The c ,

buccessiulMarketin

PI anHow to Create Dynamic,

Results-Oriented MarketingF U L L Y R E V I S E D A N D E X P A N D E D

F O U R T H E D I T I O N

Roman G. Hiebing, Jr., Scott W. Cooper,and Steven J. Wehrenberg

New York Chicago San Francisco Lisbon London Madrid Mexico CityMilan New Delhi San Juan Seoul Singapore Sydney Toronto

Contents

Foreword

Preface

IntroductionWhat the Reader Can Expect xxixThe Four Steps to Successful Marketing Planning xxxii

Step 1: Business Review xxxiiStep 2: Brand Platform and Plan Objectives xxxii •Step 3: Tactical Plans: Marketing Mix Tools xxxiiStep 4: Budget, Payback, Calendar, Execution, and Evaluation xxxiv

How to Use This Book in Your Marketing Planning xxxivAdapt the Process to Fit Your Business xxxvStrive to Fill Data Voids xxxvKeep Track of Your Ideas xxxvApply the Material to Your Own Marketing Situation xxxvUse Idea Starters xxxvAllow Sufficient Time to Prepare and Modify Your Plan xxxvi

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PART I BUSINESS REVIEW INSIGHTS

CHAPTER i What You'll Need to Know, Part 1Overview 5Why Market Information Is Important 5

Industry Category Comparisons 7Consumers versus Customers 7

Primary Elements of the Business ReviewStep 1: Company Background 8Step 2: Product Review 8Step 3: Sales Analysis 8Step 4: Trend Analysis (PESTLE) 9Step 5: Consumer and Customer Review 9Step 6: Competitive Review 9Step 7: Problems and Opportunities 9

Preparing the Business Review 9Task 1: Prepare an Outline 9Task 2: Develop Questions 11Task 3: Develop Data Charts 11

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Task 4: Develop Reference Points for Comparisons 11Compare Five-Year Trends 12Compare Trends within the Company 12Compare the Company to the Industry 12Make Competitive Comparisons 12Use Benchmark Marketing 12A Last Thought 13

Task 5: Conduct Data Searches 13Task 6: Write Summary Statements 14

Organizing the Business Review 14Conducting Research 14

Primary Research 14Quantitative Research 14Qualitative Research 14

Secondary Research 15Indexing 15Sources of Information 16

Target Market Segmentation: Consumer, Business, and Geographic 17Government Publications and Census Data 21Trade and Consumer Publications 21Lifestyle Segmentation Information 22Media Spending and Media Competitive Information 23Association and Trade Show Information 25Media and Print Production Costs and Availability 26Trending Information and Analytics Tools 26Social Media Measurement 28Additional Sources and Tips 30

Dos and Don'ts 30

CHAPTER 2 What You'll Need to Know, Part 2 33Overview 33Developing Insights for the First Six Steps of the

Business Review 34Step 1. Company Background 34

Corporate and Company History 35In Summary 36Where to Find Information aboutYour Company's History 37

Corporate and Company Mission 38Advance Auto Parts 38Aflac 39Nike 39 -

Corporate and Company Goals 39Organizational Structure 39

Step 2. Product Review 41Product Assessment 41

Products and Services of Your Company and Those of the Competition 41The History, Strengths, and Weaknesses ofYour Company's Products 42Product Trends 42

