About the Author
Donna Anselmo is founder and CEO of BOLD Marketing Solutions, Inc., an integrated marketing and training firm specializing in brand strategies and communication. She hosts BOLD TALK Business Radio, a weekly AM radio program that educates business leaders, managers and entrepreneurs on marketing and business strategy. She has developed curricula for continuing education programs, which were offered by Adelphi University, Hofstra University, and Stony Brook University. She has also authored articles for various media, including The New York Times.

Marketing DeMystified

A Self-Teaching Guide

By Donna Anselmo

The McGraw-Hill Companies, Inc.

Copyright © 2010 The McGraw-Hill Companies, Inc.
All rights reserved.
ISBN: 978-0-07-171391-7

Contents

AcknowledgmentsIntroductionPART ONE Understanding Marketing PrinciplesCHAPTER 1 Principles of Integrated MarketingCHAPTER 2 Principles of BrandingPART TWO Developing A Marketing PlanCHAPTER 3 Elements of a Strategic Marketing PlanCHAPTER 4 Applying Marketing ResearchCHAPTER 5 Positioning Brands, Products, and ServicesCHAPTER 6 Placement StrategiesCHAPTER 7 Pricing and ProfitabilityCHAPTER 8 Incorporating People and CulturePART THREE Mastering Marketing CommunicationCHAPTER 9 Promoting Products and ServicesCHAPTER 10 Marketing in a Digital worldCHAPTER 11 Networking and Referral MarketingPART FOUR Practical Strategies for Marketing CampaignsCHAPTER 12 Planning a Marketing CampaignCHAPTER 13 Advertising and Media PlanningCHAPTER 14 Organizing a Public Relations EffortCHAPTER 15 Loyalty Strategies for Customer RetentionPART FIVE Targeting Sustainable Marketing SuccessCHAPTER 16 Managing a Marketing TeamCHAPTER 17 Managing ExpectationsCHAPTER 18 Integrating Ethics, Morality, and Social ResponsibilityCHAPTER 19 Developing a Marketing BudgetCHAPTER 20 Evaluating Marketing PerformanceFinal ExamAnswer KeyIndex

Excerpt

CHAPTER 1

Principles of Integrated Marketing

Whether you’ve just entered the market with spanking new products and services,plan to stretch a growing brand across new geographic terrain, or extend asuccessful brand into different product lines, chances are that your businessconcept began with a heartfelt “a-ha!” That exclamation probably leftyou giddy with the belief that you had just hit upon something that the worldwas missing. No doubt you were tempted to bring that unique idea to buyers whowould clamor for your concept, if only they knew about it. At that point, youmay have launched your new business venture with devil-take-all bravado. Then,you set your sights on a killer plan that would jump-start your success.

It’s the same with a marketing plan. Once you transform inspiration into aviable concept, its time to uncover the right marketing strategies to catapultyou to victory. It may be that you didn’t come up with the concept at all.Perhaps you don’t own the business but are responsible for marketing a set ofideas, products, or services. Whichever scenario describes your currentsituation, this book will help.

A marketing manager working to build excellent outcomes is a lot like anarchitect in the process of design. The architect begins with a vision for acompelling structure as well as a concept of how the building will relate to theenvironment. The architect lines up planning tools: grids, tracing paper,compass, charcoal, sharpeners, erasers, and maybe even renderings of beautifulbuildings, cities, columns, and artistic treatments for inspiration. He thenpencils in painstakingly scaled lines. Next, he lays over tracing paper, andbegins a second layer of planning. Or, he enters thoughtful keystrokes into acomputer-aided drafting (CAD) program. As the form begins to emerge, he thinksabout aesthetics, client wishes, construction materials, practical budgetconcerns, and code requirements, not to mention the presentation he must make toteammates, partners, clients, and planning boards. Throughout the process, thearchitect blends his artistic talents with insight from team members, engineers,product experts, and even zoning regulators and code enforcers. The process isat once mathematical (with calculations that shift as perceptions change) andmusical (as the work is fine-tuned).

