Chapter 4 Marketing

Marketing

WHAT YOU W ILL LEARN

§ The value of a well planned marketing strategy.

§ How to identify your marketing objective.

§ How much you should spend.

§ How to budget your expenditures.

§ How to track your marketing results.

§ How to design your own ads.

§ How to create a powerful customer loyalty

program.

§ How to plan a wide range of marketing

activities.

Before discussing the process of developing your

You can have powerful marketing strategy, there is something very
a great store important that you must recognize. Quite simply, you
with terrific can have the greatest marketing campaign in the
product and world, but if the rest of your retail concept and
wonderful staff strategy is a flop, then it just doesn't matter how good
… but if the marketing is. You see, marketing is just one
nobody knows element, albeit very important, of your entire retailing
about you, strategy.
does it really
matter? Having said that, you will begin to realize over the
next few pages that the process and management

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Chapter 4 Marketing

next few pages that the process and management

of marketing is as highly formatted and organized as
any other part of the business. While there certainly
exists an element of creativity that is essential to
marketing success, your overall strategy will rely on
analysis and planning.

Marketing is designed to support your store concept,

so it must tie into your business plan. It must be aimed
at, and recognized by, your identified target
customer base. If you know who your customers are
and what they want from you, designing an effective
marketing campaign becomes much simpler.

WHAT IS YOUR O BJECTIVE ?

To be effective, marketing requires a clearly stated
objective. If you know what you want to accomplish,
you will be more successful in your efforts.

For example, if your store concept is very promotion-

driven, you will need an aggressive campaign
focused on drawing customers to the store. If, on the
other hand, you are non-promotional by nature, a
program designed to attract and retain loyal
customers by focussing on awareness, concept and
image is required.

From the list of objectives below, identify those that

are applicable to your store:

• Build short-term sales.

• Develop or reinforce your image and store
concept.
• Provide information about your services or
products.
• Increase customer traffic.
• Create interest and demand for unique/private
label brands.

HOW MUCH SHOULD YOU SPEND ?

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Chapter 4 Marketing

Once clearly defined objectives have been

established, the next step is to set a dollar budget for
your marketing program. In the absence of a
budget, retailers tend to lose focus on the need to
market, or worse, spend far more than they should.

How much you’ll need to spend is tied to a number of

factors:
ü Tip
If business is 1) Store Location
tough, consider
increasing your A high traffic location, like a mall, requires less
advertising advertising than a location on the outskirts of town.
budget by 50%
this year in an 2) Consumer Awareness
effort to boost
store traffic. If you have achieved “top of mind” awareness
amongst consumers in your marketplace, you’ll need
to advertise less than if you were the new kid on the
block trying to make a name for yourself.

3) Competition Level

If the competition is fierce in your market, you’ll need

to increase your advertising. However, if you’re the
“only game in town”, the need to advertise is
potentially diminished.

4) Price Emphasis

If your store concept is based on being a price leader

or running continual sale promotions, you’ll need to
advertise extensively.

Most retailers set their budgets as a percentage of

sales. For example, if you were a camera shop selling
$300,000 annually and you set a budget of 3% of
sales, you would spend $9,000 on marketing for the
year.

The following table identifies statistics on average

marketing expe nditures by retailers, as provided by
the Retail Council of Canada:

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Chapter 4 Marketing

the Retail Council of Canada:

Advertising Expenditures As A % Of Sales

Category % Category %

Auto repair 2.5 Bakeries 1.6

Banks 1.3 Beauty Shops 2.0
Bicycle Shop 2.0 Book Stores 1.7
Camera Stores 3.0 Computer stores 3.7
Department Stores 3.0 Discount Stores 2.7
Drug stores 1.5 Florists 1.5
Food Chain 1.3 Furniture store 7.1
Gift store 3.7 Hardware 2.3
Jewellery 6.2 Fashion store 3.1
Office supplies 1.3 Opticians 7.0
Pet stores 3.7 Shoe store 2.0
Sporting goods 2.5 Tire dealers 2.2
Travel agents 5.0 Variety stores 2.2

BUDGETING YOUR E XPENDITURES

As in any other part of your business, proper planning
Shoot when is required to be successful in marketing. If you wait
the ducks are until a "good" opportunity comes along, it's probably
flying. going to be too little, too late. You must create an
annual marketing plan.
Or, advertise
when Most retailers allocate their marketing dollars by
customers are month and by department. The easiest and perhaps
ready to buy. most logical approach to assigning these
expenditures is on a straight-line basis.

