Marketing Plan
It is a written roadmap that guides a business in effectively promoting its products or services to its target audience and achieving its desired business goals
What is a Marketing Plan?
A marketing plan defines customers, sales, forecasts, and market positioning to support strategic objectives.
It comprises a major section of the formal business plan. In addition to providing guidelines for the entrepreneur, it communicates expectations to investors, lenders, and employees.
The plan will define the marketing objectives, strategies, customer scenario, market segments, product/service to be offered, a sale forecast, and stages of development. It will also describe the distribution system, promotion, and pricing decisions.
It is a written roadmap that guides a business in effectively promoting its products or services to its target audience and achieving its desired business goals.
A marketing plan typically includes an analysis of the market, the target audience, and the competition. It also outlines the company's unique selling proposition (USP) and how it will differentiate itself from its competitors.
Additionally, it includes the marketing mix, which refers to the four Ps of marketing: product, price, promotion, and place.
The marketing plan also includes a budget outlining the resources and expenses needed to execute the marketing strategy.
It's a living document regularly reviewed and updated to ensure the business enterprise remains on track and adapts to adjustments within the marketplace and enterprise trends.
The final element of the marketing plan is to address the marketing program, i.e., the action plan. It identifies founders or employees responsible for product development, sales management, and promotion. It is necessary to coordinate all these activities.
Key Takeaways
- A marketing plan is a written document that outlines the strategies, tactics, and action steps a business will take to promote its products or services to its target audience and achieve its business goals.
- A typical marketing plan includes sections such as an executive summary, situation analysis, target market, marketing objectives, strategies, action plan, budget, measurement and evaluation, and implementation timeline.
- The marketing plan outlines the strategies and tactics the business will use to reach its target audience, differentiate itself from competitors, and drive sales. This may include product strategy, pricing strategy, distribution strategy, and promotion strategy.
- A marketing plan should be flexible and adaptable to changes in the market environment and business conditions. This may involve revising strategies, reallocating resources, or pivoting to new tactics as needed.
Industry Analysis and Competitor Analysis
The primary focus of the industry analysis is to provide sufficient knowledge of the environment (national and local market) that can affect marketing strategy decision-making.
It is an information-seeking process as an upside-down pyramid that begins with a broad-based assessment of the environment and industry trends and moves to more local markets, including competition.
Secondary issues can provide much of the information needed on each issue, in addition, to market research initiatives such as customer needs, competitive strengths and weaknesses, price, promotion, and product benefits.
Competitor analysis starts with each competitor's current strategy. Information on competitors can be gathered from the public and marketing research projects.
Newspaper articles, websites, catalogs, promotions, and interviews with distributors and customers should be reviewed. All the information can be utilized to formulate the market positioning strategy of the new venture.
Marketing Research
Marketing research involves gathering data to determine who will buy the product or service, what is the size of the potential market, and what price should be charged.
Furthermore, answering questions such as the most appropriate distribution channel and the most effective promotion strategy to inform and reach potential customers. Since marketing research costs vary significantly, the entrepreneur must assess available resources and the information needed.
Marketing research may be conducted by the entrepreneur or by an external supplier or consultant. Marketing research begins with a definition of objectives or purpose.
It involves the following steps:
Step 1. Defining the purpose or objectives
The most effective way to begin is for the entrepreneur to sit down and list the information needed to prepare the marketing plan. For example, the entrepreneur may think there is a market for his or her product but not be sure who the customers will be.
Thus, one objective would be to find out what people think of the product or service and whether they would buy it and to collect information on these individuals' background demographics and attitudes.
Data thus collected would help the entrepreneur define the customer segment and achieve the first objective. The other objectives might be to determine the following:
- How much would potential customers be willing to pay for the product or service?
- Where would potential customers prefer to purchase the product or service?
- Where would the customer expect to hear about or learn about such a product or service?
Note
The most efficient way to begin is for the entrepreneur to sit down and make a list of the information that will be needed to prepare the marketing plan.
Step 2. Gathering data from secondary sources
The businessman should first analyze secondary sources. There are a large number of government publications available free of cost. Ministries of Industry and Commerce, MSME, and Science and Technology Statistics periodically publish several reports.
Besides, there are reports from the Census Department Reserve Bank of India, the Chamber of Commerce, local banks, state departments of labor and industry, and local media. A comprehensive list of Websites and a number of excellent databases can be found.
The most important purpose of reviewing secondary sources is to obtain information that will assist the enter in making the best decisions regarding marketing a product or service.
Advances in information technology today make this a very effective means of gathering information on customers, competitors, and market trends.
Step 3. Gathering information from primary sources
New information is primary data. Gathering primary data involves a data collection procedure such as observation, networking, interviewing, focus groups, or experimentation, and usually, a data collection instrument, such as a questionnaire.
