The Horse Comes Before the Cart, Part 2

This week I am discussing the important topic of determining your marketing strategies within the context of a comprehensive plan. Launching a marketing campaign (even if it does not involve any hard costs) without a plan is “putting the cart before the horse.” On Monday, I presented a framework for constructing your marketing plan. It begins with defining your goals. Today I will share additional thoughts on clarifying your goals and the tactics to accomplish them.

3. Consider financial and non-monetary objectives. Examples of non-monetary objectives include things like closing percentages, page hits and customer traffic patterns. Be specific! A goal of increasing sales is neither constructive nor measurable. A goal of increasing sales 5% per month for the next six months through a combination of a 4% increase in customer count and a $17 increase in average dollars per sale is.

4. Business goals are rarely accomplished in a straight linear fashion. For example, a 24% annual sales increase is not going to come in equal increments of 2% every month. Your marketing strategies are going to take time to produce results. They are affected by existing sales patterns and seasonality that every business experiences. Establish a realistic timeframe for each goal, with appropriate interim benchmarks to measure short-term progress toward long-term goals. That allows you to take timely corrective action or adjust goals as needed.

5. As you define goals and timeframes and the strategies and tactics to accomplish them, be aware of conflicting goals. Here is a simple example. What is the first thing most retailers do when they want to increase revenue? They hold a sale. In other words, they cut prices! Obviously, the hope is that increased customer traffic will more than offset the lower prices. However, it is still a conflict. Here is another example. Assume you want to increase the average customer purchase in your shoe store from $58 to $75. You therefore introduce a new line with a higher price point. Most customers are only going to buy one or two pairs of shoes. Therefore, while revenue from the new line will go up, sales of cheaper lines will probably go down. Conflicts are not necessary bad, and are often unavoidable. My only point is you need to look at the whole picture. Recognize and manage conflicting goals in your market plan.

6. Specify the purpose or desired result of every marketing tactic. In other words, what action do you hope clients or prospects will take because of a marketing initiative? Your definition of purpose establishes the basis of measurement and encourages accountability. The desired result may include multiple objectives, including the following:

  • Business production
  • Generate new leads
  • Brand awareness
  • Introduce a new product or service
  • Advertise a specific sale or promotion
  • Establish your expertise
  • Increase customer traffic
  • Consumer education

7. Tactics rarely operate in a vacuum. You can sometimes leverage one against another. For example, relationships developed online can be taken offline. A social media connection is a far better sales prospect if you subsequently call or meet face-to-face. Similarly, you might precede a direct mail campaign with a subject matter media blitz via article marketing, blogging, email newsletters, press releases and so on.

I will conclude this topic on Friday, when I will discuss step 4 of your market planning process, monitoring costs and results.

© 2011 by Dale R. Schmeltzle

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