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Eight ways to evaluate results
What should a company expect from
its marketing program?
by John Graham
Getting 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.
© 2004 Graham Communications
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John R. Graham is president of Graham Communications,
a marketing services and sales consulting firm. Mr. Graham is the
author of four books on marketing and sales, including Break the Rules
Selling: Success Strategies that Beat the Competition (Superior Books).
Mr. Graham writes for a variety of marketing and sales columns for
business and trade publications and he presents his Magnet Power presentations
at company and association meetings. He can be contacted at 40 Oval
Rd., Quincy, MA 02170; by telephone at 617-328-0069; by fax at 617-471-1504;
or by email at j_graham@grahamcomm.com. The web site is grahamcomm.com. |
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