SMEs 'should think carefully about use of emerging marketing tools'

07/09/2010

Small and medium-sized enterprises (SMEs) need to think carefully about how they use rapidly emerging tools for marketing themselves, it has been suggested.

One of the leading US group marketing companies, LivingSocial, has launched a group discount voucher scheme in 62 UK cities which matches consumers with SMEs, reports the Telegraph.

The company has issued a number of guidelines SMEs should follow before deciding to embark upon such a scheme.

It is important to look at the business, its website and the way it will be representing your brand, according to LivingSocial.

SMEs should be wary of signing up to any kind of exclusivity agreement with one of the websites.

Before the deal goes live on the company's website, SME owners have a right to know the exact date this will happen at least a week before it starts.

LivingSocial also advises making sure the payment terms are clear - SMEs should be paid in full for all the vouchers which are sold regardless of the redemption rate, the news provider reports.

Vouchers are sold through social media websites. These channels play a vital role in marketing for SMEs, according to Gordon Borrell, the chief executive officer of Borrell Associates.

Posted by Emma Noble