Page 102 - Business Plans that Work A Guide for Small Business

Marketing Plan: Reaching the Customer • 93

However, since the primary target is the parent, Lazybones has found that a
better strategy is to be endorsed by the university, which then promotes and
includes Lazybones advertisements in the information packets it sends to par-
ents. In essence, Lazybones is distributing its service through the university.

Advertising and Promotion

Communicating effectively to your customer requires advertising and pro-
motion. Referring again to the dot-com boom of the late nineties, the defunct
Computer.com made a classic mistake in its attempt to build brand recogni-
tion. It blew over half of the venture capital it raised on a series of expen-
sive Super Bowl ads for the January 2000 event ($3 million of $5.8 million
2
raised on three Super Bowl ads). Resource-constrained entrepreneurs need
to carefully select the appropriate strategies. What avenues most effectively
reach your primary target audience (PTA)? If you can identify your PTA
by names, then direct sales approaches, such as direct mail or e-mail, may
be more effective. Try to utilize grassroots techniques such as public rela-
tions efforts geared toward mainstream media. Sheri Poe, founder of Ryka
women’s shoes, appeared on the Oprah Winfrey show, touting shoes for
women, designed by women. The response was overwhelming. In fact, she
was so besieged by demand, she couldn’t supply enough shoes.
It is important to distinguish between early-stage advertising strate-
gies and those that will emerge as your company grows. For example,
one of the authors was on the founding team for Jiffy Lube. In the early
days, the company used direct mail (coupons) to all registered vehicle
owners. As the company grew nationally, it switched to radio advertise-
ments because people listened to the radio when they were driving, and
they were more likely to think about the need for an oil change. The key
is to develop an appropriate strategy based upon your PTA and the stage
of your company’s development.
As you develop a multipronged advertising and promotion strategy,
create detailed schedules that show which avenues you will pursue and
the associated costs. These types of schedules serve many purposes, in-
cluding providing accurate cost estimates, which will help in assessing
how much capital you need to raise. These schedules also build credibility

2 O. Sacribey, “Private Companies Temper IPO Talk,” IPO Reporter, December 18,
2000. Page 9.