Client
Marco Brown of Wells Fargo Bank introduced me to the 6
Phases of a Project. I thought you’d enjoy them.
Because if you’re alive and well and have been
active in sales, marketing, advertising, public relations
or sales promotion recently, this has undoubtedly
happened to you. At least once—probably more often.
In
order to avoid that type of thinking and happening,
I’ve built The 8ight Point Market Action Plan. A
step-by-step process that allows you to walk through the
think, plan, organize, develop, do, and measure parts of
a direct response marketing program.
The 6 Phases of a Project
GRAPHIC GOES
HERE
Or, as Kenneth Blanchard said:
"Don’t just do something. Think about it."
And, as R.C. Cunningham,
Executive Vice President of AFG Industries says:
Every company has the
opportunity to minimize head-on competition and to
maximize their sales and profit potential by hitting
‘em where they ain’t.
The key to finding where they
ain’t is a well defined strategic plan which . . .
evaluates the strengths and weaknesses of your company
compared with the competition.
This information . . . becomes
the road map that tells you where you are today, lets you
see where you want to go tomorrow and how to get there.
It’s really knowing your market, and your
competition, that makes the difference in selling a
commodity product, a high-tech product, or a
multi-million dollar piece of equipment successfully.
Once again, here are the 8
points we’ll be examining:
- Objectives
- Timetable
- Budget
- Audience
- Offer
- Creative
- Production/Media
- Analysis/Measurement
Focus. Direction.
Setting Objectives.
Objectives is the first point of
The 8ight Point Market Action Plan. You need objectives.
I need objectives. A company needs objectives. Focus and
direction come as the result of setting specific
objectives. And from objectives come accomplishment.
Things get done because a plan is put in place to do
something.
Objectives provide a feeling of
progress. They reduce the wandering-about approach to
achieve your goals. The "shoot from the hip"
philosophy.
Having objectives eliminates the
reaction to the "current situation" practice
that far too many companies use as a method for setting
direction. Doing activities in response to marketplace
activity is a way of becoming just like the rest of the
pack. Having objectives helps you get from where you are
to where you need to be.
At DuPont, each communications
manager has the responsibility of providing a
"direction sheet" at the start of each new
project. A sheet which provides focus and direction for
that particular program.
The purpose is to be very
specific with the information so the creative group will
know what is expected. Here are some of the things that
are addressed and answered.
- What is the
product? What are the features and benefits
of this product?
- What is the
marketing purpose of this program? What do we
want and expect to happen? What are the
objectives?
- Who is the
target audience? Who are we talking to?
- What are the needs
of this audience?
- What is the
SINGLE, most important IDEA to convey?
- What are the
other copy points in order of importance?
- What do we
want the reader to do? What type of action is
requested?
- What is the
timing for all of this?
- What is the
budget?
If appropriate, additional
information on any ideas for media and creative
direction, graphic, copy, and legal requirements; how we
plan to measure the results; supporting details about the
competition, distribution, and sales might all be
included. A very complete overview. With focus and
direction. A good way to do business.
Few people would question the
necessity of setting goals in marketing. If for no other
reason, to avoid the Ready—Fire—Aim
possibility.
What’s negative about
Ready—Fire—Aim? If you’re making a good
offer to a specific marketplace why not just do it? For
the same reason a rocket shot to the moon must be heading
in the right direction when it leaves earth, you too must
have your objectives in order before you jump into the
marketplace.
With the sophisticated
technology that is available today it is possible to push
buttons and pull levers here on earth and change the
direction of a rocket, alter its projectile around the
earth, turn cameras on and off—even land on the
moon. And return. BUT ONLY BECAUSE THE ROCKET WAS HEADING
IN THE RIGHT DIRECTION FROM THE START.
Ditto for direct marketing
objectives. Once you set them you can change or alter
them. Improve or eliminate or add to. But only when
you’re heading in the right direction from the
beginning.
