Good
friend Glenmore Trenear-Harvey, a direct marketing pro
from the United Kingdom, has prepared a list of
opportunities where direct response could be the means to
reach your goal. Here is a selection of those IDEAS:
When you have an expensive
storefront location
When you have patchy distribution
When you have a mail-order or
information catalog
When you have an outside sales
force, yours or through a network of any type
If you run competitions or
contests of any kind
When you have a
“family” of products
When you are seeking trial or
sampling
When you have charge customers
When you offer a
guarantee/warranty/service contract
When you have a very narrow
marketplace
When repeat business is the key
to your success
When you want to test anything
for any reason—offer, market, new geography
If you have low-volume accounts
When you are seeking to increase
your customer base
When you have large swings in
sales patterns
When you want to know which half
of your advertising works
All
these ideas lay the groundwork for establishing a direct
response marketing program. Now you have the basis for
taking the first step in the process. The think, the
plan, and the organize part. The hard part!
The Marketing
Plan Plan
I
am sold on the writing of sound marketing plans. When I
say that I mean a plan that assembles into one spot all
the vital up-to-date information on the product, so that
when the whole picture is spread before me, the indicated
course of action becomes clearly a sound procedure.
Clarence Eldridge
Vice President, Marketing
Campbell Soup Company
Planning
is essential. Because as Lloyd S. Nelson of the NASA
Corporation said: “If they can do it next year with
no plan, why didn’t they do it last year?”
Seat-of-the-pants
marketing programs rarely achieve success. Yes,
periodically there is a “pet rock” success
story. But can you name another one?
Planning
is vital.
The
Marketing Plan Plan is a checklist. A 19-point checklist
of things to consider as you begin the process of
establishing your direct response marketing program.
This
checklist is divided into four primary sections:
The facts
The situation
The strategy and tactics
The method
Let’s
walk through each of these four sections one-by-one.
The Facts
There’s
an old saying that a man’s decisions are no better
than his facts. Facts and ideas are the lifeblood of
sound marketing. Without facts, ideas can be meaningless;
and vice versa.
Here
you will want to summarize the most important points, the
facts as they are applicable to your product or service
in your marketplace. You want all the information you can
get.
Pinpoint
this information as either problems which need to be
overcome or circumvented, or as opportunity to be taken
advantage of. In addition, this section should contain a
statement of the company goals, as far as this special
product is concerned.
The
following summary is designed as a checklist for your
planning process. Details of the process are covered
throughout the book, chapters 2 through 9.
Gather
all necessary background information such as:
- A brief
marketing and sales history
- A review of
where you have been
- A thought on
where you are now
- A further
thought on where you want to go!
- Information on
the size and scope of the marketplace
- Details on
pricing history and gross profit history
- What share of
the market do you own today
- What share of
the market does your leading competitor have
- A summary of
any company resources and cultural climate
that may be important to achieving your goal
Identify
specific problems and opportunities of your services:
- What are your
strengths?
- What are your
weaknesses?
- Does your
company have the resources and commitment
necessary for success?
- What are we
doing now that’s working?
- What are we
doing now that’s not working?
- What did we do
in the past that worked that we stopped
doing?
- What would
make us more efficient?
- What is
getting in the way of our success?
Draw your
overall direction conclusions based on the facts gathered
from the previous sections
- What business
are we in?
- What business
should we be in?
- What should
our short-term objectives be?
- What results
are expected from the present way of doing
things?
- How do we get
to where we want to go from where we are?
You
must at least think on each of these questions—and
come to some conclusion about each of them. You may elect
to skip one that may not be applicable. Fine, but at
least consider all of them so you know what you’re
doing.
Once
you’ve accomplished these steps, the marketing
process begins around a structured framework.
The Situation
You
have gathered some facts. Now, what do they mean? How do
you evaluate what you have gathered? What do you do with
the facts against the market situation?
You
objectively look at your product/service, your
marketplace, the competition, distribution channel
options, i.e., you completely outline where you are. To
continue with the checklist here are the next 6 points.
