Marc Compeau; Wednesday 7/14/2004 Media Planning

Work Sheet 3 Review Any progress? What did we learn? What were some of the challenges you faced?

A couple of random thoughts Salesmen are mean Inventory can be meaner Get educated about accounting practices Ad spending / 5% gross sales Shoot for a 10% net profit Ask for help

Structure Sole proprietorship – simple, great for start ups Partnership – two people can’t be sole proprietors C Corporation – 15% is less than 28%, but not less than 43% S Corporation – avoid double taxation!

The Key to Marketing a central foundation of marketing… a deep understanding of consumers -- how they arrive at their judgments, choices and their consumption behaviors -- is a critical factor in success.

Marc’s Marketing Model 1.Measure Demands (Market Research) 3. Identify Gaps 2. Understand Competitors (Competitive Analysis) 4. CLEARLY tell them that you have the solution (The 4 P’s) “What do they want?” “What can they get?” “We have what you want, and we are the best provider of that need or want.”

Questions to consider when identifying Gaps –Risks: What are the trends in this industry? What are the trends with the chosen target market? Am I entering a Niche Market? Are there any “fatal flaws”? Is the market subject to rapid change? –Resources: Do I have the resources I need or can I gain control of them? –Opportunities: Are the gaps big enough? What type of profit margin do the gaps provide? Is this a short term opportunity and if so can I adopt changes?

Advertising Advertising The impersonal presentation of an idea that is identified with a business sponsor and is projected through mass media –Advertising objectives: Inform, persuade and remind –Types of advertising: Product – designed to make consumers aware of a specific product or service Institutional – advertising about a company or firm, designed to enhance a firm’s image –Frequency of advertising: continuous vs. non continuous (new product, single event) –Where to advertise: reaching but not overreaching (empty reach)

Promotional Spending Allocating a percentage of sales: –Advantage: simple –Disadvantage: spending drops as sales drop How much can be spared: –Advantage: widely used –Disadvantage: piecemeal approach that avoids analysis or reason Spending as much as the competition: –Advantage: good for reacting to short run efforts of competition –Disadvantage: business could be copying mistakes as well as successes What it takes to do the job: –Advantage: Preferred approach – most accurate –Disadvantage: Requires comprehensive analysis of the market and promotional opportunities

Marketing Mix An effective marketing mix clearly demonstrates a UNIQUE SELLING PROPOSITION (USP) in each member of your target audience’s mind. “What’s in it for me?”

Promotional Mix Promotional Mix A blend of personal and non-personal communication techniques aimed at a target market Mix is influenced by a blend of three classifications: –Geographic nature of the market: broad (mass coverage) or focused (personal selling) –Customer profile (target market): shotgun approach to advertising reached broad markets including no targeted customers and is expected. Targeted approach can take advantage of media profiles –Product characteristics: Technical or high end require personal selling, inexpensive commodity items can use advertising or promotional tools.

Media Planning 1.Invite 2.Control 3.Analyze 4.Control 5.Ask 6.Control 7.Decide 8.Control 9.Analyze 10.Control 11.Adapt Start the process in control, don’t let the media rep. control you STAY IN CONTROL – It is YOUR hard earned money Consider the responses to your request, demographics? STAY IN CONTROL – It is YOUR Business Questions, make the rep prove the value, can they do better? STAY IN CONTROL – It is YOUR reputation that can change Based on the facts, where is your money best spent? STAY IN CONTROL – It is YOUR future at stake Analyze impact of media plan and performance of reps. STAY IN CONTROL – It is your product/service being sold As you see impact / poor performance, change within budget

Templates Media Invitation Media Planning Media Listing Resources

Sneak Peak Implementing Technology –The web and you –Metrics and measures –When is a gadget a good gadget? MSB101 Summary / Survey