Product Portfolio 43Product Life Cycle 45

Step 3. Sales Analysis 47Market Category, Competitors, and Company 48

Contents Vll

Total Sales 48

Individual Product Sales 48

Profits 49

Market Share 49

Sales by Seasonally 51

Sales by Store-for-Store Sales by Retailers 52

Channels of Distribution 52

Sales by Outlet and/or Channel Type 53

Penetration for Retailers 53

Market Coverage for Packaged Goods and Consumer Goods 56

Sales Representative or Broker Network 57

Sales by Selling Programs 57

Price 59

Prices of Your Products Relative to Those of the Competition 59

Sales by Price Point 60

Price Elasticity 60

Cost Structure 61

Geography 62

Purchase Rates of the Industry Product Category and Your Company's

Product by Geographic Markets 62

Trading Areas 64

Step 4. Trend Analysis (PESTLE) 65PESTLE Analysis 65

Process for Analyzing Trends 65

Step 5. Consumer and Customer Review 66Task 1: Target Market Segments 71

Volume and Concentration 71

Industry Category versus Company Target Market 73

Review of Consumer Segmentation Methods 73

Review of Business-to-Business Segmentation Methods 82

Task 2: Awareness, Knowledge, and Attitudes 87

Product Awareness 87

Knowledge 88

Awareness by Segments 88

Product Attributes and Attribute Importance by Segment 90

Attribute Ranking by Segment 91

Methodologies to Help You Determine Attribute Importance 91

Task 3: Behavior 91

Trial 91

Retrial 93

Putting the Pieces Together: The Hierarchy of Effectors Model 95

Step 6. Competitive Review 99How to Organize and Analyze Competitive Information 100Competitive Strengths, Weaknesses, Opportunities, and Threats (SWOT) Analysis 101

Business Review Writing Style 103Dos and Don'ts 104

CHAPTER 3 Problems and Opportunities 107Overview 107

Identifying Problems and Opportunities 107

Problems 108

Opportunities 109

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Problem or Opportunity? 110How to Write Actionable Problems and Opportunities 110

Keeping Your Statements Factual 110Writing Style Examples 111

Example for Step 3, Sales Analysis 111

Example for Step 5, Consumer and Customer Review, Target Market Segments

Example for Step 5, Consumer and Customer Review, Awareness and Attitudes

Example for Step 5, Consumer and Customer Review, Behavior 112

Example Opportunity 112

Example for Step 6, Competitive Review 112

Dos and Don'ts 112

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PART II BRAND PLATFORM AND PLAN OBJECTIVES

CHAPTER 4 Scope 117Overview 118

Core Competency 118Core Competency Criteria 119

A Couple of Examples 120

How to Identify Your Core Competencies: A Case Study 122

Steps for Developing the Scope for Your Business 122Step 1: Provide an Overview of Company Strengths and Weaknesses 122

Example Strengths 123

Example Weaknesses 124

Step 2: Identify the Organization's Core Competency 124Combine Your Strengths into a Capability 124

Ask Your Customers 126

Example: American Red Cross, Badger Chapter, Wisconsin 126

Step 3: Review the Advantages That the Core CompetenciesBring Your Organization 126

Step 4: Determine What Business You're Really In 127How to Let Your Core Competency Guide Your Future Actions 127

Denning the Scope of Your Business 128Example: Black & Decker 129

Example: Shoe Retailer 130

Example: Broadjam Social Media Site for Musicians 130

Example: Mercury Marine 131

Hints for Determining the Boundaries of Your Scope 131Hints for Determining the Boundaries of Your Users and Channels 131

Hints for Determining the Boundaries of Your Industry Category and Competitors 131

Hints for Establishing Boundaries for Your Products Portfolio 132

Dos and Don'ts 133

CHAPTER 5 TargetsOverview 136

Segmentation 136Target Markets and Target Market SegmentsSegmentation Options 139

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Customers and Noncustomers 139Customer Tenure 139Demographics or Description of Businesses 140Buying Habits and/or Product Uses 140Lifestyle Characteristics 141Geography 142Attribute Preferences 142Emotional Connections 143Dollar Size or Employee Size 144Organizational Structure 144Heavy Users 144Short- and Long-Term Target Segments 145Purchasers or Users? 145

Primary and Secondary Target Market Segments 146Primary Target Market Segments 146Secondary Target Market Segments 148

Target Market Segmenta t ion Methodo logy 150Task 1: Identify Top-Selling and Growth Products 150Task 2: Determine Key Industry and Company Target Market Segments 151

