Transcript slides - Clarkson University

Media Planning
Marc Compeau; Wednesday 7/14/2004
Work Sheet 3 Review
• Any progress?
• What did we learn?
• What were some of the challenges you
faced?
A couple of random thoughts
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Salesmen are mean
Inventory can be meaner
Get educated about accounting practices
Ad spending / 5% gross sales
Shoot for a 10% net profit
Ask for help
Structure
• Sole proprietorship – simple, great for
start ups
• Partnership – two people can’t be sole
proprietors
• C Corporation – 15% is less than 28%,
but not less than 43%
• S Corporation – avoid double taxation!
The Key to Marketing
• a central foundation of marketing…
a deep understanding of consumers -- how they
arrive at their judgments, choices and their
consumption behaviors -- is a critical factor in
success.
Marc’s Marketing Model
“What do they want?”
1. Measure Demands
(Market Research)
3. Identify
Gaps
2. Understand Competitors
(Competitive Analysis)
“What can they get?”
4. CLEARLY tell them that
you have the solution
(The 4 P’s)
“We have what you want,
and we are the best
provider of that need or
want.”
Questions to consider when
identifying Gaps
– Risks:
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What are the trends in this industry?
What are the trends with the chosen target market?
Am I entering a Niche Market?
Are there any “fatal flaws”?
Is the market subject to rapid change?
– Resources:
• Do I have the resources I need or can I gain control of them?
– Opportunities:
• Are the gaps big enough?
• What type of profit margin do the gaps provide?
• Is this a short term opportunity and if so can I adopt changes?
Advertising
• Advertising The impersonal presentation of an idea
that is identified with a business sponsor and is projected
through mass media
– Advertising objectives: Inform, persuade and remind
– Types of advertising: Product – designed to make consumers
aware of a specific product or service Institutional – advertising
about a company or firm, designed to enhance a firm’s image
– Frequency of advertising: continuous vs. non continuous (new
product, single event)
– Where to advertise: reaching but not overreaching (empty reach)
http://www.rwjf.org/news/special/badadsMiss.jhtml
Promotional Spending
• Allocating a percentage of sales:
– Advantage: simple
– Disadvantage: spending drops as sales drop
• How much can be spared:
– Advantage: widely used
– Disadvantage: piecemeal approach that avoids analysis or reason
• Spending as much as the competition:
– Advantage: good for reacting to short run efforts of competition
– Disadvantage: business could be copying mistakes as well as
successes
• What it takes to do the job:
– Advantage: Preferred approach – most accurate
– Disadvantage: Requires comprehensive analysis of the market and
promotional opportunities
Marketing Mix
• An effective marketing mix clearly
demonstrates a UNIQUE SELLING
PROPOSITION (USP) in each member of
your target audience’s mind.
“What’s in it for me?”
Promotional Mix
• Promotional Mix A blend of personal and non-personal
communication techniques aimed at a target market
• Mix is influenced by a blend of three classifications:
– Geographic nature of the market: broad (mass coverage) or focused
(personal selling)
– Customer profile (target market): shotgun approach to advertising
reached broad markets including no targeted customers and is
expected. Targeted approach can take advantage of media profiles
– Product characteristics: Technical or high end require personal
selling, inexpensive commodity items can use advertising or
promotional tools.
Media Planning
1. Invite
•Start the process in control, don’t let the media rep. control you
2. Control
•STAY IN CONTROL – It is YOUR hard earned money
3. Analyze
•Consider the responses to your request, demographics?
4. Control
•STAY IN CONTROL – It is YOUR Business
5. Ask
•Questions, make the rep prove the value, can they do better?
6. Control
•STAY IN CONTROL – It is YOUR reputation that can change
7. Decide
•Based on the facts, where is your money best spent?
8. Control
•STAY IN CONTROL – It is YOUR future at stake
9. Analyze
•Analyze impact of media plan and performance of reps.
10. Control
•STAY IN CONTROL – It is your product/service being sold
11. Adapt
•As you see impact / poor performance, change within budget
Templates
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Media Invitation
Media Planning
Media Listing
Resources
Sneak Peak
• Implementing Technology
– The web and you
– Metrics and measures
– When is a gadget a good gadget?
• MSB101 Summary / Survey