A racketing plan involves a blend of various creative ideas which can help establish a business. Making one’s name in a brand new market and then generating awareness regarding your product has to be one of the most difficult aspects, but it can be achieved by having appropriate marketing plans. Getting someone to buy your product is exceedingly difficult and tiresome, but attracting customers to your product is one of the easiest ways to get your brand established, recognized and well known. A marketing plan has two functions around which it unfathomably revolves. One of the functions is strategy and the other one is tactic.
It involves both, building up of an effective strategy which includes primarily of how the marketing plan has to be brought into action, whereas the other one, that is, tactic basically involves of when the plan has to be implemented and what would be the best time to bring it forward. In most of the organizations, ‘strategic planning is an annual process and takes place before a new year starts. However, in some organizations which have been established already and are flourishing by a far margin or so; the strategic By Morgan-Worth plans to such companies may stretch to about three to tour years.
Strategic planning is matching of a firm’s resources with the market opportunities over the long run. The essential components of strategic planning are market segmentation and targeting as well as designing of the marketing matrix. These are the basic strategies which lure in customers thereby improving basic product knowledge as well as the success of a marketing plan. Not only this, but it helps to isolate areas where the product would most reasonably be marketed and provide adequate profit to the company.
Furthermore, targeting appropriate population for specific product meets the emend to supply ratio, thereby helping the company to meet its desired outcome. This also aids in establishing a brand at a specific place. Aims and Objectives of a The basic aim of a marketing plan is to generate awareness about the company’s product or services. This knowledge, in turn, builds up trust of the customers about the company and more people are attracted towards it. It becomes a vicious cycle and the reputation of the company is massively given a boost.
This helps with the business as well as with creating customers which would have an unfaltering and unwavering faith in the company. The objectives on the other hand, include step by step policies which help formulate a strategy in order to achieve target goals of the company. Types of Marketing Plans There are three types of marketing plans. All of these marketing plans consist of different contents and are of different sizes. The first one is the marketing plan for the business plan,’ the second one is the ‘strategic marketing plan’, whereas the third and the last one is the ‘Tactical Marketing Plan’.
While writing a marketing plan, it has to be kept in mind that this plan will either work on its own or be incorporated into a business plan. Keeping the objectives clear, one of the plans which have been mentioned below can be utilized. As the name indicates, the first marketing plan is the one which has to be incorporated into a business plan. The marketing and sales is simply a part of the entire business plan and therefore, in addition to this document, it consists of executive summary and key components, graphics and financial that support the greater business plan.
The strategic marketing plan however, focuses primarily on market research and attaining a target population in order to establish products or services which are offered by the company. It involves f a thorough analysis of the market place. In addition, the strategies devised in order to target the population after selecting a place is also mentioned in this plan. This type of plan focuses on the sales, profit, loss, gross profit and return on investment. The third plan, that is, the tactical marketing plan’ is one of the longest written plan as compared to the two mentioned above.
Both of those plans extend on to 3 – 6 pages, whereas this one may extend up to 10 pages. The difference between the last two plans is that the marketing strategy plan is made when the company is scanning the environment and looking for a target population. However, the tactical marketing plan is made when the company is well aware of the target population and just has to grasp the attention of old customers. The tactical marketing plan can also be referred as the ‘reminding process. Various tactics are designed to keep the customer affixed which ultimately keeps the product well in the market.
The entire focus of these tactics is to keep the customer focused on the product or service itself. Tactics basically incorporate those ideas in which the company can reach out to customers. However, a poor application of tactic would be to use it when the sales are running exceptionally low. Increasing advertisement at this level would be more or less a blunder. At this moment, strategic marketing plan must be devised and a market scan must be carried out all over again. The specifications which the product lacks must be corrected and the product can then be marketed.
This would be a more apt way to do the marketing (Fisher, 2009). Components of a Marketing Plan Writing down a marketing plan requires professional skills and a creative mind. It is basically a very hostile organizational activity which requires thorough knowledge of both internal environment of the company as well the external competition that exists in the market. Major components which must be included in a marketing plan includes of various steps that must be kept in mind and taken into account. On a general basis, the first and foremost step would be to determine the desired goal of the company.
