Every CEO and marketing executive periodically faces urgent strategic marketing challenges that can affect the

future of the company for many years. Frequently these decisions are made without having an opportunity to study
the situation and make the best possible decision.

Making spur of the moment strategic decisions reduces the likelihood that these decisions are the best.

A better approach is to perform an annual comprehensive review of markets and opportunities, then make long-term
strategic decisions without the distractions of day-to-day marketing and sales activities. Daily decisions then fit into
the company's overall strategic marketing goals.

It's important for a strategic marketing planning process to look at the company from the customer's point of view by
asking questions that have a long time horizon, such as:

 What needs or problems cause customers to consider buying from our company?
 What improvements in the customer's personal or business life can we enable or improve?
 Which customer market segments are attracted to our company or products?
 Which customer motivations or values lead people to decide to purchase our products?
 What changes or trends in our customer base are affecting their general interest or attraction to products like
ours?

Strategic vs. Tactical Marketing Plans

What makes a strategic marketing plan different from a more tactical marketing communications plan? The key
difference is the focus on meshing overall customer situations with your overall company direction.

For business-to-business marketers, this means combining industry sector segmentation and product use with other
factors related to purchase decisions. These include the purchase criteria and decision motivations that affect large,
enterprise size purchases.

For example, the trend toward increased use of outsourcing to both domestic and global vendors creates markets for
those suppliers. However, those vendors need to have a strategic marketing vision in order to see these new markets
early enough to take advantage of the opportunity.

For consumer marketers, this means using geographic and demographic segmentation, as well as psychographic
segmentation (i.e., values, attitudes, lifestyles), and product usage motivations.

For example, the aging population bubble creates a general increase in demand for a wide range of products. It also
creates market niches that are large enough to make product development and marketing worthwhile.

The same shifts can also reduce demand for other products. These long term shifts in markets are frequently
misinterpreted as short-term competitive pressures or fluctuations in the economy. Instead of increasing advertising
or sales efforts, it might be better to abandon a declining market.

Without a strategic marketing plan a company could waste resources or miss an opportunity.

What's the cost of missing an opportunity? Of course, it's impossible to know at the time the opportunity is missed,
but years later it will become clear when a competitor opens a new factory or enters a new market -- and their
revenue grows faster than their competitors.

In other words, the annual cost of a strategic marketing plan review is miniscule compared to the revenue, market
share, and profitability it can generate.

Developing the Strategic Marketing Plan

The strategic marketing plan process typically has three stages:

 1. Segment the market
 Geographic
 Demographic
 Psychographic
 Behavior
2. Profile the market segments
 Revenue potential
 Market share potential
 Profitability potential
3. Develop a market segment marketing strategy
 Market leader or product line extension
 Mass marketing or targeted marketing
 Direct or indirect sales

After analyzing market segments, customer interests, and the purchase process, it's time to create the strategic
marketing plan. The strategic marketing plan document usually includes:

 Situational Analysis - Where is the company now?

a. Market Characteristics
b. Key Success Factors
c. Competition and Product Comparisons
d. Technology Considerations
e. Legal Environment
f. Social Environment
g. Problems and Opportunities
 Marketing Objectives - Where does management want the company to go?
a. Product Profile
b. Target Market
c. Target Volume in Dollars and/or Units
 Marketing Strategies - What should the company do to achieve its objectives?
a. Product Strategy
b. Pricing Strategy
c. Promotion Strategy
d. Distribution Strategy
e. Marketing Strategy Projection

How to Use a Strategic Marketing Plan

Once a company's executive team has approved the strategic marketing plan it's time to take the next step -- create
the tactical marketing programs and projects needed to implement the plan.

These tactical programs usually include:

 Product Development Plan

 Marketing Communications Plan
 Sales Development Plan
 Customer Service Plan

Benefiting from a Strategic Marketing Plan

The top-down process of developing a strategic marketing plan helps insure that all tactical marketing programs
support the company's goals and objectives, as well as convey a consistent message to customers.

