Journey of a Serial Entrepreneur

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How to get from where you are to where you want to be

5 Steps to Writing a Marketing Plan

“As real estate is location location location, marketing is frequency frequency frequency.” Jay Conrad Levinson

Marketing is a critical component of any business strategy. Unfortunately, it is not often given the importance it deserves. This is due to a multitude of misconceptions. For starters, it is treated as a cost instead of an investment. Using this stance, it is often one of the first things to take a cost cut when controls becomes tighter. Secondly, younger organizations hardly ever commit to long term campaigns with consistency, primarily because of lack of instant results. Along with a few other misconceptions involving lack of expertise and experience, marketing is often left on the back burner. If you are a startup or an upcoming organization, please bring this component to the fore.  Listed below are five steps to get your marketing strategy in place, with a plan.

1. Situational Analysis: Prior to starting any marketing campaign, it is essential you do a thorough analysis on the industry you want to operate in. Facts such as market share, growth, trends and economic policies are critical pieces of information. Next, find out about the entrenched competitors. Who are they ? What is their market share ? How fast have they been growing? Find out about major distributors in the industry, discounting policies, strategic alliances and any other information that may help you get a better understanding of where you may want to take a stance. To read more about doing a thorough situational analysis please click here.

2. Marketing Objectives: Every plan needs to have specific goals and targets that it wants to achieve. Use this section to plan what your organization’s major marketing objectives need to be. This could include market share, customer acquisition, customer retention, website traffic or expected ROI on certain marketing tactics. These need to be thought through, and be strongly linked to major objectives set out in your business plan. To read more about setting marketing objectives please click here.

3. Marketing Strategies: This section is a major component of the entire plan. The marketing objectives outlined in the previous section, need to be translated into strategies now. This is best done by segmenting the market, and identifying areas that can be most effectively targeted.  Correctly positioning yourself in the market place, and ensuring a differentiation strategy to the entrenched competition will be an added help. To read more about correctly formulating marketing strategies please click here.

4. Marketing Tactics: After formulating broad strategies regarding marketing stance and positioning, we need to convert them into executable actions. These can be done effectively using the 4P’s structure, which helps identify executable strategies for the product, price, placement and promotion. Each section can have specific strategies to help market the product/service and reach designated targets. To read more about specific marketing tactics please click here.

5. Marketing Budgets & Controls: The last section requires the marketing budget to be structured. This budget must be strongly correlated to marketing objectives and be allocated accordingly. There needs to be a strong focus on controlling costs and creating feedback loops to ensure that relevant information is being gathered, to help identify the most effective tactics. This budget must be treated as an investment and should therefore be pegged to ROI figures. To read more about marketing budgets and controls please click here.

These five steps constitute a simple marketing plan. The entire objective of this exercise is to bring structure to marketing activities, as well as to have clearly defined goals for what we expect it to do for our organization. Marketing is not limited to super bowl ads or billboards in Time Square. It requires you to be creative with the limited budget allocated. It must be used in such a way that activities are continuously monitored and tracked, and at year end, provide a significant ROI. Just make sure you stick with the marketing plan and do not bail out halfway through. Two things your plan should incorporate, consistency and SMART objectives. Best of luck!

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Marketing Budgets and Controls

“An important and often overlooked aspect of operational excellence is regularly comparing actual costs to budget assumptions – not just the numbers in the plan. Understanding assumption deviations will help improve the accuracy of future forecasting.” Bob Prosen

Budgets are a necessary evil, they draw boundaries to ensure we know how far to go with the marketing plan. With entrepreneurs , the boundary perimeter is often small and limited. This calls for ingenious tactics to make full use of creative and deal making mindsets. The budget of a marketing plan is directly correlated with objectives set by the team. The progress towards those objectives, must be monitored constantly by using control measures. These measures act as feedback mechanisms to help identify each tactic’s input. There are a few things I like to keep in mind when in the midst of setting budget and control measures:

1. Are our objectives and marketing budget in sync?: For a new business, it is important to outline realistic and attainable marketing objectives. I am all for optimistic and large goals, however, often these objectives are set without necessary resources allocated for realistic follow throughs. When discussing numbers, this is a good time to go back to objectives, and see whether attaining a 3% market share with your marketing budget, is a realistic target.