1. Determine the Industry Target Market Segments for Products with theGreatest Industry Category Sales and Growth 151

2. Determine the Current Company Target Market Segments for the CompanyProducts with the Greatest Sales and Growth 151

3. Determine IfYour Company's Primary (Largest and Most Important) TargetSegment Matches That of the Leading Industry Target Segment 151

4. Identify the Power Segments, Which Are Those Target Market SegmentsResponsible for the Greatest Number of Sales across Multiple Products(If Applicable to Your Company) 154

Task 3: Define the Primary and Secondary Target Market Segments 1541. Define Your Primary Target Market Segment 1542. Define Your Secondary Target Market Segments 1553. Finalize Your Target Market Decisions and Capture the Driver Metrics for

the Key Primary and Secondary Segments You've Identified 156Task 4: Refine Your Selections 156

1. Your Segments Should Be Consistent with Your Brand Positioning 1572. Your Segments Should Have Strong Awareness of Your Company

and Its Key Products 1573. Your Segments Should Have Positive Attitudes toward Your Company

across Its Most Critical Purchase Considerations 158Task 5: Analyze Demand for Your Products and Services 158

Summary of Target Market Segmentation Methodology 160How to Write Target Market Descriptors 161Dos and Don'ts 164

CHAPTER 6 Positioning 167Overview 168

What a Brand Position Is Not 168What a Brand Position Is 168Brands Tie Directly to the Values and Beliefs of Your Target Market 169Brand Positions Happen Whether You Actively Choose to Shape Them or Not 169Your Company's Brand Is Just Like Your Personal Reputation 169The First Lesson of Brand Positioning Is to Practice the Art of Limitation 169

Contents

Brands Are Not Owned by the Marketing Department 170Strong Brands Beget Loyal Customers, the Ultimate Benefit of Branding 171Successful Brands Are Worth More 172A Short Story 172Positioning Considerations 174

Creating Your Brand Positioning 174Step 1. Capturing Your Foundation Story and World view 175

The Foundation Story 176The Steep & Brew Foundation Story 176The Nike Foundation Story 176

The Worldview 177Writing Your Foundation Story and Worldview 178Examples of Foundation Stories and Worldviews 178

Networked Insights 178Work Sharp 179ELI 179

Step 2. Finding Your Brand Promise 180Writing Your Brand Promise 182

Brand Promise Format Option 1 182Brand Promise Format Option 2 183Brand Promise Format Option 3 183

Method 1 for Finding Your Brand Promise: Positioning byEmotional Relationship 183

How to Build an Emotional Relationship 187Task 1: Develop an Individual Profile of Your Highest-Opportunity Customers 187Task 2: Brainstorm for Motivators 187Task 3: Identify the Consumers'Primary Emotional Motivators 187Task 4: Use Qualitative Research to Rank the Motivator Choices with

Target Consumers 187Task 5: Validate Qualitative Analysis with Quantitative Survey Results 188Task 6: Use the Strongest Motivator for Your Positioning Strategy 188

Method 2 for Finding Your Brand Promise: Positioning by Matching 188Task-1: Analyze Your Products versus the Competition 188Task 2: Identify the Differences between Your Products and Those

of the Competition 188Task 3: List Your Key Target Market Differences 190Task 4: List Your Key Target Market Characteristics 190Task 5: Match Your Product's Characteristics to the Target Market's

Needs and Wants 190Method 3 for Finding Your Brand Promise: Positioning by Mapping 195

Task 1: List Product Attributes by Importance 195Task 2: Rate Your Product and Your Competitors' Product for Each Attribute 195Task 3: Visualize Desired Position on the Map forYour Product 195Mapping Customer versus Noncustomer Perceptions 196Look for Positioning Gaps 196Look for Strengths and/or Groupings 197Develop a Visual Space Map 197

Step 3. Expressing What the Brand Essence Is and Isn't 199Writing What Your Brand Essence Is and Isn't 199

Start with the "Is" Words 200Now Develop the "fen T Words 200

Example of Brand Essence Is and Isn't: ELI, Inc. 200

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Step 4. Developing Your Brand Personification 201Writing Your Brand Personification 204Two Brand Personification Examples 204

