turning the wheel by mike davids

marketing Planning for Marketing Success

Turning the “Wheel”

by Creating a Task-Oriented, Executable Marketing Plan Final Installment of 7 part series

“Your work is to keep cranking the flywheel that turns the gears that spin the belt in the engine of belief. Annie Dillard—author, poet By Mike Davids and Kelly Newcomb

he past six articles in this section have covered many tactics and strategies for improving your marketing at each of the critical areas of customer relations—Awareness, Comprehension, Conviction, First-Time Customer, Repeat Customer, Loyal Fans…see graphic. (All previous articles are available at www.clla.org/debt3). Now we will be crank-

ing the Wheel up to full speed by developing an actionable marketing plan.

The first thing to remember as you create the marketing plan is that marketing is simply a means of communicating how you and your company can fulfill the needs of a customer.

Getting Started Sitting down to write a marketing plan may at first feel like preparing to perform “home dentistry.” If you’re daunted by

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the thought of writing a long, voluminous plan, then choose

It is true that great marketing can sell anything once. Even the

instead to keep it simple. Create a straightforward document

proverbial “snake-oil” salesman can do very well if he plans to

that maps out your overall strategy followed by the tactics that

leave town at the end of the show.

will help you reach that strategy.

However, a business that is here to stay, must ensure that every

Remember that any planning you perform is going to have bet-

word of every marketing promotion is backed up by an organ-

ter results than the haphazard approach that most businesses

ization that can deliver more than any marketing promise can

take. The typical small-business approach to marketing is reac-

ever explain. The goal of the Wheel is not simply to promote

tionary. You hear things like “We need a brochure—let’s do

your business’ services to customers and potential customers,

one now. We need a logo—my nephew is good at art! A sales-

but to build relationships with them. In doing that, the plan

man just told me I should add color to my Yellow Pages

should also build the skills and expertise of all your employees.

ad…etc.”

Keeping relationships strong is much harder than making a one-time acquaintance and it takes daily effort.

marketing While the brochure, logo, and Yellow Pages ad may all be

As you begin to study the elements that make up your SWOT

important tactics in your plan, they should be developed

analysis and 80/20 review, you’ll start seeing your business

according to the main ideas. They should not be spur-of-the-

more clearly, and this will help determine your marketing focus

moment projects, but one piece in an ongoing process. What’s

going forward.

more, following the marketing plan will help you get more “bang for your buck” by keeping you focused on your goals.

Here is a strategy planning chart that will help you see some of these issues more clearly:

Situational Analysis Begin your marketing plan with a thorough situational analy-

Strategic Questions

Company Answers

Rationale

sis. Using the SWOT formula will help you cover all the bases.

Step 1. SWOT Analysis (Strengths, Weaknesses, Opportunities and Threats)

▲Strengths: Describe the professional strengths of your business? Are there any niches you dominate? Where do you outperform your competitors? What do customers like most

Building opportunities

❏

To be determined

What products or services need additional

• One large segment shows strong desire for this benefit

future of these looks

• Market assessment indicates future growth

bright?

• Limited competition

resources because the

about your services and your people? Where are the greatest opportunities for success in the future? Are you good at bringing in new customers? Are you good at holding on to existing customers? What do you provide that is of the greatest value to the customer?

▲Weaknesses:

New service

❏

To be determined

opportunities

• Market research shows strong interest • No competition

Which services

• Cost effective

should be added?

Where does your competition outperform

your business? Do you have trouble finding new clients or keeping existing ones? What areas are you lacking to provide value to your customer that your competitors are meeting? Also, review what areas are you not providing the value you could where no one else is? This will lead you to defining opportunities.