For example, if March represents 10% of annual

projected sales, then March would also receive 10%
of your annual marketing budget. In the same way, if
Department A represents 25% of sales/profits, it should
receive 25% of the marketing dollars. The following
chart offers a good example of allocating dollars by
period.

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Chapter 4 Marketing

Annual Marketing Budget and Allocation Plan

January February March
Actua Actua Actua Actua Actua Actua
Plan Plan Plan
l l l l l l
Sales 96000 120000 72000 90000 72000 105000
% of year’s 8% 8% 6% 6% 6% 7%
total
Marketing 1200 3600 2500 2700 0 3150
% of sales 1.3% 3% 3.5% 3% 0 3%
% of year’s 5.5% 8% 11.6% 6% 0 7%
total

April May June

Actua Actu Actua Actu Actua Actu
Plan Plan Plan
l al l al l al
Sales 84000 105000 96000 120000 84000 105000

% of year’s 7% 7% 8% 8% 7% 7%
total
Marketing 1000 3150 2900 3600 2500 3150
% of sales 1.2% 3% 3% 3% 3% 3%
% of year’s 4.6% 7% 13.4% 8% 11.6% 7%
total

July August September

Actua Actu Actua Actu Actu
Plan Plan Actual Plan
l al l al al
Sales 72000 90000 96000 120000 120000 150000
% of year’s 6% 6% 8% 8% 10% 10%
total
Marketing 2500 2700 0 3600 3000 4500
% of sales 3.5% 3% 0 3% 2.5% 3%
% of year’s 11.6% 6% 0 8% 13.9% 10%
total

October November December

Actua Actu Actu Actu
Plan Actual Plan Actual Plan
l al al al
Sales 96000 120000 144000 180000 168000 195000
% of year’s 8% 8% 12% 12% 14% 13%
total
Marketing 0 3600 2000 5400 4000 5850
% of sales 0 3% 1.4% 3% 2.4% 3%
% of year’s 0 8% 9.3% 12% 18.5% 13%
total

Total Planned Sales $1,500,000 Total Marketing Budget $45,000 3% of Sales

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Chapter 4 Marketing

Note : In this example, we’ve used a straight-line approach to budgeting our

marketing dollars, relative to our sales. In your store, you may opt to weight your
monthly expenditures differently.

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Chapter 4 Marketing

BUDGETING YOUR M EDIA ALLOCATIONS

You should follow a similar budgeting process to

effectively allocate marketing dollars to various
media options.

The chart below is an effective tool to assist you in

planning and tracking your expenditures.

Media Allocation Budget

Month Month Month
Prior This Prior This Prior This
Year Year Year Year Year Year
Newspaper 1,200 1,500
Radio
Direct mail
Flyers 1,500
E-mail
In-store signage 300
Display supplies 300
Salaries (direct)
TOTAL $1,200 $3,600

Month Month Month

Prior This Prior This Prior This
Year Year Year Year Year Year
Newspaper
Radio
Direct mail
Flyers
E-mail
In-store signage
Display supplies
Salaries (direct)
TOTAL

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Chapter 4 Marketing

MAJOR M ARKETING EVENTS

ü Tip Most retailers stage two to four major marketing

Source events each year. Others are more inclined to have
clearance only one year-end clearance, and there are those
products from who prefer a monthly blitz to pound their message
your suppliers into the marketplace. Whatever your approach, it
for your major will work far better if you plan it in advance.
marketing
events. That
way you can Consider the following benefits of long term planning:
offer an item on
sale and still get
• You have an opportunity to buy specifically for the
a decent
margin. event, perhaps focusing on manufacturer’s
specials or end-of-lines.
• A greater chance of supplier support exists if they
are given time to work with you on the event.
• Ad allocation to media sources is more thoroughly
analyzed.
• Creative copy gets better when it's not rushed.
• Featured merchandise is more likely to be on
hand with more notice.
• Staff has the opportunity to be trained properly for
the event.
• A smoothly run event looks more professional and
better serves the customer.

Focus your major events on times when the greatest

opportunities exist. These are your busiest selling
periods. Obvious occasions include Christmas, Boxing
Day, Easter, Mother's Day and Back to School.

Create a checklist to ensure nothing gets overlooked.

Staff, signage, media, press, prizes and facilities all
need to be carefully prepared. A well- planned event
results in a better return on your investment. If you
take the "seat of your pants" approach, you'll be
wasting ad dollars and time ... especially the
customer’s.

