Question

Topic: Strategy

Can You Succeed Without A Marketing Plan/strategy?

Posted by aaroncagen on 1/5/2010 at 10:24 PM ET 52 Points
What would you tell a client who insists on NOT having a concrete marketing plan, saying that he'd prefer to let the market dictate the positioning, etc?
To continue reading this question and the solution, sign up ... it's free!
SUBSCRIBE
Or, SIGN IN

RESPONSES

  • Posted on 1/5/2010 at 10:41 PM Accepted
    I would tell the client to invest in some market research so that can learn what their target audience values in the company's product/service, the benefits customers (and non-customers) are looking for, and the language used when discussing these benefits. Hopefully, the client will sit up and listen when they hear what actual customers have to say and how this valuable feedback can help them to shape a positioning strategy and a solid marketing approach.
  • Posted by aaroncagen on 1/6/2010 at 12:51 AM Author
    The client is just starting to launch, but doesn't have a whole lot of resources for marketing.

    Any cost-effective alternative for market research?

    Thanks
  • Posted by Chris Blackman on 1/6/2010 at 1:21 AM Accepted
    To start with, I'd tell him he's 100% correct - the market does determine the positioning because the only positioning that matters is the position in the customer's mind.

    However, that is not something he can leave to the market because there are two key components to how the market makes up their minds about your client's positioning:

    1. Everything the client does
    2. Everything the client says...

    So if he produces a product that is designed to fit into a particular space in the consumer's mental map of the market (i.e. a position) then he may or may not be successful, depending on how well he has planned...

    Oh, wait, he doesn't have a plan.

    Perhaps he has a vision? How then will he translate the vision into action? I've read somewhere that a vision without a plan is simply a hallucination.

    Research is just part of the background to a planning process. It's part of the environmental, internal and external analysis that answers the questions - "Where are we now" and "Where do we want to go (i.e. where would it be a good idea to go to?")

    Low-cost research can be done by getting the client to ask people they know questions about the business concept, the market, etc. They can develop low-cost online survey tools and e-mail survey links to contacts inviting them to give their input. If they have no marketing budget at all, how can they ever hope to succeed?

    Frankly, without a plan, you should stand clear of the client and try to avoid any flying debris.

    Because hope is never really a viable substitute for a plan.
  • Posted by Gary Bloomer on 1/6/2010 at 6:50 AM Accepted
    Dear aaroncagen,

    Would your client set out to sail around the world in an 8 ft dinghy with half a sail and a box of mildewed cookies? Would they attempt sky diving without a parachute? Would they stand on the top of a mountain, in a thunderstorm, wearing wet copper armour, railing at the Gods?

    No? Then why set out into the waters of business WITHOUT a marketing plan?

    Any journey needs a map. Setting out without one tempts fate—more so if the client in question has few reserves of capital.

    I hope this helps.

    Gary Bloomer
    Wilmington, DE, USA

  • Posted by Peter (henna gaijin) on 1/6/2010 at 7:36 AM Accepted
    I would talk about how marketing plans don't have to fix everything exactly as it will be done for a year (or whatever time period). Instead, it can at least cover the more generic of how in general the business will go to market and promote its products.

    Using Gary's dingy analogy, it would say whether you are going to paddle or sail, what direction you would head, what resources you have available, etc.
  • Posted by CarolBlaha on 1/6/2010 at 8:30 AM Accepted
    Wow, lots of posts up there! This is a stall, not a real objection.

    A marketing plan isn't concrete, it is fluid and should be revisited. It should also have milestones and benchmarks so that you and your client knows it is effective. That gives you the opportunity to change what isn't working, moving those funds to what is working.

    A marketing plan also contains research of where the market is going-- or has he says dictates. This is based on trends, competition, etc etc. The market will change, change in everything is a given-- but it won't happen overnight, especially since the killer marketing plan has the research to indicate where the market is going.

    This is what I predict will happen. A few months down the road you'll be told "its not working"-- even though he has sales. He won't be able to pinpoint your effect on those sales. Why? Because he has no plan that was put into effect, no milestones or benchmarks, and nothing that points to where the results came from.

    To convince him, make it all about him. This is an opportunity to "inspect what he expects". Tell him when he gets his car washed, he checks it out against a benchmark. Yet he is trusting you with the marketing of his precious baby, without the ability to benchmark. He'll inspect the $5 car wash but not his biz? Remind him its fluid and certainly not concrete.

