The axiom “You can’t manage what you can’t measure” is fundamental to creating a marketing plan that works. That’s what Level Four: Marketing or Program is all about.
As a reminder, the Five Levels of Marketing are (1) Sales, (2) Information/Data/Analytics, (3) Tactical or Campaign, (4) Marketing or Program, and (5) Vision/Strategic. We’ve explored each of the first three levels in separate columns in August, September, and October. They are available on our website’s Productive Insights collection.
On Level Four successful firms create a plan to document all the details. Along the way questions are asked and answered in the plan.
- Who shall we target?
- How will be segment the market into the most attractive targets?
- What is our offering be it a service or a product?
Developed by marketing guru Phil Kotler, this classic question approach is also known as the Four Ps of Marketing: Price, Position, Place (distribution), and Product. Sometimes Packaging is included when a consumer product is involved.
There are several reason a written plan is valuable. First, it clearly documents the firm’s intentions and allows everyone to see the directions the firm is taking. This “open book” increases the odds that the various functions of the firm will be in alignment. It also enables you as a manager or executive to look back from time to time and hold yourself accountable.
- Did you achieve the goals and objectives set forth in the plan?
- If not, why not?
- What can be done now?
- What can be done during the next campaign?
When we create plans for companies we start by understanding what they are currently doing on all five levels. We find that some firms, even very successful ones, operate only on one level. While they can be successful, they typically do not enjoy competitive advantages, or at least not sustainable ones.
If you currently don’t have a plan and wish to create one here, is a good way to do it using a two-step process:
Step One is straightforward but critical, and it might even seem simple: document the actions you are taking now on each of the five levels. The best approach is to regard this step as a “quality improvement audit,” in which you’re trying to root out inefficiencies. Such audits carefully document every step in any process, including marketing.
A marketing example might be to make sure an email database is fully functional—that is, the emails actually exist and will receive whatever messages you might be sending. It would be impossible to test every address. In that case, statistically valid sample can be used. Also, “seeding” the database with email addresses that come back to you will reveal whether the email distribution “engine” is doing its job.
Step Two is to develop a list of marketing areas you need to take advantage of. Each offers an opportunity to differentiate your company from the competition. There won’t always be such an opportunity, but it’s important to check and then you’ll know where your process is similar or maybe even the same.
Target Market:
Geographic: Determine scope (national, regional, international, local)
Size: Are you targeting by number of employees, for example, or by sales?
Vertical Market: What business are these prospect in? Is it right for your product or service?
Micro Level: Which prospects in each of those areas have the problem or problems that we best address?
Lead Generation and Prospecting:
Will we rely on marketing to generate leads, or prospecting by the sales force? Or prospecting some other way: social media, for example, or distributors? What will the prospecting process look like in each case and as a whole?
Discovery:
Who will create the discovery questions that will enable the salesforce to efficiently identify the prospect issues and help all parties decide on what is best for market and then for each customer? The questions will likely be different. How will you discover both the need and the need behind the need?
Qualification:
What is the best process to use to qualify leads and then prioritize them?
Demonstration:
At which step in the process will your salespeople demonstrate your product or service? It’s critical it be done at the right time— not too early and not too late. What assets will be part of it including samples, plant tours, and case histories.
Presentation:
How will you ensure that presentation is prospect-centric, not seller-centric. Critical to that is using information learned in the discovery process effectively. How will you do that?
Closing:
What details will make up your closing process and ensure that it is customized for each prospect?
Follow-up:
Effective follow-up for leads and servicing existing accounts requires a staffing plan. Prioritization of both existing customers and prospective ones is fundamental to being sure the information you find is actionable—either correcting and improving or decreasing or increase the amount it’s used.
Analysis of Lost Opportunities:
How will you learn why you won and why you lost? Will the analysis be in person and who will do it—the salesforce or an unbiased third party?
Of course there is no limit to what can be covered in a plan. Keep in mind that all of the topics above are like a chain and success or failure might well turn on the weakest link in the chain. We have seen firms that grow quickly but fail to scale to serve that growth in all areas of the firm. The result is often evident when a major account is lost, and you realize that one department—design, tooling, quality control, engineering, production—is left behind. The plan should include documentation of how you will scale.
A good example is Federal Express. The company grew from one fundamental idea into a major international corporation. The key reason? It had an operational growth plan based algorithms that signaled when to hire a new employee, when to buy a van, when to add a truck, and when to add an airplane. The basic approach is to start small, begin documenting what you are doing and want to achieve, and then improve the plan on an annual basis.
Finally, be sure to keep these Five-Level Model Marketing Takeaways in mind:
- The fastest way to increase revenue in the short term is to improve the sales function on Level One. This means stronger consultative selling skills, the development of custom sales processes, and productive coaching.
- Effective use of Level Two information can significantly leverage your salespeople’s time and boost their productivity in Level Three tactical sales campaigns.
- The most efficient way to obtain competitive advantage is to market one level above your competition. If they are marketing on three levels, you differentiate by marketing on four.
- The goal is to gain sustainable competitive advantage on all five levels and at the high end of each one.
- There are many ways to market successfully using the Five Levels Model. The first step is to identify which level you’re currently on and how well you’re doing. Improve on that level and test other levels as it makes sense to find the best combination for your business.
We have an extensive list of other types of data that can be used to market at the higher end of Level Three. Just get in touch if you want to discuss additional data points that can help drive revenue. We’re at pkrone@productivestrategies.com and 847-446-0008 Ext. 1