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Chapter 4 Marketing

customer’s.

TRACKING YOUR RESULTS

50% of your Wasted ad dollars don't do any good at all. Yet,
advertising when it comes to marketing, we continue to throw
works and 50% good money after bad because we fail to measure
doesn’t. the results of our campaigns. Using your "gut feel" as
The challenge a way to assess your marketing effectiveness just
is knowing doesn't cut it.
which is which.
There are a number of professio nal methods of
tracking marketing results. One of them is to use a
Check Sheet. Store personnel simply record where
customers heard about the store or what made them
decide to come in. The sample Check Sheet below
gives you an idea of how it works.

Marketing Check Sheet

Dates: ____________________________

MON TUE WED THUR FRI SAT SUN TOTAL

Newspapers

Radio

Direct Mail

Flyers

E-mail

Yellow Pages

Referral

Repeat Customer

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Chapter 4 Marketing

Other

Total

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Chapter 4 Marketing

As an alternative, you could use any of the following

methods, where appropriate:

• If you issued coupons, count the number of

coupons redeemed.

• If the customer was prompted to phone in, record

the number of calls received.

• Measure the traffic flow and compare it to

previous weeks, years or events.

• Calculate how many items featured in the ad

were actually sold.

• Compare your sales to prior years, weeks or

events.

You can then calculate the marketing cost required

to capture each customer as follows:

Mktg. cost per customer sold = Marketing $ spent

# of customers sold

Once you compare the relative cost effectiveness of

various media types and marketing approaches, you
will know which ones work best for your store. Quickly
eliminate those that don't and increase those that
do.

COOPERATIVE M ARKETING SUPPORT

Winning Fact Cooperative marketing comes in two forms:

A significant
portion of your 1) Vertical
suppliers’ 2) Horizontal
coop
advertising The most common form is vertical. This is where
suppliers share the cost of marketing campaigns with

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Chapter 4 Marketing

budget goes suppliers share the cost of marketing campaigns with

unclaimed the retailer in exchange for featuring their products.
each year For some clever retailers, as much as 50% of their
because marketing budget comes from co-op programs with
retailers don’t their suppliers.
step up to the
plate to claim Declining to use these opportunities is like throwing
it. money away. Many manufacturers and suppliers
establish co-op guidelines and budgets and are
waiting to be approached by retailers with solid
marketing ideas. Get on the phone to your suppliers
and find out how you can work with them to make
your marketing more successful.

Horizontal co-op plans are those where two or more

retailers share the cost of an advertisement. Typical
examples are mall marketing programs and events
sponsored by downtown retail merchants. The
advantage here is in the shared cost, which can save
you money or allow you to increase your marketing
efforts. Pursue these joint-venture opportunities with
complementary stores and your neighbours.

DESIGNING YOUR A DS
ü Tip You don't have to be a high priced ad executive to
As a rule of design effective ads (but it does help). You just need
thumb, less is to understand the basic principles of design. And
more in your even if you forget the principles, just look at the ads in
ads. magazines or your local newspaper and decide
which ones you like, and why. The format they use
can be adapted to your own ad campaign.
Nobody ever said you had to reinvent the wheel.
Just make it fit your store.

Here are a few ideas to work with:

• Get to the point. Avoid using too many words that

ü Tip the customer isn't going to read anyway. Make
Most every word count.
independent • Develop a "look" for your ads that is so consistent,
retailers aren’t
readers will know it’s your ad without even seeing
large enough to
your name on it.
engage in

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Chapter 4 Marketing

engage in • The simpler the better. It makes the design

“image” process easier and increases readability.
advertising. • Use illustrations of the featured product whenever
They are be tter possible. It's even better if the picture shows your
served by product in use.
advertising
• Feature your best items. Unless you've got dollars
specific
products or to spare, there's no sense trying to make a winner
events. out of a marginal product.
• Include the price or the price range. Customers
are in a hurry and need information. If you're
embarrassed that your price is too high ... then
lower it!
• As obvious as it sounds, make sure your name and
address are displayed.

