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.

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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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Thinking of Hiring a Family Member for Your Small Business? Here’s Why You Should Think Twice

August 25, 2023 No Comments

Bringing family members into your small business might seem like an appealing idea, often driven by the desire to strengthen family bonds and keep the business within the family circle. It very much seems a win-win situation. At least, on first thought. However, this decision merits careful consideration. While there are undeniable advantages to hiring family, there are also potential pitfalls that can impact both personal relationships and business success. So, read on to explore the pros and cons of hiring family members in your small business. Pros of Hiring Family in Your Small Business There is certainly no question that hiring one or more family members comes with a few enticing benefits. (You can probably think of a few right off the bat.) Here are some of the biggest advantages to bring a family member on board your small business: Shared values and loyalty. Family members usually share your values and vision for the business, resulting in loyalty and dedication. Family members are more likely to be invested in the success of your business than non-family members. They’ll be more likely to work hard and go the extra mile to help the business succeed. Trust and reliability. Family bonds often translate into greater trust and reliability, reducing concerns about employee dishonesty. Plus, you know their strengths and weaknesses, their work ethic, and their commitment to the family. This can make it easier to trust them with important tasks and responsibilities. Flexible work dynamics. Family members might be more willing to work unconventional hours or take on varied responsibilities, contributing to the business’s flexibility. Additionally, hiring a family member can save you money on labor costs. You won’t have to pay them as much as you would a non-family member, and you may be able to arrange a more novel pay structure or compensation package. Another benefit is their personal knowledge of family dynamics. Family employees often understand the nuances of family dynamics, which can be quite advantageous in managing the business together. Cons of Hiring Family in Your Small Business Obviously, as with anything else, working with one or more family members can cause a few headaches. While the good can easily outweigh the bad, there are some things you should think long and hard about before hiring family to work in your small business: Blurred boundaries. Lines between work and family life can blur, leading to conflicts and stress that spill over into both realms. Working with family members can create conflict, especially if there are personality clashes or disagreements about how the business should be run. This can damage your personal relationships and make it difficult to work together effectively. Lack of objectivity. Family dynamics can hinder unbiased decision-making, potentially leading to poor business choices. When you’re working with family members, it can be difficult to be objective. You may be more likely to give them preferential treatment, even if they’re not the best person for the job. Creating unfair perceptions. Non-family employees might perceive favoritism or unequal treatment, affecting team morale. What’s more, it could involve limited skill diversity. Relying solely on family for expertise might limit the diversity of skills in the business. The decision to hire family members in your small business requires careful consideration of both the benefits and challenges. While shared values, loyalty, and trust can be advantageous, the potential for blurred boundaries, lack of objectivity, and conflicts should not be underestimated. Navigating this dynamic successfully requires a balance of clear communication, well-defined roles, and professionalism. Before extending a job offer to a family member, weigh the pros and cons, assess the potential impact on both your business and personal relationships, and establish strategies to manage challenges that might arise. By doing so, you can make an informed decision that serves the best interests of both your small business and your family ties. Interested in learning more about business? Then just visit Waters Business Consulting Group to learn more about us and the services we offer.

