Marketing plan: types and structure
The structure of any business project cannot do without a marketing section, which reveals the possible ways of enterprise development. When planning and creating a business plan, it is necessary to conduct a marketing analysis that allows to draw a conclusion about the profitability of the product or service produced and the possibility of bringing them to the market. An example of drawing up a marketing plan in a business plan will show you how to do it in stages. You can find and purchase options for such documents by following the link.
Tasks of Marketing Research
In more detail, the marketing plan in the business plan contains the following tasks:
- Market research.
- Study of the needs of potential customers, their ability to pay for the goods and services provided.
- Analysis of factors that can affect business development and the magnitude of demand, both positively and negatively.
- Increase the demand for a product by identifying research methods of promotion.
The marketing plan in the development of a business plan aims to determine the needs of users of goods and services using an example and real data, to obtain information for planning production and selling products.
Development of the marketing system has several stages.
The first is to define the market boundaries and volumes of goods. This includes researching customer needs, possible ways to improve products, its legal protection, competitiveness and other issues.
The second step is to define the marketing strategy in the business plan. There are a large number of strategies, so you will need to explore as many options as possible and choose the most suitable one for your existing business.
The fourth stage involves defining a pricing strategy. The marketing part includes the following basic pricing strategies:
- Overpriced with high quality products.
- Availability of low prices and, accordingly, low quality of goods.
- Poor properties overpriced.
- Low price - excellent quality.
These strategies do not have to be applied on a daily or monthly basis; it is sufficient to use them if, for example, a new stage is predicted or a leap in enterprise development has occurred.
The next stage includes the elaboration of issues related to the consideration of factors related to the price of the goods produced. A stage can contain the following kind of questions:
Formation of a stable array of buyers, finding a niche in the market, suppressing competitors, forming a plausible reputation - this is not a complete list of issues that entrepreneurs have to solve. It is almost impossible to achieve stable demand for products, brand recognition, and a large number of loyal customers without a clear marketing plan. How to correctly draw up this important document for any business?
What is the company's marketing plan?
The marketing plan of the company should be understood as the detailing of all its actions, which are aimed at achieving its optimal position in the market. It does not affect the production and technological aspects of the functioning of the company and only touches upon the issues of product sales and profit.
What does the development of a marketing plan give a company:
- First, it determines how much of her funds will have to be spent on marketing activities.
- Secondly, form a policy of promoting specific types of goods and services on the market.
- Third, draw up a strategy and tactics for working with the target market, including the procedure for setting prices.
- Fourth, predict the amount of sales of certain goods, sales proceeds and profits.
An important point: Since the marketing plan details all marketing activities and expected results, it is possible to trace the effectiveness of certain approaches in the company's activities in the market.
Types of the company's marketing plan and the purpose of their preparation
There are many criteria for classifying marketing plans, including:
- Duration of validity - strategic (more than 3 years), tactical (up to 3 years), operational (up to 1 month).
- Coverage - turnover plan, sales plan, promotions, market research or integrated (comprehensive plan).
- Development depth - detailed or general.
- Scope of activity - plan of goals, pricing policy, product policy, marketing communications, control and audit, finance, warehousing, ordering, deliveries (logistics), etc.
A marketing plan is a very serious internal document, which at the same time is focused on achieving certain goals:
- Maintaining the company's position in the market.
- Development and implementation of a new product.
- Coverage of new niches and segments (diversification), etc.
An important point: In connection with such a wide range of areas for using marketing plans, it seems necessary to draw up a separate document for each goal, since the methods and tools for each goal are different.
The marketing plan, which is one of the most difficult sections in a business plan, takes the brunt of planning data accuracy. This complexity is due to the fact that the authors-developers of the document are usually financiers and economists in the field of investment management. They are more focused on justifying the economic efficiency of the project. At the same time, it is often forgotten that the assessment of effectiveness is always the second echelon of questions. After all, if the sales of a new product do not take place in the required volumes, then the talk may not reach the economy either.
In almost every article devoted to business planning, we touch upon a point related to clarifying what kind of document is being developed. If the entrepreneur initiates the development, for whom the future business is of crucial importance, so to speak, "the work of a lifetime", then this is one approach. It is a different matter when an operating company, solving problems of development, regularly creates plans for new areas of activity, albeit allocated to separate enterprises.
Although the business planning methodology is the same in both cases, there are still significant differences in the composition of work and document elements. This is especially true when you need to develop a marketing plan. After all, if, for example, the authors have no industry experience, no statistics of past activities in related areas, then the risk of an error in market assessment is great. What, then, can help an entrepreneur when creating a business plan?
