Five Massive Marketing Mistakes Small Caps Make
NUMBER 1 – Forget the Announcements
Louise Elyse, Principal Small Caps PR www.smallcapspr.com
Research indicates that positive perception of a company by the broader public can result in at least four favorable outcomes:
According to Forbes Magazine intangible assets account for as much as 75% of a public company’s market capitalisation.
There is always an opportunity to add value in small caps. Poor analyst coverage, leads to poor market pricing efficiency, meaning many are undervalued.
Therefore, it is crucial that small cap companies are proactive in increasing their profile via marketing and public relations. It is not enough to rely on investor relations.
Small cap companies must actively promote themselves to the investment community, potential shareholders and general business community. This means significantly more than announcements!
I was reading a small caps blog recently and they actually stated that they could not control their share price – hogwash! It can be done, and within ASX and ASIC regulations.
An expert media specialist will be able to discover the strong stories about a small cap company and develop these into stories that journalists will want to run. We’re not talking about sending out market announcements or media releases – this is futile.
We’re also not talking about putting up teasers etc on Hot Copper etc, that’s not how we work. We target and secure coverage in major financial and business publications and that’s where the credibility lies.
There is a strategic process that a good media expert will develop that will get the media wanting to run the story.
But there aren’t that many really good media people around and that’s why Small Caps don’t undertake any media relations and take the easy and unsuccessful route of just sending out announcements; advertise (expensive and no credibility); or pay websites to do a story on them, again futile and a waste of money.
Small Caps PR can get good Small Caps with strong stories into Australian and international major, credible media such as Australian Financial Review, The Australian, Financial Times, Wall Street Journal, Forbes, The Guardian, and many more.