Observing potential customers and recording some aspects of their buying behavior, Networking, which is more of an informal method to gather primary data from experts in the field, can also be a valuable low-cost method to learn about the marketplace.
Note
Interviewing or surveying is the most common approach used to gather market information. It is more expensive than observation but more likely to generate meaningful information. Interviews may be conducted in person, by telephone, mail, or online.
The Internet is becoming an important resource for new ventures to gather information formally and informally. The informal sources typically involve using Facebook, Twitter, or LinkedIn. Entrepreneurs can solicit feedback on related company or product issues using social networks.
The questionnaire or data collection instrument used by the entrepreneur should include questions specifically designed to achieve one or more of the objectives the entrepreneur listed earlier. Questions should be worked so that they are clear and concise, do not bias the respondent, and are easy to answer.
A focus group is a sample of 10 to 12 potential customers invited to participate in a discussion of the business's research objectives. It discusses issues in an informal, open format, enabling the entrepreneur to obtain and assess certain information.
Step 4. Analyzing and interpreting the results
Depending on the sample size, the entrepreneur can hand-tabulate the results or enter them on a computer. In either case, the results should be evaluated and interpreted regarding the research objectives specified in the find step of the research process.
Summarizing the answers to questions will give some preliminary insights.
Types of marketing plan
Marketing strategies can differ significantly based on the industry, target market, industry goals, and available resources. The following are some typical forms of marketing strategy utilized by companies:
1. Comprehensive Marketing Plan: This elaborate plan addresses every facet of marketing, such as target audience analysis, market research, marketing objectives, strategies, tactics, budgeting, and implementation schedules.
2. Digital Marketing Plan: The digital marketing plan is centered around online platforms, including social media, websites, email marketing, pay-per-click (PPC) advertising, content marketing, mobile marketing, and search engine optimization (SEO).
3. Content Marketing Plan: The goal of the content marketing plan is to draw in and keep a target audience by producing and disseminating useful, timely, and consistent information.
Note
The content marketing plan usually includes content distribution routes, editorial calendars, content development techniques, and success measures.
4. Social Media Marketing Plan: This plan describes how to use social media sites such as YouTube, Facebook, Instagram, Twitter, LinkedIn, and Facebook to interact with the target market, increase website traffic, establish brand awareness, and produce leads or sales.
5. Product Launch Marketing Plan: A product launch marketing plan is created especially to introduce a new good or service to the market. It includes pre-launch, launch, and post-launch tactics, such as market analysis, pricing, distribution, advertising, and assessment.
6. Influencer Marketing Plan: This plan focuses on collaborating with bloggers, influencers, or industry professionals to market goods and services to their readership.
Note
Influencer Marketing Plan entails finding pertinent influencers, forming alliances, working together to produce content, and calculating the results of influencer campaigns.
7. Brand Marketing Plan: The goal of the brand marketing plan is to increase and improve brand perception, loyalty, and awareness. Strategies for brand positioning, messaging, voice, visual identity, storytelling, and brand advocacy are all included.
8. Customer Retention Marketing Plan: The goal of the customer retention marketing plan is to keep current clients and raise their lifetime value. It includes tactics like customer happiness campaigns, tailored communications, loyalty programs, and feedback gathering.
9. International Marketing Plan: A plan for worldwide marketing created for companies looking to grow into new areas or reach a global clientele. It covers global branding, international distribution methods, localization, cultural issues, and market entry tactics.
10. Small Business Marketing Plan: A small business's marketing plan that is specifically designed to meet its resource constraints.
Note
A small business's marketing plan usually concentrates on low-cost techniques, including networking, partnerships, local marketing, referrals, and online marketing strategies that work well on a tight budget.
11. Nonprofit Marketing Plan: This plan was specially created to help nonprofit organizations spread the word about their mission and attract volunteers, funders, and supporters. It includes fundraising campaigns, techniques for contacting donors, projects involving the community, and impact evaluation.
12. Event Marketing Plan: The goal of an event marketing plan is to publicize and arrange events, including webinars, conferences, workshops, trade exhibits, and product launches. It covers lead generation, attendee engagement, event promotion, and post-event follow-up tactics.
Features of Marketing Plan
Some of the important characteristics that must be incorporated into an effective marketing plan are:
1. Purpose of marketing plan: It should provide a strategy for accomplishing the company mission or goal.
2. Valid assumptions: These should be based on facts and valid assumptions. Allocation of all equipment, financial resources, and human resources must be described.
3. Implementation: An appropriate organization must be described to implement the marketing plan.
4. Continuous process: It should provide for continuity so that each annual marketing plan can build on it, successfully meeting longer-term goals and objectives.
5. Simple and short: A voluminous plan will be placed in a desk drawer and likely never used. However, the plan should not be so short that details on accomplishing a goal are excluded.
