But internet marketing is only useful if the customer is using it to buy services! (A market does not exist unless there are both buyers and sellers at the same place at the right time).

Of the thousands of tradies with an ABN, or families with a small retail business, most have a listing in a phone book and a well-established network of businesses for whom they contract, or else itś their physical location that matters. Their customer may be online, but he (or she) is't looking for them at that time – they're surfing ebay for secondhand cars or getting the footy score. For example, how many people do you know who look online to find a petrol station? How many small businesses should be advertising on a (very expensive) prime internet footy spot?
Lots of small businesses probably should look at their internet presence, but there are plenty for whom it makes absolutely no sense, and they'd be better off sponsoring the local netball team or cycling club and building real-world relationships. Walk down the street in your average suburban shopping strip or country town and answer this question: how many greengrocers would have their customers searching for them online first? How local bakeries would influence customer behaviour by sending out an email newsletter? How many shower repairers would pick up work from a facebook page?

Many customer groups are quite limited in what they use the internet for – so as marketers we should go where they are, instead of saying they should be somewhere you want them to be.

Just my 4c worth.

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Mark Reply:
July 28th, 2010 at 11:28 pm

I agree Jenny that not all businesses would benefit from having an online sales channel, but what concerned me more about the article, & it's key finding that “40% of SMEs eschew the internet in any form”, is the other opportunities they are missing out on.

With many free online applications and marketplaces (like http://www.iFindConsultants.com), time and effort can be saved by using online resources to improve many business processes.

Cheers,
Mark

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Heidi Price Reply:
July 29th, 2010 at 7:12 am

“how many greengrocers would have their customers searching for them online first? “

The exact same number that are missing out on providing a service that would have them stand out in their market – eg an order online & we pre-pack and/or deliver service for busy customers.

Just off the top of my head.

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Even I have to agree that some businesses don't genuinely NEED an online presence, but I wonder if they wouldn't benefit from one once they achieved it. Referring to Jenny's comment about the local bakeries, well if they're doing something special, they really need to tell people about it. So many times I've watched “Food Lovers' Guide to Australia” and seen businesses I'd like to visit when I'm next in the area, and I actually DO.

Maybe I'm too close to the subject (Internet) but I believe it's not even only about the websites anymore. It used to be said, just a couple of years ago, that if a business doesn't have a website, it 'doesn't exist'. Now it's about social media. People who use social media and thrive there pretty much expect the businesses they use to also be on Twitter, Facebook, etc.

I was actually amazed by the low uptake numbers mentioned in the article but was equally amazed that business owners still worry that they can't afford marketing, when social media doesn't cost anything (except for the time to engage and use it).

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I recently had to 'locate' businesses in regional Victoria and used Google for this. I was amazed to find how few had a web presence and most were certainly not embracing social media, e-commerce etc. I have to agree with “Talk about missed opportunities!” There is such an amazing business world to tap into in the Web 2.0 world and so many businesses are yet to embrace Web 1.0! I think the investment of time makes many shy aware from it and they perceive it to be a 'waste' even before for they've tried it. I am a huge advocate of social media and it has been truly wonderful for exposure of my business, network building and developing new friendships.

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On Tuesday night, I gave a presentation to a room of small business owners on the Mornington Peninsula, Victoria (at an Eco Living concept house that was very cool). Apart from discovering that some very stylish and affordable ways to live 'green', I was surprised to discover that only around 20% of attendees even had a website.

These businesses were built around local 'word-of-mouth' and couldn't see the benefit of digital media. Even social media recommendation sites were a mystery. Like the commentators below, I did wonder whether digital marketing was appropriate for these businesses.

However, I was able to come up with these suggestions for three participants:

1. Homebased photographer: Why not use Flickr as a central location to host your article? You'll increase your exposure, maybe get shared, attract recommendations and never have to invest in a website.

2. Cartridge World Franchisee: Why not do as Urban Burger does in Richmond? Provide people with the opportunity to sign up for its Facebook Fanpage while they wait. This allows the store owner to blast out 'free fries' vouchers on quiet days. Voucher users tend to mention Urban Burger in their updates when taking advantage of the offer, alerting their friends to their passion for the store (most 'friends' live within 14 kilometres). Same could be applied to almost any business with a retail presence.

3. Small Architect Business: Why not create a posterous blog to promote new developments. Once again, it doesn't involve set up costs, is highly sharable and is very, very easy to post new jobs. When people 'search' for architecture in Mornington, they are more likely to be found. It's a blog 'lite'.

However, I did stall when presented with the circumstances of a plumber. Greengrocers could well take note of the Urban Burger experience.

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Very Interesting to contrast this with the Neilsen Community Engine 2010 Social Media Business Benchmarking Study 2010 data that researched Australian businesses attitude on social media, their past, present and intended behaviours and their attitudes towards this media and investment levels. The research conducted by Nielsen in March 2010 among a sampled 347 respondents, of which 140 were in businesses employing 100 or more staff. The remainder in businesses employing under 100 staff.
MEDIA RELEASE – April 21 2010: The social media phenomenon that has swept Australian consumers has been vigorously embraced by the corporate sector, with the number of organisations using social media almost doubling in the last two years, a new study has found.
The inaugural Nielsen-Community Engine 2010 Social Media Business Benchmarking Study found that 70 per cent of all Australian businesses intend conducting some form of social media activity this year, compared with just 40 per cent in 2008.
It would be interesting to compare the sample sizes and methodology of both these studies, with vastly different results.

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I think it really depends on whether you are really interested in expanding your business or relying on the same old traditional avenues of promotion.

I think that the point will come where many of these businesses that don't have an effective online presence (i.e. more than just an out-of-date website and an email address that they check once a week) will be driven out of the market by the competition that effectively uses this medium.

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I have started a service in a regional area of NSW to take the soc med responsibilities away from small business owners esp. retailers. They're so busy with their other responsibilities, so I do all their tweeting, facebooking, 4sq promotions, and blogging. It's very easy to criticise these people but one business in particular who I service runs a florist, a catering company and a vegetable co-op – she simply doesn't have the time.

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