For many consumers and producers, MSP is an acronym for Manufacturers Suggested Price. Today, as a business owner or executive, I would like you to consider a different definition for these commonly used letters Marketing, Sales and Profitability.
In an earlier article, Do You Know and Plan for the 3-Rs for Your Business, the focus was on Relationships, Referrals and Revenue. One of the most consistent challenges for any small business owner or executive is the actual implementation of the strategic business plan that builds the 3-Rs (Relationships, Referrals and Revenue). The MSP of Marketing, Sales and Profitability helps to overcome that issue.
Since relationships are the first R, the necessary action is to construct a Marketing Plan to increase relationships. This plan should be specific to your company and not the shadow of a company that you admire. Many business owners and executives attempt to copy someone elses brand identity and fail to establish their own identify. Marketing plans require research and evolve from a solid vision, values and mission statements.
The second R of referrals generates the greatest amount of Sales. Sales plans and marketing plans are closely related and need to be aligned to ensure that potential opportunities are realized. Within the Sales plan, specific goals are necessary to ensure that the marketing plan is effective. For example, how many mailers are necessary to secure an appointment? How many appointments result in a second appointment? How many second appointments turn into a sale? Knowing your numbers is critical to the sales process and more importantly your own internal motivation.
Revenue is the third R and is a partner of profitability or what some may call productivity. This P is the direct result from M and S. Some companies work on the philosophy of high sales and low profitability while others use an opposite approach. Profitability is an absolute necessity and should be examined on a regular basis.
Todays business world is complex, but still retains the simplicity of earlier marketplaces. If you know your MSP, you will be able to build the 3-Rs.