May 2009

Sustainable Marketing Success Depends On A "Reasonable" Business Strategy

Definition:

"Strategic management is an ongoing process that evaluates and controls the business and the industries in which the company is involved; assesses its competitors and sets goals and strategies to meet all existing and potential competitors; and then reassesses each strategy annually or quarterly [i.e. regularly] to determine how it has been implemented and whether it has succeeded or needs replacement by a new strategy to meet changed circumstances, new technology, new competitors, a new economic environment., or a new social, financial, or political environment.”

- Lamb, Robert, Boyden Competitive strategic management, Englewood Cliffs, NJ: Prentice-Hall, 1984

Main Point:

Don’t put horns on a dog and call it 100% prime steer.

Why It's Important:

Marketing, public relations and other self-promotional activities will only work on a long-term sustained basis if your company’s business strategy is reasonably on target.

For nearly a decade and half, Grow Sales, Inc. has helped (or attempted to help) many companies achieve a wide array of sales growth targets. On average, we’ve noticed good results for companies with a reasonable mix of competitive advantage and operational excellence. On the other hand, there isn’t much that can be done for a me-too company without core competency advantages. Sure, marketing, PR and promotional activities can generate opportunities for just about any company in any industry, but don’t expect long-term success out of a smoke and mirror strategy.

Key Action Steps:

Evaluate how your company does on these four strategy acronyms:

• USP – Do you have a Unique Selling Proposition? You and your team members should be able to succinctly say exactly why you’re in business, preferably in 30 seconds or less. If you substitute in a competitor’s name, the USP should no longer make sense.

  To read more on USP, click HERE.

• PPPP - The 4Ps have been a staple of business school strategy courses for decades. This easy mnemonic acronym asks four core questions:

  • Is your PRODUCT competitive from a features and benefits viewpoint? Do your products and services make sense in today’s marketplace?

  • Is what you sell PLACED appropriately in the marketplace? Do you have the right distribution channels in place? Are you selling direct, through a dealer/distributor network, on the web, via sales people, some other way or a combination thereof? Do your distribution channels make sense in today’s marketplace?

  • Are you PRICE competitive? This does not mean you have to offer the lowest prices. “Competitive” allows room for additional margin based on value. The value premium in every industry is different. Some industries allow for a 5% value premium while others offer 20% or more. If you’re outside of your industry’s acceptable value premium norm, you will not be price competitive.

  • Are your PROMOTIONAL activities on target?

• AIDAR - Typically known in business schools as AIDA, we’ve added the “R” because focusing on reordering activities is a fundamentally different and usually easier promotional activity.

  • AWARENESS – The marketplace must be aware of your mousetrap if you’re going to catch any mice.

  • INTEREST – Once you’ve created market awareness for your products and services, the next step is to generate buying interest.

  • DESIRE – After interest has been achieve, focus on creating desire. You want them salivating for what you have.

  • ACTION – Sign on the dotted line baby!

  • REORDER – As long as you’re in a repeating relationship type business, no sale cycle is ever complete. Quickly turn your attention to getting your customer to order more of what you’ve got.

  Read more on AIDAR HERE and HERE.

• SWOT – This analysis test is widely used for strategic planning purposes. If you have participated in a SWOT brainstorming session, you know the simple elegance this model offers.

  • STRENGTHS – What are your company’s competitive strengths?

  • WEAKNESSES – What weaknesses do you have and how do you minimize their impact?

  • OPPORTUNITIES – Where is the marketplace headed and what business opportunities do you have?

  • THREATS – Emerging trends may be a threat to your competitive position.

What Can Grow Sales, Inc., Do for You?

Charting a course for aggressive, intelligent growth can be difficult. Grow Sales, Inc., has been helping printing and other graphic arts companies with their strategic concerns and growth needs since 1996. Whether your company is in transition, the middle of an upswing or seeking help to get there, let us put our sales and marketing leadership to work for you.

Back to E-Tips