Build a Flexible Marketing Model to Ensure Perpetual Growth #073

The journey for every business is different. We listen to you and your objectives before proposing a plan for survival and growth. We work alongside you and your team and focus on protecting and improving your wealth.Published on 22 December 2011by Tony Groom Build a Flexible Marketing Model to Ensure Perpetual GrowthFollowing on from the flexible business model that we developed to ensure theperpetual survival of businesses for what looks like a long period of economicstagnation, it makes sense to explore how growth can be achieved without ‘bettingthe farm’.While businesses may breathe a sigh of relief if they have followed our advice onhow to ensure their survival, it is also necessary to look at the marketing model. Theprinciples of flexible marketing are similar to those of survival as they involve tightcash management and being aware of the fixed nature of many contracts forpromotion initiatives that either don’t work or become a financial burden.Marketing can be complicated as it involves getting a mix right between manyvariables. There are lots of alternative ways to achieve marketing objectives where itis often difficult to measure success in terms of ‘return on marketing spend’ or ‘bangfor buck’ when developing a marketing plan.Quite apart from developing a plan, marketing activities can serve a number ofpurposes which makes measurement even more difficult. The model that works bestwill be different for every business, but when markets are so uncertain and cash istight marketing can make the difference between failure, survival or growth. The realissue is uncertainty where the key is to understand and then manage the relationshipbetween cost and return for different marketing activities. Flexibility reduces the costof switching between activities which in turn reduces the cost of getting it wrong. Theprocess involves continuously improving your ability to be certain about the cost andoutcome of any marketing initiatives. K2 Business Rescue The Emergency Service for Business Call Tony Groom on 0844 8040 540

There are a vast number of possible objectives such as: generating new sales leads,selling different products or services to existing customers, launching a new product,persuading potential customers to buy from you, or reassuring clients by building areputation. This latter objective of establishing credibility is common for those firmsthat sell advice or professional services when they want to set up or move into a newgeographical market.Having established your purpose and defined marketing objectives it is necessary toconsider the possible marketing initiatives, affordability and how they might bemeasured in terms of cost and outcome.Essentially the flexible marketing model is based on a process of trial and error whereyou can afford to get it wrong. Until the outcome is established throughmeasurement most marketing initiatives are a speculative investment. The challengeis to compare the outcome with lots of different initiatives.Simply placing a single advertisement can work for some firms even if it is expensive,providing the results justify the cost. Many businesses like emergency repair servicesused to rely on one large advert in Yellow Pages. Now it is more difficult for theplumber or locksmith to ensure potential customers find their advert when they havean emergency. Nowadays such firms need to be listed in a large number of possibledirectories including online.Affordability versus flexibility can be an issue especially when payment is spread overa period of time. After their hype, many advertising and promotion contracts areregretted when expectations aren’t met. It is acknowledged that flexibility is likely tocost more but there is a distinction between trialling a marketing initiative and along-term campaign that will almost certainly be cheaper, unless the marketingbenefits have already been established so as to justify the financial commitment.Most initiatives can be easily trialled and measured without the need for a long-termcommitment to test whether they work, e.g. pay per click such as Google Adwords,internet banners, leaflets, posters, adverts on print, radio or television, redemptionvouchers, point of sale promotions, text based promotions, stands at trade fairs andeven short-term rent or pop-up shops.Comparing the costs versus benefits for several initiatives will help refine themarketing model and over time improve the certainty of a return on marketinginvestment.Less easy to measure are longer term marketing initiatives such as publishing articlesin online media to generate visits to a company’s website. Similarly public relationsand press releases to relevant media can generate press interest that raisesawareness but may not produce immediate sales. These need not be expensive andcan help establish a reputation for the business as an expert in its field which isreinforced by articles and press coverage. While this is a more speculative approach K2 Business Rescue The Emergency Service for Business Call Tony Groom on 0844 8040 540

to marketing it offers longer term benefits since print and internet published articlesand press coverage tend to be picked up by search engines and therefore have along life. To some extent the decision to use such methods will depend on whetherthe business firstly can afford to invest the money and secondly is looking to a longerterm return than immediate sales or orders.Another tactic to consider might be ‘bootstrap’ or ‘guerrilla’ marketing which isespecially useful when a business has little money to spend on marketing. A goodexample is promotion of the Ultimo silicone gel bra by Michelle Mone when it waslaunched in Selfridges. With little money for a marketing campaign Michelle hiredout of work actors, dressed them in hospital masks and coats, gave them placardsand alerted the press to a protest in Oxford Street by cosmetic surgeons against theloss of work they would suffer because of this new bra.Whatever initiatives are deployed, the marketing mix needs to be continuouslyreviewed and refined in exactly the same way as applies to using a flexible, costsensitive business model.Add a flexible marketing model to a flexible business model and you can bothensure perpetual survival in a difficult economic climate and perpetual growth.We are not Insolvency Practitioners. We operate within the law to protect our clients and their wealth.Our team has worked for over 20 years to help stabilise and return hundreds of businesses toprofitable growth. Once appointed, Insolvency Practitioners do not work for you, they work for creditorsand use your company’s assets to pay themselves. We work for you, not creditors. More Free Resources for Directors and Business Owners in Difficulty www.rescue.co.uk We Save Businesses We provide experienced advice to directors We negotiate with HMRC and creditors We are on your side Need Immediate Help – Call Tony Groom on 0844 8040 540 K2 Business Rescue The Emergency Service for Business Call Tony Groom on 0844 8040 540

Build a Flexible Marketing Model to Ensure Perpetual Growth #073

by K2Partners on Aug 02, 2012

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Build a Flexible Marketing Model to Ensure Perpetual Growth #073 Document Transcript