In a recent article for the CMO Council’s Newsletter, Nicolas Watkis argues “Marketers won’t succeed if they don’t have objectives”. Right on, my friend!
As we have all heard before, marketers are now more than in any other time being measured and challenged to produce measurable results. Mr. Watkis then states “the most important activities for marketers are the establishment of marketing objectives, a plan for their achievement, a budget to support the plan, and the management of assets and resources to achieve the objectives”.
OK, I think we can all agree this makes sense, but then how do you go about coming up with a plan? His article argues that most marketers start with the budget and foolishly take that for a marketing plan while the right approach is actually quite different:
1. Set measurable objectives, both financial and marketing. The financial objectives are revenue, profits, return on assets (how much sales will the campaign generate? Is a valid question to answer in your objective) and although he doesn’t describe what the “marketing objectives” are, I would focus on lead generation numbers (how many qualified leads, for example) although other metrics such as “number of blog posts” or “twitter messages” could be valid objectives for social media campaigns.
2. List actions to be take for each objective, with completion dates, people responsible for each action and also think in terms of alternative actions (what to do in case the action is not successful). This last bit is important for factors outside your influence, maybe a contract that depends on another company has to be signed for the joint marketing campaign to start, or what to do if certain assumptions you’ve made when putting together the plan fail to materialize (i.e. what to do if mommy bloggers don’t pick up our story or offer right away as we hope they will do).
3. Profit and loss projection with a detailed marketing budget showing the allocation of resources. So here it is, the marketing budget, the final component of the marketing plan.
The methodology of OBJECTIVE -> ACTION -> BUDGET is logic, but why is it that so many marketers keep insisting on coming up with the budget before actually putting a plan in place? The “let’s copy last year’s budget” mentality is prevalent in many organizations because is the easy way out of a not so glamorous function. Maybe now is time for some change. So write “objective -> action -> budget” down on paper, in big letters and stick it to your corkboard or use a post-it and glue it to your computer monitor. That’s what I just did