Developing a Strategic Marketing Plan

DEVELOPING A STRATEGIC MARKETING PLAN FOR SMALL DESIGN FIRMS

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I ran an advertisement in the city's leading magazine. I mailed a promotional brochure. I attended networking meetings for three months. And, believe it or not, I received no results. What a waste of time!

This is the common lament of one-time marketers, professionals who try a marketing vehicle on a one-time, try-it-and-see basis, expecting miraculous results. When the results don't materialize, they give up on the vehicle and often on promotional and marketing techniques as a whole.

Persistence Pays
One-time marketing doesn't work. To achieve success, you must have persistence. You must have a strong belief that your services are valuable and a commitment to exposing that value to the marketplace again and again.

For marketing success, persistence pays.

Successful advertising and promotion takes time and perseverance. Don't expect to advertise once or twice and get fantastic results. It may take several weeks for your advertising to take effect. And, in the case of image-building advertising, it may take several months. Potential clients are seeing your name and developing an image of you from the time you begin advertising, but all of your potential customers are not ready to buy at the time you begin advertising.

As each potential customer becomes ready to purchase, the intent is that they will remember you and then take note of your advertisement.

Most positive results from advertising are cumulative and occur because of continued presence in front of potential clients, so it is best to plan your promotional strategy and budget for the long-term rather than on a weekly or monthly basis.

By setting up a schedule three to six months in advance, or even a year ahead, not only will your advertising and promotion be more effective due to continuity, but you may save money in volume media buying and in design costs.

How Much to Budget
Many professionals wonder, "How much should I budget for advertising and promotion?" This is not a cut-and-dried issue, but one which you must determine for your own business situation. It depends specifically on the following factors:

	Phase of your business: start-up, growth phase or mature;
	Type of service: high-end, low-end, value-added;
	Type of customer: residential or commercial;
	Demographics of your target audience;
	How your services are sold;
	The amount of your overhead and fixed expenses;
	How much your competitors spend on advertising.

Most companies budget from zero to 10 percent of revenues for promotional and advertising expense. Only you can decide what level is most appropriate, based upon the guidelines listed. Some design firms spend nothing on advertising and generate all new business based on word-of-mouth referrals. Other firms spend 10 to 15 percent of revenues on marketing.

Others do not determine their marketing budgets as a percentage of revenues, but instead set a budget that they believe will allow them to accomplish their goals for the coming year.

One point is key: if you decide to allocate your marketing budget based on a percentage of revenues, use projected sales revenues for the upcoming year rather than revenues from last year. Your marketing budget for the coming year is intended to create your projected revenues for the upcoming year, not the revenues you already achieved last year. Therefore, your budget should reflect upcoming revenues, not past sales.

The Plan Itself
Following is a planning form you can use developing a strategic marketing plan. Notice that the marketing plan starts with your marketing objectives for the year. Setting specific objectives for each year is important for two reasons:

	Your objectives should determine your marketing activities for the year.
	The more specific your objectives are, the more easily you can measure your success, both during the year and after year-end.

Examples of objectives include:

	Increase overall sales by 10 percent.
	Maintain overall sales and profits at last year's level despite the economic downturn.
	Increase commercial sales to 40 percent of business.
	Target marketing efforts to previous clients and their referrals.

After completing your objectives, then fill in the plan with specific marketing projects and their respective anticipated costs. Upon completion, you'll have the visibility to make intelligent changes if necessary.

The Functions of Developing a Strategic Marketing Plan
A marketing plan lets you see the future today and provides several other valuable functions:

	An opportunity to ensure that your marketing expenditures are consistent with your objectives. "If my objective is to increase sales in commercial work, why are my marketing expenditures focused on residential projects?"
	A budgeting tool. "How much must I spend to advertise every month in the city magazine, exhibit at the local home show and send out two direct mail pieces?"
	A scheduling tool. "I didn't realize I have so many activities planned for September and October and nothing scheduled for spring when I need to generate business."
	An opportunity for "what if" analysis. "What if business doesn't pick up in April like it usually does? How can I modify my marketing plan to generate more business by May?"
	The ability to determine the monetary and scheduling impact of a newly-found opportunity. "What if my anticipated acquisition of another design firm is successful and I have to start advertising for two locations in late summer?"
	A tool that helps you spend your marketing dollars more effectively. "I know I can only spend $20,000 on promotional programs this year. This schedule accounts for $24,000 in expenditures. What can I cut that will have the least impact on my objectives for the year?"

Developing a strategic marketing plan is never set in stone. It can be changed, and should be when appropriate. The planning process will provide you with better visibility so you can more effectively manage your marketing program. Kay Pegram is founder of Kaymar Communications, a Playa del Ray, CA-based independent marketing services firm for companies in interior design, home furnishings and other industries. Her background include more than 10 years of marketing experience for both national and regional manufacturing firms. Pegram is author of Marketing & Promotion from A to Z, a practical guide to marketing and promotion written to address the needs of home fashions retailers and interior designers.