This approach improves company efficiency in all areas, which helps improve revenue and market share growth, and
minimizes expenses -- all of which lead to higher profitability.

How Cliff Allen can help develop your strategic marketing plan
With over 25-years of strategic marketing experience, and helping companies implement both traditional and online
marketing and sales programs, Cliff Allen brings a valuable perspective to developing strategic marketing plans and
programs.

Cliff can lead your strategic planning team, or assist senior management, throughout the entire strategic marketing
plan process. He can help you:

 Research customer attitudes toward your company, your product category, and your competition.
 Evaluate the attractiveness of potential target markets
 Determine the competitive strengths and weaknesses of your company and your competitors
 Develop marketing communications and sales development strategies for each target market
 Design the metrics to measure performance

To learn more about the strategic marketing planning process, and how Cliff Allen can help you achieve market
leadership, call Cliff today at (310) 650-3599.

In the April 2004 issue of Polaris eNews, I outlined the first five of ten qualities of a great
marketing manager (click here to read  that article). While many more attributes could be added
to this list, below are the last five qualities that I see as integral for being great at a job that is
often undervalued but sorely needed.

6. A Big Picture Manager, Not a Micro-Manager

Great marketing managers paint a big picture, defining the box for their subordinates, vendors
and team members.

All too often, I have seen marketing managers who love to tinker in MS Publisher® or Front
Page®, creating flyers and web pages. Or, the marketing manager chooses to micro-manage
literature design that has been created by a competent graphic artist. It's easy for marketing
managers to become engrossed in the details -- self-maintaining a website or creating internal
product data sheets.

Great marketing managers instead keep their eyes on the big picture, delegating detail tasks to
the appropriate people. Creating, managing and selling a clear vision is extremely hard and it's
easy to fall into the details because they’re easy, and less risky than the rest of the process. (For
more on this subject, see Cutting Your Own Hair, by Ken Stine).

Pat Walker, the General Manager of Prime Factors is fairly new to the role of Marketing
Manager, but he has done a great job of allowing our graphic designers to “do their thing” while
giving specific and reasonable direction that, in the end, have created an effective and cohesive
collection of marketing materials.

Effective marketing managers are always looking at the big picture. They work at and refine the
vision, and don't allow themselves to become distracted by the details.

7. A Loose Planner
Great marketing managers cannot function without a plan. However, taking the time to outline
every detail of that plan, and then follow those details to the letter is counterproductive and
extremely time consuming. It also distracts them from the true task of leading the company
towards the marketplace with a vision. The biggest problem with creating an incredibly detailed
plan is that it tends to lack the spontaneity that market forces create, and ignores the reality of
creative people and ideas.

On the other hand, a marketer who doesn't have a plan is completely adrift. Marketing materials,
sales literature, brochures, booths, and websites that are created without the framework of a
vision, end up being fairly useless. They create a lot of noise in the marketplace, but have no
focus, influence, or legacy.

In my experience, a loose planner has the best of both worlds -- they have a plan, but it is loose
and allows for creativity and spontaneity. New ideas can be inserted, and old ones withdrawn
without having to completely rewrite the plan.

A good marketing strategy or plan also requires pubic relations, advertising, and sales tools
components. It also may include a tradeshow and Internet presence. Other components to a good
marketing plan may include product packaging and point-of-purchase concerns. A good
marketing manager will include these components in an overall marketing plan.

Whether a marketing plan is written (preferably) or stored in the head of the marketing manager,
this planning must be done for a marketing program to be effective. Good marketers tend to be
flexible, quickly changing their plan when circumstances or markets change.