Your objectives must be:
- Brief enough
to be understood
- Clear enough
to be acted upon
- Flexible
enough to allow adaptation to the
circumstances
Only when you’ve planned
your program thoroughly from the beginning will you truly
be in a Ready—Aim—Fire mode.
Most of us recognize the value
of planning, of setting objectives, of setting a
direction. However, there is more involved with this
process than many believe. Or wish to take the time to
learn and implement.
Here are some key questions to
ask—and answer!—as you set objectives for your
company, your product, and your service:
- Does our
company offer a discernible advantage over
what is available from the competition?
- Is our
company’s advantage important to the
market—do they know—do they care?
- Does our
product/service offer a distinct advantage?
- Is the
product/service advantage important to the
market?
- Are we the
industry follower or the industry leader?
- Are we a new
entry with this product? Into this market?
- Are we
aggressively aiming to take business from the
competition?
- Can we
withstand retaliation to our
approach—can we take the heat?
Before any marketing or
advertising program is begun, most people have a basic
idea of what they want to achieve. Goals are often
expressed in rather vague terms—which may be a
mixture of overall corporate, marketing, and advertising
objectives.
For example, an objective
"to increase sales" is not particularly useful.
By how much do you want to increase sales? In which
specific product areas? Everywhere, or only in certain
geographic regions?
Your objectives must be defined,
documented, specific, and numeric. You may want to set
objectives to achieve goals such as these:
- a specific
percentage of market share or market
penetration—as long as you can translate
the percent to dollars in sales and in
profits;
- a level of
sales turnover by product or product group;
- a set number
of new accounts, within a time frame;
- a specific
number of revived accounts over the coming
calendar year;
- break into new
SIC codes during the next fiscal year;
- get into a set
number of new marketplaces geographically,
i.e., expand your reach;
- establish a
rate of financial growth from current
customers.
It is important to quantify your
objectives. Where goals are not defined in specific
terms, it is almost impossible to measure performance.
And in direct marketing, "If you can’t measure
it, you can’t improve it." A quote from Alex
d’Arbeloff, President of Teradyne.
YOU must set your
objectives, define your goals, determine what you want to
achieve. No one from outside your company can begin to
decide what your objectives should be. Only you can do
that most important task.
Why do I so strongly state that
you must be responsible for setting your objectives? Why
do I suggest that to do otherwise is unwise?
Because my experience has been
such that every time I helped set objectives for a
company the plan failed to materialize. And in the few
instances where a plan began, it never finished.
Reason? I think it is because
there was no blood, sweat, and tears in the effort. It is
folly to think that anyone from outside your organization
can tell you inside your organization what your goals
ought to be. And that’s what objectives
are—goals. Specifics to accomplish. Mountains to
climb, rivers to cross.
How can anyone—even
me!—tell you what your marketing goals for the next
year should be? Objectives must be set by those persons
who have the responsibility to make them happen.
Some Questions to
Consider
Here are some questions
for you to consider as you plan your direct marketing
program objectives:
- What are your
projected sales revenues for the short term
and the long term? What are you looking for
and what is acceptable?
- What are your
revenue goals by individual product or
product group? Do you have different
objectives for different geographic regions?
- What is your
target cost per sales lead and per sales
close?
- What is your
sales pattern? Locally? Regionally?
Throughout the country? Internationally? Can
you coattail your advertising to gain more
results? Is there a seasonal pattern that you
know must be addressed?
- Are there any
legal or other marketing restrictions you
know will affect your plans? Can you work
"around" them?
- What is the
industry history? Your corporate history? The
sales trend/direction for the last two years?
Is the marketplace action similar to this
time last year—or is it different? How?
- What is your
advertising/marketing history for the past
two years? Did you meet your sales
objectives, fall short, or surpass your plan?
The Nine-Box Matrix
You
may recall from your university days and Marketing 101
the simple Nine-Box Matrix. If you, like me, need a
memory jogger, here is the graphic.
GRAPHIC:
Nine-Box Matrix
Markets
are read horizontally—products vertically. So a new
product aimed at a new market is in box #3. An existing
product directed toward an expanded market is in box #4.
