How to Develop a How to Develop a Marketing Strategy Marketing Strategy

Danielle GoodrichDanielle Goodrich

Define Marketing Define Marketing

Marketing: is the Marketing: is the entire process by entire process by which a market is which a market is identified, developed identified, developed and served.and served.

StrategyStrategy

Strategy works on the target consumerStrategy works on the target consumer’’s mind s mind associating the product with benefits of value to associating the product with benefits of value to the target consumer. the target consumer. It is often confused with tactics. Strategy It is often confused with tactics. Strategy answers the question answers the question ““Why buy?Why buy?”” Tactics Tactics answer the question answer the question ““Why buy now?Why buy now?””A tactic enhances the strategy and uses a A tactic enhances the strategy and uses a limited duration event, offer or incentive to limited duration event, offer or incentive to inspire a consumer to act now.inspire a consumer to act now.

Strategy is long term. Tactics are short term. Strategy is long term. Tactics are short term.

Essential Building Blocks Essential Building Blocks

Define the marketing objectives by understanding Define the marketing objectives by understanding the business and business goals.the business and business goals.TargetingTargetingGeographyGeographyTarget Audience Media UsageTarget Audience Media UsageSeasonality-TimingSeasonality-TimingBenefits SoughtBenefits SoughtCompetitive Perception Competitive Perception PositioningPositioningMeasure-Baseline StudyMeasure-Baseline Study

TargetingTargeting

Identify theTargetIdentify theTarget

Audience/DemographicAudience/Demographic

Who spends the most or generates the Who spends the most or generates the most profit?most profit?

How would you describe this person?How would you describe this person?

Who are the heavy users and how can you Who are the heavy users and how can you find more people like that? find more people like that?

Define Market SegmentsDefine Market Segments

Almost every brand has multiple consumer Almost every brand has multiple consumer segments they wish to targetsegments they wish to target

Nike-could target every one who has feetNike-could target every one who has feet

That is too broad for marketing purposesThat is too broad for marketing purposes

Nike has to identify specific market Nike has to identify specific market segmentssegments

Such as professional athletes, weekend Such as professional athletes, weekend walkers, teenagers walkers, teenagers

Pareto PriciplePareto Priciple

80/20 Rule80/20 Rule

In every company a In every company a minority of their minority of their customers represent customers represent a majority of their a majority of their revenuerevenue

20-25% of your 20-25% of your customers account for customers account for 70-80% of your total 70-80% of your total revenuerevenue

Targeting Targeting

Demographics (Qualitative): Age, Gender, Demographics (Qualitative): Age, Gender, HHI, EducationHHI, Education

Psychographics (Quantitative): Attitudes, Psychographics (Quantitative): Attitudes, Values, Preferences, Behaviors, LifestylesValues, Preferences, Behaviors, Lifestyles

Generation Segments: Baby Boomers, Generation Segments: Baby Boomers, Generation Jones, Generation X, Generation Jones, Generation X, Generation Y/Gen Next/MillenialsGeneration Y/Gen Next/Millenials

ResearchResearch

The answers to these questions come The answers to these questions come from market research which could be as from market research which could be as simple as asking the client, going online simple as asking the client, going online and googling, asking a dozen shoppers or and googling, asking a dozen shoppers or as complex as a thousand telephone as complex as a thousand telephone interviewsinterviews

Scarborough, MRI, NRS Media, Scarborough, MRI, NRS Media, Quantcast, Citydata, U.S. Census Quantcast, Citydata, U.S. Census

Charlotte Motor Speedway ex.Charlotte Motor Speedway ex.

Not All MarketNot All Market’’s Are Created Equals Are Created Equal

Demographics within target markets may Demographics within target markets may vary vary

Therefore if this data is available in all of Therefore if this data is available in all of your markets, make sure they are your markets, make sure they are consistentconsistent

Or make different target audiences for Or make different target audiences for each marketeach market

How to select the How to select the

marketing geography andmarketing geography and

identify target marketsidentify target markets

Target MarketsTarget Markets

Market Potential AnalysisMarket Potential Analysis

Determine Which Markets/Regions will generate Determine Which Markets/Regions will generate the most profit at the lowest costthe most profit at the lowest cost

Use Traditional Media CPP (SQAD) against sales Use Traditional Media CPP (SQAD) against sales in each market to determine whether a traditional in each market to determine whether a traditional media spend is cost effectivemedia spend is cost effective