    So he'll say, I'll know by what's in the checkbook. At that point you will have to point out and decide-- you want to know how you are doing, you want transparency, and realize, this guy is all about himself. And my prediction above is going to come down. This isn't about being fluid, its about his lack of committment.

  • Posted by aaroncagen on 1/6/2010 at 10:11 AM Author
    Thanks. Great thoughts here.

    I don't think he's lacking commitment. He's determined to "move forward" for fear of someone stealing his concept. Is there a way to appease him with benchmarks he could appreciate?

  • Posted by CarolBlaha on 1/6/2010 at 10:34 AM Member
    His lack of committment isn't to his biz, its to you. I have read and reread what I just wrote and wish I could say it a bit more sugar coated. If you don't have a plan you are setting yourself up to be fired. How can you succeed with a plan in someone else's head? Worse, the market's head? He won't hire a salesperson without a quota, a window washer without an expectation. So put it in those words, you can't fly without a map. A big part of marketing is planning-- so you have to make a plan and work the plan.

    And his moving forward for fear of someone stealing is concept is another foggy comment. He can move forward and someone still can steal his concept. If its a good enough idea, he should plan on it. Another argument for a plan.

    You need to tell him the plan is formal but doesn't mean its in concrete. Again, it should be fluid. Get the market research to determine where the market has been and where it is going. You should know that upfront before starting the biz. You're just going to have to hand hold him thru this. Start with a timeline. Big show he wants to participate? Put it there and how you'll support it. Track results. Big buying season, put it there and your role in it. Track results. Start filling the time line with events and work backwards. Schedule regular meetings with him and sales- -what is working, what you need to kill. You can only do that with a plan. You get the info to back up what is working-- you get the input from sales to validate your research. You already know your benchmarks, it's what you expect to do for this client in concrete terms.
  • Posted by Jay Hamilton-Roth on 1/6/2010 at 11:26 AM Accepted
    Is it because they don't want to pay for a plan or simply don't believe in one?

    If they don't have a plan, then they'll never be a market leader. They'll always be reacting to what people are doing. As a minimum, spend 30 minutes with them to create a strategy statement, identifying their target market, USP, etc. That'll serve you both well.
  • Posted by aaroncagen on 1/6/2010 at 11:38 AM Author
    Well we've discussed the target(s) and the USP, but he kept reiterating that the USP may change as this progresses.

    Do you think a two-sentence strategy statement will do the trick - or is this just the first stepping stone?

    Thanks for all your input!
  • Posted by michael on 1/6/2010 at 10:59 PM Accepted
    I would say it is the MOST expensive way to operate. Like trying to get to Cleveland just by randomly driving.

    Strategy gets you where you want to be

    Michael
  • Posted by CarolBlaha on 1/7/2010 at 6:35 AM Member
    These are all excuses but no reason. Of course the USP will change. The more you know about the competition the more fine tuning you will do. As you add products and services the USP will change.

    These aren't the 10 commandments. Just because you write something down doesn't mean it's set in stone!

  • Posted by steven.alker on 1/9/2010 at 6:44 PM Accepted
    It reminds me of the very old sales adage, “Few people who fail, plan to fail. All of them fail to plan”

    Carol is spot on – it’s either a stall or he’s joking. Sorry, but there’s no value proposition or benchmark in the world which will impress him.

    I’d go in there for 30 minutes, ask sales questions, overcome objections and close on the positive aspects of the discussion.

    If after 30 minutes the conversation is still going round in circles politely tell him that you can’t be of assistance and wish him good luck. It is astonishing how often this is followed by a cry of, “Wait on a minute” as you open his office door!

    Steve

    Xspirt

    PS A USP which never changes is called a Stagnated Product!
  • Posted by J Geibel on 1/10/2010 at 10:46 AM Accepted
    Your 'maybe' client's comments are those of a neophyte - stay clear. They will be looking for someone to blame when they fail.
  • Posted by steven.alker on 1/10/2010 at 11:29 AM Member
    Jeffrey - spot on. The only worse type of client is a necrophyte. They feast of the rotting remains of unpaid suppliers.
  • Posted by steven.alker on 1/10/2010 at 11:30 AM Member
    Jeffrey - spot on. The only worse type of client is a necrophyte. They feast of the rotting remains of unpaid suppliers.
  • Posted by CarolBlaha on 1/10/2010 at 11:39 AM Member
    Do I hear an amen! Jeffrey and Steve said what I tried to say, though in a lot fewer words and straight to the point. You are setting yourself up for failure.
  • Posted by steven.alker on 1/10/2010 at 2:47 PM Member
    Carol - Amen indeed. Rarely have I felt the weight of informed opinion saying the same thing!
  • Posted by aaroncagen on 1/13/2010 at 12:08 AM Author
    Thanks for all your responses.