A modified product at an existing market is in box #8.
A
key element in setting good objectives is to determine
for each of the various products, product lines, and
services you offer, in which box of the matrix that
particular offer fits.
The
primary reason you set objectives is to have some focus
and direction. The thought being that that will translate
into sales—and PROFITS!
Different
products and services at different stages of their life
cycle have different opportunities in the marketplace. If
they have been around awhile, are a commodity item, are
in a mature stage, and/or have intense competition, this
product offers you much less opportunity for increased
profit.
On
the other hand, a new product, or an enhanced product, or
an opening in a new market, either by geography or type
of audience, may offer you greatly increased sales and
profit options.
The
Nine-Box Matrix raises such questions as:
- What do we
make that could be modified to become another
product?
- Can we modify
our products to make them work better in new
applications?
- Could we
simply reposition a product to serve new
markets?
- Is it possible
to locate expanded markets for our existing
products?
- Is it possible
to locate new markets for modified
products—bundled or unbundled?
- Are we taking
a new product to a new marketplace during our
coming year?
- Are we taking
a new product to one of our existing
marketplaces?
- Could we sell
products differently, i.e., by mail-order
catalog sales, in addition to the existing
channels?
Depending
on how you answer the questions that are applicable to
your company’s products and services, and depending
on where you know your product fits in the Nine-Box
Matrix will determine how you set your marketing
objectives.
It’s
easy to take something new to a new marketplace. The
chart is clear, and you set objectives to achieve, a
timetable to do so, and a new product introduction budget
accordingly.
It’s
tougher with existing products/services. Sure, you know
what you did last year. And the year before. You also
have a feel about the competition—what they’re
doing. You have established a position and created an
image. You know your awareness levels. You know how to
generate interest in what you have to offer. You’ve
already invested in educating the marketplace—now
all you need to do is SELL THE PRODUCT AT A REASONABLE
PROFIT!
And,
depending on all the factors mentioned here, you will
determine where in the Nine-Box Matrix your objective
standards will be set. You will decide how much time and
money should be allocated to that product line to achieve
your objectives. And what it will be worth to you at the
bottom line. How much you can invest to get the return
you need and want.
In
most cases you will benefit by setting your objectives
with the pace of change in mind. In today’s world
things move quickly. You need to be flexible to your
customers’ and prospects’ wants, desires, and
most importantly, NEEDS.
At
the same time, using the past-paced market as an
"excuse" not to set objectives is just that, an
excuse. Don’t fall for that line. Instead, commit to
setting objectives and working at making them happen.
How to Develop
Good Objectives
How
do you set good objectives? Here is a 6 point
plan:
1. Good Objectives must
be SPECIFIC. Specific statements about the results you
are seeking.
Specific
means numeric—not percentages. Why? Have you ever
cheated using percents? Sure, join the crowd. Everyone
has.
I
learned how to cheat using percents from my dad. He
didn’t know he taught me . . . but he did. Dad was
an active board member at our Methodist Church. One
evening he came home and said: "The Board wants us
to tithe . . . is that 10% before taxes, or after?"
Because
it is so easy to "manage" percents, using them
to set objectives allows for a way out down the line. You
really don’t want that to happen.
Real,
live numbers are facts. Percents are generic. Use real
numbers to set your objectives. Be specific.
2. Good Objectives must
be MEASURABLE. Measurable meaning you can count what
happened. You can measure your level of success. Or lack
thereof.
Remember
that "more" only sets the direction—it is
not specific and thus cannot be measured. It does not
include the qualifiers of "time" and "how
far." Both of which are necessary for measurable
objectives.
You
want to be able to measure:
- Number of
units sold
- Rate of return
on your investment
- Cost to sales
ratio
- Market share
- Money—dollars—the
real measure!
If
your objectives are specific, it allows for honest
measurement. You will know what happened, for better or
worse—but you will know! Which is important for now
and next time.
Make
your objectives measurable.
3. Good Objectives must
be REALISTIC. You should set tough standards. Reach for
the stars. Stand on your toes.