ELI 204

Networked Insights 205

Step 5. Developing Your Brand Vision 205Step 1: Create Cross-Functional Groups 206Step 2: Send the Participants Your Brand Positioning Work Ahead of Time 206Step 3: Start Off the Session with an Overview of the Brand Promise 206Step 4: Have the Participants Work through a Visioning Exercise 206Step 5: Summarize the Visioning Sessions 207Step 6: Don't Do This Just Once 207 • '

Case Study of a Company's Finding Its Brand Promise:Famous Footwear 207

The Early Years 208The Next Evolution 209The New Positioning 210

Example of Famous Footwear Brand Positioning Platform 212

The Results 213

Writing Your Brand Positioning 215Dos and Don'ts 215 ' i

CHAPTER 7 Sales Objectives 219Overview 220

What to Keep in Mind When Setting Sales Objectives 220Sales Objectives Must Be Challenging and Attainable 220

Sales Objectives Must Be Time Specific 220

Sales1 Objectives Must Be Measurable 221 *•

Not Only Dollars and Profits but Also the Number of Units Sold,Transactions Processed, and People Served 221

• Quantitative and Qualitative Factors That Affect Sales Objectives 221Quantitative Factors 221

' Qualitative Factors 223

The Process of Setting Sales Objectives 225Task 1: Set Quantitative Sales Objectives 226 '

Method 1. Outside Macro Approach 226

Method 2. Inside Micro Approach 230

Method 3. Expense-Plus Approach 231

Alternative Method for Setting Sales Objectives for New Products or

New Product Categories 233

Task 2: Reconcile the Sales Objectives 234Task 3: Make Qualitative Adjustments to the Quantitative Sales Objectives 234

Final Reminders 235Include a Rationale with Sales Objectives 235Involve Upper Management in Setting Sales Objectives 235Plan to Revise the Sales Objectives 236

Dos and Don'ts 236

CHAPTER 8 Marketing Objectives 239Overview 240Marketing Objective Parameters 242

Current Purchasers and Users 243

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Retention of Current Purchasers and Users 243Increased Purchases by Current Purchasers and Users 243

New Purchasers and Users 244Increased Trial 244Repeat Purchases after Initial Trial 244

Lapsed Purchasers and Users 244Increased Trial 244Repeat Purchases after Initial Trial 245

How to Develop Your Marketing Objectives 245Task 1: Review Your Sales Objectives 245Task 2: Review Your Target Market 246Task 3: Review Your Problems and Opportunities 246Task 4: Quantify the Marketing Objectives in Terms of Your Sales and

Target Market Behavior Objectives 247Long- and Short-Term Marketing Objectives 247Factors That Might Inhibit the Fulfillment of Your Marketing Objectives 248Differences between Retail, Packaged-Goods, and Business-to-Business

Marketing Objectives 249Dos and Don'ts 250

CHAPTER 9 Communication Objectives 253Overview 253

The Four As of Communication and Behavior 254Awareness 254Attitude 255Action 256Action Again 256

Action and Action Again: Marketing Objectives Definitions 256The Ties between Marketing Objectives and Communication Objectives 256Communication Objectives 257Quantifying Your Communication Objectives of Awareness and Attitude 257

The Process of Locking Sales to Communication 259What's Needed to Develop Marketing Communication Objectives? 259

Step 1. Describe and Size Your Primary Target Market 259 'Step 2. Quantify Your Awareness 259Step 3. Quantify Positive Attitudes 259Step 4. Quantify Purchase Intent 261Step 5. Review Your Sales and Marketing Objectives 261Step 6. Finalize Your Estimates for Your Communication Objectives 262

The Communication Value Method: Pulling It All Together 262Task 1: Link Your Communication Objectives Back to Your Target Market,

Sales, and Marketing Objectives 263Task 2: Link Your Communication Objectives to Your Tactical Tools 263

Predictive Modeling 264Task 3: Assign Values to Tactical Tools 268Summing Up Tasks 1 through 3 269Now You Can Manage the Pieces 271