The purpose for which the company is actually striving for must be ascertained beforehand. Furthermore, if these plans are actually in parallel with the demands of the market must be checked as well. This requires appropriate amount of literature review to be carried out by the company’s professionals. Then the goals are again reviewed and the practicality associated with them is assessed critically. The plans which can actually be implemented are selected and appropriate strategies required in eliciting these plans are selected.
After minute evaluation of these plans, appropriate personnel are allocated to actually execute the plan and lastly, the finances are put down in writing to back up the words (Emerson, 2014). To conclude, the major components include of a complete market search, target market evaluation, positioning or selection of a suitable location, competitive analysis, market strategy, budget and metrics. Framing a Successful Marketing Plan After scanning the environment, selecting an appropriate location as well as the type f marketing plan that needs to be brought into play, a marketing plan is then designed.
The general outline includes a cover page, table of contents, situational analysis, problems and opportunities, objectives, action plan, financial plan and last but certainly not the least, an executive summary. Executive summary The executive summary can be written in the beginning or at the end of writing down a marketing plan. The different schools of thought agree to both of the ways and surely, each has their own advantages and disadvantages. Writing at the beginning can help because it helps to focus on things clearly. A hors outline of the entire plan can be really helpful.
However, it may not include of all the plans that might evolve with respect to time as the marketing plan proceeds. This problem can be evaded if the executive summary is made after designing the entire marketing plan. An executive summary must have the description of the company and what it aims to achieve by launching that product or service. Moreover, it must also outline in a general way the problems and opportunities that the company may encounter or have. It must have a financial plan, the details of market, customers, competitors as well as that of differentiators.
In addition to these details, it must completely elaborate the personnel allocated to carry out specific Jobs; that is, the sales and marketing team must be completely specified. Moreover, a 5 year business plan or tee torture prospects that the company might nave in mind must be elaborated this executive summary at the end (Babel, 1980). Few points which make an executive summary absolutely flawless are as follows: 1. It must be clearly state the objectives. 2. It must be concise. 3. It must provide a solution. 4. It must not be popularized. 5.
The language must not be ambiguous and must certainly not indicate uncertainties or doubts. . It must be easy to read and comprehensible by everybody. Targeting market An overall market scan is carried out to determine the actual demand of the product and which place actually desires the product the most. This includes of various strategies. Moreover, the entire search must be written down and summarized to be included in the final marketing plan. This gives an idea as to why the company actually chose a specific location, what exactly are the added advantages or disadvantages of different places or markets (McDonald, 2007).
Target market approach starts off with a complete description of a potential racket place. A general strategy is devised and mentioned to target customers or potential buyers. Describe the needs/benefits sought by market, the product usage, the positioning and what people’s attitudes are regarding the product you are selling and the product category as well. For an already established and running product, necessary motivation for old customers I carried out. A strategy is devised to expand the market. Market sustainability Moreover, it is a well acknowledged fact that market sustainability is associated with the ‘making of a brand’.
As soon a brand is made, the product becomes exceptionally elided upon which increases its demand. It increases customer loyalty and not only this, but the doctors tend to prescribe it more often since it relives their patients from a tormenting agony. This results in an improved health status, profitable business and makes the product successful. However, the following points are important and must be kept in mind while making off brand: 1. A deep and thorough understanding of the market place: A volume based business in the area would help stabilize the company’s product with respect to an emerging competitive environment. . Need-based personalization: The products segmentation must be done according to the need of the product in that area. A slow moving product would cause expiry problems, desirability issues and would prove to be a loss. 3. Effective strategic marketing planning and processes: Marketing can prove to be beneficial in terms of generating profit. 4. Understanding of the requirements of the customers: Designing off product which is most suitable to its consumers. 5. Professionally qualified personnel: It increases competency of the company and ensures that the work at hand will be done appropriately.