At
the same time, you don’t want them so tough a one
year goal takes 16 months to achieve. Nor do you want
them so easy you’ve accomplished your yearly
objectives by April.
Only
experience allows you to be realistic. And—common
sense. "Automatically" increasing your
objectives by a set percent from year to year, without
consideration for the life cycle of the product, is not
being fair. Or realistic.
Setting
objectives also forces you to consider your resources to
carry them out. Resources such as personnel, time,
technology—and money. Set challenging and realistic
objectives.
4. Good Objectives must
have a TIME SCHEDULE.
In
all honesty, I’ve never had a program without a
timetable. If there is ever a problem, it is that
insufficient time has been allocated to accomplish what
needs to be done to meet the objectives.
Sometimes
not enough time has been allowed to develop a program. To
think through the best course of action. To really take
the time to plan what to do.
On
many occasions there has been adequate time to develop
and implement a program. On paper it looks great. But
something slips—and then maybe something else.
Pretty soon you’re behind schedule and those at the
end of the line get pushed. To the limit. Even too far.
Having
good objectives means setting reasonable schedules and
following them through the entire campaign.
5. Good Objectives make
certain your program is COMPATIBLE with whatever else is
going on in your organization.
Because
direct marketing is "new" in some circles, it
is exciting. Some look at direct response as
"the" answer to their problems. It scratches
the itch.
Which
is all well and good. But, before you destroy what you
already have going that is good, test all new programs.
Set your objectives in such a way that you can weave them
into the fabric of your company—not structured to
take over between now and next spring. Good objectives
are compatible with all plans.
6. Good Objectives need
to be WRITTEN.
There
are a number of reasons why you put anything in writing.
One reason is it gives you a reference guide. Another is
it allows others you are working with to have full
knowledge of where you are coming from and where you are
going.
Again,
I’ve never seen a marketing plan—or even a
small project—where the objectives were not in
writing. We know that must happen.
I
do recommend you write them in "pencil."
Because you will change them. Know that you will change
them—because the marketplace will change. Your
competition will introduce an enhancement. Your company
will come out with a new product (early or late, it
doesn’t matter—it requires a change).
Good
objectives are in writing. So you can be flexible.
The
Wrangler division of Blue Bell sets their product
marketing objectives by the S M A R T
method—which you may find helpful in remembering the
key points in setting good objectives:
S =
Specific
M =
Measurable
A =
Attainable
R =
Realistic
T =
Time-Bound
Some Direct Marketing
Objectives Here
are some examples of good, specific direct marketing
objectives:
- for a
nationwide sales organization—to get 2
new leads per week, each week of the current
fiscal year, for each outside sales
representative;
- for a
fast-food restaurant—to increase the
frequency of visits and average ticket sale
from their "best" customers to:
from 5 to 6 visits per month, and from $3.23
per ticket to $3.65 per ticket;
- for a fund
raising organization—to increase the
average donation from all donors who have
previously given a minimum of $25 to an
average of $35;
- for a sales
organization with an independent
dealer/distributor network—to generate
2000 leads per month, of which a minimum of
500 will be highly qualified as
"passionate" or "hot,"
thus requiring a sales rep visit and a
demonstration of a new product;
- for a
mail-order company—to increase the
average order frequency and average dollar
amount from their best customer list from 4
times a year to 5 times, and from $37.50 per
order to $45.
The
first point of The 8ight Point Market Action Plan is
Objectives. The foundation point for all that follows.
Without soundly thought-out and planned objectives, you
have no direction. You have no focus. You’ll do
marketing by wandering about. You must have
objectives if you’re to achieve your goals.
H.L. Hunt probably
summed it up as well as anyone. He said:
- Decide what
you want to do, set your objectives.
- Decide what
you’ll give up to get those objectives.
- Decide your
priorities as they relate to all you want or
need to do against those objectives, and
- Get on about
your work!
This is how
POWER DIRECT MARKETING works. Begin by marketing by
objectives.
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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