To set the stage for sales, marketing managers build their platforms in much thesame way. They consider their products, study the competitive landscape, uncoveropportunities in target markets, and then weave together various elements of themarketing mix to create a harmonious message that will be tested, sensed,perceived, tried, and appreciated by the right audiences.

To create a truly powerful marketing enterprise, the manager must stretch beyondtraditional activities associated with marketing disciplines. She also must finda way to integrate the goals, tactics, and cultures of the sales, operations,training, human resource, customer service, finance, and executive teams into aconsistent, synergistic brand message across the organization. Then, she mustchannel that message beyond the organization. Marketing begins at home.

Extraordinary marketing managers spread their marketing vision inside and beyondthe company. They make it a priority to ensure that all company teams speak acommon brand language and understand their roles in the marketing process. Youcan develop the skill set of an extraordinary marketing manager by incorporatingstrategic, integrated marketing principles and sound teamwork. As you do, youwill reach breakthrough outcomes that other managers only hope for. You willknow how to brand your organization in a consistent way and reach the marketsyou seek.

Developing a Strategic, Integrated Approach

Integrated marketing is a strategic, process-driven approach tomarketing management. It incorporates traditional marketing disciplines with thestill-emerging discipline of Internet marketing. But it doesn’t end there. Theintegrated process aligns the interest of mission-critical business teams, suchas sales, operations, finance, and customer service, with marketing goals sothat the marketing enterprise does not churn in a vacuum.

It’s sad but true that many marketing managers are called to the table wellafter products have been developed, names chosen, and the initial sales processis underway. That is backward marketing. It puts the cart before your marketingworkhorse and then expects that horse to leap straight over the cart topromotion. Can that work? Sure. Should you operate like that on purpose?Absolutely not. While marketing horses can certainly accommodate unrulyprocesses and demands, it makes more sense to take advantage of marketing wisdomat the beginning of the product cycle. Leaders and planners need to bring in themarketing team early on, involving them in information gathering and marketingresearch that will prove either the wisdom of business decisions or the need fora critical shift in direction.

When marketing is approached as an add-on, marketers enter the game in landmineterritory. After some effort and resources have been expended, chief executiveofficers (CEOs) may be reluctant to change course, even when change is needed.The best-case marketing scenario then becomes founded on hope rather than theprocess of success. The risks are often costly in both time and money.

MAKE FEEDBACK A PRIORITY

Whether starting at ground zero or jumping in to an existing project, you’llneed a process to gather and integrate feedback from multiple business unitsinto your marketing plan and promotions. Every segment of a business shouldoperate in connection to the marketing enterprise and purpose. The earlier youinvolve your marketing team in gathering internal and customer feedback, themore information you will have for decision making. Better informationtranslates to better outcomes.

THE LINK BETWEEN MARKETING AND BRANDING

Marketing and branding go hand in glove. Marketing is the umbrella under whichbranding resides. It is a multifaceted process used to develop and connect yourbrand presence and message with target customers. Marketing requires anunderstanding of consumer needs, products, planning, pricing, promotion,placement, and positioning, as well as the importance of people involved in theprocess. Together, these elements make up the marketing mix.

Branding is one aspect of promotional marketing, and it represents way more thanyour outer mark. It becomes your image, inside and out, reflecting theimpression you make on people’s minds. Brand image conveys the kinds ofexperiences that people— prospects, customers, employees, investors, andother stakeholders—can expect from your products, services, and company.This expectation is translated as your brand promise. It communicates how youconnect and engage with prospects and customers. It colors the business of everydepartment in every company. Likewise, every department colors the brand in someway.

Branding is more about consumers’ actual experience with your products,services, and people than with what you tell them about your brand. The feelingpeople take away from engaging with your products, services, or company is whatdrives your brand. Engage people from inside and outside your organization. Workto positively influence their sense of connection with your company andproducts, and you will build a marketing success story.