Communication Control Challenges and Inherent ProblemsRegarding the Method for Developing Communication Objectives 271

Controlled to Somewhat Controlled to Uncontrolled Communication 271Application Shortcomings 272

Dos and Don'ts 274

Contents xm

CHAPTER 10 Message Strategy 277Overview 279Turning Your Brand Message Strategy into a

Great Brand Platform Idea 280Product Insight as a Key Difference Maker That Connected to

the Positioning: Hostess 281Cultural Insight That Led to Key Words in the Message: General Mills

Whole Grain 281Target Audience Attitudinal Insight That Connected to the

Positioning: Toro 282Industry Category Insight That Capitalized on a Negative Correlation:

Healthy Choice 283Industry Category Insight That Was Used as an Anti-category Message:

National City 283Competitive Insight That Demonstrated the Positioning: H&R Block 284

Why Words Matter 285Avoiding Traps 285Testing Messages 286Dos and Don'ts 293

CHAPTER ii Umbrella Strategy 295Overview 296Specific Umbrella Strategies and Examples of How to Apply Them 297

Target Market Strategies 297Examples of Target Market Strategy Examples 298

Pricing Strategies: Low Cost or Differentiation? 298Differentiation 298

Low Cost 299

Price as a Short-Term Strategy 299

Examples of Low-Cost Strategies 299

Building the Market or Stealing Market Share? 300Examples of Building-the-Market and Stealing-Market-Share Strategies 301

National, Regional, and Local Market Strategies 302Examples of National, Regional, and Local Market Strategies 302

Growth and Product Strategies 303 •Using Product to Maximize Your Brand Positioning 303

Using Product to Fulfill Marketing Objectives

Using Product to Improve Efficiency and Cost

Examples of Product Strategies 305

Naming Strategies 306Examples of Naming Strategies 306

Packaging Strategies 306Examples of Packaging Strategies 307

Seasonality Strategies 307Play to Seasonality Strength 307

Alter the Seasonality 307

Communicate around Seasonality 307

Consider Your Resource Capacity 308

Examples of Seasonality Strategies 308

Spending Strategies 308Examples of Spending Strategies 308

Competitive Strategies 309

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Anti-competitive Strategies 309

Competitor-Specific Strategies 309

Entry of a New Competitor to Your Industry Category or Market 309

Countermoves to Your Competitors' Strengths 310

Examples of Competitive Strategies 310

Distribution of Product and Penetration or Coverage Strategies 310

Examples of Distribution of Product and Penetration or

Coverage Strategies 311

Personal Selling, Service, and Operations Strategies 311

Examples of Personal Selling, Service, and Operations Strategies 312

Promotions and Events Strategies 312

Examples of Promotions and Events Strategies 312

Advertising Strategies 313

Examples of Advertising Strategies 313

Media Strategies 313

Examples of Media Strategies 314

Interactive Media Strategies 314

Examples of Interactive Media Strategies 314

Merchandising Strategies 315

Examples of Merchandising Strategies 315

Public Relations Strategies 316

Examples of Public Relations Strategies 316

Marketing Research and Testing (R&T) Strategies 316

Examples of Marketing Research and Testing (R&T) Strategies 317

How to Develop Your Marketing Strategies 317How to Write Your Marketing Strategies 318

Dos and Don'ts 318

PART III TACTICAL PLANS

CHAPTER 12 Product, Naming, and PackagingOverview: Product 324

Why New Products Are Important 325

Issues Affecting the Product 325

Product Attributes 325

Product Segmentation 325

Product Innovation 326

How to Develop a New Product Plan 327

Task 1: Establish Your Product Objectives 327

Task 2: Establish Your Product Strategies 327

Why So Many New Products Fail 328

Dos and Don'ts: Product 328Overview: Naming 329

Definition of Naming 329

The Importance of Naming 330

Developing Your Naming Plan 331

Task 1: Establish Naming Objectives 331

Task 2: Establish Naming Strategies 331

Task 3: Establish Naming Property Parameters 332

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Task 4: Generate and Select Names 332

