Marketing is Maths: Generate Unlimited Business Prospects
I have worked with several clients this year to help them to build their marketing plan. It occurred to me that we used the same six step process and so I thought I would share it with you to help you grow your business in 2018/19.
Step 1. Business Objectives:
This is the step that is often missed out by business owners. Before starting the marketing plan it is important to identify exactly what you are trying to achieve within the business plan and when you plan to achieve it. This should be a finance based exercise that sets revenue targets for key business sectors throughout the year with each sector being treated as a separate line in the budget.
The cost to achieve each goal for each sector should then be set and gross margins should be understood. Overheads or fixed costs (including the drawings that the owner wants to take from the business) should then be set out and the profit target should be set.
Once completed it is important to review the goals and ensure that achieving this budget will get the business to where you want it to be in the long term. If the goals and timescales do not align with your long term business objectives then amend your revenue targets, cost of fulfilment or fixed costs, and develop a realistic plan to achieve each.
Step 2. Revenue Targets & Costings:
This is the step that provides the basis for the marketing plan. Sense check the revenue targets and costings for each business sector and ask the question, “If I carry on as I am going, will I achieve the revenue and margin goals set in the budget?” If not quantify the gap, in financial terms, then develop the marketing plan to bridge the gap.
It goes without saying, that the 5 Ways Business Chassis should be used as part of this process to enable you to determine whether customer acquisition or customer development, or both, will be the key focus of the marketing plan. (If you haven’t used the 5 Ways principle to increase your sales by up to 60+% please contact me for further information).
In summary the marketing plan is there to ensure your business achieves its long term objectives. It should act as the bridge across the gap between your business as it is now and where you want it to be. It needs to focus on how you communicate the difference between what your target markets require and what your competitors offer.
Step 3. Target Markets:
Build a list of the target markets you want to market to sell your products or services to. Note that I said target markets (plural) – marketing is based on chunks!
Then for each target market consider where you will find them and how you get your marketing messages to them. This could be done via geography, what publications they read, what events or locations they go to, what digital marketing platforms they use, etc. You should be communicating the relevant marketing messages to each of your target markets through the most appropriate channels.
The other thing to bear in mind is that the number of prospects on each list should be such that it enables you to run effective marketing campaigns. I usually suggest lists of between twenty and fifty. The follow up is critical, long lists of targets may not get the necessary follow up due to lack of resources and therefore investment and time will be wasted.
Part 2 of this blog will cover:
- Your Offer: i.e. what should the “offer” be for each target market. Note, this does NOT mean discounting, it means what feature or benefit are you “offering” that the target market would find attractive.
- AIDA = Attention, Interest, Desire, Action: the content of the marketing material that will generate interest in your products and services.
- Acquisition Cost, Lifetime Value, Test & Measure: Understanding what to “Test & Measure” to your business goals without wasting money on non-effective marketing again.