Branding may begin when research indicates a viable business concept. But brandsgrow based on missions and beliefs. They are promoted through marketingmessages, taglines, expertise, and experiences. They are marketed in print, inperson, and on the Web. They are built through internal relationships withemployees and external relationships with customers, the community, and themedia. Then, they are validated by consumer experience. When consumersexperience predictable positive outcomes—and when they are regularlyexposed to a brand via marketing services—brand awareness, presence, andvalue grow.

THE MARKETER’S ROLE IN BRANDING

As a marketer, your job is to position and differentiate your brand(s) in theminds of consumers. That takes strategy. Learning to employ the full spectrum ofthe marketing mix, in a strategic way, will help you shape and reinforce yourbrand image. As you speed up brand recognition, you will provide criticalsupport that tees up and reinforces the sales effort and paves the road toprofit.

Defining the Marketing Mix: The Seven Ps of Marketing

Many marketing handbooks reveal the various “Ps” of marketing. Many sources citethe four most popular Ps: product, place, price, and promotion.Others add positioning to the mix. To cover all the bases well, I’veincluded people. And to leave no stone unturned, I present the seventh P(arguably the most important of all), planning, as a critical measure toensure stable, predictable results.

The right data can validate your premise, help you decide how well your strategywill work, determine whether your reasoning is sound, and indicate whether ornot it is the right time to go forward. While gung-ho enthusiasts might tell youto “go big or go home,” it’s my job to help you learn to decide how big is toobig and when it’s better to play at home than risk your booty in a market thatmay just swallow up your investment.

Consider marketing research to be your marketing safety net. If you gatherenough evidence about what need there is for your products or services, wherethey are likely to sell best, what the perceived value and price points are tobe, how they are to be positioned, and who can help you get your products tomarket, you will be gunning for success. Then with a plan in hand, you can moveforward with confidence.

SIMPLIFYING THE SEVEN P PREMISE

Learning the Seven P Premise will deepen your understanding of the marketing mixand help you develop a framework for thinking through issues that will impactyour marketing plan. As you answer the questions that follow, you will increaseyour chance of enjoying solid return on your marketing investment. As you gainawareness of the many factors influencing marketing success, you will gain theconfidence to manage your marketing effort effectively. That confidence willemerge as you enjoy even small successes along the way.

Product

The first step in your marketing mix is to identify and develop aproduct or service to sell. The process of developing products andservices is called research and development (R&D). But choosing the rightproducts or services requires more than an idea and a manufacturer. It takesmarketing research to get it right. Here are several questions that will helpyou round out your approach to product analysis:

• What need or needs will our product(s) or service(s) fill?

• What product(s) will we offer to meet that need or those needs?

• For whom will we design the products and services?

• Where are those people? How old are they?

• What do they buy now? How will our product be different from others they mightbuy?

• How will we reach them?

• Who will build our products and develop our service processes?

• What will it cost to build those products?

• Can we afford to build these products or services now?

• How long will it take?

• Who will oversee product development? What special skills do they need?

• How will we know that our products or services have value to prospectivecustomers?

• What quality management systems must be in place to ensure product quality?

• What user guide will be needed for our products?

• What is needed to shift from planning to execution?

• What special knowledge will we need to sell those products?

• How many do we have to sell, at what price, to cover production costs?

• What is our product development budget?

• How will we turn our product decisions into profit?

Positioning

Positioning is the process of choosing where your brand of products andservices will stand in the minds of your target audience when compared to thoseof your competitors’. Positioning is designed to stimulate the senses and teaseout inner responses that make people want to buy. The game board is as much inthe consumer’s mind as it is laid out in your marketing plan. After you’vedecided where to position your products or brand, you’ll need to create a planand then take action to fill that mental space.