Determine Growth Market PotentialDetermine Growth Market Potential

Distributing Budget Distributing Budget

Primary, Secondary, Tertiary MarketsPrimary, Secondary, Tertiary Markets

Budget Distributed AccordinglyBudget Distributed Accordingly

Determining the BudgetDetermining the Budget

Client provides, or agency Client provides, or agency recommendationrecommendation

10-20% of potential profit/sales10-20% of potential profit/sales

Target Audience Media UsageTarget Audience Media Usage

Consumer Purchase FunnelConsumer Purchase Funnel

44% 40% 35% 34% 30%22%

19%17%

12% 11%11%

12%

6%7%

4% 3%3%

6%3%

4%4%

3%

6%

5%3%

4%

19%26%

41% 45% 49%59%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Awareness Interest Consider Purchase Want to Purchase Visit Store/ Website Make Purchase

Television Internet Newspaper Magazine Radio Email Outdoor Other No Media Influence

Media Usage ResourcesMedia Usage Resources

Nielsen, Arbitron, MRI, Radiolocator, Nielsen, Arbitron, MRI, Radiolocator, SRDS, OAAA, TVB, IAB, Quantcast, SRDS, OAAA, TVB, IAB, Quantcast, Mediacenteronline.com, Adage, Mediacenteronline.com, Adage, Mediaweek, American Advertising Mediaweek, American Advertising FederationFederation

Timing/SeasonalityTiming/Seasonality

Branding Branding

vs. vs.

Promotions/EventsPromotions/Events

Brand Equity

0

50100

150

200

250300

350

0 3 6 9 12 15 18

Months

Cu

sto

mer

s

Customers

Promotions

0

2040

60

80

100120

140

0 3 6 9 12 15 18

Months

To

day

Cu

sto

mer

sCustomers

Ticket or Sales AnalysisTicket or Sales Analysis

Sometimes Budget Effects TimingSometimes Budget Effects Timing

For a brand strategy if a client can not For a brand strategy if a client can not afford to be on annually, determine flight afford to be on annually, determine flight weeks and dark periodsweeks and dark periods

Look at slower periods of salesLook at slower periods of sales

A spike is easier to inflate than a valleyA spike is easier to inflate than a valley

FlowchartFlowchartTOTAL TOTAL

8/3/09 8/10/09 8/17/09 8/24/09 8/31/09 9/7/09 9/14/09 9/21/09 9/28/09 10/5/09 10/12/09 GRP's COSTLOCAL CAMPAIGN

ONLINE (Charlotte.com, WSOCTV.com, WBTV.com) $30,000.00

GEO-TARGETED CAMPAIGN

ONLINE (Facebook, Nascar Scene, Jayski, Media General, Nascar.com, thatsracin.com) $40,000.00Social Media/Alternative Media/Guerilla $25,000.00

REGIONAL ADVERTISINGOUTDOOR: Charlotte $80,000.00Radio: John Boy & Billy $20,000.00TV: Regional Cable Sports Networks $7,500.00SPEED Channel TRADE $3,750.00National Spots via NASCARPRINT ADVERTISINGNewspaper (TBD based on Speedway Charlotte Observer ageement) $25,000.00College Papers $7,500.00

Direct Mail$72,000.00

LOCAL MEDIA FOCUSTIER 1 - Primary Market: Highest Market PotentialTV INDEX CPPTimeWarner-Cable $25,000.00TimeWarner-TRADE $1,500.00Charlotte 37 $137.00 50 50 50 100 100 100 100 50 600 $82,200.00

RADIOCharlotte 22 $78.00 50 50 50 100 100 100 100 50 600 $46,800.00

TIER 2 - Secondary Market: High Market PotentialTVTimeWarner-Cable $10,035.67Greensboro-High Point-Winston Salem, NC 44 $60.00 50 50 50 100 100 100 100 50 600 $36,000.00

RADIOGreensboro-High Point-Winston Salem, NC 42 $55.00 50 50 50 75 75 75 75 50 500 $27,500.00

TIER 3 - Tertiary Market: Average Market PotentialTVCharter-Cable $10,625.00Greenville-Spartanburg-Asheville 110 $55.00 50 50 50 75 75 75 75 50 500 $27,500.00TimeWarner-Cable $10,785.56Raleigh-Durham, NC 117 $150.00 $9,916.66