Task 5: Protect Your Name Legally 334

Dos and Don'ts: Naming 335Overview: Packaging 336

Functions of Packaging 336Protection 336

Facilitating Product Use 337

Communication 337

How the Store or Business Environment Is Like Product Packaging 338Reasons for Changing Your Packaging 339Developing a Packaging Plan 340

Task 1: Develop Packaging Objectives 340

Task 2: Develop Packaging Strategies 340

Dos and Don'ts: Packaging 341

CHAPTER 13 Pricing 343Overview 343Considerations in Pricing 344

Breakeven 344Price Sensitivity 346Positioning 346Target Market 347Promotions 347Product Life Cycle 348

Introductory Stage 348

Growth Stage 348

Maturity Stage 349

Decline Stage 349

Product Differentiation 349Competitive Bidding 349Business Goals 349

Increase Short-Run Profits 349

Increase Sales 350

Survive 350

Determining Your Pricing Needs 350How to Develop a Pricing Plan 350

Task 1: Establish Your Pricing Objectives 350Parity, Lower, or Higher Pricing 351

Determining Your Pricing Approach 353

Addressing Geography and Timing Issues 353

Writing the Price Objectives 353

Task 2: Establish Your Pricing Strategies 353Dos and Don'ts 354

CHAPTER 14 Distribution 357Overview 357Issues Affecting Distribution 357

Market Penetration (Retailers or Service Firms) or Market Coverage(Consumer Goods and Business-to-Business Firms) 358

Market Penetration Levels for Retailers and Service Firms 358

Market Coverage for Consumer Goods and Business-to-Business Firms 358

Types of Outlets or Channels 359

XVI Contents

Competition 360Geography 360Timing 361

How to Develop a Distribution Plan 361Task 1: Establish Your Distribution Objectives 361Task 2: Establish Your Distribution Strategies 362

Retailers and Service Firms 362

Consumer Goods and Business-to-Business Firms 362

Dos and Don'ts 363

CHAPTER is Personal SellingOverview 365Issues Affecting Personal Selling and Service 366

Retailers and Service Firms 366Manufacturers 367

How to Develop a Personal Selling and Service Plan 368Task 1: Establish Your Personal Selling and Service Objectives 369

For Retailers and Service Firms 369

For Manufacturers 369

Task 2: Establish Your Personal Selling and Service Strategies 370Examples of Retail Selling Strategies 371

Examples of Manufacturers'Selling Strategies 371

Dos and Don'ts 372

CHAPTER 16 Advertising ContentOverview 376

The Expectations for Your Advertising 376The Concept of Communications Drivers 376

How Advertising Strategy Can Lead to VariousCommunication Models 377

Activation 377Product News 377Brand Awareness 378Emotional Bond 378Buzz 378

Developing an Integrated Creative Blueprint 379Question 1: What's Your Brand Promise or Brand Idea? 379

Question 2: What's Your Subject Matter? 380

Question 3: Whom Are You Talking To? 380

Question 4: What Barriers or Trigger Points Does the Audience Have? 380

Question 5: Which Key Communications Drivers Are You Trying to Affect? 381

Question 6: What Are Your Key Messages? 381

Question 7: What Are the Reasons Why? 381

Question 8: What's Your Persona or Archetype? 381

How to Distinguish between the Platform, Creative, andExecutional Ideas 381

You Got People 382The Unconvention 383

Rules for Creative Content 383Tips for Testing Advertising Content 384How to Select a Creative Agency 384Dos and Don'ts 388

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CHAPTER 17 PromotionsOverview 391

Consumer and Trade (Business-to-Business) Promotions 392Promotion Incentives 392Types of Promotions 392Timing of the Incentive Payback to the Target Market 393

Five Keys to Developing Successful Promotions 393The Importance of Establishing Short-Term Promotion Sales