Note
The plan's success may depend on its flexibility. If necessary, changes should be incorporated by including what-if scenarios and appropriate responding strategies.
6. Controlling: It should specify performance criteria that will be monitored and controlled.
7. Target Audience: The plan should clearly define the target audience and their needs, preferences, and behaviors.
8. Competitive Analysis: A thorough analysis of the competition should be included in the plan to identify the strengths, weaknesses, opportunities, and threats of the competition.
9. Budget: The plan should outline the marketing budget, including the costs of each marketing tactic.
10. Marketing Mix: The marketing plan should include a well-defined marketing mix, a combination of product, price, promotion, and distribution strategies.
11. Metrics and Analytics: The plan should establish metrics to measure the effectiveness of marketing tactics and include analytical tools to analyze the results.
How to Write a Marketing Plan
When making any marketing plan, an organization has to follow a set of processes, such as defining the business situation and target market, analyzing goals, and identifying strengths and weaknesses within the organization.
Step 1. Defining the business situation
The situation analysis is a review of where we have been. The company should provide a review of the product's past performance. If it is a new venture, the background will be more personal, describing how the product or service was developed and why it was developed.
Step 2. Defining the target market: opportunities and threats
A target market is a specific group of potential customers toward which the venture aims its marketing plan. This target market is further divided into small homogeneous groups called market segmentation. It allows the company to respond more effectively to these groups.
Segmenting and targeting customers by the companies should proceed as follows:
- Decide what general market or industry you wish to pursue.
- Divide the market into smaller groups based on the characteristics of the customer.
- Select a segment or segments to target.
- Develop a marketing plan integrating product, price, distribution, and promotion.
Step 3. Considering strengths and weaknesses
The business needs to consider the strengths and weaknesses of the target market. Weaknesses could relate to the venture's inability to gain complete credibility in the market. Bad publicity can easily and negatively affect credibility.
Also, the success of the venture will depend heavily on the reliability of its drivers, who may not be sensitive to consumer needs. Thus, it will be important to select and train all drivers carefully.
An entrepreneur's evaluation of his or her venture's strengths and weaknesses would also vary if the market sought is international.
Note
A lack of understanding of the culture and differences in consumer buying habits could be critical in any attempt to reach these markets.
Step 4. Establishing goals and objectives
The marketing goals and objectives answer the question: “Where do we want to go?” and should specify market share, profits, sales, market penetration, awareness level, etc. All the preceding goals are quantifiable and can be measured for control purposes.
Step 5. Defining marketing strategy and action programs
The strategy and action decision answer the question: “How do we get there?”.
This is reflected through marketing mix variables, such as a description of the product or service the new venture will market.
It involves packaging, brand name, price, warranty, image, delivery time, style, etc. The pricing model derives from the cost, margin, and competition.
Step 6. Implementing and monitoring the marketing plan
Effective planning decisions must also consider the cost involved in implementing these strategies. It is also the commitment by the entrepreneur to a specific strategy and not the formality that serves as a superficial document for outsiders.
Example of A marketing plan
A healthy meal delivery service called FreshFit delivers wholesome, chef-prepared meals right to clients' doors. This marketing plan seeks to raise brand awareness, attract new clients, and boost revenues through focused digital marketing efforts and strategic alliances.
1. Situation Analysis
- Analysis of the market: As consumers' tastes shift towards more convenient and healthful dining options, the meal delivery sector is expanding quickly.
- Analysis of competitors: FreshFit faces competition from meal delivery businesses like Blue Apron, HelloFresh, and Freshly, all of which target distinct market niches and provide distinctive value propositions.
- SWOT analysis: FreshFit's emphasis on health-conscious customers and its flexible meal options are among its strong points. One of its weaknesses is that, in comparison to bigger rivals, its brand is less well-known.
Possibilities include growing the range of products offered and utilizing alliances with fitness influencers.
Note
The target market for FreshFit consists of busy parents and professionals in urban areas who are concerned about their health and are looking for quick and wholesome meal options. They range in age from 25 to 45.
2. Marketing Objectives
- Run social media campaigns and focus on digital advertising to raise brand awareness by thirty percent within the next year.
- Within the following six months, increase your client base by 10,000 by forming alliances with fitness influencers and running referral programs.
- Increase monthly recurring revenue (MRR) by 20% by marketing meal plans that are available as subscriptions and upselling other services.
3. Strategies for Marketing
- Product strategy: Create seasonal menus to keep alternatives interesting and fresh and increase meal options to accommodate different dietary needs.
- Pricing strategy: Make meal plans affordable while emphasizing the importance of nutrient quality and convenience.
- Distribution strategy: To reach customers across many channels, use a combination of mobile apps, internet ordering, and collaborations with food delivery systems.
- Promotional strategy: To promote FreshFit's meal plans, use targeted digital advertising on websites like Facebook, Instagram, and Google Ads. You may also work with wellness bloggers and fitness influencers.
