First Steps to Developing a Marketing Plan -

Home
>
Marketing
>
First Steps to Developing a Marketing Plan

First Steps to Developing a Marketing Plan

Direct Mail . . . Newspaper . . . Radio . . . Online. There are countless places to spend each advertising dollar. The hard part is determining the most effective medium for your business. It is not a matter of "One Size Fits All." The response rate for each media type will vary depending on the product or service you offer, your target market, and the characteristics of the community that you are marketing in. Even in the same industry, what works in one place may not work in another.

There are three basic steps to take to develop a marketing plan that works for your business:

Have a system for tracking the source of customers and clients.

Know the marginal cost of each of your products and services.

Identify your target levels and strategy for each customer segment.

Know Where Your Business is Coming From

Before you can determine the effectiveness of any type of advertising, you need a system for tracking how your customers and clients find you.

The list below ranks customer sources and the likelihood that a potential customer will purchase from you versus one of your competitors.

Current satisfied Customer

Referral from a trusted source

Current relationship, but have not yet purchased

Recognized expert in field

Ads

Cold Calls

The higher the level of trust developed, the higher the probability that they will purchase from you.

I would suggest defining your customer tracking system based on these terms. Your system can be as simple as keeping a running tally on a sheet of paper for each sale or new customer for each category. An Excel spreadsheet is another excellent and simple way to track this. If you have an existing customer database, point-of-sale program, or accounting system, add a field for each record to track this.

Here's the trick. You have to ask your customers and clients how they heard about you and you need to be consistent. After they give you the first answer, ask them if they heard about your business from any other source.

After you start tracking this, you will get a much better idea of what avenues of advertising are working for you. When at all possible, you also want to track the lag time between the day the marketing piece is distributed to the time of purchase.

Know Your Gross Margin

Let's say that you have been tracking where your customers are coming from and there is one area of advertising that hasn't been getting great results but pays for itself. Should you keep it?

Maybe not. No matter what type of business that you are in, there is a cost of doing business. There is a certain percentage of every dollar in revenue that goes to cover your overhead costs.

In order for advertising to truly "pay for itself," it must cover its own cost plus the marginal cost of doing business. But the point of advertising is to make your business money, not just pay for itself. If it is truly "break-even," maybe it is time to look at other options.

Targeting Trust in Your Marketing Plan

When I sold real estate, the general rule of thumb for someone starting in the business was that you work really hard for three years and then it starts getting easier. At that point, referrals and repeat customers become an increasingly larger part of your business.

I think this principle is true regardless of the industry, and it goes back to the level of trust between you and your customer as illustrated in the list above. If the purchase decision involves a low dollar amount, it will require a lower amount of trust and a shorter amount of time to develop.

So back to the original question, where do you put your money? If you want a truly effective marketing campaign, a plan for each customer source in the trust diagram should be developed.

Carla Alvarez is owner of Legacy Marketing Services which provides integrated marketing services for businesses including business identity, web and CSS development, and business development seminars.

In The News:

table border=0 width= valign=top cellpadding=2 cellspacing=7trtd width=80 align=center valign=topfont style=font-size:85%;font-family:arial,sans-serifa href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://abcnews.go.com/Politics/Vote2008/story%3Fid%3D5994703%26page%3D1cid=1254438696ei=jj3wSKqADKCQ6AO2qMGiAwusg=AFQjCNGjcMDJu9YPwBtJgUrFXTnwcCVAFgimg src=http://news.google.com/news?imgefp=A9Cdr06ye8oJimgurl=a.abcnews.com/images/Politics/ap_mccain_3_081009_mn.jpg width=80 height=60 alt= border=1brfont size=-2ABC News/font/a/font/tdtd valign=top class=jfont style=font-size:85%;font-family:arial,sans-serifbrdiv style=padding-top:0.8em;img alt= height=1 width=1/divdiv class=lha href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.straightupsearch.com/archives/2008/10/obama_uses_sear.htmlcid=1254438696ei=jj3wSKqADKCQ6AO2qMGiAwusg=AFQjCNH-_4dvVuGLnj8_Kp6MU4Wf0NnKiAObama Uses Search Engine bMarketing/b for Reputation Management/abrfont size=-1font color=#6f6f6fStraightUpSearch,nbsp;MInbsp;-/font nobr12 hours ago/nobr/fontbrfont size=-1I am just making an observation, and giving credit where it is due for the creation of a well thought out and well managed search bmarketing/b campaign. b.../b/fontbrfont size=-1a href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.youtube.com/watch%3Fv%3DEgKYQD-siqEcid=1254438696ei=jj3wSKqADKCQ6AO2qMGiAwusg=AFQjCNGKr03sQS3OfscxvLb6j0JRp2EugwVideo: McCain Links Obama To Ayers/a font size=-1 color=#6f6f6fnobrCBS/nobr/fontobject width=448 height=356param name=movie value=http://www.youtube.com/v/EgKYQD-siqE/paramparam name=wmode value=transparent/paramembed src=http://www.youtube.com/v/EgKYQD-siqEtype=application/x-shockwave-flashwmode=transparentwidth=448height=356/embed/objectbr/fontfont size=-1a href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://afp.google.com/article/ALeqM5jIU4tDVoytG2Xt6P0Q5KCns6GcuAcid=1254438696ei=jj3wSKqADKCQ6AO2qMGiAwusg=AFQjCNFVXPPKDCEni77Ss-azdY8ESZE44wObama rebukes McCain for divisive politics/a font size=-1 color=#6f6f6fnobrAFP/nobr/font/fontbrfont class=p size=-1a class=p href=http://news.google.com/news?sourceid=navclientie=ISO-8859-1rls=GGLG,GGLG:2005-22,GGLG:enncl=1254438696hl=ennobrall 6,676 news articles/nobr/a/font/div/font/td/tr/table

