I caught a very impressive interview on CNBC today with small business owner Bill Dieruf of Dieruf Hardware. His message was fairly simple, but highly effective:

Know the difference between management, and marketing.

You might have noticed over the last year that many major brand names are advertising for the sake of advertising, or just to remind you they’re still in business. Notable examples would be:

1. General Motors. We’re the new GM, the reinvented GM, and we’re getting down to business. (Same ol’ tired storyline of reinvention.)
2. Bank of America. This is America, and no matter what, we keep moving forward. (So what happens when you come to a cliff? Keep on going?)
3. Any generic bank commercial. I’ve heard the phrase “We are well capitalized!” from at least half a dozen different banking institutions since the 2008 stock market crash. If your best selling point is that you actually have money in your vaults, then it’s probably better to keep quiet and not remind everyone how bad your business is actually doing.

The point being, there is a distinct difference between spending money on marketing and throwing money away on marketing. Making a 30 second commercial with football players catching a touchdown passes and flashing your corporate logo at the end simply doesn’t cut it anymore.

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Highlights from Mr. Diefur’s CNBC interview:

• Dieruf Hardware has increased net profits for 63 consecutive years.
• Maximizing management techniques rather than marketing techniques.
• Know how to use financial indicators to predict/extrapolate future economic distress (e.g. a jump in credit card purchases).
• Eliminated segments of the business that weren’t vital or profitable.
• Embrace competition – the more competition you have, the sharper you keep your tools.
• A business is a 100 percent entity. If you increase one segment of the business (e.g. advertising), you must decrease another segment of the business. Don’t breach the 100% ceiling or you might not be in business next year.

Very impressive interview, and I’m hoping his message will yield some positive returns for anyone who views it. (And reduces the number of crappy advertisements I’ve been flipping through over the last year).

If any small business owners have applied similar techniques or can relate to his advice, please leave a comment in the section below.

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