Clear
product identification
Not
only must you know what business you’re in, you also
must know your product.
- What products
and services do you offer?
- Can you
promote this product to a significant portion
of existing customers?
- Does the
product lend itself to sale by a mail-order
program, or is lead generation or traffic
building better?
- Does this
product have potential to be large in both
sales and profits?
- How and where
does it fit into our profit grid?
- Can the
product attract new customers?
- Does it take
advantage of our existing strengths?
- And, where
does it fit among all similar offerings in
the marketplace?
Clear
market identification
- Market
identification means people.
- Market
identification means companies.
- Market
identification means geography.
- Market
identification means social, cultural,
technical, economic, political, and
environmental factors—both positive and
negative.
- Market
identification means knowing the demand in
your area.
- Market
identification means knowing if you have the
ability to be the leader in this field.
Competition
evaluation and understanding
- What is the
level of the competition; where do you
“fit” among the competition?
- What are the
current strengths and weaknesses of your
primary competition?
- What is the
competition doing now?
- What are the
probable future actions of your competitors?
- What can you
do NOW to take advantage of your competition?
All
communication options considered
.
. . image advertising does not work . . . alone. Except
for new product introduction there was no discernible
correlation between advertising weight and sales levels .
. . image advertising needed the impact of sales
promotion, events, POP, and direct mail . . .
Valerie H. Free,
Publisher
Marketing Communications
If
there is anything marketing has learned from advertising
it is multimedia. Using more than one tool to reach your
marketplace, make your offer and achieve your objective.
These
are the media tools to be considered as you plan an
integrated direct marketing program:
- Sales
promotion
- Point of
purchase displays
- Package
inserts
- Postcard decks
- Direct mail
- Catalogs
- Direct
response print (newspapers and magazines)
- Public
relations
- Video and film
- Advertising
specialties and premiums
- Collateral and
sales support materials
- Trade shows
- Telemarketing
- Direct
response broadcast (radio and television)
An
open-minded review of the large variety of communication
options available to you must be made as a part of the
total planning process.
Real
customer/user purchase decision habits
There
are always three types of people involved with every
decision—in the home as well as at the office:
- The user
of the product or service
- The influencer:
This is usually someone of more importance
than the user. In business it could even be
somebody in another department.
- The decision
maker: This is usually somebody at a
higher level. In business it is someone from
upper-middle or upper management.
In
addition to these three decision makers, you may also
have to weave your way through several others. In the
business marketplace you may have to talk to such people
as a buyer, a purchasing agent, or a financial officer.
This is the person from whom you actually get the order.
Maybe
the idea for this decision comes from another party
entirely. The husband for the wife. The wife for the
kids. The kids for the family. Sometimes this person is
called an “initiator.”
In
business this could even be someone outside the immediate
area of responsibility. Someone who sees a benefit in a
product or service and urges a buy. They have no
authority—but they could very well get the process
rolling by raising the question and getting the door
open.
In
some instances you may also have a
“gatekeeper.” This happens at home as well as
the office. Someone who protects the person you want to
reach. In the office this person may have the title of
executive secretary or administrative assistant. They
have the responsibility for screening you out. At home it
could be mother protecting kids or the wife the husband.
In
any instance, you need to understand the real
customer-user purchase decision habits.
Sales
force/distribution methods
How
are you going to distribute your product and through
which channels? These methods could include:
- An inside
order desk
- An outbound
telemarketing unit
- Outside
independent sales reps
- A captive
sales force
- A network such
as dealers or distributors
- An inside
retail sales force
- A part of
customer service
- A mix of any
of these
Before
you determine how you are going to sell your
product—through which distribution channels—you
must clearly identify which channels offer you the most
opportunity for success.
What
is the sales history of each type? What does your
competition do—how do they distribute? What are the
buying habits and attitudes of the principal channels
under consideration? Where can you promote the most
effectively? What is happening in your marketplace
industrywide?
Overall
company positioning, awareness and image factors, and
“suspect/prospect/customer” audience perception
- What position
do you currently own in your marketplace?
