Articles
Eight ways to evaluate results
What should a company expect from its marketing program?
by John GrahamGetting something for nothing seems to be a universal human desire that
extends into the business arena. For example, company owners and managers
are often heard to ask, “What should we expect to get out of our marketing
program? How will our dollar investment translate into increased sales?”
Although the questions seem appropriate, they are dead wrong when it comes to
marketing. The job of a company’s marketing program is not to increase
sales––or even to make sales. If this seems harsh, it’s
meant to be. There’s far too much confusion about what marketing should
accomplish. Marketing has one objective: to create customers.
With this concept down pat, let’s take it a step further. The mission of
marketing is to create an environment so that the customer comes to appreciate
the benefits of doing business with your firm.
So far, nothing has been said about what many consider to be the key issue––making
the sale. It isn’t that the subject of sales is being ignored. It’s
just irrelevant.
Marketing has nothing to do with selling, although it has everything
to do with creating a proper environment so that making the sale is the
logical, appropriate, and compelling next step. In other words, the
task of marketing is to establish a climate so that the sales force can
excel in its efforts.
Within this context, then, what kind of results can a company expect from its
marketing program? Here are eight tangible, measurable ways to evaluate a marketing
program.
1. An effective marketing program differentiates a company (product
or service) from the competition. By far, the most serious criticism
a business may have to face is that it looks like every other outfit in
its industry. From the customer’s viewpoint, there may be little
or no way to pinpoint why it is beneficial to do business with one company
rather than another. When this happens, of course, the final decision will,
more often than not, be based on price––and price alone.
In far too many instances, companies literally steal from each other when it
comes to their marketing efforts. All the brochures look alike, with the same
photos, the same words, the same cover designs. “In our industry, this
is how it’s done.” This is the denial of differentiation. Looking
alike is a killer today.
2. An effective marketing program will create a continuing flow
of quality leads. For some reason, company executives focus attention
on how much marketing is going to increase sales. In reality, a proper
test is to measure the flow of appropriate leads both currently and over
an extended period of time.
Although it may seem elementary or obvious, it’s easy to forget that
leads precede sales. If a sales force is busy following on qualified leads,
sales will naturally increase. On the other hand, if the company’s salespeople
must spend their time trying to get through doors and locate prospects, then
their time will be used prospecting––and not making sales. So, it
isn’t too simplistic to suggest that the key to sales is leads. And it’s
leads that are the concern of marketing.
3. An effective marketing program keeps a company in the customer’s
mind. It is easy to forget the decision making process that goes
on in just about every level of every business. It goes something like
this: when a need arises, whoever comes to mind first gets the business.
Although we want to think that even our best customers think of us first,
they are probably buying items or services from others––even
if we can handle the job or order. In the same way, they fail to think
of us when the buying decision is made.
A primary role of marketing is to stay in the customer’s mind at all times.
Developing programs that reinforce awareness is an essential element of good
marketing.
4. An effective marketing program gives a company a lock on the
marketplace. There are several ways to express this idea: being
recognized as a serious player and a leader in the field are essential
qualities for attracting customers today. In order to be accurately perceived
by customers and prospects, careful and thorough effort is required to
plan, shape and continually foster a consistent image.
Too many firms hold the view that “doing a good job” is all that’s
necessary in order to get business. If this were true, then why are so many shoddy,
second-class suppliers still getting orders––and taking business
away from companies that can do better, more reliable work?
5. An effective marketing program showcases a company’s expertise
and knowledge. “Here’s what we can do for you.” These
words are heard every day of the week and, almost without exception, what
follows is the price. Doing business is like trying to balance on a one-legged
stool. When that one leg is price, it’s easy to fall off! If all
that’s going for you is a sharp pencil, there are serious problems
ahead.
Ironically, far too many companies fail to recognize and then enunciate, dramatize
or highlight their unique characteristics. This is a major mistake since it’s
a business’ special qualities that make it attractive to both customers
and prospects.
We need to communicate a company’s capabilities to customers and
prospects. This isn’t just listing the equipment it has on the production
floor, or the number of service representatives, for example. The best way to
differentiate a business is through its level of knowledge. This is really what
sets it apart from everyone else in the field.
6. An effective marketing program gives a company a long-term orientation.
American business seems to be suffering from what we call “The McDonald’s
Syndrome.” In just a few words, “the quicker the better”
has become the dominant business philosophy. We think only in terms of
a week, a month, a quarter -- and, at the most, a year. We are so preoccupied
by today’s performance that we don’t have time to implement
strategies for making certain we have customers three, four, five or more
years from now.
One of the functions of a marketing program is to keep our eyes focused on making
sure we’re in business for many, many tomorrows.
7. An effective marketing program is customer-focused. At
the same moment companies tell you about how much they care for their customers,
it is clear that the ‘customers’ they are talking about are
in their executive suite and the boardroom. They act as if their “customers” are
the people who sign the checks, not the ones who pay the bills. It’s
what the people calling the shots want to do that occupies their time and
attention. The end-user is apparently irrelevant.
To illustrate the point, a marketing services firm was asked to review and then
comment on a company brochure, which was obviously the centerpiece of the firm’s
marketing activities. In a report to the managing partner, the report included
a comment about the brochure’s table of contents and the brochure copy
itself. There were just three headings for the brochure: Our goals. Our approach. Our experience.
The italics have been added to dramatize the point.
Could this brochure be used? Absolutely. In fact, it would make an effective
orientation document for new employees of the firm. It tells the firm’s
story from its own viewpoint, but it fails enormously to communicate the message
that it understands its clients and their needs. A marketing brochure must make
certain that attention is totally directed to customers and prospects.
8. An effective marketing program is a vital force in customer retention. There
is usually so much concern for getting new business that maintaining and expanding
existing business is easily forgotten. It is a mistake to harbor the notion that
marketing has only to do with picking the fruit off the tree. It has just as
much to do with caring for the fruit that has been picked to make sure it doesn’t
spoil.
Although it’s not widely discussed, customers leave because they feel ignored,
insignificant, forgotten. When this happens, they seek new relationships in order
to re-ignite their value to a vendor.
Many times the loss of the business begins at the very moment the first order
is signed. It happens subtly, almost imperceptibly, yet customers get that uncomfortable
feeling they’re not receiving the attention they did when the salesperson
wanted their business.
Without even recognizing that it’s happening, companies allow customer
relationships to become dull, empty and lifeless. A routine sets in that fails
to keep the fire alive.
The eyes of a professional marketer never leave current customers in an effort
to strengthen the relationship and the bond that exists between them.
By asking the correct questions, it is relatively easy to determine whether or
not a marketing program is on track. If marketing is carefully planned and effectively
implemented, then a company can expect a variety of positive, business-building
results. But measuring marketing with a sales yardstick is inappropriate. Creating
customers is the marketing department’s responsibility, while getting those
customers to buy is the job of the sales force.
John R. Graham is president of Graham Communications, a marketing services and sales consulting firm. He is the author of The New Magnet Marketing and Break the Rules Selling, writes for a variety of business publications, and speaks on business, marketing and sales issues. Contact him at 40 Oval Road, Quincy, MA 02170; 617-328-0069; jgraham@grahamcomm.com.