Tips but no tricks 4

Let's talk a bit more about "Ed". The clothes you have on your back (and, I hope, on your front, too), your mortgage, your dinner next weekend at some nice steak house, your kid's books and tuition, your dog food (unless you bring her leftovers from your steak house dinner), your utilities bills, and any other thing you have that you must pay for - it is "Ed" and only "Ed" who has made these things possible. The only reason you have a job or a career or whatever you may call it, is because someone, an "Ed", is willing to buy whatever your employer is selling. The moment "Ed" stops buying or subscribing or enrolling, no more paychecks will be forthcoming and before you know it, you're in the unemployment lines.

Please, don't ever forget this crucial fact of life. There are "Eds" who buy from your employer or from you, if you are independent. You are an "Ed" who buys from others. "Ed's" decision to continue a business relationship will determine success or death for any enterprise. Sometimes you are on one side of the counter (seller), other times you are on the other side (buyer) - either way, don't mess around with your livelihood.

Let's continue with "the plan." Companies (or people) who plan for the future are more likely to survive. Plans are normally done annually, though very regular monitoring is a must. The plan is a comprehensive statement about what is expected from each product/service (and yes, this applies if you have a Mexican restaurant, a Chinese donut shop, a dry cleaners, a plant nursery, a gasoline station, a school, a hospital, a print shop, or a manufacturing operation) over the period being forecast and measured. It includes historical information as well as recommendations on how to improve performance. It combines strategies, tactics, and timetables for action.


The sections of a plan must discuss and present at least five basic elements:

1. A detailed situation analysis: (a) analysis of the internal marketing situation - known as an audit, (b) competitive and environmental analysis.


2. Objectives that will provide direction, when things are to be accomplished, and how these activities will be evaluated.


3. A strategy that determines and selects "Ed" and discussions on the marketing mix (product, place, price, promotion).


4. A tactical plan covering what will be done and who is to do what.


5. A system or program for measuring results.

Where have you been? Where are you now? Where will you be? How will you get there? These issues will not solve themselves. Maybe you have been lucky and your business has taken off without a glitch (rarely the case) and without a plan. Truth is, the good Lord will not send you customers from heaven - you must plan for them, go out and get them, make them happy, nurture them, and keep them satisfied.

I don't remember if I mentioned this in other blogs, but a marketer's job is extremely difficult. It requires coming up with ideas, creations, products, services, etc. that will satisfy someone, somewhere. Is it not easier to satisfy someone we know than someone who is a total stranger?

Before we go on, let's talk a bit about strategy and tactics. In avery general sense, strategy is what you want to do; tactics is how you will do it. Say you want to change the look of your living room. Your strategy might be to have the best looking living room among your friends; your tactics might be to paint the walls, replace the carpet with wood floors, change the curtains, buy new furniture, etc.

Back to the plan.

1. Company situation: Current sales, net income, market share, strengths and weaknesses.
2. Environment: Competitive plans, opportunities, threats, laws, regulations.
3. Target markets: Where they are, how they buy, how much will they buy.
4. Objectives: Sales, market share, distribution, stockholder equity, technology, quality.
5. Strategy: Areas the firm will emphasize, what paths to follow for marketing mix variables.
6. Action programs: Six month activity plan, tactics, media plan, individual assignments, timetables, completion deadlines.
7. Anticipated results: Breakeven charts, projected profit and loss statements, cash flow budgets, actual P&L.
8. Contingency plans: What if?
9. Appendixes: Support documents and exhibits.
10. Executive summary: An overview of the entire plan. It is the last paper to write, but the first to appear in the document.

We'll talk about these issues as we go along in future blogs. By the way, did you know that people are paying thousands of dollars for this kind of information? See you in a while.