End Of Advertising

The End of Advertising as you know it.

Today’s Advertising Mix

Do you have an advertising Budget?

Do you:

Randomly buy local print ads

Buy High School Yearbook ads without thinking of your message

Automatically renew your yellow page ad

Advertise the same way you have for the past 10 years

Do you have an advertising Budget?

Do you:

Randomly buy local print ads

Buy High School Yearbook ads without thinking of your message

Automatically renew your yellow page ad

Advertise the same way you have for the past 10 years

Not Advertise!

I do not advertise…

Too expensive

Does not work

Waste of time

Business is growing, I don’t need to advertise

Business sucks, I cannot afford to advertise

Rule #1

If you don’t keep giving customers a reason to

buy from you they won’t!

Rule #1

If you don’t keep giving customers a reason to

buy from you they won’t!

Remember there is someone out there

telling your customer constantly to buy

from them!

What is Advertising?

Advertising has become more than a radio spot

More than an ad in a magazine, newspaper, weekly publication or flyer

More than your last direct mail piece or targeted email

More than your last direct mail piece or targeted email

Advertising is a comprehensive viral package that allows us to sell more stuff more often to more people for more money!

Advertising Campaign Setup

First lets change the term Advertising to Marketing!

Marketing is more inclusive of all elements and it is a disciplined marketing campaign that will make advertising effective

Marketing is more inclusive of all elements and it is a disciplined marketing campaign that will make advertising effective

There are TEN STEPS to setting up a disciplined market campaign

10 Steps to Market Planning Step 1 Business Review Step 2 Problems & Opportunities Step 5 Plan Branding and Marketing Strategies * Step 4 Target Market & Sales Objectives Step 3 Set Overall Sales Objectives Company Scope Strength & Weakness Marketing Capabilities Product & Market Categories ::Pricing :: Competition :: Distribution Company Scope Strength & Weakness Marketing Capabilities Step 6 Step 9 Step 7 Step 8 Communication Goals Establish Marketing Mix Calendar, Budget, Payback and Analysis Execute Evaluate Step 9

10 Steps to Market Planning Step 1 Business Review Step 2 Problems & Opportunities Step 5 Plan Branding and Marketing Strategies * Step 4 Target Market & Sales Objectives Step 3 Set Overall Sales Objectives Step 6 Step 9 Step 7 Step 8 Communication Goals Establish Marketing Mix Calendar, Budget, Payback and Analysis Execute Evaluate Step 10 Come from the Business Review. Create a Summary of Points good and bad from Step1. This will be the foundation for the marketing plan.

10 Steps to Market Planning Step 1 Business Review Step 2 Problems & Opportunities Step 5 Plan Branding and Marketing Strategies * Step 4 Target Market & Sales Objectives Step 3 Set Overall Sales Objectives Step 6 Step 9 Step 7 Step 8 Communication Goals Establish Marketing Mix Calendar, Budget, Payback and Analysis Execute Evaluate Step 10 Setting Sales objective is critical! It is the basis fro the whole marketing plan. It will be the basis for deciding your budget, marketing, staffing and inventory needs.

10 Steps to Market Planning Step 1 Business Review Step 2 Problems & Opportunities Step 5 Plan Branding and Marketing Strategies * Step 4 Target Market & Sales Objectives Step 3 Set Overall Sales Objectives Step 6 Step 9 Step 7 Step 8 Communication Goals Establish Marketing Mix Calendar, Budget, Payback and Analysis Execute Evaluate Step 10 Establish & define who your target market really is. Surfers, skaters, tourist, mom’s dad’s, male or female. Establish what you want your advertising to achieve. Set a goal for each segment so you can measure its success.

10 Steps to Market Planning Step 1 Business Review Step 2 Problems & Opportunities Step 5 Plan Branding and Marketing Strategies * Step 4 Target Market & Sales Objectives Step 3 Set Overall Sales Objectives Step 6 Step 9 Step 7 Step 8 Communication Goals Establish Marketing Mix Calendar, Budget, Payback and Analysis Execute Evaluate Step 10 Brand Positioning is how you want your store and products to be perceived by your target markets. Are you a hard goods store? Women’s, Skate, or Discounter (I mean cheapest)? Your brand strategy should influence the direction of all your advertising. By establishing a brand strategy evaluation will be easier at years end.

