How to Appraise Your Marketing Program

It is easy to recommend that a business make a regular, objective evaluation of its marketing program, but such an idea is far easier advocated than accomplished.

Usually, only a crisis forces a company to take a closer look at its marketing program: competition heats up, a new player enters, market conditions change, sales drop, a new product or service is introduced or there is a need to increase revenues. However, more regular evaluations will help minimize marketing problems before they grow out of control.

The following red flags can serve as benchmarks for initiating an appraisal of your companyŐs marketing plan.

1. Discount Pricing Is the Driving Force Behind Sales.

Perhaps the clearest indication of an absence of marketing is when a company turns to charging the lowest prices to beat the competition. Deep discounting, making special concessions and constantly running special deals are primary indicators that the company is perceived by its customers as just a vendor and perhaps an impediment in the distribution process. Customers do not perceive any value in doing business with the firm other than getting the lowest possible prices.

2. Customers Are Unable to Differentiate Your Company from Your Competitors.

Whether itŐs retailing, business to business services or industrial products, the fundamental issue is creating a special identity that distinguishes a firm from its competitors.

For example, after playing - and losing - the look-alike game with the big discounters, Sears decided to create a unique identity based on style. TodayŐs Sears store is a dynamic series of boutiques that offers customers a speciality shop atmosphere with lower prices. Although the Sears turnaround was costly, it was on target because it was based on separating the giant retailer from the big-box merchandisers.

3. Company Employs A Steady Stream of Sales Gimmicks.

Every month itŐs another sales-increasing gimmick. One special deal runs into the next. But nothing is really special, and the customers know it.

Customers come to expect the gimmick and donŐt buy until it comes around. Worse yet, they donŐt buy anything but the specials. Of course, there is a time for reducing prices but special sales should be controlled and made an integral part of a total marketing program.

4. Sales Strategies Change Constantly.

Last month it was a contest. This month itŐs a free trip. Then sales quotas change. Sell this and get extra points. Next quarter there will be a special bonus.

This company jumps from one sales gimmick to another. Behind this pattern is what can be called a sales-driven approach. If everyone just pushes a little harder, the quota will be met.

This is little more than a desperate strategy, based on always being in a reactive mode. Without exception, the competition always has the upper hand. They set the direction and determine the pace.

A market driven company, on the other hand, has a unified plan for communicating its message. It continually presents itself effectively to customers, prospects, the trade press (media) and the public. As a result of consistent marketing support, sales success naturally falls into place.

5. Most Leads Come From the Sales Staff.

Of course, salespeople should develop leads, but if they are the primary source of new business, there is a serious marketing problem.

One of the major objectives of marketing is to create leads and conditions that result in sales. Marketing and sales each have a job to do: Marketing creates an environment so that customers want to do business with a company; sales utilizes the marketing environment to get orders from both existing customers and prospects.

Throwing more and more salespeople at the problem is expensive and ineffective. Even the best salesperson cannot be at the right place, at the right time - all the time. It is only with a well - developed marketing program that the companyŐs presence is known and felt by the customer or prospect when he or she is ready to buy, making it possible for the sales staff to enter the picture from a position of strength.

6. Even Longtime Customers Say, "I DidnŐt Know You Did That."

When customers and prospects do not have a clear picture of what a company sells, that is an unavoidable indication that the companies marketing strategy has failed. The way insurance is purchased is an excellent example of the problem. Customers buy a life insurance policy from one agent, boat coverage from another, homeowners policy from a third, and disability insurance from yet another - even though the first agent could have provided the total package.

7. The Company Has an Inadequate or Non - Existent Customer and Prospect Data Base.

A companies data base may be the most accurate way to evaluate its marketing program. Very few companies have a complete, up-to-date customer and prospect mailing list.

Most firms have a customer list, but many of the listings lack specific contact names or contain outdated information.