1.04 – Refining Your Marketing Expectations
When you make improvements to your marketing program, it’s essential to set realistic expectations. Generally, the percentage change in your program will correspond with the percentage change you see in sales. For example, if you change only 5 percent of your program from one year to the next, you shouldn’t expect more than a 5 percent increase in sales. The following sections will help you refine your expectations for your marketing plan.
Projecting Improvements Above Base Sales
Base sales are what you can reasonably count on if you maintain the status quo in your marketing. If you’ve seen steady growth in sales of 3 to 6 percent per year, you might project a 4 percent growth next year, assuming everything else stays the same. However, factors such as new competitors, changing technology, and shifting customer needs can impact this projection. Adjust your base sales downward if you anticipate any threats materializing next year. If you don’t change your program, your base may even have a negative growth rate because competitors and customers tend to change even if you don’t.
Once you have a good handle on your base sales projection, adjust it upward to reflect any improvements you introduce. Be cautious with your projections, especially if you’re trying something new. If you’ve tested or tried something before, use your real experience to project its impact. For new initiatives, be conservative until you have hard numbers and real-world experience to guide you.
Preparing for (Ultimately Successful) Failures
Start small with new ideas and methods in marketing to afford potential failures and learn from the experience. Effective marketing strategies are developed through planning and experimentation. In marketing, mistakes are opportunities to learn, as long as you recognize them and extract useful lessons.
What can go wrong, will go wrong—but you’ll be fine. Avoid being too committed to any single plan or investment. Maintain flexibility in your marketing programs. For example, avoid buying ads too far in advance, even if it’s cheaper, to avoid being stuck with financial commitments if sales drop. Monthly commissions for salespeople and distributors can also provide flexibility, as their pay varies with your sales, reducing the risk associated with inaccurate sales projections.
Flexibility, cautious optimism, and contingency planning ensure that you can survive setbacks. This knowledge, in turn, gives you the confidence to be creative and innovative in your marketing efforts. Embrace the opportunity to learn from mistakes and use them to grow your business and optimize your marketing program.
Conclusion
By setting realistic expectations, projecting improvements based on base sales, and preparing for potential failures, you can refine your marketing expectations and create a more resilient and effective marketing program. Embrace flexibility and learn from your experiences to continually improve and grow your business.