COMMUNITY INVOLVEMENT
Winning Fact People buy from people they know and like. Let's be
Retailers who honest ... if you only chase the almighty dollar, you're
are good sure to lose the game.
community
citizens not Be a strong community citizen who provides support
only attract and involvement whenever possible. Donate your
more time or your money. Sponsor the kids’ hockey team
customers, or figure skating club.
they also have
an easier time It is generally accepted that whatever you put into
attracting the community, you get back time and time again.
good staff. Your customers need to identify with more than just
your products. By getting outside of your store, you
can begin to put a real face and personality out front
for everyone to see. You'll not only get results, you'll
also feel a lot better about yourself.

SALES PROMOTIONS
Promotion refers to the entire range of activities,
(including advertising) that you use to market your
business. Relying only on advertising isn't usually
enough. You need to implement a wide range of
promotional ideas.

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Chapter 4 Marketing

Here are just a few for your consideration:

• Coupons
• Contests
• Prizes
• Referral gifts
• Fashion shows
• Birthday cakes or cards
• Gift with purchase (e.g. free gift with any purchase
over $25)
• Reduced purchase with purchase (e.g. buy one
item, get the next one at 50% off)
• Frequent shopper programs

CUSTOMER RELATIONSHIP M ANAGEMENT

(CRM)

CRM (Customer Relationship Management) has

created a lot of “buzz” in the retailing world in the last
couple of years.

What Is It and What Does It Mean?

The term is nothing new ... it just means something

different today.

It used to mean gathering data about your

customers for one-to-one marketing campaigns.
Today, this has expanded to include the ability to
customize product offerings for each individual
customer visit. CRM attempts to make our best
customers (the ones who spend the most) more loyal
to our store, while making our marginal customers
more profitable and less costly to maintain.

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Chapter 4 Marketing

Customer Statistics
Winning Fact
20% of your Consider these critical statistics about your customer
customer base base:
can account for
80% or more of • For most retailers, a small portion of their customers
your sales. account for the majority of their total sales and an
even larger percentage of total profit. In fact, it’s
not unusual to have 20% of your customer base
providing 80% or more of your sales and profit.

• Most retailers are very aware that it is far more

cost effective to retain an existing customer than
to acquire a new one.

• It’s quite common that your average customer

spends less than 50% of his or her total category
spending in your store.

• Most retailers lose up to 25% of their customers

every year.

With statistics like this, you should identify your best

customers and develop strategies that will keep them
longer, while increasing the value of their annual
business. To identify these customers, you need to
track their purchases. Before you can do that,
however, you must get their permission. The best way
to do that is to initiate a customer loyalty program
that rewards them for shopping in your store(s).

Customer Loyalty Programs

The basic concept of a loyalty program is to reward
customers for allowing retailers to track their
purchases. To assist in the process, technology plays
a key role in almost every program of this type. In
fact, it’s almost impossible to develop an effective
program without a computerized POS system that has
a Customer Loyalty module (see chapter # 12, Retail
Information Systems).

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Chapter 4 Marketing

Information Systems).

Most loyalty modules work on the basis of converting

a percentage of the customer’s purchases into
“points”. These points are then redeemed by the
shopper for various types of products, services or
other incentives. It’s most economical to develop
your program around an existing, proven loyalty
module, as custom programs are very expensive to
develop.

Elements of a Loyalty Program

1) Customer Types

Who are you trying to target with the program? Who

is eligible? What are the demographics, purchasing
behaviors and geographical elements of this target
group?

2) Program Elements

What are you going to offer as a reward -- points,

instant discounts, or products? Can you offer any
service elements or enhancements to the loyalty
group (e.g. free alterations, special gifts)?
Winning Fact
20% of your 3) Reward Offerings
customer base
can account for What is the cost to revenue ratio? In other words,
80% or more of what will the reward cost you for each dollar of
your sales. eligible purchases spent by a member? Do loyalty
program members have to hit certain plateaus to
receive rewards?

4) Redemption Strategies

What is the process for claiming rewards ? When and

where? Are they mailed to customers, or do they
pick them up at a store?

5) Test the Concept

Take a small sample group of the customers you are

targeting. Explain the program to them and get their

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Chapter 4 Marketing

targeting. Explain the program to them and get their

feedback. Is it simple and meaningful enough?
Would they want to participate?

6) Review POS Systems

As mentioned above, make sure the POS system has

a Customer Loyalty module that can accommodate
your program. A key element in most successful
loyalty programs is that the POS has the ability to print
the customer’s “points” on each sales receipt.

