| Beyond the Business Plan |
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Your marketing plan outlines how you are going to market your products and services. It serves as a road map for implementing your marketing strategies—detailing how, when and where your marketing dollars will be spent, and your expected return on investment (ROI). The implementation of your marketing plan becomes your tactical plan. This is where all the variables come into play: target audiences, target messages, economic conditions, competitor marketing, trends, media choices, timing, frequency, budgets, etc.
Working the PlanAs a business owner, you know first-hand that you are constantly bombarded by all kinds of marketing opportunities, all claiming to deliver results! Since you can’t take advantage of all of them, you are faced with selecting the ones that best match your plan objectives—and your budget. When you “work” your marketing plan, developing your marketing tactics gets easier. That’s because a well thought-out marketing plan helps you focus on the right tactics to reach your defined target markets. And, because the marketplace is in constant flux, you should review and update your plan at least once a year, adjusting strategies and tactics to meet changing market conditions and trends. Communication, Communication, CommunicationIn today’s world Location, Location, Location has been replaced with Communication, Communication, Communication! These days it’s not enough to have the best storefront location in the busiest shopping area, or to sell a best mousetrap.The Internet has drastically changed how and where consumers buy goods and services. Not only that, but your messages have to compete for attention with all the other messages that constantly bombard consumers. So how DO you get your message to them? The answers lie in knowing who your customers are, what they want to buy, how they define value (usually a mix of pricing and service), and how they feel about your business. Customer-Driven Marketing—Know Your Customers!Marketing to your best customers is proven to be a wise use of marketing dollars. In addition to keeping your customers aware of new products and services, consider adding a loyalty incentive program. This value-added tactic rewards your best customers for their continued patronage, while increasing the likelihood that they’ll tell their friends about you (Word of Mouth marketing). It’s well documented that a testimonial or referral from a friend can significantly impact the buying decisions of new customers. The first step in customer-driven marketing is to do a little research by analyzing your active and inactive customers.
Send the Right Message to the Right CustomersMost of us are familiar with the phrase ‘you can’t be all things to all people’. The same rule applies to marketing strategies. Sending customized messages to each segment of your customer base will deliver stronger results than a “one size fits all” strategy. This is often accomplished with a direct mail campaign or a series of advertisements, each with a different message that resonates with a different segment of your customer base.To maximize your advertising budget, segment your customers into three categories (example: established customers (2 or more years), new customers (1 year or less), inactive customers), and then send customized messages to each segment. Prospect MarketingHow you market to prospective customers should be different from how you market to existing customers!Ask yourself these questions… Do your targeted prospects know what products and services you provide? Consider a first-time buyer incentive. Have they chosen a competitor instead of you? Communicate the value-added benefits and rewards of doing business with you. Do you need to add a product or service in order to meet their needs? Introduce new products with a limited-time, first-time customer discount to generate sales. You can improve the ROI of your next advertising campaign by knowing the answers to these questions and planning tactics that match the message to the target audience. Next, using your historical sales information, calculate the lifetime value of a customer (LTV). To calculate this key metric multiply (Frequency of Purchase) X (Duration of Loyalty) X Gross Profit = LTV. Too often business owners only focus on the cost of a particular marketing campaign and fail to factor in the long-term results of the campaign. Knowing the sales impact of your average customer over a period of years (LTV) will help you determine how much of your advertising budget to designate for prospect marketing. If your LTV is $5000 then you can afford to spend more to attract a new customer than if your LTV is only $500. The Importance of Measuring ResultsEach marketing campaign needs a 20/20 hindsight review to measure results and make notes for improvement. You’ll want to do more of what’s working and modify what’s not working. Using prospect marketing as an example: Did you get the expected number of new customers? If not, then adjust the message, timing, and perhaps your method of delivery until you find just the right mix.Integrated MarketingThere was a time when all you needed to boost sales was to put a display advertisement in the local newspaper or buy a 15 second spot on the local radio station. Not any more. Opt in and subscribe to the ShowMeCreative Marketing Minute newsletter—a continuing series of articles on marketing topics important to YOU. SUBSCRIBE HERE Future newsletters will include articles on testing a new campaign, the value and economy of targeted direct mail, how (and why) to measure results, the value of “lost leaders” in getting new customers, electronic marketing, websites and ecommerce, and how improving customer service can impact a loyal customer base. We specialize in helping YOU be successful! Call today for a free consultation 540-291-4833
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