings are an important concept in accounting. The term refers to the historical profits earned by a company, minus any dividends it paid in the past. The word “retained” captures the fact that because those earnings were not paid out to shareholders as dividends they were instead retained by the company. For this reason, retained earnings decrease when a company either loses money or pays dividends, and increase when new profits are created. —Investopedia.com During normal circumstances, retained earnings are generally used to expand. Examples include hiring additional employees, purchasing new equipment, bringing in new or more inventory to sell, or even acquiring new commercial property. But, when sales slow and the business isn’t earning enough, retained earnings can be used as savings to bridge the gap. How to Build Up a Business’ Retained Earnings One of the most important aspects of any business is its retained earnings. Retained earnings are funds that a company sets aside to cover expenses during tough times or to reinvest in the business. This money can be critical for businesses when they need to maintain cash flow during difficult periods or invest in new opportunities. There are two main ways to build up retained earnings. The first is to generate profits and reinvest them back into the business. This can be done by reinvesting profits into new products, expanding the business, or hiring new staff. The second way to build up retained earnings is to reduce expenses. This can be accomplished by cutting costs in areas such as marketing and/or overhead expenses. If you want your business to be prepared for anything, it is important to have a healthy retained earnings account. By reinvesting profits and reducing expenses, you can ensure that your company has the funds it needs to weather any storm. With a strong foundation of retained earnings, your business can thrive for years to come. Entrepreneurs should also Carefully Consider Retained Earnings if Buying an Existing Business When evaluating a company’s financial statement, it is important to look at the retained earnings line item. This number will tell you how much money a company has set aside to cover expenses during tough times or to reinvest in the business. If you are interested in investing in a company, it is important to make sure that its retained earnings account is healthy and growing. What else do you think new and existing business owners should know about retained earnings? Please share your own thoughts and experiences so others can better understand this important topic. Interested in learning more about business? Then just visit Waters Business Consulting Group.

8 Things Employees Need to Unlearn When They Become Entrepreneurs

August 22, 2024 No Comments

8 Things Employees Need to Unlearn When They Become Entrepreneurs Making the leap from employee to entrepreneur is thrilling but also daunting. You’re not just changing your job; you’re transforming your entire mindset. To thrive as an entrepreneur, you’ll need to unlearn certain habits and thought processes. Below, we’ll take a look at the most common obstacles and break them down. Everyone knows transitioning from being an employee to becoming an entrepreneur involves a significant shift in mindset, behavior, and expectations. But, what usually comes as a surprise is that employees moving into entrepreneurial roles often need to unlearn certain habits and beliefs that were helpful in an employee context but can be limiting or counterproductive in the world of entrepreneurship. So, here are key things employees need to unlearn: Letting Go of a Fixed Routine As an employee, structure is your best friend. You have set hours, defined roles, and a clear chain of command. But in entrepreneurship, that routine can act like a chain, holding you back. The world of business is like a wild river; it’s always changing, and you need to be ready to navigate the rapids. Embrace flexibility instead of sticking to a rigid schedule. Can you imagine a fish trying to swim upstream while stuck in a net? You don’t want to be that fish. Shifting from Safety to Risk In a traditional job, you might have felt safe with steady paychecks and benefits. Entrepreneurship, however, is a different story. It’s a leap into the unknown where financial security is not guaranteed. You must unlearn the fear of risk. Think of it like jumping off a diving board: the thrill comes when you embrace the plunge, even if the water feels cold at first. Start viewing risks as opportunities for growth instead of threats to stability. Ditching the Need for Approval Employees often look for feedback and approval from bosses. This can be a comforting validation but can stifle creativity. As an entrepreneur, you won’t always have someone to give you the thumbs up. Learning to trust your gut is vital. Picture an artist creating a masterpiece without a critic standing over their shoulder. Sometimes, you’ve got to paint outside the lines to find your true colors. Rethinking Work-Life Balance In traditional jobs, the idea of work-life balance is often a checklist item. But as an entrepreneur, this concept shifts dramatically. Work can seep into personal time, and that’s okay. Unlearn the idea that you have to clock out at a specific time. Instead, think of it as a dance. Sometimes you’ll lead, and sometimes you’ll follow, but the music keeps playing. Finding your rhythm is key to thriving in this new environment. Breaking Free from Hierarchical Thinking Employees usually navigate through a company hierarchy, following orders and protocols. Entrepreneurship flips this script; it’s about collaboration and community. Unlearn the mindset that someone always needs to be in charge. Picture a team of explorers planning a journey—everyone shares ideas, and every voice holds value. This teamwork spirit opens the door to innovation and creativity. Shedding the Idea of Job Security In a job, many seek security and comfort. But entrepreneurs must accept that uncertainty is part of the game. You can compare it to a tightrope walker. Balancing on that line takes courage and focus, knowing that every step is a risk but also a chance to soar. This mindset shift allows you to take calculated risks that can lead to great rewards. Focusing on a Narrow Scope of Work Employees often specialize in a particular area, focusing on a specific set of tasks within their job description. They may rely on other departments or team members to handle different aspects of the business. Conversely, entrepreneurs wear many hats and must manage various aspects of the business, from product development and marketing to finance and operations. They need a broader skill set and the ability to juggle multiple responsibilities. So, entrepreneurs must embrace a generalist mindset, learning to understand and manage multiple aspects of the business. Embracing Continuous Learning In employee roles, growth often comes from annual reviews or courses mandated by the company. As an entrepreneur, learning becomes a constant journey. Unlearn the idea that education has limits. Seek knowledge from every corner—books, podcasts, networking. Think of yourself as a sponge, ready to soak up every bit of wisdom. This drive will keep you ahead of the curve in a fast-paced world. The Journey of Unlearning Going from employee to entrepreneur involves unlearning old habits and embracing new ways of thinking. By embracing a new mindset, you empower yourself for this exciting journey. Remember, the path might get rocky, but with each step, you’ll carve out your own unique path in the entrepreneurial world. Want to Accomplish More? Do you want your company to grow faster and earn more while you spend more time with your family doing all the things you started your business to do? We can make that dream a reality. Give us 30 minutes and we will show you how to get your life back. Skeptical? Good! Put us to the test. You can call us for your free appointment at (602) 541-1760, or, if you prefer,