▲Opportunities: Can you improve or find market niches

Divesting opportunities

❏

To be determined

Which services should be dropped because

• History of declining sales and low satisfaction • Competitors’ offerings are better

their future is not promising or because

• Low customer interest within all target segments

other prospects look better?

that lack services that you might be able to supply? Can you build a stronger presence in existing markets? Or, focus more specifically on certain segments? Do your best opportunities al meetings, look at what successful companies are doing else-

Step 2. Define Your Target Markets

where around the country. Do you see any opportunities that

After examining your 80/20 split, what do your top 20%

could be applied to your regional market?

customers look like? Do you have existing customers who are not

▲Threats: What does the long-term forecast for your busi-

in this group who could be moved up into your top 20 by offer-

ness look like? Are their threats from competitors, threats from

ing them new or expanded service? Since it is easier to sell new

the regional or global economy, or threats from proposed leg-

services to existing customers than to find new customers, exist-

islation that could affect your outcomes in the months or years

ing customers who underutilize your service are your best oppor-

ahead? How will your plan help deal with these threats?

tunity for growth and should be considered your primary target.

An 80/20 Review

Next define prospects who look like your top 20 and target

It is typical for most companies to get 80% of their business

them as your best new market opportunity. Eighty percent of

from 20% of their customers. Your split may be 90/10 or

your marketing effort, both to existing customers and new

70/30—don’t get caught up in the exact ratio. Instead look

prospects should be focused on finding new top-20 customers.

closely at the profile of your best customers to determine who

Your referral sources and other new customer inquiries who do

they are and what sets them apart. How can you gain more

not resemble top 20 customers are your secondary market.

customers that behave like the top 20%? Can you move

Identifying primary, secondary or even tertiary markets can

existing customers from the bottom 80% into the top 20% by

help you decide how to best divide your marketing dollars to

selling additional services?

have the optimal impact.

(continued on page 24)

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entail new markets? Finally, through CLLA contacts or nation-

marketing (continued from page 23)

Turning the “Wheel”

Step 3. Desired Objectives What do we want to attain in the future? Where do we want to be

Step 5. Marketing Communication Tactics and Execution

as a company?

Brand Positioning Statement If you haven’t already done so, it is important to start your

In this part of the plan you set down both short-term goals (a

marketing program by defining your brand. Begin with a

year or less) and long-term goals. Be specific with actual finan-

brand positioning statement. This defines who your company

cial numbers affixed to the goals.

is and what it stands for in the marketplace. For example, the Nike brand stands for the ultimate achievement in sports per-

For example, a desired objective should be written as specifical-

formance. Although they manufacture equipment, the brand

ly as say: Gross $500,000 in a new business over the next year,

stands for more than the “thing.” It represents the experience,

50 percent of which will come from companies that fit top-20

feeling, and spirit of the thing.

parameters. To help with your brand statement, come up with three to four

TURNING THE WHEEL OF SUCCESS FOR SERVICE COMPANIES™

To set realistic sales

key words that define your company. Are your company’s main

goals, examine sales by

attributes: Integrity? Helpfulness? Honor? Creativity? Precision?

service line for the

Protectiveness? Diligence? You’ll need a thesaurus for this task.

past few years and Loyal Fan

Awareness

(Here you help your clients achieve the success they’ve turned to you for and in turn they become loyal to you)

(This is basically getting people to know you even exist and what you have to offer)

Repeat Clients (Here your clients come to rely on you to do the things you promise, and to be there when they need you)

Your Brand and Success = Marketing Plan + Client Service Response & Follow-up + Database Tracking System

Comprehension (This is the education process where you get your prospects to tell you what it is they need and teach them what it is you can do to address those needs)

project them out for

Identity Program

your proposed time

Once your company has agreed on the brand statement, show

period. Then deter-

it to a professional designer and have an identity program cre-

mine where the new

ated. This will include your company logo, letterhead, busi-

sales will come from

ness cards, and defining colors and fonts that will represent

to meet your goals.

your company to everyone in the marketplace.

Choose individuals or

+ Continued Planning,

teams

assign

If your company already has a long established identity in the

Execution and Review

specific percentages of

market, don’t change everything overnight. However, you may

the goal and brain-

want to “freshen” your identity with new colors or a new look

storm targeted oppor-

that better represents your new marketing direction.

