Are you wondering how your current business focus impacts your promotion? As markets become more and more competitive, there is pressure to tie every investment to a positive ROI. Promotion is no exception. Most business models are moving toward leaner and more effective promotional efforts in order to maximize profits.
This means that every campaign must be focused in order to meet its objective and be considered effective by providing a positive ROI. Here are a few thoughts on how your current business focus impacts your promotional activities.
In order to meet your objective, you must first define it. An effective framework to stick to when defining an objective is the SMART method. SMART is an acronym for Specific, Measurable, Agreed Upon, Realistic, and Time-based. In addition to this, your objective must meet your current business goals. So for example, if your business goal is to successfully launch a new product, then your promotional objective should be first to raise awareness and then to generate trial. In order to make this objective SMART, you must establish who needs to be aware of your product (your target segment of the population), in what time period you will accomplish this level of awareness, what realistic levels you intend to reach, and what benchmark you will use to measure this.
Alright, so now you know who your promotional campaign will reach and what realistic effect you want it to have in what time frame, and how you will measure it. Now, comes the harder part how will you make it happen? In our example above, we are focusing on awareness of a new product, so maximum exposure to the target market is key. Therefore, the next step is to research based on your budget, which media methods or combinations of will yield you the most exposure. Television, for example, reaches a wide audience so if your product launch is nation-wide and your budget is sizeable, this is an ideal method.
If your new product is targeted toward a smaller geographic area, radio could be a good investment since it is less expensive than television and is typically more targeted. If your launch is targeted toward a niche market, social media is the best way to reach your target. Of course, the best campaign would most likely use a combination of media outlets. However, depending on the size of your business and the size of the focus on your product launch, your budget for this hypothetical launch will be determined.
The last step in your promotional campaign is to evaluate its success. Based on your SMART objective definition framework, you were required to develop a benchmark and a way to evaluate it. It is possible that you set mid-way points to evaluate your promotional efforts while still implementing them if you had a long campaign or that the evaluation will occur at the end of the campaign. Either way, you will evaluate not only the success and ROI of the campaign but how this campaign and objective contributes to meeting your overall business objectives and if it is aligned with your focus.