2. Have we committed more than 35% of our budget to one particular tactic, if so, is it justified?: I once had the misfortune of committing a large part of my marketing budget to running print ads in a particular magazine, specific to my target market. Unfortunately it didn’t go as well as planned, since then, I have made sure that committing a large part of the budget to one tactic or promotional activity is based on substantial research.

3. Have we established tactic specific controls?: As entrepreneurs we do not often have access to a lot of funds in our marketing budgets. It is hence essential, to ensure that control measures are established for every tactic, to maintain monthly or quarterly monitoring. If you notice the tactic is consistently not delivering as planned , adjust the plan accordingly. Having control measures in place also forces the responsible individuals to provide constructive feedback.

4. What is our expected return on investment (ROI) on our marketing budget?: This is a complex topic, and has been written about widely. To keep it simple, we have to look at our marketing budget as an investment rather than a cost. Whenever we make an investment, we look for a certain ROI to justify it. We must do the same for our marketing budget. Keep tracking your investments meticulously, and see how to improve on your investment to ensure your expected ROI. This must be discussed with the finance people at the company. I have found, they remain impartial and are able to see the forest from trees.

A well defined marketing budget can be the difference between, a good and a great result. If you have not developed one for your company, there is no better time than, now. It is important to keep in mind, that funds are wisely invested, and that you have the ability to adapt to feedback along the way.

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Marketing Tactics

“We can never have enough strategies. We have enough tactics but not enough strategies.” Matthew Dowd

After all the research and strategizing is done,  the strategies need to be translated into executable actions. It is important to remember that without the effort that goes into correctly identifying strategies for your business, marketing tactics will not work. Their success is largely dependent on how clearly and thoughtfully the strategies have been laid out. Once you have established goals, objectives and marketing strategies based on segmentation, positioning and differentiation,  selection of marketing tactics can begin. The first thing that comes to mind about tactics, the 4P’s ( Product, Price, Placement, Promotion ). The next thing that comes to mind is the lecture I had regarding them, then it becomes fuzzy.

I am all for structured frameworks, however, structured frameworks should enable you to develop executable strategies. If they become roadblocks, you have a problem. So keeping the 4P framework in mind you can devise tactics to drive sales and push your company further. These are four questions I like to ask when determining marketing tactics:

1. What is unique about our product/service that our customers should know?

For example, the MacBook Air did really well ( I really admire Apple’s corporate branding efforts). They brought out an ultra portable laptop and when it was revealed to the world, it came out of a manila envelope. Such a simple, yet effective introduction, made this product the talk of the town.

2. What is our price point strategy and why?

As mentioned earlier, competing on price is a losing strategy, one which entrepreneurs frequently use unfortunately. The inability to set correct price points can make or break a business. Pricing strategy must be based on comprehensive market research and comparison. Take a look at the competition,  then take a decision on how you want to be perceived by the market. Use pricing as a strategy to help slot you in a particular segment in the customers mind.

3. How are we going to get our product/service to our target segment?

According to objectives regarding volume, there needs to be identification of channels, to reach those targets. Do a thorough analysis of available channels of distribution, target those which can be used most cost effectively. However, keep in mind, the more channels you open up, the more resources required. Choose your channels carefully, focus on developing them to reach their potential.

4. How best can we promote our product/service to our target audience?

This is the segment that entrepreneurs need to get creative about. We usually don’t have large marketing budgets at our disposal, hence need to come up with ingenious ways to promote ourselves. One book which I would recommend to entrepreneurs with tight marketing budgets is “Guerrilla Marketing” by Jay Conrad Levinson. It is full of ideas which can be used by organizations on tight budgets.

These questions should help spark conversation,  and get you to think about marketing tactics to be used. Remember, remain focused on bottom line objectives, it is easy to slip into heated discussions about specific tactics and forget about end goals. Marketing can be simple and complex, it is advisable that at the onset of your entrepreneurial ventures, to keep things simple!

 

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