7) Implementation Mechanics

• Communication plan: How are you going to

get the word out about your loyalty program?
• Enrolment forms and entering the customer
data: Who? When? How?
• ID cards: The pr ogram works best when loyalty
customers identify themselves at the point of
sale.
• Reporting requirements: How many points
were issued and redeemed this week? Who
are your best customers?
• Implementation time frame: Develop a critical
path to launch the program.

8) Return on Investment Goal

ü Tip Program expenses are easier to calculate than the
50% of most extra revenue that may be generated. The biggest
loyalty points cost is the rewards, but in most programs 50% of the
are never points issued are never redeemed. Remember, too,
redeemed. that any preferred customer discount programs you
currently have in place will be discontinued when the
loyalty program is launched.

As for revenue, a well designed and executed loyalty

program increases both member spending and the
number of yearly visits. It also helps reduce that 25%
customer defection rate!

Case Study: “Bill’s Bait & Tackle”

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Chapter 4 Marketing

To illustrate how a simple loyalty program might work,

let’s take a look at Bill’s Bait & Tackle Shop (fictitious).
His newly installed POS system has a loyalty module
and that module comes with a Canada CD phone
interface. Now when Bill enters a new customer into
the system, he just asks for a home phone number
and “voila” -- the name, address and postal code
comes up (no data entry required).

The POS salesman gave Bill good advice, telling him

to keep it simple. So Bill’s program is very
straightforward -- for every purchase members make,
no matter what the product and whether it’s on sale
or not, they get 5% of the purchase value converted
to Billy Bucks. One Billy Buck is equivalent to a
Canadian dollar.

For example, say a member buys $100 worth of

merchandise and the POS system prints on the
bottom of the sales bill “You have 5 Billy Bucks in your
account.” Bill allows members to cash in their Billy
Bucks at any time for store products.

Bill had a cute little plastic key fob printed up with his
logo on the front and a sequential bar code on the
back, which members put on their key chain. The bar
code is simply scanned when presented and the
system attaches each sale to the customer’s file. Billy
Bucks are then credited accordingly.

Bill figures that since launching the program he is

seeing his better customers more often and they tend
to be spending more. They’re also showing their Billy
Bucks key fob because they want the rewards.

Next winter, Bill is planning a direct mail campaign

aimed at this loyalty group. He’s targeting his top 50
customers to show them how much he values their
business.

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Chapter 4 Marketing

SUMMARY
1) Your marketing success will be directly linked to
your efforts at planning an effective strategy.

2) Plan all marketing efforts in advance and budget

your expenditures accordingly.

3) Track the success, or failure, of your marketing

efforts so that you know what to do, and what not
to do, again.

4) Source marketing support from your suppliers.

5) Create an powerful customer loyalty program to

further develop and reward your best customers.

6) Realize that your marketing efforts won’t work if

the rest of your retail strategies are poorly
executed. Retail success comes when you get
every piece of the puzzle in place.

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Case Study Marketing

CASE STUDY: M ARKETING

Now let’s get back to the challenges at Jackson’s Department Store. In

this segment, you will focus on creating a marketing budget and
allocation plan.

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Case Study Marketing

CHAPTER 4: M ARKETING

Finally, we’ve arrived at month four. With the framework for a more focused
retail strategy in place, the buying department “rests on its ear”, still trying to
manage the shock of the newly implemented changes. As the “outsider,” you
begin to notice people’s behavior change when you walk into a room. Could
they really be talking about you?

For a split second, a thought crosses your mind: maybe you shouldn’t leave your
lunch in the fridge unattended! “Oh, well.” you think to yourself; “That’s just the
price you’ll have to pay for your greatness.” (At least, that’s what each of us
likes to think!)

Much to her credit, Susan looks bright, alert and not the least bit frazzled. In fact,
she carries herself with more grace, confidence and determination than you’ve
ever seen before. Wow, it’s amazing what success does to a person! Even the
smallest wins produce tidal waves of renewed enthusiasm and passion for one’s
business. That passion keeps us moving forward (and also keeps us from going
insane!).

This month’s challenge is daunting to the entire team. You must completely
overhaul the marketing budget and plan. With respect to advertising, both you
and Susan agree the advertisement’s “creative” work needs to be done by
someone outside the office. Neither of you possesses a creative bone in your
collective bodies. In fact, you both exhibit less creative talent than a child needs
to win a colouring contest!

Everyone on the Jackson’s team agrees that past approaches to marketing

have been really haphazard. Typically, ads got placed at the last minute on
Fridays, usually only minutes before press time. Likewise, the contents of the ad
were thrown together just as haphazardly, with some type of promotional pricing
offer. This approach netted little success ... so it has to stop!