table border=0 width= valign=top cellpadding=2 cellspacing=7trtd width=80 align=center valign=topfont style=font-size:85%;font-family:arial,sans-serifa href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.wnct.com/nct/lifestyles/faith_values/article/rabbi_claims_peta_sent_threatening_e_mails/20590/cid=1255603110ei=jj3wSKqADKCQ6AO2qMGiAwusg=AFQjCNE4BcOTGex6kZKD1QEl9KYY_m6jpAimg src=http://news.google.com/news?imgefp=KINQ2GXz0nIJimgurl=media.wnct.com/wnct/img-story/images/uploads/Email_AP.jpg width=80 height=60 alt= border=1brfont size=-2WNCT/font/a/font/tdtd valign=top class=jfont style=font-size:85%;font-family:arial,sans-serifbrdiv style=padding-top:0.8em;img alt= height=1 width=1/divdiv class=lha href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.bizjournals.com/pacific/stories/2008/10/06/daily55.htmlcid=1255603110ei=jj3wSKqADKCQ6AO2qMGiAwusg=AFQjCNGCKYfi1ImzIsXiNipmTVQbWbx1TwHawaii allocates $2 million more for tourism bmarketing/b/abrfont size=-1font color=#6f6f6fBizjournals.com,nbsp;NCnbsp;-/font nobrOct 9, 2008/nobr/fontbrfont size=-1That increases the HTA’s fiscal 2009 budget for bmarketing/b to $55.5 million. The $2 million will be reallocated from other, as yet unspecified, HTA funds. b.../b/fontbrfont size=-1a href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.starbulletin.com/business/20081010_HTA_approves_2M_in_marketing_funds.htmlcid=1255603110ei=jj3wSKqADKCQ6AO2qMGiAwusg=AFQjCNE9WW5zoPp13jThd2Rit7j219qX0AHTA approves $2M in bmarketing/b funds/a font size=-1 color=#6f6f6fnobrHonolulu Star-Bulletin/nobr/font/fontbrfont size=-1a href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.khon2.com/home/ticker/30729849.htmlcid=1255603110ei=jj3wSKqADKCQ6AO2qMGiAwusg=AFQjCNG2hXZeBjMWsrvlfBUSNi1bAtn58QHTA Names Interim Leader/a font size=-1 color=#6f6f6fnobrKHON2/nobr/font/fontbrfont size=-1a href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.bizjournals.com/pacific/stories/2008/10/06/daily52.htmlcid=1255603110ei=jj3wSKqADKCQ6AO2qMGiAwusg=AFQjCNGA4HUQKIDcvYV0wuzW9OVmPJHakwHawaii Tourism Authority names interim chief executive/a font size=-1 color=#6f6f6fnobrBizjournals.com/nobr/font/fontbrfont class=p size=-1a class=p href=http://news.google.com/news?sourceid=navclientie=ISO-8859-1rls=GGLG,GGLG:2005-22,GGLG:enncl=1255603110hl=ennobrall 212 news articles/nobr/a/font/div/font/td/tr/table