For example, look at face cream. Thoughts of face cream can elicit dreams ofextended youth and beauty. To entice the minds of luxury buyers, a face creamcan be positioned as a high-end product with fancy packaging, point-of-saledisplays, boutique placements, ad campaigns, and a high price tag. Or, the exactsame cream can be positioned as a cost-effective alternative to luxury creams.It can be packaged to appeal to the practical buyer’s cost-saving instinct andmarketed to less fussy buyers. This lower-level positioning can open access to amuch broader market; profit can then be made up in volume sales.

Product and brand position is tightly linked to the sensory and emotionalconnections discussed in the introduction to this book. In Positioning: ABattle for Your Mind, authors Al Reis and Jack Trout recognized that buyingbehavior is ruled by emotions as well as practical needs and have broughtpositioning theory to the forefront of marketing strategy.

Positioning decisions will influence your product’s cachet. The position youchoose to create in the minds of consumers will depend on the level ofdistinction your company wants for your products, services, or branding.Positioning is an important brand management tool. It starts with a decision toinfluence perception in some way, and it takes root as you create preference.You can influence positioning through advertising. You can employ word-of-mouthpower as a viral strategy to create consumer buzz. As a marketing manager, yourday-to-day actions both influence and are influenced by your company’spositioning decisions. Consider these questions when thinking about your firm’smarket position:

• What fantasy comes to mind when I think of our product? What do I see changingin my life as a result?

• Who are our target customers? What do they want most?

• How can our product fulfill that fantasy?

• Will our products or services represent a premier, luxury, or economy model?

• Will they convey fun, spirit, and a wild ride? Or will they conjure a sense ofsafety and stability? Or something else? What is that?

• Where do we want customers to come from?

• Where do our customers come from now? What can they afford?

• What are those customers like? Create a consumer profile of the perfectconsumer.

• What do we want customers to say, feel, and believe about us?

• How do we think prospective customers will view our brand?

• How important are our products or services to the customers we want to reach?

• Why is that?

• Where do we stand now in the minds of potential customers? Do we have anymarket presence now?

• How do intended products fit with our current products?

• How will our products compare with our competitors’ in customers’ minds?

• Where do we stand now in terms of our competition?

• What do we want our customers to think, say, and feel about our brand?

• What can our products or services do for our customers?

• What will it take for them to see our brand as valuable to them?

• What can we do about that?

• What will it take for us to perform well in our chosen industry tier?

• How will we turn that positioning into profit?

Marketing research and statistical analysis can help you answer those questionsand determine the scope of work you need to do to influence customerperceptions. We’ll discuss this in more detail in Chapter 4.

Price

More than a number on a tag, pricing is a marketing strategy in itself. You canprice right when you align it with your overall business strategy, choose targetmarkets that need and can afford your products, engage the right sales channels,and budget accordingly to extract a reasonable profit. This approach seemsobvious, but believe it or not, entrepreneurs sometimes neglect to reason thisout. Their mistakes usually come from lack of experience and/or reliableresearch. (So, do your homework.)

Be sure to work up all of your costs when pricing a product, from research andproduct development, through ongoing overhead and incremental expenditures. Wediscuss this topic more fully in Chapter 7. For now, remember tocalculate all costs, before settling on the markup you need to stay solvent.When pricing your products, be sure to include all R&D costs (including aprojected budget in the event product changes are needed), general andadministrative costs, tax burden, anticipated discount promotions, deliverycosts, the cost of money (interest owed and the cost of waiting for payments, ifyou plan to extend credit), and how much you will need to stay afloat while inproduct development or early marketing stages. Consider everything that canimpact your profit before you set your price. If you don’t know what youdon’t know, ask advice from friends in other businesses, an accountant, businessconsultant, and/or financial experts.

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(Continues…)Excerpted from Marketing DeMystified by Donna Anselmo. Copyright © 2010 by The McGraw-Hill Companies, Inc.. Excerpted by permission of The McGraw-Hill Companies, Inc..
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