In short, the brand must build a relationship with its consumers to make the product on and running (Cornerstone, 011). After targeting appropriate market motivation, the market purchasing strategy is designed. In the end, Just to wrap things up, a growth strategy is made in order to meet the supply-demand ratio. Final thought on Numbers! As soon as market research provides adequate information of where to target potential customers, how to keep them motivated, what purchasing and marketing strategy has to be adopted, and a final thought on numbers is carried out.
A feasibility study is carried out in order to make the plan real. The reports are audited to check and re-confirm if the entire marketing plan falls within the allocated sources or not. The strategies are prioritize if the expenses exceed the given budget. Meeting up with the competition – SOOT analysis After determining what type of plan is required at the moment, an executive summary has been established and adequate market research as well as strategies has been carried out; an appropriate SOOT analysis is done. It basically involves of determining the Strength, Weakness, Opportunity and Threats.
On starting a new business, the company must itself identify its strengths and note potential risks that may occur in the external environment or even in the internal environment. However, when it comes to a business which has already been established, then a SOOT analysis from time to time may help in identifying and evaluating company’s performance. Furthermore, it may help in determining the possible aspects that the company needs to work on in order to expand their business or Just to keep it afloat. Start asking in various sessions to your marketing team: 1 .
Are your competitors gaining strength? 2. Is the emerging trends one of your weaknesses? 3. What are the other external threats to your company’s success? 4. What financial, development, or other problems are you facing internally? The threats posed by the competitors can be diminished by developing appropriate strategies which include, a core analysis of the market as well as the competitors, clarification of the objectives, designing of a budget for the execution and implementation on strategies to achieve the defined objectives and lastly, the implementation of the strategies.
The sustainability of the brand must be addressed with great caution. In order to do so, a proactive approach must be applied. New competitors with a strong market offering can prove to be exceptionally intimidating and can potentially reduce the market share of the company’s product. Therefore, to protect the market as well as reduce the product share, strategies must be developed in order to increase customer loyalty or certain barriers must be set up prior to the entry of the competitors. It is a fact well acknowledged that 80% of all the purchase results on the basis of emotion.
Therefore, schemes and programs must be introduced to enhance customer loyalty which includes exciting rewards for customers. (Linton, 2014) Small rewards can make a huge difference. Moreover, barriers to entry can be set up by forming strategic alliances with suppliers of essential active ingredients, expedients or even awe materials to restrict access for competitors. Having a low cost advantage in the market can prove to result in a most unwavering and resolute market hold. Action Plan The action plan basically involves of Who, where and how much’ of the entire marketing plan.
It includes of a detailed description of Publicity marketing plan, Customer marketing plan, Advertising plan, Internet Marketing plan, Promotional Event Plan and last but not the least, the Referral Marketing Plan (Luther, 2011). Budgeting The budget of the entire plan is attached with the entire marketing plan. Strategy and Action The feasibility reports must include of various fact sheets (Westwood, 2002). Moreover, the components of sales promotion must also be established in this section.
Cost of Goods per Unit Worksheet, Estimated Sales Table Worksheet and Sales Projections Worksheet are annexed with the final document. Break Even Analysis The break even analysis basically tells of the profit as well as loss that the company might encounter. The fixed, variable as well as intangible costs are determined which helps the company allocate specific resources to specific tasks (Alphabet, 2012). Sales Cash Flow Statement It must include Operating activities, Investing activities and all of the Financing activities that have taken place during the implementation of entire marketing plan.
At the end, the expense budget must certainly not be forgotten to be included in the marketing plan (E Blocker, 2001). Conclusion Marketing plans are tools used by managers to guide the process of marketing. Marketing contain strategies and consider many environmental aspects that work together to affect the success of the product or service being marketed. Marketing plans should be reviewed on an annual basis so as to determine how a business is reforming in the industry. The management of business should use the marketing plan to determine the environment in which a business can flourish in the industry.