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Promotional activities

n Are we creating greater awareness of our capabilities and
particularly our competitive advantage?

n Are we making it easier to buy from us?
n Are we reaching and attracting the right customer?
n Are we building market share?

– Are we taking enough market share? (Objectives should clearly
state the level of market share that is required to dominate the
market. This means that you need to have a very clear view of
the market segments that you serve.)

n Are we being invited to keep in touch by customers and prospects
and to provide further information as it is available?

n Are we building the company image and reputation?
n Are we reducing the cost of selling while increasing sales value?

– What are our sales costs per pound or dollar in revenues?
– How much have they changed in the past twelve months?
– Are we selling or buying business?

Some important further questions

n What is the purchase lifetime of the average customer?
n How frequently does the average customer buy?
n What parts of your range are “cash cows”?
n How are they promoted?
n What parts are “stars”?
n How are they promoted?
n What items are “question marks” at present?
n How are you keeping the costs of market testing them within

bounds?
n What do you do to ensure that you can lose “dogs” without losing

customers?

(Note: Cash cows are established product lines that generate high
revenues without further investment. Stars are high potential product
lines that still require considerable investment of money and effort to
market, but which are selling well. Question marks are possible
future stars which need thorough market testing to justify a high
investment of time, creativity and money. Dogs are slow moving, low
value lines that probably cost more to supply than they generate in

148 Key management questions