table border=0 width= valign=top cellpadding=2 cellspacing=7trtd valign=top class=jfont style=font-size:85%;font-family:arial,sans-serifbrdiv style=padding-top:0.8em;img alt= height=1 width=1/divdiv class=lha href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.eastvalleytribune.com/story/127819cid=1256238593ei=jj3wSKqADKCQ6AO2qMGiAwusg=AFQjCNFw6BkCLW_RXASkdwI5zcYlq58YDATempe sales and bmarketing/b company hiring 230/abrfont size=-1font color=#6f6f6fEast Valley Tribune,nbsp;AZnbsp;-/font nobr7 hours ago/nobr/fontbrfont size=-1Direct Alliance, an outsourcing provider of sales and bmarketing/b for companies, plans to add 230 new employees to its current 700-member workforce at its b.../b/fontbrfont size=-1a href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://ktar.com/%3Fnid%3D6%26sid%3D972361cid=1256238593ei=jj3wSKqADKCQ6AO2qMGiAwusg=AFQjCNHvrnJyAJod_vc57qgPjb38DhmMqQTempe business adding 230 new jobs/a font size=-1 color=#6f6f6fnobrKTAR.com/nobr/font/fontbrfont class=p size=-1a class=p href=http://news.google.com/news?sourceid=navclientie=ISO-8859-1rls=GGLG,GGLG:2005-22,GGLG:enncl=1256238593hl=ennobrall 2 news articles/nobr/a/font/div/font/td/tr/table

table border=0 width= valign=top cellpadding=2 cellspacing=7trtd width=80 align=center valign=topfont style=font-size:85%;font-family:arial,sans-serifa href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://chattahbox.com/health/2008/10/09/fda-says-labcorp-is-illegally-marketing-ovarian-cancer-test/cid=1255575432ei=jj3wSKqADKCQ6AO2qMGiAwusg=AFQjCNFpM8YLh7vHv45a_xob_vGPlRS2ugimg src=http://news.google.com/news?imgefp=Avo6T1P9nKkJimgurl=www.chattahbox.com/images/FDA_LabCorp_ovarian_cancer_test.jpg width=74 height=80 alt= border=1brfont size=-2ChattahBox/font/a/font/tdtd valign=top class=jfont style=font-size:85%;font-family:arial,sans-serifbrdiv style=padding-top:0.8em;img alt= height=1 width=1/divdiv class=lha href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.bizjournals.com/triangle/stories/2008/10/06/daily39.htmlcid=1255575432ei=jj3wSKqADKCQ6AO2qMGiAwusg=AFQjCNGBCsaqOHlyM1QrCrWd8W5cTvGrUAFDA: LabCorp’s bmarketing/b of ovarian-cancer test violates law/abrfont size=-1font color=#6f6f6fBizjournals.com,nbsp;NCnbsp;-/font nobrOct 9, 2008/nobr/fontbrfont size=-1“Because you do not have bmarketing/b clearance or approval from the FDA, bmarketing/b OvaSure is in violation of the law,” the letter states. b.../b/fontbrfont size=-1a href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.chattershmatter.com/2008/10/09/fda-says-labcorp-is-illegally-marketing-their-ovarian-cancer-test/cid=1255575432ei=jj3wSKqADKCQ6AO2qMGiAwusg=AFQjCNFU4ztJxDtmTyoPCuZWLVlVc1gtlAFDA Says LabCorp Is Illegally bMarketing/b Their Ovarian Cancer Test/a font size=-1 color=#6f6f6fnobrChatter Shmatter/nobr/font/fontbrfont size=-1a href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://chattahbox.com/health/2008/10/09/fda-says-labcorp-is-illegally-marketing-ovarian-cancer-test/cid=1255575432ei=jj3wSKqADKCQ6AO2qMGiAwusg=AFQjCNFpM8YLh7vHv45a_xob_vGPlRS2ugFDA Says LabCorp Is Illegally bMarketing/b Ovarian Cancer Test/a font size=-1 color=#6f6f6fnobrChattahBox/nobr/font/fontbrfont size=-1a href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.topnews.in/fda-cancer-test-failed-get-its-approval-274819cid=1255575432ei=jj3wSKqADKCQ6AO2qMGiAwusg=AFQjCNF8d0mHdyd-7pNxq2nTlB4Rf9bO6QFDA - Cancer Test Failed to Get Its Approval/a font size=-1 color=#6f6f6fnobrTopNews/nobr/font/fontbrfont size=-1 class=pa href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.efluxmedia.com/news_FDA_Warns_LabCorp_Over_Illegal_Sales_Of_Ovarian_Cancer_Test_26167.htmlcid=1255575432ei=jj3wSKqADKCQ6AO2qMGiAwusg=AFQjCNFkvYcbkaMYTS6swyxpYa8hykssFwnobreFluxMedia/nobr/anbsp;- a href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.medicalnewstoday.com/articles/124818.phpcid=1255575432ei=jj3wSKqADKCQ6AO2qMGiAwusg=AFQjCNHMfymT3TuOA0cuqH41tR8EfbK0tQnobrMedical News Today/nobr/a/fontbr/font class=p size=-1a class=p href=http://news.google.com/news?sourceid=navclientie=ISO-8859-1rls=GGLG,GGLG:2005-22,GGLG:enncl=1255575432hl=ennobrall 76 news articles/nobr/a/font/div/font/td/tr/table

marketing - Google News