4. Plan of Action
- Start a social media campaign showcasing the meal alternatives, components, and health advantages of FreshFit.
- Collaborate with fitness influencers to produce sponsored content that highlights FreshFit meals as a component of a balanced diet.
- Encourage current clients to recommend friends and family by giving them referral discounts.
- Start focusing on email marketing efforts to advertise unique offers and meal plans that are available for membership.
Note
Set aside $50,000 for search engine and social media digital advertising efforts, $20,000 for sponsored content and influencer relationships, and $10,000 for customer retention initiatives and referral program rewards.
5. Measurement and Evaluation
- Track key performance indicators (KPIs) such as website traffic, conversion rates, customer acquisition costs, and customer lifetime value.
- Analyze campaign metrics to assess the effectiveness of marketing efforts and optimize strategies based on performance.
6. Implementation Timeline
- Launch social media campaign: Month 1
- Partner with fitness influencers: Month 2
- Implement referral program: Month 3
- Launch email marketing campaigns: Month 4
7. Contingency Plan
- If customer acquisition targets are not met, analyze customer feedback and adjust marketing messaging and targeting accordingly.
- Explore additional partnerships with health and wellness brands to expand reach and attract new customers.
FreshFit's marketing plan aims to capitalize on the growing demand for healthy and convenient meal options by targeting health-conscious consumers and implementing strategic marketing initiatives.
By focusing on brand awareness, customer acquisition, and retention, FreshFit aims to establish itself as a leading player in the meal delivery industry.
Challenges in Creating a Marketing Plan
Creating a marketing plan can be a complex process, and businesses often face various challenges during its development.
Here are some common challenges:
1. Market research: Limited access to research instruments or resources might make it more difficult to gather precise and pertinent information on the target market, consumer preferences, and industry trends.
2. Competitive Analysis: In highly competitive businesses where collecting trustworthy information can be difficult, analyzing competitors' plans, strengths, and weaknesses demands time and resources.
3. Establishing Realistic Goals: It can be challenging to define precise and attainable marketing objectives that are in line with overarching corporate objectives because doing so can result in too optimistic expectations that aren't supported by available resources or market limits.
4. Budgetary Restrictions: Allocating resources efficiently within budgetary restrictions is a common difficulty because restricted funds may prevent the use of specific marketing plans or techniques.
Note
Target Audience Identification might be difficult to pinpoint and comprehend the preferences, behavior patterns, and demographics of the target audience, especially in narrow or diversified sectors.
5. Choosing the Best Marketing Channels: To achieve maximum success, it is necessary to carefully consider the various options available for marketing channels, including social media, email, and traditional advertising.
6. Creating Captivating Messaging: It takes imagination and thoughtful thought to create messaging that expresses the value proposition and connects with the intended audience.
7. Implementation and Execution: To carry out different plans and tactics in a coordinated way, good project management, team collaboration, and progress tracking are necessary to guarantee on-time execution.
8. Measuring and Evaluating Results: To determine whether the marketing plan was effective, pertinent key performance indicators must be identified, data gathered, and the results accurately analyzed.
9. Adapting to Changes: Marketing strategies must be flexible and agile to effectively respond to shifting customer preferences and industry trends resulting from shifting market dynamics.
Marketing plan vs. business plan
The table below highlights the key differences between a marketing plan and a business plan:
| Aspect | Business Plan | Marketing Plan |
|---|---|---|
| Overview | A comprehensive document outlining the overall objectives, strategies, and operations of the business. | A specific subset focuses on marketing strategies and tactics. |
| Components |
|
|
| Purpose | Provide a detailed blueprint for the entire business venture, including mission, goals, target market, competitive landscape, and financial viability. | Provide a detailed roadmap for reaching and engaging with the target audience, differentiating from competitors, and achieving sales and revenue goals. |
| Audience | External stakeholders (investors, lenders, partners, regulatory authorities), internal management teams | Internal stakeholders (marketing team, management, relevant departments), potentially external stakeholders for demonstrating marketing strategy and growth potential |
Summary
The marketing plan designates the responses to three questions:
- Where have we been?
- Where are we going?
- How do we get there?
Management generally needs to conduct marketing research to respond effectively to these questions. This research may involve secondary sources or a primary data collection process to implement the best marketing plan.
The marketing plan entails several major steps. First, it is important to conduct a situation analysis to assess the question, "Where have we been?" Market segments must be defined, and opportunities identified.
The marketing strategy section or action plan describes how to achieve the goals and objectives already defined. The action programs should also be assigned to someone to ensure their implementation.
If the plan has been detailed, the entrepreneur should be able to assign some costs and budgets for implementing the marketing plan. During the year, the marketing plan will be monitored to identify the success of the action plan.
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