Objectives 394How to Develop Your Promotion Objectives Parameters 394

Task 1: Review Your Marketing Strategies 395Task 2: Review Your Selected Marketing Strategies and Corresponding

Marketing Objectives 395Task 3: Create Quantifiable Promotion Objectives 395

Promotion Strategy and Execution Considerations 396The Type of Promotion Device 396The Promotion Incentive 397Whether to Implement a Closed or Open Promotion 397The Delivery Method 398

How to Develop Promotion Strategies and Programs 399Task 1: Review Your Promotion Objectives 399Task 2: Review Your Problems and Opportunities 399Task 3: Finalize Your Promotion Strategies 400Task 4: Develop Alternative Promotion Program Executions 400Task 5: Calculate the Cost and Payback Potential of

Your Promotions 401Cost Calculation for Closed Promotions 402

Payback Analysis 403

Task 6: Select the Most Appropriate Promotion Executions 404How to Approach Event Marketing 405

Task 1: Establish the Goal 405Task 2: Select an Event 406Task 3: Ask These Questions When You Are Planning an Event 407

Types of Events 408Dos and Don'ts 408Appendix: Promotion Vehicles 410

CHAPTER is Advertising MediaOverview 418Disciplined Approach to Media Planning 419

Task 1: Gather the Necessary Data and Information 419Task 2: Develop the Budget 420Task 3: Develop the Media Strategies 421

Target Audiences 421

Geography 422

Seasonality and Timing 424

Media Weight Levels and Schedule Duration 425

Task 4: Media Selection and Media Mix 428Television 431

Radio 433

Interactive Media 434

Magazines 437

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Newspapers 439

Out of Home 440

One-to-One and Direct Media 441

Task 5: Obtain the Final Costs and Develop the FinalPlan and Flowchart 443

Dos and Don'ts 445

CHAPTER 19 Interactive CommunicationsOverview 447Interactive Marketing Channels and Key

Communications Drivers 448Websites 448

1. Brand-Focused Websites 448

2. Transaction-Focused Websites 448

3. Mixed-Focus (Hybrid) Websites 449

E-mail 449Search 450Search Terms 450Banners and Rich Media 451Gaming 452Social Media 452Mobile Applications 452

Creating an Interactive Connections Blueprint 452Website Strategy 453

You Need a Plan 454Competitive Website Analysis 454

Establishing Website Objectives 455Technology and Infrastructure 457Technology Integration 457Maintenance Costs 458User Experience 458

Creating Advocacy through Social Marketing 458What Is Social Marketing? 459An Alternative Communications Construct: BIER 459How to Think about Your Advocates 460Finding Insights from Online Anthropology 461Engagement Strategies 462Social Marketing Going Forward 463

Interactive Media Program Measurement 463Involvement 464

Interaction 464

Intimacy 464

Influence 464

Income 464

Dos and Don'ts 465

447

CHAPTER 20 MerchandisingOverview 467Issues Affecting Merchandising

Delivery Methods 468Personal Sales Presentations 468

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Point-of-Purchase Materials 468

Events 468

Geography 469Timing 469Purpose of the Merchandising Program 469

How to Develop a Merchandising Plan 469Task 1: Establish Your Merchandising Objectives 469Task 2: Establish Your Merchandising Strategies 470

Dos and Don'ts 470

CHAPTER 21 Public Relations 473Overview 473When You Should Use Public Relations 475Advantages of Using Public Relations 475Disadvantages of Using Public Relations 476Public Relations as Part of Your Marketing Mix 476

Public Relations Audiences 476Internal Audiences 476

External Audiences 477

Specialized Areas of Public Relations 477Event Marketing 478Gatekeeper Relations 478Industry Relations 478Investor Relations 478Community Relations 478Government Relations 479Value-Adding Programs 479 • •Not-for-Profit Organizations 479Cause-Related Marketing 479Issues Management and Crisis Control 479

Developing Your Media Relations Program 480Task 1: Identify Your Target Audiences 480Task 2: Establish Your Media Relations Objectives 480Task 3: Develop Your Media Relations Strategies 481Task 4: Craft Your Key Messages 481Task 5: Determine Your Media Relations Tactics 482

New Releases 482

News Advisories or Alerts 483

Case Studies 483

White Papers 484

Advertorials 484

Broadcast Vehicles 484

Video News Releases 485

News Conferences 485

Webcasting 486 ' .