8. A Master of Internal Company Politics

Internal issues and fear amongst colleagues, senior management, or the marketing manager's
direct supervisor can damage or destroy a marketing program. Over the years I have seen
conflicts between marketing managers and their superiors (or subordinates) cripple companies.
Companies have failed because the marketing people couldn't navigate the internal politics of
their company. Quite often, the administrative or production wings of a company have more
influence than sales and marketing. In fact, in many companies, marketing is looked down upon.
Engineers, developers and managers with an operations background often dominate production
or manufacturing oriented companies. These companies frequently fall into the trap of thinking
the better product will ultimately succeed in the marketplace. A good marketing manager
understands that it is not whether the product is better or superior, but whether it is perceived as
better or superior.

Because of this common clash, the production team may resent what the sales and marketing
people are doing because they don’t understand the value. The marketing manager's role is to
constantly teach the production team about The Vision. They need to demonstrate proof and
show results. It's important that the marketing manager brag internally (selflessly) when their
programs are working. They also need to teach both the sales team and the production side of the
company about the successes occurring in the marketplace.

It's all about creating a climate for success. Successful marketing managers find ways to generate
internal enthusiasm for their marketing programs. Great marketers find ways to include the sales
team in their vision. Sometimes the marketing manager even needs to target their superior (CEO,
President, Owner, etc.) and educate (sell) them on important issues so they can get the financial
backing they need to carry out a successful program.

For example: the marketing budget is quite often one of the very first items that senior
management targets for cuts when money is a little tight, even though industry research has
consistently shown that companies who stop marketing and advertising during a recession or
economic slowdown suffer severe economic and brand damage -- if they survive at all.
Meanwhile, companies who manage to find the budget and continue marketing through the
downtime will often capture market share and are much better off in the long run. Marketing
managers have to preempt this kind of self-destructive action by consistently exemplifying their
successes to everyone in the company and teaching them of the marketing team’s value.

My good friend, client, and CEO of Harrell Remodeling, Iris Harrell, is the champion of
positive! At Harrell Remodeling, every design award, every signed contract, every marketing
milestone is recognized and celebrated. People who worked on a specific project are publicly
recognized and patted on the back. Even at the bottom of the recent recession amongst rolling
layoffs, she was finding ways to brag about the great stuff happening in the marketing
department. The result was that they hung in there, kept marketing, reached their company goals,
and are now roaring into 2004!

These obstacles are very common and the marketing manager's job is to work the internal
politics and eliminate obstacles within a company that may prevent success.

9. In Control of the Budget

Here at Polaris, our type of business affects the marketing manager's budget (advertising and
marketing expenses) as much as anyone else they typically interact with. Obviously, cost is a
part of every project. I've experienced three methods that my clients use for managing and
controlling costs, and there is one clear method that gets the most out of us as a partner in their
marketing efforts, yet is still cost effective.

The first of the three different scenarios I've seen is the "bottomless pocket". These marketing
managers will direct us to just "go for it" never asking us at the beginning of the project what it's
going to cost. I'm not sure if they are afraid to know, but we happily spend the time that we feel
it takes to complete the project. Initially, this sounds like an ideal client for us. However, I've
learned quickly that this is a false paradise. Almost always, problems arise down the road, both
for our client and us. The marketing manager that allows us to work on projects until we feel
they are complete, without checking costs, is almost always surprised by the bill. Once that
happens, they are forced to halt the project, or renegotiate, or cut back its scope. We find that we
never end up being as effective as we should be.

An analogy would be taking a dog for a walk without a leash. The marketing/design group
represents the dog (appropriate, I think). Without a leash, the dog will run everywhere and the
owner may not reach their destination. For this reason, we don’t typically work on projects under
this scenario.

The second situation we often see is that the marketing manager wants us to quote every project
to the penny before the project begins. Experience has proven that it is nearly impossible to
estimate the hours it will take for creative projects. Sometimes great ideas come quickly and
sometimes they don’t. When a client asks me to quote a cost based on an exact number of hours,
you can see what I'm forced to do -- guess to the high side. Otherwise, we would be out of
business very quickly.