    I've used all the arguments you've outlined in a meeting this morning - and the response was to "get going" with some preparatory marketing tactics/initiatives with the intention of putting together a concerted plan soon after.

    Is this advisable or a recipe for disaster?
  • Posted by CarolBlaha on 1/13/2010 at 12:27 AM Member
    It's certainly a step in the right direction! Great job!
  • Posted on 1/13/2010 at 10:48 AM Accepted
    Thanks. This posting is full of stern warnings to steer away from this project?

    Is this a sign to move forward or still proceed with caution?
  • Posted by CarolBlaha on 1/13/2010 at 10:57 AM Member
    you know sometimes you have to educate and bring along a customer. The objections you have heard from him may be for several reasons- one being he is inexperienced in this area.

    Inexperience is ok, as long as he is willing to learn, adapt, change, and not make excuses. He has hired you because you are the expert-- and it appears he is releasing some control and allowing you to be the expert.

    As far as moving forward-- go with your gut. If you feel you two can work together, you should. This was a major hurdle-- a test -- and he went thru it. It's a good vote of confidence in you.

    But I'd keep him on a short leash!
  • Posted by steven.alker on 1/14/2010 at 9:06 AM Member
    I'd agree with Carol again. Short leash but you've made a breakthrough.

    There should never be a time or a prospect with who you feel that you can't stop because you've invested too much in the sale.

    Either don't get to that position or learn the value of cutting your losses through listening to the client through disciplined sales questions.

    Actually, if you put your mind to it, you should be able to do almost anything. You've managed to get some of the best advice and the largest volume of advice for 52 points I’ve ever seen. What’s the trick?!


    Steve Alker
    Xspirt
  • Posted on 1/14/2010 at 5:05 PM Accepted
    Is he an actual client? ie: Are you getting paid? I sense the answer is no and if thats the case you have really wasted enough time. You need to look out for your business.
  • Posted on 1/14/2010 at 5:59 PM Accepted
    Good observation Bill!

    It's actually a "deferred payment" deal - which has created all the more hesitance in my mind.

    Your suggestion(s)?
  • Posted by steven.alker on 1/15/2010 at 11:52 AM Member
    I can see Bill's worry - How do you know when to drop a prospect or sack a potential customer. A Major part of our business is sales forecasting (Xspirt and SymVolli) and a quick trip through the key indicators of whether or not you are likely to eventually get the business might be useful. Just remember these are usually multiplied together to get a probability of a sale. It’s not straight multiplication – there is an algorithm generated by the client’s criteria (Your criteria in this case) for a win so if any one is a zero or very small the overall outcome is going to be zero or very, very small!

    The obvious ones are “Is your service a fit for the client?”, from his perspective rather than yours.

    Are you talking to the ultimate decision maker and have you included all the influencers?

    Did he come to you or did you persuade him to have your services presented and thus allow you to open up a sales opportunity for his company?

    Does he actually have the funds to pay you? As it is a deferred deal, does his business plan and do your marketing plans indicate that the revenue, cash-flow and profitability will be such that he can pay you?

    What are the basic parameters of the opportunity i.e. What is the value to you, what is your assessment of the percentage possibility of close, has an order date, start date and payment date been identified?

    Here’s a deal stopper: How long has the client been on your list of opportunities and over that time, how have the parameters of the opportunity changed over that time? This is a bit counter-intuitive, but if they haven’t varied at all in your own projections then the deal has either stagnated and has a very low chance of materialising or someone is telling fibs!

    Previously Carol and I have said keep any further work sharp, short and focussed. If this exercise kicks in a 2% chance of getting the business, then you might as well put it down to experience and politely walk away.

    Steve Alker
    Xspirt


  • Posted by CarolBlaha on 1/16/2010 at 7:36 AM Member
    Usually when it's a future pay-- he doesn't have the funds to pay him-- that is why he is deferring it to some point in the furture. Problem is, without benchmarks of what that "future" looks like, its a moving target that you may never hit. The scerario is often-- you didn't create the success-- some other super hero did.

    I'm not going to advise walking away or staying with this opp. It's got to be your call. All we can do is point out the flip side.
BACK TO TOP

Post a Comment

Related Discussions

Community Info

Top 25 Experts
(Strategy)