Inc. Magazine/Cargo Study Proves Marketers Missing the Mark on Small Businesses

Results of a new Inc. Magazine/Cargo study reveal that the needs of America’s small businesses are commonly ignored by the very companies that try to sell products and services to them. Among the 546 Small Business Owners (SBOs) responding to the nationwide survey plus 8 in-depth interviews, more than half (52%) said that brands are ineffective at marketing to them. Even more important to the SBO is the degree to which companies fail to reach them on a personal level, the very level that is the psychological engine, motivation driver and competitive differentiator for this group.

• 43% state that brands/companies do not understand my needs;
• 45% state that companies do not make the effort to understand my business;
• 46% state that companies try to sell to me versus talking to me.

Conducted in February and March 2012, the Inc./Cargo study marks the launch of a long-term research initiative between Inc. and Cargo called the “B-Side Marketing Project,” designed to bring a voice to the under-served small business owner (those operating in a commercial setting with at least one employee in addition to the owner). It is thought to be the first of its kind to focus on the current state of small businesses and how brands market to them. A strong and growing buying force, SBO’s are often the neglected target audience within company and agency marketing plans — the so-called “B-side” of marketing. The study reveals SBO behaviors, attitudes and insights so brands can learn to better understand and ultimately better connect with this passionate, driven and loyal audience. Future phases of the project include an online community, real-time polls/surveys, and roundtable sessions.

Cargo is a new model marketing agency specializing in marketing to small business, otherwise known as B2SB Marketing. Clients include such heavyweights as Mercedes-Benz USA and Canada’s Sprinter Vans. With approximately 705,000 subscribers, Inc. Magazine is one of the country’s largest and most reputable news organizations targeting owners of small-to-medium sized businesses.

The study covered a multitude of topics, including:

• Mistakes brands make when marketing to small businesses;
• Top information sources for small businesses; and
• Technology use.

To follow the evolution of the B-Side Marketing Project visit http://thinkcargo.com/metrics.