This type of marketing manager functions under an illusion that they are saving money by
controlling the vender and their costs, to the penny. The reality is that they are actually costing
themselves more since the vendor has to estimate everything on the high side to eliminate risks.

The third and best method for managing creative vendors creates a win-win situation for both the
marketing manager and their company, and the design agency. It begins with the marketing
manager having enough experience to understand what a given project may typically cost,
preparing a loose budget and having reasonable expectations. In discussions prior to the project,
we agree on a ballpark budget with round numbers ($2400, $800, $20,000, whatever)
understanding that the finished project cost may be over or under this figure.

A loose budget frees the agency up to do a good job. We have run across new creative ideas near
the end of a project. I've had a creative team member say, "This is a great idea, do you want me
to explore it?" With a loose budget I am able to tell the team member to spend a few more hours
on the project to see where it leads. These ideas have often turned out to be the best part of a
marketing program. If we were in a situation where we are committed down to the penny, I
would have told the staff member not to work any further on the project because we’re
committed to the quoted amount and we don’t like to work for free.

I am much happier to have a target budget, knowing that if we go over by 10 to 20%, it will not
be a catastrophe. Also, if the project is 10 to 20% less than we proposed, I am very happy to pass
this savings on to the client. When creating an estimate with a loose budget, we don't have to pad
the estimate since the risk is not there.

I am not suggesting that the marketing manager shouldn't have complete control of the budget. I
understand that a good marketing manager needs to be completely accountable to his budget and
his company’s bottom line. But along with creating flexible budgets, an effective marketing
manager needs to have a good understanding of costs and expenses for different kinds of
marketing projects. This way, the marketing manager can budget effectively, be on target, and
control marketing costs without inhibiting the creative department.

10. A Love of the Process

Most of us know a great salesperson -- they love to sell. They love the hunt, the chase, and the
close. They love the process of not knowing if they have the sale until they make the close and
then bask in the exhilaration of the whole process.
In the same way, a great marketing manager loves the marketing process-- the uncertainty of it
all. Is this the right vision? What do my customers really need? Are we providing what they
want? Good marketing managers love making bold statements and leading a team into battle.
They love diving into the marketplace, delegating tasks, taking risks and seeing the outcome.

Unfortunately, the outcome is not always what is hoped for. Some marketing programs will fail
—it’s almost inevitable. However, great marketers shrug this off and simply try something
different. They know that even the best laid marketing plan has uncertain elements. They
surround themselves with people they enjoy working with and have a great relationship with
their creative team or outside agency. These are people they can throw ideas at, or ask for ideas.
This marketing manager enjoys the inner play, or the fun, of trying to insert the company into the
consciousness of the marketplace.

There are not many marketing managers who really LOVE this process. I enjoy working with the
ones who do. It is fun to work with them because I know they get more out of everyone,
including my company. And it is fun to be part of a winning team!

There you have it -- The Ten Qualities of Great Marketing Managers. Becoming a great marketer
is not easy. It takes a lot of experience, strength of will, perseverance, skill, risk, and a bit of
courage. Speaking for those of us who are still trying to achieve greatness, let's keep at it and
learn from the best. To marketers who are already great at what you do, keep up the good work!

This is the second article in a two-part series on marketing managers. Qualities 1-5 can be
found in the April 2004 article entitled Ten Qualities of Great Marketing Managers (Part 1).

How To Design Your Positioning Strategy?

           By Osama Taha   ©2004 All Rights Reserved

In the previous article "Position, Aim, Shoot" we touched upon the importance of positioning your product
in the mind of your customer, and how to choose your target market.

Now is time to learn how to craft a positioning strategy that works for your specific product.

Before we go on explaining the process of crafting a positioning strategy for your product or service, let
me remind you of this:

"A Positioning Strategy results in the image you want to draw in the mind of your customers, the picture
you want him/her to visualize of you what you offer, in relation to the market situation, and any
competition you may have".

