Have you bought a product from an ad lately?

Have you bought a product from an ad lately?

My guess, you probably haven't bought a product based on an ad you've seen. Now that you're thinking about that, let me ask, why not? So many factors are at play here that my brain is exploding as to where to start.  Let's begin with your product or service. How well do you know your customer and your product? Imagine sending a door-to-door salesman out with a sample case that he is unfamiliar with to an unknown consumer. (See Sales Begin Before the Salesman Calls). I wouldn't bet on many sales. With the barrage of sales messages your customer is hit with constantly, how do you get seen and how do you get chosen? Just like with any successful endeavor, you need to start with a plan. No Plan =  No Business.

Here are 5 Steps to Building an Effective Marketing Plan:

Step 1: Know Your Customer   Define a specific target audience. This takes research. It is critical that you learn who your potential customers are. Your company will benefit by allowing for a consistent, relevant message to a smaller target audience and thereby reduce the cost of reaching them. (See Why Advertising Doesn't Work). Develop a target Demographic (age, gender, marital status, geographic location, household income, etc.)? You will want to determine their Psychographics (values, beliefs, interests etc.) Where do they shop, what publications, websites and social media outlets do they peruse?  Once you've located them interact with them on a consistent basis. Engage with them through the mediums discovered in your research. Always request feedback. The more information you can attain the more value you can add to the future development of your product and brand.

Step 2: Know Your Product I would start by asking yourself what does your company sell and why should anyone want it? Mainly what are the product or service benefits you are providing to your customer? What's in it for them? How does it solve their problem or answer a need? Develop a product personality which specifically relates to them. Think of your product as a brand which speaks to them consistently with one tone and one message. Define a unique selling proposition which clearly communicates a reason to buy from you instead of the competition. (See I Traded a Gun Fo a Stick). A definable value. Thereby making price a non-issue. Never compete on price. It becomes a race to the bottom. Someone will always be cheaper.

Step 3: Know How to Reach Your Customer   Whether you're an established business with a large advertising budget or a start up, you want to use those bucks wisely. Allow for more frequency by determining and utilizing the least expensive method of reaching your customer. Frequency is important because not everyone is viewing a given media precisely at the time your message is running. You want to be sure that a given media reaches your potential customer. Just reaching large numbers of people doesn't result in effective marketing. (See Pay Your Advertising Agency More Than They Ask). I love it when a TV sales rep tells my client that their station reaches half a million people. That's great, except that my client's audience is within 3 miles of his location. A good media plan requires as much creativity as the ad you're running. Your product may not need mass media. In fact, in certain cases, a viral approach or public relations might be in order. PR is certainly the most cost-effective and credible form of marketing. The fact that PR appears to be written by a third party, makes it more believable to the consumer. My last point here is on budget. Think of your advertising budget as an investment, not a cost. Allot a number to it for a period of time and stick to it. Advertising and its message is a building process that takes time and repetition to work.

Step 4: Knowledge is Power   Earlier in this newsletter we mentioned opening a dialog with your customer as an effective means of developing a position for your company. The more information these customers give you the easier for you to know where you are in their hearts and minds and where you need to be. Social media opens this dialog in a much more personal and informative manner than pure paid-for advertising. This form of marketing allows for a real-time dialog. Every communication vehicle should contain a call to action. How else would you be able to judge the effectiveness of your ad? That call to action may come in the form of sales, sales inquiries and information capture. Remember that even negative comments are beneficial in planning future developments of product and marketing. Oh yeah, test your message, test your media and test your products relevance.

Step 5: Know Your Competition A good starting point in attacking your competition is knowing as much as you can about them. Figure out which competitors are the most successful and why. How do they market themselves? What media do they use? Determine the market share they own. Will you take market share from them or develop a market of your own. In the 22 Immutable Laws of Marketing, Al Reis states that if you can't be first in a category, pick a category in which you can be first. Be inventive in developing ads that position your company against everyone else. This allows for smaller companies to compete with the big boys. Their are three types of ads to make your point against your competitors.(See You Don't Need a Bazooka to kill a Fly). The Testimonial (make sure the person giving the testimonial is credible and not just a famous celeb with no connection to your product). The Product Demonstration (show how the product works and all the benefits of using it) and the Side-by-Side comparison (this will show why your product is the better choice). You may want to conduct in-store surveys and focus group research. I would suggest using a professional to accomplish this research.

Let me conclude with a short example of commitment to understanding one's product and customer. I had an old advertising buddy who was passionate about advertising as I am. His agency picked up a grocery product account. After working a full day at his agency, he swept floors in a grocery store. All the while, he watched customer behavior and the choices they made. Perhaps even asking a few questions of shoppers. That's a committed advertising guy. Needless to say his agency is one of the most successful in the state.