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Get Your Marketing Strategy Ready for Plan B with 7 Back-to-Basics Questions to Ask About Buyers
April 28, 2009 (Boston, MA)—The first cracks in the ice on our frozen lake of an economy have gotten marketers to shift at least some of their mental energies away from what to cut out of their budgets to what to do to drive growth and improve ROI. According to Kevin Clancy and Peter Krieg of Copernicus, a research-based marketing strategy consulting firm, “what will be the new normal?” will be the question on the minds of marketers as they start to look to the future.
“It’s unlikely that marketers will ever have the leeway they once did to spend their way out of flagging brand performance,” explains Clancy. It’s not a bad thing either. “In reality, pouring dollars into advertising, rarely increased profitability. Sometimes it didn’t even boost sales.”
But do marketers have a solid Plan B?
Krieg’s answer is an enthusiastic yes. “Getting back to the basic marketing strategy fundamentals that drive tactical decisions is the best stimulus for marketing ROI out there.”
Though there are many tributaries to the ultimate performance of a campaign or program, marketers should trace the source of marketing strategy success back to the targeting decision. After all, say Clancy and Krieg, decisions that flow from a profitable and responsive target not only will help a brand make more money, but also improve efficiency and effectiveness. The co-authors of Your Gut Is Still Not Smarter Than Your Head suggest marketers answer 7 key questions about the buyers in the category or industry in order to find a high-value target market.
#1 Where’s the money? Do not pass go, do not collect $200, until you figure out which buyers and which segments of buyers will be the most profitable to pursue. A good place to start is with financial measures. Gather information in a marketing strategy study about things like current spending, lifetime value, number and types of products or services purchased, and brand switching history/potential. Very importantly, make sure to collect this data for each individual respondent.
#2 Is the door open? Financial information is one thing, but there are other characteristics that make a buyer more valuable because they are easier to get and keep as a customer. There are folks, for instance, who are open to considering and trying a brand if they’re not already using it. They know a brand exists and have positive feelings about it. They are primed to buy if encouraged to do so. On the other hand, there are people who have no interest in or maybe even HATE the same brand. Perhaps they’re Bostonians and associate a brand with the New York Yankees—forget about winning them over. They’re unlikely to ever consider let alone use a brand NO MATTER WHAT MARKETERS DO. Why waste marketing dollars on them?
#3 Will they tell their friends? A buyer that enables marketing efforts will also do a whole lot more for marketing investments than one who undermines them. The greater the level of influence a buyer has among their family, friends, and acquaintances, the more a brand’s marketing ROI will benefit. Buyers who do some of the work for a brand because they are more likely to spread the word about a product they found that really works or a service that solved a serious problem are like money in the bank.
#4 Are they happy with you? There are many ways marketers can use information about customer satisfaction when it comes to selecting a market target. Obviously buyers that express a high level of satisfaction with a brand or a firm help on many fronts. They have a lower likelihood of switching brands, a higher likelihood of repeat purchases, and a greater chance they’ll enhance marketing activities. Buyers who are happy with a brand are much less costly—marketers don’t have to invest significant resources in reversing their negative opinions or undoing its potentially damaging effects. On the flip side, consider the people using competitive brands but aren’t particularly overjoyed with them. Given the right incentive, they will bring their business over to your brand. Wouldn’t that be nice?
#5 How loose are the purse strings? Price sensitivity is another important indication of a buyer’s value to a brand and one particularly relevant these days. Price very likely does become a MORE important consideration as household and corporate budgets get tighter, but that does not mean it becomes the MOST important consideration. In fact, research done by Copernicus shows that price is the primary consideration for only 15% to 35% of buyers in most product and service categories. This finding suggests that knowing which buyers are relatively price insensitive could provide a solid competitive advantage.
#6 Do they want something new? Introducing new products and services—in good times and in bad—can generate the kind of organic growth companies crave. So why not ensure that new products and services WILL generate bottom line growth by narrowing in on the buyers most interested in considering the latest offerings from a brand or company?
#7 How big are their problems? A problem is something that’s important AND that no one currently solves. The bigger the problem a brand or company can solve for the target group, the better the market response. Uncovering insights about the magnitude of problems buyers have that—if solved—would lead to brand consideration or a switch is another way to help prime the sales pump.
Cautions Clancy, “don’t roll out a new version of a product or service, mess with the media mix, or fiddle with the creative message, at least not until you’ve gone ALL the way back to beginning and taken a hard look at the merits of the target on which you’ve based your marketing decisions to date.”
As Krieg says, “As basic as it may sound, pursuing Plan B by answering these 7 questions about buyers in the category or industry is the best way to get a high performance marketing strategy in place to take advantage of gradual improvements in the economy.”
Click here to view the complete release:
http://www.prweb.com/releases/2009/05/prweb2379914.htm
Click here to download our white paper "Lean & Mean Marketing Strategy: 7 Questions to Ask About Buyers in Your Category or Industry":
http://www.copernicusmarketing.com/pdf/7-questions-to-ask-about-buyers.pdf
For more information, contact:
Ami Bowen
(617) 449-4179 or ami.bowen@copernicusmarketing.com