Before your marketing plan development,
you've got to lay the proper groundwork based on the results of
research and soul-searching
By:
Sharon J. Berman
www.berbay.com
You're about to break ground for a new building. You've done
your homework - analyzed the soil composition, drawn the plans,
completed the surveys, and so forth. You have a solid informational
foundation before the first shovel ever hits the soil. The same should
be true of your marketing plan development. Before you put pen to
paper (or fingers to keyboard), you need to lay the informational
groundwork with a situational analysis or a business review.
You'll find that developing your situational analysis is an
illuminating process. Like laying the groundwork for any project, this
takes energy and focus. Creating an effective marketing plan for a professional
service such as engineering involves analysis of hard data coupled
with self-analysis. Only you will be able to answer some of the key
questions.
THE PRELIMINARIES
Before we jump in, let's take a look at a few preliminaries:
The only right answer
is that there are no right answers. Your plan is a function of your
strengths and your analysis of the situation surrounding you. Only the
continual loop of testing, evaluating and tweaking will tell you
what's right for your situation.
Make this a team
effort. Engage your colleagues, employees, referral sources, clients,
and even competitors in conversation so you get a 360-degree
perspective on the business, services, markets and industry.
Choose a due date. By
choosing a date for completing this part of the process, you'll avoid
"paralysis by analysis." There's a lot of material to gather,
especially if this is your first time through this process; however,
this isn't a one-time procedure. As a "living" document, the marketing
plan will be continually revised as new information becomes available.
THE SITUATION ANALYSIS: A 3-D MODEL
As you're compiling the information in the categories
listed below, think of it as creating a three-dimensional model of
your business: where it is today, where it's been, and where it will
go with your guidance. The questions in each category do not represent
exhaustive lists, but are idea generators. Not all of them will apply
to your situation.
After you've reviewed the questions, organize your search before you
start. Creating templates of tables and charts will enable you to ask
precisely the right question and obtain the most useful information.
The questions are broken down into the following categories:
You
Your business and its
markets
Your competition
Your industry
You
First and foremost, what about you? What are your most honest answers
to these questions? (Write them down-you'll need the information
later.)
Most people pursue the activities
they like best, and these are the areas in which they excel, so give
yourself a competitive advantage by identifying and positioning
yourself to play to these strengths. Likewise, acknowledging what you
don't like and don't do well is vital to not "overselling" in your
marketing plan development.
Your business and its markets
·
Whether you or someone
else owns the business, it's still your business. It's where you spend
the largest portion of your waking hours. Your answers to the
following questions will add depth to your model.
·
What are your firm's
core competencies? What is the essence of what you do best that can be
applied to many situations? For example, a core competency for an
engineering firm might be its analytical capabilities as applied to
road construction. As the word says, it's at the core of everything
you do.
·
What are your firm's
marketing strengths and weaknesses? What are your marketing resources?
The adage says that there are "Finders, minders, and grinders."
Finders are the rainmakers who excel at building relationships that
lead to new or more business. Minders maintain client relationships
and make sure the work gets done to the client's satisfaction.
Grinders get satisfaction from doing the work itself. Who does what at
your firm? Most likely, this won't show up on the organization chart.
Roll up your sleeves and sift
through your firm's data. What are your numbers telling you? The
facets to analyze include:
·
Billings by service
line, client, industry, etc.
·
Clients in descending
order by fees
As you do your research ask yourself what services clients
have been buying, if there is a seasonal factor, and which services
are most profitable. What trends do you see and what do they portend?
If you haven't talked to your clients recently about their "buyer
values," (i.e., the criteria they use for making decisions), now is
the time to be asking them about their likes, dislikes, and their
predictions for your industry.
Your competition
Examine each of your service lines to see how you stand up
against the competition. Create a matrix for each product or service
line. List your firm and your competitors down the side. Along the
top, list the selling points (e.g., number of offices, top management
involved in the project, fees). Complete the chart and look at the
gaps and overlaps. What niches does your business fill that aren't
filled by your competitors? Analyze their marketing materials to
identify their communication points and the supporting strategy.
The industry
If you haven't been taking advantage of every opportunity
to talk with referral sources, clients, colleagues, and competitors,
now is the time. What do they identify as industry trends? What are
the areas with the most activity? Who is buying? What does the newest
technology mean for the marketplace? Where are trends in their
lifecycle-on the upswing, holding their own, or past their prime?
FIND THE INFORMATION
Today's challenge is to sift through the abundance of external
information and find the kernels you need. The Internet and online
services have a breadth of information; however, don't limit yourself
to the online world. Often overlooked but valuable sources of
information include:
·
Clients and referral
sources. It's amazing how many professionals overlook this font of
information or are hesitant to ask them. We all like to be asked what
we think. Ask them where they see the industry going, what they see as
your industry niche, and what your clients are reading.
·
Trade publications.
Many publications conduct special industry studies or have research
departments that can point you in the right direction.
·
Local libraries. Many
local libraries conduct searches for you at a very reasonable cost.
Consider engaging a professional researcher. While
information is available, it takes time to find it. Let professionals
who know exactly where to go conduct your search.
PROBLEMS AND OPPORTUNITIES
As you sift through diverse pieces of information, a story will
unfold. You may confirm theories or you may dispel myths - a
particular service line or client may not be as profitable as everyone
thought, for example. Based on your business review, concisely list
the potential problems and opportunities you've uncovered. Here are
examples of problems and opportunities one engineering company might
face:
Problem: Our chief rainmaker will be retiring in two years.
Problem: Our clients don't know all the service lines we offer (a
common problem). They think we only do inspection work.
Opportunity: We've created some strong strategic alliances with firms
whose skills complement ours.
Opportunity: Railroads are experiencing renewed growth. We have
extensive rail expertise.
HOMEWORK FOR THE MONTH: MARKETING PLAN DEVELOPMENT