Reasons Why Small Business Loans are Denied

May 24, 2017 No Comments

Small business owners can easily find themselves in the unenviable position of needing capital, but, not having ready access to cash. It presents an age-old problem, buying equipment ties cash up, even though said equipment is considered an asset. Such assets can depreciate, which worsens the situation all the more. On the cash liquidity side, there are tax consequences to having a certain level of retained earnings. This is why debt instruments are a part of doing business. However, even profitable small businesses can be denied for a loan, and, there’s ample evidence to support this phenomenon. In the first two quarters of 2014, about half of applicant businesses received any funds, according to a survey conducted by the Federal Reserve Banks of New York, Atlanta, Cleveland and Philadelphia. Reasons Why Small Business Loans are Denied Unfortunately, present trends don’t show much improvement in the access to capital, or, in reducing operational costs. In fact, since November 2014, three out of ten businesses reported more difficulty in trying to reduce operating expenses, and, one-quarter reported unexpected expenses too hard to plan for, according to a study conducted by Nav (formerly Creditera), a business credit management company. If your company recently applied for business credit and was rejected, you’re not alone. So what can you do if your business credit application is denied? Start by trying to find out why. The Federal Trade Commission suggests submitting a written request for the reasons within 60 days of the denial, and the creditor must give you the specifics in writing within 30 days of the request. Consider discussing any concerns you have with your lender, and you may be able to resolve the issues. —Washington Post Within the same survey, about 20 percent of participant companies considered closing their doors, citing two primary reasons: lack of growth and issues with positive cash flow. These factors are likely why 53 percent of all companies applied for lines of credit or loans over the past half-decade, with more than one-in-four attempting to access capital numerous times. During the same five year period, one-fifth were denied and of those, 45 percent reported being turned down more than once. Twenty-three percent of all those denied loans or lines of credit did not know the reason why their applications were denied. So, why is this happening and what makes it appear so prevalent? There are reasons why small business loans are turned down, and, it’s actually not complicated. Here are some of the most common reasons small business loans are denied: Having no credit or even bad credit. Some business owners do not realize they have two credit scores: their personal credit and their business’ credit. What’s worse, some owners have relied on personal lines of credit and have seriously driven their DTI or debt-to-income ratio into dangerous territory. Making payments on-time, keeping a low balance, and not seeking to continually open new credit lines are all necessary to improve both personal and business credit. Too little collateral. Since most business owners aren’t willing to sign a personal guarantee, leveraging their personal vehicles and home to secure a loan, there’s little to nothing left to pledge as collateral. Lenders aren’t keen and will not provide financing that constitutes an unnecessary risk. Anemic cash flow. After all other expenses are paid, lenders want to see demonstrable proof there’s enough cash to repay the loan. Too tight a margin and banks won’t be willing to approve a business loan. Lack of strategic planning. It’s often true that business owners don’t understand the loan process, including the application itself, and all necessary documentation and that can lead to being turned down. Applicants must provide a clear forecast and show a realistic, actionable plan. Under capitalization on loan applications. There are sometimes more assets available to claim than applicants realize and as a result, their loan application makes the organization appear under capitalized. Some assets aren’t immediately clear, which means all potential assets ought to be identified. Another reason businesses might have trouble securing debt instruments is industry-specific difficulties. For instance, a construction company that’s operating in a locality where people are moving away from, or, a taxi company that’s facing tougher licensing regulations or an industry disruption as we have recently seen with Uber. The best solution in the short term is to reduce your Cost of Goods (labor and materials) to improve Gross Margins and reduce Expense Overhead to increase Net Profits which will help with cash flow and operating capital. Also, negotiating terms with your Receivables and slowing growth will allow for an influx of cash. Where possible, attempt to self fund your growth. If capital is required for growth, pursue alternative lending sources other than banks. There are several available and feel free to contact us if you are in need of alternative lending sources. Want to find out about what a business coach can do for you? [shareaholic app=”follow_buttons” id=”26833294″]

What to Do When You Lose Your Biggest Client

July 29, 2021 No Comments

Losing any client is a blow to any business owner. But, it’s particularly troubling when it’s the largest paying customer your company has a working relationship with (or had at one time). While it’s disturbing for any size client to stop doing business, it’s an absolute crisis when it’s the single largest one. Or is it? The answer really depends on how you handle the situation. So, read on to learn more about how to deal with losing your largest client. Seize the Opportunity Entrepreneurs are usually able to identify opportunity when it presents itself. But, in cases where there’s a tentative failure or bad fortune, it can be very difficult to see it and act upon the moment. Sure, it’s a setback and this makes it quite hard to get past the shock. However, the sooner you spring into action, the better. (Though don’t mistake this for making rash, uninformed decisions.) Whether you’re a Fortune 500 company or a small mom-and-pop business, losing a massive client is always shocking, uneasy and frustrating. Unfortunately, it’s something that almost every entrepreneur experiences at some point in time. —Forbes.com Instead, take a step back and give yourself time to form a generalized overview, one that’s not out of panic and fear. After all, it’s far better to take an honest assessment and determine precisely where you stand in order to determine exactly what actions are necessary in the short-term. This way, you’ll make informed decisions that are based on reality and not trepidation, anxiety, and alarm. 3 Ways to Deal with Losing Your Biggest Client Losing a big-time client is a real reason for concern. However, it’s also not an excuse to give up and close your doors for good. There are more than a few things you can do to prevent significant damage and/or start building new streams of revenue. Here are three of the most effective strategies you can use after losing your biggest client: Expand existing business relationships. The easiest way to make up for the difference is to leverage your existing business relationships. After all, current customers are the easiest ones to deal with and the most obvious place to double down. Since you have an existing relationship, you can offer more products and/or services to them and that will get you through in the short term. Take the opportunity to expand offerings. This is also a prime time for expanding what you offer to the public. This is a great opportunity to expand your business by focusing on your most popular selling items, whatever these are now and in the near future. Prevent the same situation from happening again. Of course, you probably don’t want to go through the same ugliness again at any time in the future. So, make sure to develop strategies that prevent this type of loss from happening again and you’ll gain a better sense of security. What other suggestions do you have that might be of help? Please share your thoughts and experiences by commenting so others can benefit from your perspective! Interested in learning more about business? Then just visit Waters Business Consulting Group.