Why You Advertise
Preparation and Inspiration
When Thomas Edison was asked the secret of his success, he replied, "Two percent inspiration, 98 percent perspiration." You won't have to work nearly that hard. Think of your task as "90 percent preparation, 10 percent inspiration." That preparation starts with a systematic look at why you advertise and what you expect to get out of advertising.
Put It in Writing
Put into writing your reasons for advertising—all the reasons—and the results you expect the advertising to bring. You need this list to give a sharper focus to the ads you are going to create and, probably even more important, to have a method of evaluating results. Don't expect any one ad to do ten different things or you'll get one-tenth the results ... or none at all! Set priorities, then focus on the most important.
How to Set Goals for Your Advertising
In setting goals for your advertising, remember at all times that your results must be quantifiable. Depending on your competitive situation and specific business goals, list the expected results as a definite number or percentage—not "more sales," but, for instance, "5 percent more sales during the week following the ad." If you, like many newcomers to a certain kind of business, have no idea what to expect, put down the number that will justify the cost of the ad if it meets your list of objectives. Regardless of the actual results, whether you like them or not, keep a record in writing.
It is your benchmark for future planning and programs. How to use such a record will be discussed shortly.
Typical Advertising Goals
Following are some goals a retailer might set. Analogous goals would be set for a manufacturer or a service organization. The sample percentages are arbitrary and are not based on actual case histories.
Short-Term Goals
• Increase total store traffic by 5 percent during the week following advertising.
• Increase the sale of advertised items by 15 percent over the previous week. If you are advertising more than one item, you will want to know how each individual item sold, as well as how all the advertised items sold as a whole. This knowledge gives you information for future promotions, even when sales as a whole do not live up to expectations. Be sure to make a special note of purely seasonal successes, such as pumpkins sold just before Halloween. Make a note of the weather—from great to terrible—plus special occasion successes ... or failures. A traffic-stopping fire two blocks away can affect business just as much as a hailstorm can.
• Increase the sale of nonadvertised merchandise by 5 percent over the previous week. Advertising is usually meant to increase traffic, and that should be reflected in increased sales throughout your establishment.
Long-Term Goals
• Maintain an increase in store traffic of 2 percent in the month following the advertising, as against the previous year.
• Increase customers' satisfaction with products and services. Often it is impractical for a smaller firm to afford professional research on customer or client satisfaction. But informal research is always possible. When customers phone, ask about their satisfaction with your products and service, and whether they are getting the information they want from your advertising and promotions. Make certain you get and read any letters of complaint as well as those of praise. Make sure everyone associated with you knows you are serious about customer satisfaction. Make it your personal priority, and you'll be astonished at the positive results.
Where to Get Help in Setting Goals
If you are a novice in setting advertising goals, here are some sources of help:
1. Media. The publications in which you advertise, the media, have expert representatives who often have information about advertising campaigns such as yours. Whether you plan a single ad or a yearlong series, speak with these reps about what you might expect from your ads. But remember that their jobs depend on their convincing you of the effectiveness of their publications, so check their suc cess stories with the people who did the actual advertising—even if they are now your competitors!
2. Your competitors. Take your competitors to lunch—one at a time—and ask them what kind of results they get from their advertising. Chances are, they'll tell you. Almost everyone shows off by talking too much. Analyze your competitors' promotions. Even if they tell you everything you want to know, check.
3. Trade associations. Your trade association probably has an entire library of advertising case histories. Call and ask for this and any other help the association might give.
4. Colleges and universities. Contact the head of the advertising or marketing department (advertising is usually taught as part of marketing and is also located in journalism and communications schools). Explain what you are trying to learn, and ask whether that information is available from either staff or research materials. Expect to pay a consultant fee. (You don't work for free, do you?) The faculty will help if it can.
5. Libraries. Explain your need to the research librarian at your public or professional library. These are extraordinarily knowledgeable professionals with access to networks of information through computer linkups.
6. Build your own research base. If no other information is available, run your ads, set "best guess" goals, and begin to build your own records. You'll quickly have the best database in town and might even be invited to lecture to those whom you previously asked for information. But don't disclose too much. Remember what we said about your competitors. You be the one who does know how to keep your mouth shut, even when you'd much rather show off. Brag about your bank statement, not your ad results.
Continue reading here: Yellow Pages As A Mirror Of A Market
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