RADIOGreenville-Spartanburg 62 $45.00 50 50 50 50 50 50 50 50 400 $18,000.00Asheville 50 $29.00 50 50 50 50 50 50 50 50 400 $11,600.00Raleigh-Durham, NC 83 $101.00 50 50 50 50 50 50 50 50 400 $40,400.00

TOTAL COST $668,612.89

Media Buying 101Media Buying 101

Terms to knowTerms to know

CPM (Cost Per Thousand) – cost to reach 1,000 peopleCPM (Cost Per Thousand) – cost to reach 1,000 people

Formula: cost of 1 ad x 1000/circulationFormula: cost of 1 ad x 1000/circulation

CPP (Cost Per Point) – the cost to reach 1% of the HH in a given marketCPP (Cost Per Point) – the cost to reach 1% of the HH in a given market

DMA (Designated Marketing Area) – Nielsen termDMA (Designated Marketing Area) – Nielsen term

Rating (estimate of audience expressed as 1%)Rating (estimate of audience expressed as 1%)

GRP -the sum of rating points in a plan (reach x frequency = GRP)GRP -the sum of rating points in a plan (reach x frequency = GRP)

Reach – the unduplicated percent of an audience exposed to a messageReach – the unduplicated percent of an audience exposed to a message

Frequency- the number of times each audience member was exposed to Frequency- the number of times each audience member was exposed to a messagea message

ROI – return on investment (net profit – cost of advertising) x 100ROI – return on investment (net profit – cost of advertising) x 100

Impression – number of times an ad was displayed Impression – number of times an ad was displayed

http://blueonionmedia.com/glossary.phphttp://blueonionmedia.com/glossary.php

Mediabuyerplanner.comMediabuyerplanner.com

News about interactive, TV, radio, ooh, News about interactive, TV, radio, ooh, printprintthe growth in online video ad spending will surge past TV growth through the growth in online video ad spending will surge past TV growth through 2016. It will surge by 54.7% this year, and slow to 18.9% in 2016; but that 2016. It will surge by 54.7% this year, and slow to 18.9% in 2016; but that will far exceed TV’s 6.8% growth this year and 4.5% in 2016. But as it will far exceed TV’s 6.8% growth this year and 4.5% in 2016. But as it predicted in January, TV will still exceed the online ad spend in 2016 (albeit predicted in January, TV will still exceed the online ad spend in 2016 (albeit by a narrowing gap).by a narrowing gap).

TV and online video views will be counted togetherTV and online video views will be counted together

Forty-five percent change the channel during political news coverage.Forty-five percent change the channel during political news coverage.

Thirty-nine percent change the channel as soon as they see a political Thirty-nine percent change the channel as soon as they see a political advertisement.advertisement.

Twenty percent are more likely to watch programs online, and 19% are Twenty percent are more likely to watch programs online, and 19% are more likely to record programs they want to watch to avoid commercials.more likely to record programs they want to watch to avoid commercials.

Social Media NewsSocial Media News

The past 4 years was about social listening. The The past 4 years was about social listening. The past two were about social presence, next is past two were about social presence, next is social advertising and later social commerce.social advertising and later social commerce.

What are men interested in soccer talking What are men interested in soccer talking about? Social posts and ads. about? Social posts and ads.

Pinterests contests. Pinterest shoppers are 10x Pinterests contests. Pinterest shoppers are 10x more likely to make a purchase than visitors more likely to make a purchase than visitors referred to from other networks.referred to from other networks.

Check out AMC Theatre, British Midland Check out AMC Theatre, British Midland International and HuHot International and HuHot

Partnerships, Promotions & Partnerships, Promotions & Social MediaSocial Media

Look to partner with Look to partner with CVB, tourist CVB, tourist attractions, hotels & attractions, hotels & restaurantsrestaurants

PRT, Behavioral, PRT, Behavioral, Keyword online Keyword online advertisingadvertising

Align with a good Align with a good causecause

Develop creative Develop creative outside the box outside the box promotions promotions

Have a person Have a person dedicated to social dedicated to social mediamedia

Interact via surveys Interact via surveys and open ended and open ended questionsquestions

Q&AQ&A

Thank you for your time! I hope you learned Thank you for your time! I hope you learned something. If you have any questions I am something. If you have any questions I am on Facebook and linkedin, or you can on Facebook and linkedin, or you can email me at:email me at:

daniellegoodrich75@yahoo.com

http://www.youtube.com/watch?v=g1zwMMBL4Do