10 Steps to Market Planning Step 1 Business Review Step 2 Problems & Opportunities Step 5 Plan Branding and Marketing Strategies * Step 4 Target Market & Sales Objectives Step 3 Set Overall Sales Objectives Step 6 Step 9 Step 7 Step 8 Communication Goals Establish Marketing Mix Calendar, Budget, Payback and Analysis Execute Evaluate Step 10 Communication goals simply bridge the gap between your objectives and your marketing mix. Simple charting will allow you to track effectiveness of marketing tools and objectives. See HANDOUT.

10 Steps to Market Planning Step 1 Business Review Step 2 Problems & Opportunities Step 5 Plan Branding and Marketing Strategies * Step 4 Target Market & Sales Objectives Step 3 Set Overall Sales Objectives Step 6 Step 9 Step 7 Step 8 Communication Goals Establish Marketing Mix Calendar, Budget, Payback and Analysis Execute Evaluate Step 10 This is the tactical element of our plan. Each element used should have its own objectives and strategies. By establishing these objectives and strategies we will be able to judge there effectiveness. Elements include media, events, price, merchandising, product and message.

10 Steps to Market Planning Step 1 Business Review Step 2 Problems & Opportunities Step 5 Plan Branding and Marketing Strategies * Step 4 Target Market & Sales Objectives Step 3 Set Overall Sales Objectives Step 6 Step 9 Step 7 Step 8 Communication Goals Establish Marketing Mix Calendar, Budget, Payback and Analysis Execute Evaluate Step 10 Budget methods may include the Task Method, the Percentage of Sales Model or the Competitive Method. With a budget in place create a detailed yearly calendar. Establish a means of judging the effectiveness of your advertising campaign, two popular methods are Contribution to Fixed Coast and Gross Margin to Net Sales Analysis

10 Steps to Market Planning Step 1 Business Review Step 2 Problems & Opportunities Step 5 Plan Branding and Marketing Strategies * Step 4 Target Market & Sales Objectives Step 3 Set Overall Sales Objectives Step 6 Step 9 Step 7 Step 8 Communication Goals Establish Marketing Mix Calendar, Budget, Payback and Analysis Execute Evaluate Step 10 With a plan in place execution is essential. A yearly calendar will give you the ability to have all marketing materials in a timely fashion. Prevent the “last minute scenario.

10 Steps to Market Planning Step 1 Business Review Step 2 Problems & Opportunities Step 5 Plan Branding and Marketing Strategies * Step 4 Target Market & Sales Objectives Step 3 Set Overall Sales Objectives Step 6 Step 9 Step 7 Step 8 Communication Goals Establish Marketing Mix Calendar, Budget, Payback and Analysis Execute Evaluate Step 10 Like analysis in Step 8. Always evaluate the success of the marketing plan. It is import to judge not only the full plan but its specific elements as well.

Task Method – Set budget based on what needs to be accomplished! To reach the total operating cost you must establish a cost for each marketing tool and times it will be implemented throughout the year.

How Much to Budget?

Percentage of Sales Method – Traditionally 4 -5% of Gross Sales. This will help keep the number you came up with in the task method in check.

How Much to Budget?

Percentage of Sales Method – Traditionally 4 -5% of Gross Sales. This will help keep the number you came up with in the task method in check.

Competitive Method – Set your marketing plan based on competition’s marketing mix. While hard to estimate competitors marketing budget. This method protects market share.

How Much to Budget?

Advertising for specialty retailers continues

to change and the classic 4 P’s of Marketing:

Product

Price

Place

Promotion

Make Marketing ROI a Reality: Focus on the 4 A's

Advertising for specialty retailers continues

to change and the classic 4 P’s of Marketing :

Product

Price

Place

Promotion

May now be replaced with the 4 A’s

Accountability

Analysis

Accuracy

Action

Make Marketing ROI a Reality: Focus on the 4 A's

“ In good times people want to advertise:

in bad times people have to.”

Bruce Barton CEO BBDO

Do not fall to the myth that Advertising doesn’t work to sell products.

“ In good times people want to advertise:

in bad times people have to.”

Bruce Barton CEO BBDO

Do not fall to the myth that Advertising doesn’t work to sell products. Remember that poorly planned advertising doesn’t work . We all make mistakes, even in advertising, by establishing, tracking and evaluating your marketing plan you will be able to growth your business and get a handle on what types of advertising are helping to make your business grow!