- What position
do you want to own in your marketplace?
- Do you have to
beat the leader to get the position you want
to own?
- Do you have
the resources to achieve the position you
want to own (money/staff/commitment)?
- Can you take
the time it will take to gain the position
you want to own?
- Does your
position—your current position—and
the one you want to have match?
In
order to achieve the company positioning you want, your
position must be:
- Important to
your audience
- Unique for
your audience
- Believable to
your audience
- Deliverable to
your audience
Put
these specific details on paper. First! then, and only
then, can you set the strategy and tactics.
The Strategy and
Tactics
Let’s
define terms.
Strategy:
Strategy equals planning! Strategies are planned
actions designed to reach objectives.
Tactics:
Tactics equal doing the plan. Tactics are the details of
how you will achieve your plan.
To
use a military analogy, strategy or planning is concerned
with the broad outlook—the total picture of what is
to come. Tactics, or the doing part, are the very
specific maneuvers within the overall view that make the
plan happen. That bring it to life.
This
is true for both the short-range and long-range planning
necessary to achieve your corporate goals. Here is where
the planning process begins in earnest.
Even
brilliant tactics, with the finest copy and the best
graphics, cannot save a program that is strategically
weak. You must do the planning first! Strategy comes from
people, their experiences—it comes from THINKING!
This
is really how you do POWER DIRECT MARKETING right.
You begin by thinking! You begin by planning.
Describe
your specific marketing objectives to be reached with
this direct marketing plan
- In most cases
you will have more than a single objective.
Make sure they are in priority order.
- Although you
will have an overall set of objectives for
your various media tools, each individual
medium will have its own objective—set
them accordingly.
- Each
individual sales channel will have an
individual sales target. Set these objectives
on an individual basis.
Outline a
strategy to reach these specific objectives
- Your overall
strategy includes the courses of action you
will take to achieve your objectives for each
product/service, including pricing,
promotion, and fulfillment.
Decide
the message and various media to relay your message as an
integrated marketing program
- From the
various communication options outlined under
point 7, select those most adaptable to your
specific needs and begin the creative and
media planning process.
Determine
the tactics to support your objectives
- The purpose of
tactics is to work within the strategies you
have set to achieve your objectives. They do
not function independently, nor are they
developed to win awards.
- Remember, more
than one tactic can be used to achieve a
specific point in your plan.
Budget to
make it all happen
- There is no
such thing as a free lunch! Establish a
budget against the strategies you have
outlined and the tactics you have chosen to
achieve your objectives.
Assign a
timetable and schedule
- Planning
requires long range directional thinking. Not
tomorrow or next week, not knee-jerk
reaction, but fiscal or calendar year
planning. Or, maybe two years.
I
do not believe in five year plans for marketing. Why?
Because in the 74 years from 1917 until 1991, the reign
of what we knew in the west as the U.S.S.R., did not once
make their five year plan work. It was never anything
more than a paper pushing exercise!
That
is not the only reason; but it is a reason! The real
“why” is because the marketplace is moving so
fast that anything beyond a year or two is pure
fantasyland.
Direct
response timetables for a complete plan usually cover
from 4 to 12 months. Determine how much time, including
contingencies, you need to accomplish your objectives and
then schedule accordingly.
Develop a
measurement/analysis system
- Early on
determine how you will measure the
effectiveness, or lack thereof, of your
direct marketing program.
- Measurement
occurs following the implementation of the
tactics, but planning for measurement
must be done in the beginning—as your
objectives are being set.
Strategy
is planning—planning how you will best utilize your
resources of time, budget, facilities, and most
importantly, people to achieve your objectives, to reach
your goals.
Now
the plan is on paper, ready to happen. As Eisenhower
said: “Planning is everything. The plan is
nothing.” And making it happen is why you do it all
in the first place!
The Method
“Do
you want me to plan it . . . or do it?” Heard that
before? Sure, everyone has at one time or another.
It’s natural under the fire of day-to-day activity.