Susan spent the weekend looking over last year’s marketing costs. She
discovered that they totaled $21, 600 out of sales of $1.2 million. That’s only 1.8%
of sales. Therefore, the team decided to spend much more money on
marketing to reposition itself and to attract new customers.

After calls to both retail associations and friends in the business, Susan
determined that, in contrast to Jackson’s, most junior department stores spent
between 2.7% and 3.0% of yearly sales on marketing.

See page 3 in this chapter of “Winning Retail”, for industry averages.

After talking with you, Susan agreed to increase the marketing budget to 3% of
sales for the upcoming year. Although Jackson’s was losing money and couldn’t

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Case Study Marketing

afford the increased expense, she believed the improved and increased
marketing would be worth it. Jackson’s would somehow find the money, even if
it meant a short-term loan from dear o ld Dad.

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Case Study Marketing

Susan’s first step? Creating both a 12-month marketing budget and an

allocation plan. She acknowledged the importance of planning as a means to
ensure the most effective campaign possible. Besides, she knew she wouldn’t
have time for this each and every month, especially with all the other changes
taking place. She thought to herself, “who does?”

Annual Marketing Budget and Allocation Plan

January February March
1997 1998 1998 1997 1998 1998 1997 1998 1998
Actua Plan Actua Actua Plan Actua Actua Plan Actua
l l l l l l
Sales 96000 120K 72000 90000 72000 105K
% of year’s total 8% 8% 6% 6% 6% 7%
Marketing 1200 3600 2500 2700 0 3150
% of sales 1.3% 3% 3.5% 3% 0 3%
% of year’s total 5.5% 8% 11.6% 6% 0 7%

April May June

1997 1998 1998 1997 1998 1998 1997 1998 1998
Actua Plan Actu Actua Plan Actua Actua Plan Actu
l al l l l al
Sales 84000 105K 96000 120K 84000 105K

% of year’s total 7% 7% 8% 8% 7% 7%
Marketing 1000 3150 2900 3600 2500 3150
% of sales 1.2% 3% 3% 3% 3% 3%
% of year’s total 4.6% 7% 13.4% 8% 11.6% 7%

July August September

1997 1998 1998 1997 1998 1998 1997 1998 1998
Actua Plan Actua Actua Plan Actu Actua Plan Actu
l l l al l al
Sales 72000 90000 96000 120K 12000 150K
0
% of year’s total 6% 6% 8% 8% 10% 10%
Marketing 2500 2700 0 3600 3000 4500
% of sales 3.5% 3% 0 3% 2.5% 3%
% of year’s total 11.6% 6% 0 8% 13.9% 10%

October November December

1997 1998 1998 1997 1998 1998 1997 1998 1998
Actua Plan Actu Actual Plan Actua Actual Plan Actua
l al l l
Sales 96000 120K 144K 180K 168K 195K
% of year’s total 8% 8% 12% 12% 14% 13%
Marketing 0 3600 2000 5400 4000 5850
% of sales 0 3% 1.4% 3% 2.4% 3%
% of year’s total 0 8% 9.3% 12% 18.5% 13%

Total Planned Sales $1,500,000 Total Marketing Budget $45,000 3% of

Sales

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Case Study Marketing

Susan’s Notes:
• We’ve chosen to use a straight-line approach in allocating our marketing
funds for each period. As the year progresses, we may need to make some
modifications to the monthly allocations. Either way, we will not exceed 3% of
total annual sales.

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Case Study Marketing

Putting the number crunching exercises behind us, we can decide how to
allocate our $45,000 marketing budget. We must all recognize that achieving
the targeted sales increase will require a meticulous marketing campaign.

The majority of this campaign will be driven by the first review of the “Major
Marketing Events” for the coming year. By planning these events as much as 12
months in advance, the Jackson’s team can begin to realize significant benefits:

• They can buy for specific marketing events, allowing them to “shop”
for special promotional purchases.

• Suppliers are more likely to work with them on events that are planned
well in advance.

• The more time they allow for marketing, the better the creative
elements.

• Staff can be prepped well in advance.

• Their time and money well-spent, they will enjoy a professional

campaign, rather than a ragged affair.