Take Leadership Position 486

Meetings with Editorial Boards 487

Editor Briefings 487

Interviews 487

Website Media Sections 487

Dimensional Mailings 488

Press Kits 488

XX Contents

Executing Your Media Relations Plan 490Selecting Media Targets 490Selecting Media Databases 490Identifying Publicity Opportunities 490Contracting Media Mailings 491Scheduling Media Relations Efforts 492Following Up 492Budgeting 492

Measuring and Evaluating Media Relations 493Publicity Placements 493Advertising Equivalencies 493Lead Tracking 493Percentage of Coverage Owned 494The Clipping Report 495

Dos and Don'ts 495

PART IV EVALUATION

CHAPTER 22 Budget, Payback, and CalendarOverview 499How to Develop Your Budget 500

Task 1: Start with the Task Method 500Task 2: Then Apply the Percent-of- Sales Method 500Task 3: Finally, Apply the Competitive Method 501Using a Combination of the Three Methods to Finalize

Your Budget 501How to Develop Your Budget Format 502How to Analyze Your Payback 503

Reconciling Your Budget and Payback Analysis 503Developing Your Payback Analysis 504

Contribution-to-Fixed-Costs Payback Analysis 504

Gross-Margin-to-Net-Sales Payback Analysis 505

Using Your Finance Department for Help 507How to Develop Your Marketing Calendar 507Dos and Don'ts 507

CHAPTER 23 ExecutionOverview 511Key Steps to Successful Execution 512

Step 1: Review and Understand All Elements of the Plan1. Adequate Support Resources 5122. Adequate Lead Time 5133. Adequate Human Resources 513

Step 2: Develop Activity Lists for the First Six MonthsStep 3: Communicate the Plan 514

Gain the Cooperation of Key Company Staff 514

Gain the Cooperation of Company Staff Overall 514

Gain the Cooperation of the Distribution Channels 515

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Ongoing Follow-Up 515Stay Committed to the Plan 515Maintain Top Management Support

Dos and Don'ts 516516

CHAPTER 24 Plan EvaluationOverview 519Evaluation Perspective 1. The Marketing Plan and Its ComponentsEvaluation Perspective 2. Sales Trend Comparison 520

Sales Trend Analysis with Control Markets 520Sales Trend Analysis without Control Markets 521

Evaluation Perspective 3. Pre- and Post-Execution Research 521Evaluation Metrics Every Marketer Should Consider 522

Share Numbers 522Measure of Awareness, Attitudes, and Perceptions 524Loyalty Measures 525

How to Structure a Sales Evaluation Process 525Growth Rate of Improvement (GRI) Sales Trend Method:

Execution and Example 525Execution 526Examples of Preperiod-to-Test-Period Comparisons 526

Marketing Research and Testing (R&T) 526Why the Need to Test 528When to Test and When Not to Test 528

What Is the Risk of Not Having This Information? 528

What Is the Cost of Obtaining Reliable Information ? 528

What Are the Time Constraints ? 528

How Valid and Translatable Is the Testing Environment? 528

Types of Research and Testing Environments 529Exploratory 529

Experimental 529

The Internet 530

In-Market 530

Examples of How to Develop Testing Programs 530Positioning Testing 530

Product Testing 531

Brand Name Testing 531

Promotion Testing 532

Advertising Message Communications Testing 532

Media Mix Testing 532

Dos and Don'ts 533

APPENDIX A Idea Starters by Marketing Situation

APPENDIX B Worksheets for the Business Review

APPENDIX c Worksheets and Formats for the Marketing PlanAppendices B and C can be found online atwww.mhprofessional.com/successfulmarketingplan

Index

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