The
direct response marketing plan is a comprehensive,
detailed written document. It identifies in concrete
terms the thoughts and corresponding direct response
tactics needed to achieve and to fulfill the plan.
Those
responsible for all areas of marketing and the marketing
mix should work together in the drafting of the entire
marketing plan. It is here, in this area, where the
greatest cooperation and closest coordination are
essential.
The
team, or “The Group,” as Richard Shaver likes
to call them, includes marketing, sales, and management
personnel. At a minimum, representatives from these 3
areas. If possible, it is also many times beneficial to
include market research, media analysis, data processing,
creative, and production people. Putting the plan
together is not a project for an individual—it is a
company effort.
It
is time to put the details of your plan to work. To
develop the program. What promotional material,
advertising specialties, advertising, public relations,
sales promotion, direct marketing is needed to tell your
story. To tell it so that the entire marketing effort
moves in the same direction at the same time—and is
effective!
Prepare
creative to accomplish your objectives
The
key word here is “your”. You know what your
direction is—or you should before you get to the
creative part of the plan.
Where
have you been? Where are you now? And, where are you
going? These questions should be answered in point 11
above, and the creative team must know your focus as
clearly as management and marketing.
Know
your direction. Know your goals. Know your objectives.
Then you can aim your creative approach toward the way
you are going.
Produce
the program and take it to the marketplace
At
General Foods we don’t have what are usually
referred to as advertising plans. Instead we have
marketing plans . . . to get the maximum efficiency of
our marketing expenditures. We believe that advertising
and selling and all the corollary functions of marketing
should have a common objective. The annual marketing plan
is the means by which we arrive at these common
objectives.
Edwin W. Ebel
Vice President, Marketing
General Foods Corporation
Aristotle
thought an unplanned life was not very productive,
because the individual didn’t know where they were
nor what they were trying to do. They didn’t know
where they were going or how to get there.
The
same philosophy is applicable to direct marketing.
The 8ight Point
Market Action Plan — an introduction
The
Marketing Plan Plan is based on a paper from the 3M
Corporation, London, Ontario, Canada.
Several
years ago I had an opportunity to work with
3M—Canada. As you are undoubtedly aware, 3M is one
of the more innovative manufacturing organizations in the
world, offering over 60,000 products. Because they are
very much an entrepreneurship-type company, many of their
best ideas come from their own people. I mention this
because 3M deserves credit for this plan. Working with
such an outstanding organization taught me a lot. Even
though I firmly believe my Marketing Plan Plan is an
ideal guiding document toward building a direct response
marketing plan, it is too much to work with.
Why
is it “too much to work with”? Because, in my
experience of trying to get companies of all sizes to
consider planning, the overwhelming detail of the
Marketing Plan Plan appears to be too much to swallow. At
least at one time. So using this original plan as a
basis, I distilled information and experience to create
The 8ight Point
Market Action Plan
With
just 8ight “easy to remember” words, it is
possible to lay the groundwork for the development and
creation of an effective direct response marketing plan.
Lee
Iacocca said:
We are,
it seems, deeply prejudiced against planning,
especially against large-scale planning or planning
that looks beyond the immediate future or the
short-term advantage. Economic or industrial planning
has, quite falsely and simplistically, become
associated in our minds with socialist systems and
thus with inefficient and unresponsive bureaucracies.
The
lesson we must draw from the failure of such planning
is not that planning itself is bad, but that bad
planning is bad. Those who feel that planning of any
kind is alien to the capitalist system should
consider where IBM, Honda, and a hundred other
successful businesses would be today if they had not
committed themselves to sound planning.
It has
been my experience that any organization that does
not take planning seriously does not take thinking
seriously. They go together and cannot be separated.
Or, as that apparently simple but profound saying
puts it: “If you don’t know where you are
going, any road will take you there.” The only
way we are going to cope with change and complexity
is through effective planning.
Abraham
Lincoln was a man who knew where he was going.
He
missed no opportunity to sell voters on his candidacy for
Congress in 1846, when his opponent was a circuit-riding
preacher named Peter Cartwright. Once Lincoln attended a
preaching service of Cartwright at which the evangelist
called on all who wished to go to Heaven to stand up.