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Case Study Marketing

MAJOR EVENTS PLANNER

EVENT DATES PRODUCT CREATIVE MEDIA STAFF OTHER

January Jan. 4 Store Outside Newspap Standar Source

Clearance to 22 wide assistanc er d clear -
Sale e ($1500) outs in
Focus on Flyers Oct/Nov
House ($1500)
wares

Spring Clean – March Liquidate Outside Newspap Special Need

Up 10 – 29 all old / assistanc er T-shirts liquidate
dead e ($2000) list by
stock Flyers Jan. 31
($1500)

68th Augus Women’s Outside Radio Thank Inquire

Anniversary t 2 to Casual assistanc ($2000) you about
Sale 14 e Flyers dinner roof
Children’ ($1500) balloon
s

Back To Augus Youth Outside Radio Sales Inquire

School t 15 to assistanc ($1500) Training about
Sept. Children e Newspap local
10 er Special school
Sportswea ($1500) Hats promo.
r Flyers and T-
($1500) shirts

Christmas Nov. Store Outside Newspap Sales Focus on

Wishes 20 to wide assistanc er Training under
Dec. values e ($2000) $20
24 Flyers Pre-
($1500) Xmas Get
Party Santa!

Boxing Week Dec. Store Outside Radio Survival Must buy

26 to wide assistanc ($2000) Kit for this
31 e (aspirin, week
Special insoles,
buys nature
music)

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Case Study Marketing

When compiling the “Major Events Planner,” it was hard to decide which media
projects Jackson’s needed select. Keep in mind that, at this stage, these
choices are only tentative. As the year progresses, the store will track (and with
a vengeance, I might add!) how the various elements of the marketing
campaign are succeeding.

Susan will also track Jackson’s sales performance during each individual ad
campaign. Several media types may be used simultaneously, so the
management group created the “Advertising Check Sheet” (ACS). This tracks
where customers come from and which media brought them to Jackson’s.

Now, don’t worry; no one needs an M.B.A to understand how this process works!
But you do need to commit to using your ACS. Without one, you can’t
successfully track your hard-earned advertising dollars to find out which ones
work for you and which don’t. Some of those ad dollars may just be circling
around in orbit and be of better use in another venue.

ADVERTISING CHECK SHEET

Dates: ____________________________

MON TUE WED THUR FRI SAT SUN TOTAL

News-
Papers

Radio

Flyers
Yellow
Pages
Direct
Mail

Email

Referral
Repeat
Cust.

Other
Total

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Case Study Marketing

Whether it was something you said or the fact that you may not look busy
enough, Susan just dropped another project on your desk! At moments like
these, you cringe and scoff ... just keep telling yourself Susan is (was?) a nice
person!

Before Susan can wrap up her Marketing Plan, she needs you to complete the
Media Allocation Budget (just wonderful!). It’s pretty straightforward, but might
require you to find a few more hours in your day to complete. Either way, you’ll
be fine. Oh, and by the way, Susan’s proved her decency and loyalty by
completing the first month for you.

Upon arriving at your parked car (with full intentions of leaving office work
behind), you notice a nasty little Post-It note (darn!) attached to your window. It
reads as follows:

“Don’t forget to talk to all of our suppliers about

their co-op ad programs. Let’s get them to pay
as much as possible. The more they pay, the
more we can advertise. Also, try to find some
time to investigate how we can get more involved
in our community. It’s great PR.

Susan.”

Why did you take this job again? Oh, that’s right -- the fun and excitement of it
all! Well, once again, good luck!

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Case Study Marketing

MEDIA ALLOCATION BUDGET

JANUARY FEBRUARY MARCH
1997 1998 1997 1998 1997 1998
Newspaper 1,200 1,500
Radio
Flyers 1,500
Direct Mail 0
Email 0
In-store 300
signage
Display 300
supplies
Salaries
(direct)
TOTAL $1,200 $3,600
APRIL MAY JUNE
1997 1998 1997 1998 1997 1998
Newspaper
Radio
Flyers
Direct Mail
Email
In-store
signage
Display
supplies
Salaries
(direct)
TOTAL
JULY AUGUST SEPTEMBER
1997 1998 1997 1998 1997 1998
Newspaper
Radio
Flyers
Direct Mail
Email
In-store
signage
Display
supplies
Salaries
(direct)
TOTAL

29
Case Study Marketing

OCTOBER NOVEMBER DECEMBER

1997 1998 1997 1998 1997 1998
Newspaper
Radio
Flyers
Direct Mail
Email
In-store
signage
Display
supplies
Salaries
(direct)
TOTAL

30