In talking with industry communications managers over the
past two years, the common "complaint" has been that management
gives them goals and objectives without the budgets needed to
"achieve" them.
When pressed further, marcom people will say they don't
have a large enough advertising budget.
Maybe yes.
Maybe no.
Because of the growing complexity of selling in the
marketplace, the likelihood that advertising will have a direct
cause and effect on sales and profits is probably less than
communications people and advertising and on-line-only agencies would like
you to believe.
We have never seen a study published that definitively says
spending X dollars will result in X+Y sales. Most of the studies
dance around the subject saying that "advertising at X level
assisted in increasing sales."
And while advertising-oriented people are quick to claim
credit when sales go up, they are just as quick to say that the
fault lies with sales and marketing management when sales
increases don't materialize.
Marcom and agency people who hitch their wagons solely to
the media and on-line advertising stars are generally in for a short ride.
This is because advertising is only one of the marketing and
sales tools a company can and should use in today's rapidly
changing marketplace.
BPAA Study
In fact, according to a recent Business/Professional
Advertising Association (BPAA) report, business publication
advertising isn't even a major portion of the marketing/sales
support budget. BPAA reports that only five percent of the
nearly $350 billion spent is used for advertising. More than 60
percent is spent on direct mail, telemarketing, trade shows, and
sales promotion.
While management presses for hard facts and figures, it is
still true that marketing, sales, and communications are more art
than science. This may be a prime reason management tends to
lean toward those marketing and sales support activities which
concentrate on getting orders, increasing share-of-market, and
profits.
This has been especially true of the computer industry
within the past two years, where sales and profit results have
been illusive and difficult to capture.
Media advertising is an important part of the total
communications effort, however, it is only part of the picture.
When management schedules the introduction of a new product
or sets up an annual program for the coming year, the most common
concern with marketing communications (and/or the agency) is
"let's develop and write an ad campaign."
Spatial Programs
If you examine the recommendations closely, they are made
up of numerous spatial programs rather than a singular linear
program.
In a spatial program, all of the elements
start at once in different areas. In other words, the activities
in PR, sales presentations, direct mail, and web marketing are
done independent of each other.
The result?
One gigantic bang. When the dust settles,
management, marketing, sales, communications, and the agency hope
they have scored a direct hit.
As a general rule, however, nothing happens. Or, it
happens for a very short period of time. When this happens,
marcom and/or the agency go out and develop another big bang.
Such spatial programs lack build-up, drama, and excitement.
They lack consistency and a common thread with which the prospect
can identify and use as mental reinforcement over time.
This is why every six months to a year, the company and
agency develop a new concept to its maximum, with minimum
results.
Linear Programs
By contrast, when marcom and/or the agency develop a linear
program, the company has the opportunity to fully develop an idea,
a theme and a strong position. All of the communications tools are
pressed into action in a coordinated, logical manner.
There are several key differences between the approaches.
First and foremost, a linear program is not management,
marketing, and sales against marcom and/or the agency. It's a
team effort.
The goals, objectives, and needs of marketing and sales are
examined by everyone involved; the market's wants, needs, and
perceptions are clearly spelled out. Then (and only then), all
of the communications tools and vehicles can be considered in
terms of cost/results/profit.
The final program has depth, breadth, and substance. The
program is definable and measurable. And best of all, it gets
results.
Program Focus
Secondly, when communications and/or the agency develop a
linear program, they become the catalyst and focal point for the
company.
Taking this approach, communications crystallizes the
intended message for their target market(s). They integrate
individual sales approaches and messages into one consistent
message and a focused selling effort.
Communications becomes a cost-effective complement to the
selling effort. It also works internally to build morale as well
as help focus the firm's business resources.
While advertising, public relations, marketing and sales
support, web marketing, inquiry processing/handling, and the
other communications activities are different; they must build on
each other. Communications people and/or the agency have to
develop a synergy among these activities.
Strong, accurate positioning provides that synergy. It
provides a pre-existing reason to be receptive to your marketing,
sales, and advertising message. It holds advertising, public
relations, marketing support, sales promotion, and sales
together.
Misunderstood Positioning
Unfortunately, too many people still don't fully understand
the true concept of positioning and how it should be carried out
for the company and its products. This is because positioning is
not what we do to the product, but rather what we do to the mind
of the prospect.
Sound positioning makes it difficult for others to dislodge
your company, products, and services from the minds of customers,
prospects, and other target audiences. In fact, in most
instances, sound positioning overrides individual product
benefits.
This is because positioning evaluates the entire
organization, its strengths and weaknesses, and projects the
competition's possible reactions to your activities. Proper
positioning is objective. It determines what mind position you
own in the market so that you can determine the position you want
to achieve . . . and the cost of that effort.
Positioning then gives customers and prospects a reason to
choose your company and products over your competition. It
permits you to transfer company and product benefits from one
product to another. It also helps you keep pace with a changing
market.
Once this is done, the positioning of individual products
and product lines becomes easier, and the results more easily
measured.
Results Orientation
Business today is built on results, so activities have to
work. Often, management expect them to be immediate and
innovative. At the same time, communications has to develop
solutions to perplexing adversity.
This means that once marketing communications and/or the
agency develop sound positioning strategy for the company and
its products/services, they have to develop totally integrated
programs. Once developed and approved, these programs have to be
carried out quickly and decisively.
The programs have to involve more than conventional
print advertising activities. They have to incorporate some of the
latest marketing communications activities such as web marketing,
as well as detailed activities such as inquiry handling. They
also have to include research, literature, referrals,
word-of-mouth, personal contact, and publicity (technical
articles, user articles, management position pieces, market
research meetings, editorial tours, etc.).
Total Communications Mix
In short, communications has to be a total media mix. If
marketing communications and/or the agency doesn't help
management pull all of these activities together, they will
quickly find they are no longer needed within the company.
Rather than sitting on the shore talking vaguely about
creativity, image, and awareness, communications people (inside
and outside the organization) have to get into the boat with
management and marketing before it leaves the dock. This will
ensure that they sail with the organization rather than wonder
why and when the boat left.
They have to immerse themselves in all of the
communications-related activities so they can talk with and
support sales, product marketing, and general management.
Once this is done, communications people will be in a
better position to help define and satisfy user needs, boost
share-of-market, increase sales, and improve corporate profits.
###
LINEAR VERSUS SPATIAL COMMUNICATIONS PLANS - To learn more about this author, visit Andy Marken's Website.
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