With this said, let us design your positioning strategy.

You will be faced with three main options:

  1. Positioning your product against your competitors, " Our prices are half of that you may find
else where for similar products"
 2. Emphasizing a distinctive unique benefit "the only book keeping system that instantly
calculates your taxes"
 3. Affiliating your product with something the customer knows and values "the same archiving
system used by the library of congress"

Of course these are just examples to help you better grasp the concept, but I am sure you get the point,
and you can come up with far more attractive messages to better suite your product.

Your marketing strategy should act more like a guideline, the driving force of your marketing program, so
you should always keep it before your eyes, and the eyes of all those who work with you.

Writing a positioning statement should not be a difficult task. For starting off, first you must
decide the following:

 Your customer: The type of customer you target.

 The benefits: What you can do for your customers.
 The method: How you do it.
 The USP: Why you do it better than the competitors. (As you may know, USP stands for "unique
selling proposition".)

Now you will need to write down the following: (fill in the blanks):

 Our product offers the following benefits: ---------------

 To the following customers (your target market_: ----------
 Our product is better than the competitors in the following manner: ----------------
 We can prove our product is the best because (evidence, differences, testimonials..etc)
--------------------

ow you have a positioning strategy, So What? You can't use it to sell your product, which requires a far
more complex process, so what is the strategy for?

You will use your positioning strategy to design all your marketing communications, and integrate it with
every aspect of your marketing program.

Any and everything you will do as part of your marketing program, from web site design to product
packaging and advertising, should aim mainly at convincing customers of the points contained in your
positioning statement.

So, put the statement where you can always see it, and always get back to it whenever you are marketing
the specific product for which it was crafted.

Your positioning statement reflects what you need to communicate about a specific product, and to
whom, so you will always hit the right button, communicating the right message to the right customer at
the right time.

I must stress here, the most significant purpose for having a positioning statement, is to make sure that all
your communications are consistent with its content. There is no point in having so many different
messages for the same product, that lake consistency.

That is what I meant by saying, you must integrate your positioning statement with your marketing
program, in all aspects.
Every marketing program should cover only one product, hence must not reflect more than one clearly
stated positioning strategy, So:

1 product = 1 marketing program = 1 positioning statement.

One last point to ensure the effectiveness of your strategy, which may seem too obvious yet often
ignored:

Your Customer must also get the message you are conveying, the way you meant it to be.

Does your message make sense? Is it clearly understood by your customers? If you answer yes for both,
good luck, you are on your way to big success

Targeting is the second stage of the SEGMENT

"Target" POSITION (STP) process. After the market
has been separated into its segments, the marketer
will select a segment or series of segments and
'target' it/them. Resources and effort will be
targeted at the

The first is the single segment with a single

product. In other word, the marketer targets a
single product offering at a single segment in a
market with many segments. For example, British
Airway's Concorde is a high value product aimed
specifically at business people and tourists willing to
pay more for speed.
Secondly the marketer could ignore the differences
in the segments, and choose to aim a single
product at all segments i.e. the whole market. This
is typical in 'mass marketing' or where
differentiation is less important than cost. An
example of this is the approach taken by budget
airlines such as Go/

Finally there is a multi-segment approach. Here a

marketer will target a variety of different segments
with a series of differentiated products. This is
typical in the motor industry. Here there are a
variety of products such as diesel, four-wheel-drive,
sports saloons, and so on.
Now have a look at the final stage, positioning.
Which marketing topic do you
want to study?
 SWOT Analysis
 Marketing Environment
 Marketing Strategy
 Marketing Tactics
 Case Studies
 Consumer Behavior
 Marketing and Finance
 Marketing Planning
 Marketing Communications
 Services Marketing
 eMarketing/Internet Marketing
 Customer Relationship Management (CRM)
 International Marketing
 Creative Marketing