We have previously discussed the research needed to create a marketing strategy that identifies a target demographic. The purpose of this research is to allow us to compare our relative strengths and weaknesses verses our direct competitors strength and weaknesses within the marketplace. Once our relative position in the competitive marketplace has been researched, a strategy that pits our strength against our competitor’s weaknesses can be formulated. This process is called marketing strategy.
Part of the marketing strategy is to formulate headlines and ad copy based on our relative position in the marketplace. We want our marketing to highlight our relative strengths against the relative weakness of our direct competition. All of this positioning must be crafted within the context of the solution to a specific problem that exists in a coveted demographic within our marketplace. The ultimate goal is to create a perception within the collective minds of our demographic that we have the best answer to solve their specific problem. This well researched, well crafted message is our marketing warhead.
The more congruent our message is with the wants and desires of our coveted market demographic, the bigger bang we will receive from our marketing efforts. This “bang” is measured as our response rate. This process of marketing strategy sends us into battle (contention for potential patients) under advantageous conditions. The process we have just described is the definition of marketing strategy. The better the marketing strategy, more effective the headline and ad copy. Notice that we stated the better the strategy the more effective the headline and copy will be. We didn’t say the more effective the marketing campaign will be. This is because there is one more major consideration that helps to determine how effective or ineffective a marketing campaign will be. The other piece of the puzzle is your delivery systems.
If the strategy and the headlines and ad copy are the warhead of your marketing campaigns, the next step in successful marketing is the missile or delivery system.
The variables for marketing success are the quality of your research, the art and science of your strategy development, the alignment of your headline and ad copy with your marketing strategy and finally the efficiency and cost effectiveness of your delivery systems.
You can have a nuclear warhead when it comes to knowledgeable strategy, headline and ad copy, but will obtain mediocre results if you choose a weak delivery system. Conversely you may have the best most effective delivery system and obtain marginal marketing results if your strategy, headline and copy are weak.
Optimizing all three components and constantly testing and perfecting these aspects of your marketing campaign is the key to effective, efficient and profitable marketing that produces a handsome return on investment.
We have discussed the intricacies of developing marketing strategy in another paper. The marketing metrics required to evaluate the return on investment (which is another way to say the marketing efficiency) has been discussed in a previous paper. This paper will integrate marketing strategy and research with marketing metrics to create a framework with which to evaluate marketing delivery systems. This process is a real world method for first determining and then improving both marketing effectiveness and marketing efficiency.
Before we can evaluate our marketing effectiveness and efficiency we must first define marketing effectiveness and efficacy.
Marketing effectiveness is how well a campaign or the action steps within a campaign’s execution produce a favorable response. What is a favorable response and how do we know if we got one? Well despite what marketing aficionados might tell you, marketing execution can be measured. There are several tangible measurements that matter and they are new (or repeat) business depending on your strategy, revenue increase and profit
Your marketing strategy can be judged to be effective if 1. It produces new business, 2. It increases revenues and 3. It increases profit.
It has nothing to do with image, branding, awareness or intangible returns.
In the context of marketing a professional practice, new business would be “kept” new patient appointments. Revenue is the gross collections increase from previous months and profits means your return on investments, also expresses as increased revenue minus the cost of your marketing effort.
By themselves these measures can give you a good handle on the effectiveness or not of your marketing execution. The next step is to eliminate marketing action steps that are not effective and to optimize those marketing activities that are proven to be effective. Once marketing effectiveness and marketing efficiency are optimized you merely repeat the most effective and efficient action steps. Again and again.
This process is impossible without marketing metrics and return on investment measurement. In fact according to the Harvard Business School no marketing action plan is complete without steps to measure and evaluate the implementation of a campaign. (1)