Everyone rose except Lincoln.
Then
the evangelist called for all to rise who did not want to
go to Hell. Again, everyone rose except Lincoln. So
Cartwright said, “I am grieved to see Abe Lincoln
sitting back there unmoved by these appeals. If he
doesn’t want to go to Heaven and doesn’t want
to escape Hell, will he tell us where he does want to
go?”
Lincoln
got up slowly and said, “I’m going to
Congress.” Lincoln won the election. He knew where
he was going.
The
8ight Point Market Action Plan is a formula using direct
response techniques to establish, create, develop, and
implement a marketing plan for any product or service. It
will help you get where you’re going!
To
be effective at its maximum, The 8ight Point Plan calls
for a closely knit working partnership—to ensure
that all areas of the marketing, sales, and advertising
process are finely attuned to your overall sales
objectives.
In
fact, for your direct marketing program to be successful,
these four things MUST happen:
Management
makes a commitment. A commitment! Not a
simple statement “we’ll try
this.”
A
commitment is necessary in order to give any new program
a full opportunity to work. Did you learn to ride a
bicycle the first time you got on it? Or to type the
first time you sat at the machine?
Rarely
do we succeed the first time we try anything new. Or
achieve maximum success when we take new steps to improve
what we’re already doing. A full commitment from
management is necessary for your direct response program
to succeed.
Marketing
makes a commitment. This is usually not a
serious problem. Except where the
responsibility is given to those who think
that direct marketing equals direct mail;
i.e., they don’t understand the
discipline and are not interested in
learning.
In
most cases marketing has a charge to achieve—and is
willing to commit to a task.
Sales
makes a commitment. This is more important
than even a commitment from management.
Because if all else works, but sales decides
this is something they don’t care for,
the program will fail.
Any
“excuse” (rarely a reason) will do: “The
leads are no good. I already know my territory. No one
likes ‘junk mail.’ I don’t like getting
calls during dinner and know my customers don’t
either.”
You
name it and sales can find a “reason” why not.
Having sold since age 12 when my dad tossed me out the
door with the charge to do just that, I can relate. You
probably can, too. So, early on in the planning process,
get the sales team aboard with you. And,
Which
means they have to work together from the beginning.
Management. Marketing. Sales.
This
is not a single meeting process. It will take a number of
visits and exchanges and reviews and considerations and
probably some give and take to come to the bottom line.
And that is: management and marketing and sales working
together, as a team.
In
my experience, the programs which were the most
successful have been those where a total commitment from
all three groups was planned from the beginning.
The
Coffee Connection, an upscale store and mail-order
operation from Boston, Massachusetts; Keyword Office
Technologies, a high-tech firm with headquarters in
Calgary, Alberta, Canada; Wells Fargo Bank of Oakland,
California; MicroAge Computer Stores of Tempe, Arizona (a
franchise operation with hundreds of locations); Canada
Post Corporation, Ottawa, Ontario, Canada; and Krames
Communications, a business-to-business mail-order
education company in the medical field, from San Bruno,
California—they’ve all had smashingly
successful direct response marketing programs. Because
they got the team together early on. It works!
The
8ight Point Market Action Plan was developed to provide
you with the information necessary to produce outstanding
marketing programs—programs that are properly
directed, highly effective, and efficient.
The
8ight Point Market Action Plan covers the areas of
information essential to establish a profitable and
successful program for you.
Or, how to be an overnight
sensation
with POWER DIRECT MARKETING.
Ray Jutkins
International Professional Speaker
Marketing Consultant
Well known for his ...
"Spend a Day with Ray" seminars
Telephone: +1+928+785-9400
Facsimile: +1+810+815-2520
E-Mail: Ray@RayJutkins.com
Website: http://rayjutkins.com
Snail-Mail:
ROCKINGHAM*JUTKINS*marketing
Rockingham Ranch
Roll, Arizona 85347-7066 U.S.A.
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