How to Set Business Product and Service Prices

May 16, 2017 No Comments

Pricing products and services is difficult for any new business owner. Though it might seem to be a simple equation, that’s hardly the case. There are quite a few factors which go into setting your price or prices. Even within industries that buy from manufacturers to sell directly to consumers, there are variables from one vendor to another. Location is part of pricing, not just distance, but also demand and population. Services aren’t much different in this respect. Let’s say that you’re a dietitian, and you work with various doctors, hospitals, and gyms over a large geographic region. You travel quite a bit, so you go from big cities to rural communities. Chances are excellent you’ll charge more for your professional services in the metropolitan area than you will in sparsely populated rural areas. How to Set Business Product and Service Prices One important aspect to keep in mind when setting prices for goods and/or services, is they are promises to your customers. A price reflects value and consumers are careful about which products and/or services they choose. This means that price, while a very important factor, isn’t the only consideration consumers take into account when purchasing. For instance, a big bag of individually wrapped chips complete with select flavors is priced for $6.99. Next to it is a generic store brand priced at $4.99. Based solely on price, you’d opt to save $2 and go with the store brand. After all, you’ll save money and the chips will taste the same. Price is the most important factor in determining profit. Yet countless businesses fail to get their pricing strategy right. The price you charge for your products or services is directly related to your Cost of Goods (labor & materials to produce the product/service), your overhead and the competition or demand. Your focus needs to be on your desired Gross Margin. Price is a major way you communicate your firm’s value in the marketplace. Yet many small business owners set prices arbitrarily or sheepishly follow the crowd. —Bloomberg Business Now as you wind your way through the grocery store you visit the meat department. Inside the display case there are four ready-to-cook hamburger patties made mouthwatering with fresh bacon bits and cheese and is priced at $12.49. Right across the aisle in the frozen section there’s a 10-count box of plain, frozen hamburgers for $9.99. Suddenly, saving $2.50 doesn’t seem worthwhile and you splurge because the fresh, mouthwatering ready-to-cook hamburgers are simply irresistible. The point, of course, is perceived value — you’ll have to base your business’ product and service prices on their value. However, that’s just one factor of many others which go into pricing. Here are some steps you can take to help you set the right price: Learn about demand in your area. No matter how wonderful your product or service might be, if there’s no demand for it in the area, it won’t sell. Think about the old sales joke, “Selling ketchup popsicle sticks to customers in white gloves.” Obviously, people wearing white gloves have no need for such a mess. The same holds true for demand in your area. If you’re selling snow shovels, it’s should be to consumers in climates where it snows. Check out competitors’ pricing. This is a simple way of learning what consumers will pay for a product or service. Of course, you should only rely on established prices by flourishing businesses. Always factor-in costs. There’s no getting around the fact that it costs money to run a business. Even freelancer contractors have operating costs. For brick-and-mortar operations, there’s rent, utilities, insurance, inventory, employee pay and benefits, and other costs. Be willing to discount. One way retailers sell products is by offering discounts. This is a great strategy, if it doesn’t wipe-out your margin, or it’s a one-time deal to establish a relationship for future business. Don’t undercut simply to attract business. A big mistake that some new to business make is to undercut competitor pricing, only to learn the hard way they can’t deliver. After all, it does no good to attract business if customers aren’t receiving what they expect. Pricing is a science and an art. The science is an equation based on your Labor + Materials (Cost of Goods) divided by your desired Margin or divisor. If you desire a 40% Gross Profit Margin (the amount left over after you cover your Labor and Materials), then your divisor is 60% and not a 40% markup. Using a 60% divisor based off your Cost of Goods will yield a 40% Gross Profit Margin. A mistake many businesses make is to mark up their Cost of Goods which yields a lesser Gross Profit Margin closer to 28%. We call this “Profit by Accident”. Because it is feasible to guarantee your business makes a profit, we developed our “Profit by Design” strategy. Contact us for a complimentary consultation to review your pricing strategy and learn more about “Profit by Design”. Now, what about the art of pricing? The art is in the research, testing, creative marketing and demand for your product or service and how you promote its value. The art is in your ability to pivot and massage all of the components (labor, materials, overhead, marketing, value, customer perception, etc.) to work together. Combined, you will develop a pricing strategy that proves out in your bottom line profits and more money in your pockets! Pricing is a delicate balance, but with some research and a bit of critical thinking, you’ll be able to set prices for your business’ products and/or services. Do you know and understand your pricing strategy, or is yours Profit by Accident? [shareaholic app=”follow_buttons” id=”26833294″]