The following appeared in a memo from the marketing director of Top Dog Pet Stores.
“Five years ago, Fish Emporium started advertising in the magazine Exotic Pets Monthly. Their stores saw sales increase by 15 percent. The three Fish Emporium stores in Gulf City saw an even greater increase than that. Because Top Dog has some of its largest stores in Gulf City, it seems clear that we should start placing our own ads in Exotic Pets Monthly. If we do so, we will be sure to reverse the recent trend of declining sales and start making a profit again.”
Write a response in which you discuss what specific evidence is needed to evaluate the argument and explain how the evidence would weaken or strengthen the argument.
This memo presents an argument to continue placing ads in Exotic Pets Monthly, despite a decline in sales. Unfortunately, a memo like this has the look of desperation. The author of the memo is panicking and trying to convince the company’s board of directors that Top Dog needs to advertise in Exotic Pets Monthly. If Top Dog is desperate, it certainly is not the time to place another ad.
Top Dog Pet Stores has a marketing problem, and the solution is not to spend money on advertising. The company needs to determine what is going wrong in its stores and fix it. It must first conduct a detailed analysis of the sales data and determine which products are not selling, which locations are not performing well, and which stores are receiving a disproportionate amount of business. Then, it must determine which products are selling well and where they are selling. Once the company knows what is working and what is not, it can determine which stores need additional staff to handle the increased business, which stores need additional inventory, and which stores should be closed. Top Dog must also examine its advertising strategy and determine if it is really getting the results it desires. If the company does analysis, reviews its data, and revamps its advertising tactics, it will have a much better chance of turning its business around.
Top Dog Pet Stores must first get a handle on its ad spending, and that starts with creating a budget. The company must identify each advertising medium it will use, and it should review each ad to determine whether or not it is generating the expected return on investment. If Top Dog has discovered that Exotic Pets Monthly is not generating the desired response, it should drop that medium and allocate its advertising dollars elsewhere. If, however, Exotic Pets Monthly is generating the desired results, then the company should increase its commitment to Exotic Pets Monthly. Regardless, the company must create a budget that accurately reflects its advertising needs, and it must stick to it.
Once Top Dog has a budget that reflects its advertising needs, it must review all of its advertising efforts. It will probably find that some ads perform well, and some ads do not. If a company is not gaining new customers with an ad, then it is wasting money, and the ad should be discontinued. If an ad is successful, the company should increase its commitment to that medium. For example, if Exotic Pets Monthly is generating sales, then Top Dog should continue to advertise in the magazine. If, however, Exotic Pets Monthly is not generating sales, then Top Dog should cease advertising in that magazine and should reallocate its advertising budget to more effective mediums.
Top Dog Pet Stores should not place another ad in Exotic Pets Monthly until the company gets its advertising strategy under control. If the company does start advertising in the magazine, it must review its data on a regular basis and make adjustments as necessary. Otherwise, Top Dog will continue to spend money on ineffective advertising.