ADVERTISING ALLOCATION OPTIMIZATION & MARKETING PLANS
Very often companies, whether they be one-person enterprises or large, multinational conglomerates, are concerned with knowing how much to spend on advertising and where to spend their advertising dollars to get the best results. If a company has historical records of its sales and its advertising efforts, very often Premier Business Experts can perform advanced statistical analyses to determine the effectiveness of the various programs and make recommendations for future efforts. Specifically, recommendations can be made in terms of when and where to run promotions, as well as how large a given promotion should be and for long it should be run. Moreover, recommendations can be made in terms of how much to spend on newspaper versus magazine versus billboards versus radio versus TV versus online advertising, etc. Then, once those decisions are made, Premier Business Experts can make recommendations on how much to spend on say conservative talk radio versus more liberal radio programs! However, even in the absence of any data, Premier Business Experts can obtain useful data from other sources and/or run small, inexpensive, controlled experiments to (1) determine the optimal sizes for the advertising budgets and (2) develop media plans, telling the places where the advertising dollars should be spent to maximize the positive returns!
With a marketing plan, specifics are given regarding issues ranging from what the mission of the business should be to the proper marketing-mix (i.e., products, prices, promotions and distribution) to a SWOT (strengths, weaknesses, opportunities and threats) evaluation to a PEST (political/legal, economic, social/cultural and technological environments) assessment. Focusing on the promotions, Premier Business Experts can tell companies how much to spend on their sales forces, trade shows, public relations, and the aforementioned forms of media advertising. In so doing, those at Premier Business Experts Improve Their Clients’ Revenues and/or Reduce Their Costs. Either way or both ways, Clients’ Profits are Enhanced!
[dropshadowbox align=”none” effect=”lifted-both” width=”100%px” height=”” background_color=”#789351″ border_width=”1″ border_color=”#dddddd” ]How Premier Business Experts Studied the Advertising Effectiveness for a National Specialty Retailer Whose Same Store Sales were More Than 10% Lower than in the Preceding Year and in the Process Turned it Around
Solution: After signing a contract to analyze the reasons for the declines, Premier Business Experts examined the company’s marketing databases, but found that they were of questionable use due to (1) reporting problems where some marketing programs had the wrong dates associated with them, were entirely missing and/or had questionable values associated with them, (2) computer crashes which had caused the losses of significant quantities of information and (3) questionable overrides performed by clerical individuals in their attempts to restore lost information. Thus, Premier Business Experts decided that it would be best to begin afresh and set-up a series of experiments with controls. In other words, Premier Business Experts tested the following promotional programs, and compared the results for each to its control: (1) BOGO – buy one get one, (2) GWP – gift with purchase, (3) tiered discount – spend $50 get $10 off, spend $100 get $30 off, (4) six different types of coupons, (5) a tie-in with the leading magazine read by its customers, (6) radio ads with and without celebrity endorsers, (7) TV ads, (8) billboards, (9) different frequent-buyer card programs, (10) BBs – bounce backs where on receipt it would print things like come back within the next month and you will save 15% on your purchase, (11) special offers sent via snail mail versus email, and (12) special events held after normal business hours for the retailer’s best customers, etc. As for the results, some of the programs yielded solid single-digit and double-digit-percentage returns, while other programs were not cost effective. Thus, Premier Business Experts’ leaders advised the retailer to “roll the effective programs out in all of its markets.” The result was that the same store sales began tracking in positive directions due to the dedicated efforts of Premier Business Experts! Even so, it should be noted that if the retail company had used the services of the professionals at Premier Business Experts when it opened its first store, it would have avoided a lot of financial pain and been much more economical for it to have started off on the right foot rather than having to reinvent itself at a later date![/dropshadowbox]
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