Conviction

First-time Clients

(Here your prospects and clients become convinced you are the best resource for them to do business with)

(Here you work hard to deliver what it is you promise and to delight them)

and

tunities

for

these

teams or individuals

Finally, use your strategy to choose marketing tactics. Which

to pursue.

areas of the Wheel need the most attention to meet your goals?

What do you hope to achieve with each tactic? See the chart As far as marketing

below to help determine the tactics you will use.

goals, you’re looking at what you want the target markets to do. Outline the actions you want them to take. You might want

The range of marketing tactics is broad including advertising,

current customers to increase services. Your marketing objec-

direct mail, relationship building, media relations, publicity

tive might be to have 10 (or any specific number) of your cur-

and website. Be prepared to make detailed plans for each tac-

rent customers move from the lower performing 80% to the

tic that includes a budget, a timeline for execution and a cham-

top performing 20%.

pion—someone internally who will be responsible for completing the work on time and on budget. For some projects the

Step 4. Define Your Strategy

internal champion will need to hire outside consultants such as

Through your SWOT analysis and the identification of target

ad agencies, designers, printers, freelance writers or webmasters

markets, you may already be thinking how you should approach

to complete the work.

your marketing strategy. What are the guidelines you will follow? This is a good time to consult the Wheel of Success. Each of the six areas needs ongoing programs to keep the wheel turning.

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Do you need to build Awareness in the target markets you have

proposed? Perhaps you already do a good job with First-Time Customers, but don’t have a program designed to keep Repeat Customers excited about your service. Perhaps you need new programs at each level of the Wheel.

marketing Tactics and Feedback Mechanisms: Step 6. Assessment and Testing Don’t leave out this final but crucial step. You’ll learn much from an examination of what has worked and what hasn’t. For every direct mail package, website, or other tactic,

Effective Tactics

Awareness

Comprehension

Conviction

New Customer Repeat Customer

measure your customer and prospect response. As much as some will be qualitative—“Did they like it or not?” Ongoing assessments help make your marketing plan a living document—not something that sits on the shelf gathering dust. Review your plan and reshape it as often as your business changes, or as you identify key trends that may provide new opportunities. By setting goals in your marketing plan, you can assess how you are doing and readjust your goals and plan as the months unfold.

Kelly Newcomb, President of Newcomb Marketing Solutions and Mike Davids, Marketing Specialist at Newcomb have been working collaboratively for the last five years to help organizations with strategic planning, development of client-loyalty programs, and the execution of marketing campaigns. They can be reached at 1-800-921-1221 or e-mailed at kelly@newcombcreative.com or mike@creativforce.com.

News releases X Articles/Interviews X Advertising X Targeted advertising with a specific benefit message X Direct mail announcements X Second level direct mail campaign X Direct mail incentive sales promotions Sales Promotions X Open Houses X Seminars/Workshops/ Coaching Series (General) X Seminars/Workshops/Luncheons with target audience X Industry/Skill Mastery recognition Chamber/Business/Education Shows X Trade Shows X X Trade show presentations X Trade show selling Telemarketing campaign with the target audiences X Personal selling to interested audiences X Sales campaigns by service personnel Birthday/Special date and Anniversary recognition Preferred customer programs and promotions Community presentations X New business development presentations X X Newsletters X X Sales Brochures X X Internet Marketing – Email announcements, educational web site, and search engine marketing X X

X X

X X X X X

Effective Feedback Mechanisms: Audits of the target audience by phone or mail X Questionnaires for all X new customers Standard questions X for all customers Training of administrative, service personnel and coaches to question customers X X Direct Response Advertising X X Direct questions by sales personnel Direct questions by administrative, service personnel and coaches Focus Groups X Appreciation meetings Questionnaires in a direct mail campaign, also in a newsletter X Non-Customer and customer audits by mail or phone X Regular service calls and customer audits (follow-ups) Audience/Relationship contact schedule and log Lost referral analysis and review Lost order analysis and review LTV (lifetime value analysis) Copyright 2006 Can Do! Success, Inc.

X X

X X X

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possible, your measurements should be quantitative, but