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FAQs

• How do you market a startup?

  No two startups are exactly the same, which means marketing strategies vary, too. But all successful marketing strategies include these key components:

  Goals: For many startups, goals for marketing efforts often fall under one of two categories: raising brand awareness and acquiring new customers. And while both categories are important in the development of your startup, it can be helpful to prioritize the goals that make the most sense for you. Having a good idea of your goals will help you discover what digital marketing tools will be essential to your success.

  Target audience: No matter the type of startup, it’s crucial for your marketing to reach the right people with the right message. As you’re developing a marketing strategy, take time to think about who your ideal audience is—or who you want your audience to be. A few questions to ask might include what you're offering your potential customers, what makes you unique in the market, and why a customer would choose you over your competitors.

  Place in the market: Lack of demand in the marketplace is the number one reason startups fail. Common pitfalls include the startup's product or service not being effective or unique enough, its focus being too narrow to scale, or not being positioned correctly and never having the chance to reach the right people. To give your new startup a better chance of avoiding these pitfalls, take time to thoroughly research other products on the market and gauge interest from your potential customers.

  Budget: The marketing budget for a startup will be affected by several factors, including operational costs and revenue forecasts. But no matter how much money you’re able to set aside for marketing, it’s important to spend wisely. Think about your goals, and focus your marketing efforts on the channels that will help you achieve them. Don’t be afraid to make adjustments along the way or to try something new if a particular channel doesn’t prove fruitful.

• How much does marketing cost for a startup?

  Marketing costs for startups can vary significantly depending on factors such as the industry, target audience, marketing strategies employed, and desired outcomes. Startups should allocate a budget for digital marketing activities like branding, online advertising, content creation, social media management, and email marketing, along with any needed marketing tools for startups. It's a good idea to conduct market research and seek professional advice to determine a suitable marketing budget for your specific startup.

• How much should a startup spend on marketing?

  Unfortunately, there's no true average marketing budget for startups because every business is different. That said, most small businesses tend to spend anywhere from 2% to 5% of their revenue on marketing. However, depending on your goals and revenue, you may be able to—or need to—spend more.

  B2B businesses tend to spend less on marketing efforts because they have sales representatives. Meanwhile, B2C businesses need to spend more on marketing efforts because they don't have an active team of individuals reaching out to prospects.

  Setting SMART—Specific, Measurable, Achievable, Relevant, Time-bound—goals is crucial before you determine your budget. This framework should help you set clear, trackable goals whether you're working on social media marketing, SEO, or an email marketing strategy.

  Mailchimp makes it easy to maximize your marketing budget with a stack of marketing tools to increase web traffic and reach, create compelling content, and measure the effectiveness of your campaigns.

• How do you conduct market research for a startup?

  Typically, market research covers various segments of data collection, such as the overall demand for your product or service, the size of your target market, the demographics and economic strength of your potential customers, and the availability and prices of similar solutions.

  You can start by defining your target market and identifying your target audience's needs, preferences, and behavior. Next, decide on one or more research methods, such as surveys, interviews, focus groups, or observation. Whatever you do, make sure to also analyze industry reports and competitor offerings.

  Then, make a plan or template for your chosen research methods that includes the things you want to know, and reach out to your target audience for feedback. This can involve methods like digital ads, email marketing, or hiring a professional market researcher.

  Finally, collect and analyze your research data to gain insights into market trends, customer demographics, competitors, and potential opportunities. This information will help you make informed decisions about your marketing strategies and product/service offerings.

  By using Mailchimp, you can perform your market research through digital avenues, while also benefiting from intelligent analysis and reporting tools. By utilizing our all-in-one email platform’s automation, customization, and segmentation features, you can get the most out of each research effort by your brand.

• How do you create a marketing plan for a startup?

  A marketing plan will look different for every business. However, there are a few key components you should make sure to include:

  Executive summary: The first part of your marketing plan. It should include basic information about your business, such as your marketing goals, company milestones, and other important facts about your brand.

  Mission statement: One sentence that describes your business’s purpose in a meaningful and impactful way. It should be short and to the point, while still clearly conveying the "why" behind your business.

  Marketing objectives: How you’re going to achieve your business’s goals. You should have S.M.A.R.T. objectives, which means they should be Specific, Measurable, Attainable, Relevant, and Time-bound. For example: Generate X% of sales from X campaign by X date.

  Situational & SWOT analysis: The landscape your business is operating in, as well as your business's SWOT (Strengths, Weaknesses, Opportunities, and Threats). Strengths and weaknesses are typically internal factors that come from within your business, while opportunities and threats are external factors that your business will face. For example, a strength might be an experienced team with passion for the company, and a weakness could be that team not having experience with social media. An opportunity can be that your industry is currently growing, but a threat might be competitors who sell the same product at a lower price.

  Market research: An overview of your target audience and the market that you’re selling to. This helps you obtain important information about your business landscape. You also need to figure out your buyer persona, which is who you want to buy your product or service, and who you'll be tailoring your offerings and marketing to. You’ll also need to create a competitive analysis, which includes researching competitors to gain insight into their products, sales, and marketing strategies so you can see how yours compares.

  Budget: Without a clearly defined budget, it can be all too easy to overspend, which can put your business at risk of financial instability. It’s imperative that you’re spending wisely when it comes to your marketing strategy so you get the best return on investment. Don't spend money on a digital marketing tool that yields no return. Your budget should cover all aspects of your marketing campaign, such as digital ads, social media posts, events, content, and any other aspects that make up your marketing strategy.

  Marketing strategy: Once you’ve finalized all the other elements, you can develop your marketing strategy. You know what your goals are, and how you’re going to achieve them: now it’s time to actually execute.

  Mailchimp can be an asset as you move forward with your marketing plan. Our marketing platform gives you access to a variety of marketing tools for startups, such as our email marketing tool, CRM (customer relationship management) tool, social media management tools, and marketing automation tools, that can help you grow and build your business. You can then use these tools to create successful marketing campaigns, connect with your customers, and ultimately increase revenue for your brand. So whether you need help with email campaigns, social media marketing efforts, or all of it, Mailchimp has you covered.