1. Customer Rewards

Since it may cost as much as five times more to win a new customer than to retain an old one, customer rewards programs are a lower-cost alternative to acquisition marketing. Create and actively promote a loyalty program that rewards on enrollment, then provides graduated incentives to your best customers. Provide in-kind rewards, not gifts from other vendors, to keep customers coming back.

2. Opt-in E-mail

E-mail is a low-cost, high-return way to enhance customer relationships and increase sales. E-mail campaigns can be conducted for a fraction of the cost of other tactics and executed in weeks not months. The key is to e-mail as often as twice monthly, but only to an in-house list whose members have agreed to receive e-mail from you. Keep the content extremely relevant, and you'll see response rates climb.

3. Local Paid Search

The vast majority of American shoppers search online before making a purchase. Plus, they already know what they want to buy and are looking for the right place to buy it. Google and Yahoo! among others offer services for local advertisers, and Yahoo's "Local Sponsored Search" program (visit http://smallbusiness.yahoo.com and click on Marketing Tools) provides a "locator" page that will drive traffic even if you don't have your own Web site.

4. Marriage Mail

Trying to reach consumer households in specific market areas? Your own direct-mail campaign could cost a small fortune. Instead, use marriage mail to send your ad or coupon in a joint mailing with other advertisers. A leading provider is Valpak, which designs, prints and mails 18 billion ads each year, providing an affordable alternative to stand-alone direct mail.

5. Media Relations

Do-it-yourself public relations is a lower-cost alternative to advertising, but it requires know-how and time. For best results, tailor your stories to the needs of the individual media outlets on your list. Then send a release or pitch letter and follow up by phone. These initial contacts should lay the groundwork for ongoing relationships with key members of the press.

6. Grassroots Advocacy

Word-of-mouth is often the most desirable form of marketing. To get people talking, run a contest, stage an event, or assemble a group of "influencers." The creator of a series of books and products for preteen girls, for example, has enrolled several hundred girls through its Web site to act as advisers on everything from book characters to plots, and they're the first to receive information on new products. You can bet these influencers share their inside news with friends.

7. Marketing Partnerships

When money is tight, it often pays to partner with another company that targets the same audience. You can forge marketing partnerships with businesses that offer complementary services and pool your prospect lists or share advertising costs. A kitchen appliance retailer could partner with a remodeling contractor to market full-service kitchen upgrades, for example, and neighboring technology companies might jointly promote their region as a tech corridor. A group of art galleries could jointly promote a monthly "gallery walk," and a miniature golf course could team with an ice cream parlor to create and promote a special event.

8. Cinema Advertising

More than 27,000 movie screens run advertising. Screenvision Direct is the sales division of the largest national network and works with local advertisers to produce advertising slides that run during the pre-show. And with rates as little as $25 per week per screen depending on the market, you could pay just $1000 per month to reach all moviegoers who saw every movie in your neighborhood 10-screen Multiplex.

Choose any of these great, low-cost tactics to reach your prospects – and marketing goals – no matter your budget.