First of all, I would suggest taking the time to do competitive intelligence. Yes, the most real exploration with a thorough study of the legend and not just one option, but a whole series of scenario plans. It may also be necessary to budget for trial purchases from competitors in the market. Even if an entrepreneur, before deciding to start his own business, worked for several years in a specialized firm and thoroughly studied business processes, including sales, this is not enough. It is imperative to feel, guided by the best practices, the most advanced experience, and it is never concentrated in only one place.
Secondly, I sincerely advise, if you do not order a study from specialized agencies, then at least consult. As a financier, I myself have repeatedly stepped on the "rake of the Russian maybe", relying on the amateurish confidence that there will be demand, and the client will "flood in a crowd." If an entrepreneur has such a feeling, you need to find the courage to drive him away. This is most likely from the evil one, and it is imperative to double-check such a hypothesis seven times from different angles. A typical example is the throughput of a point of sale. For all the seeming simplicity of the technique, its application requires experience, and only professionals who have performed more than one hundred measurements of pedestrian and car flows are able to provide acceptable accuracy.
Another question is if the business plan is carried out as a regular procedure in a company that is at the stage of the life cycle at least at the level of late "Childhood", and even better "Youth" according to I. Adizes. Using the example of a multidisciplinary company, I had a chance to see firsthand how effective an annual in-house conference can be. At this event, each head of a strategic business unit defends the business plan for the development of the accountable area. Each business unit is required to conduct a marketing analysis and include a specified number of new products in the plan.
Composition of the marketing section
Of course, the approach that I outlined a little above allows you to turn planning into a full-fledged business development tool, in which the strategy is implemented most fully, and the motivation of the management team members is more productive. At the same time, the marketing and advertising department of the control superstructure is working at full capacity, implementing complexes:
- strategic marketing (strategic analysis and marketing strategy itself);
- activities to develop a marketing plan for each business project and projects to bring to the market a new including innovative products;
- operational marketing.
The goal of a marketing plan is to convince stakeholders that there are prerequisites for the current marketplace that, when properly addressed, will generate sales. If the market is ready or almost ready for the perception of the product, it makes sense to present it from the most attractive side. And this should be done earlier than competitors, and the terms of purchase by the buyer - albeit not much, but more profitable than those of other operators. In this regard, strategy, pricing, marketing communications mix and promotion plan are important.
Marketing research and marketing planning as a business management function overlaps with the marketing plan. In the first case, activities can be carried out in relation to the company as a whole and in relation to products that are at the later stages of their life cycle. The second option, in essence, is the continuation and development of the first from the position that the focus is on the local project. The entire dynamics of design, production, and sales of a product from the start of sales to their extinction is monitored. In this sense, it would be ideal to combine general marketing with a set of local-project marketing tasks, which is the case in developed companies. Let's highlight the main components of this section of the plan that correlate with the corresponding management function.
To grow your business, you need to create an effective marketing plan. "Avon" or other representatives of network marketing work out every point with high quality. This allows you to promote the company to the top position and successfully sell. The plan should clearly articulate: for whom the products are intended, how the sale of the target audience will be carried out, what techniques will be used to attract new customers.
Sample NL Marketing Plan
This is a table with basic information on how the company works. After the rest of the research, the method of promotion, the motivation for managers, the system of rewards, the bonus program, and promotion are indicated.
Toothpastes, decorative cosmetics, hair care products, skin care programs, men's cosmetics, hypoallergenic deodorants, eco-friendly cleaning and laundry products, sports nutrition, weight loss products
16 brands, 250 products
Wholesale or small wholesale store of sports nutrition or cosmetics
Key success factors for the industry
Price, assortment, quality of logistics, speed of order processing
Suppliers of sports nutrition, cosmetics
Verified suppliers, managers, sales team who receive bonuses for the sale
The enterprise marketing plan is divided into several types. Distinguish:
Planning is a must for any business whose owner wants to be successful. But choosing the right type of plan for defining your strategy and structuring it can be difficult. Moreover, there are so many different options in marketing and business, and they all have different reach.
Before starting the process, you need to know what a marketing plan is. The definition says that marketing is one action plan that aims to present or promote a specific product or product line to a target audience. It contains strategic information that directly influences a company's approach to these markets. Such a plan, which the company develops, is the basis of modern business, as it helps the owners to firmly gain a foothold and ensure the success of the company.
Basics of Marketing Planning
The goal of marketing is to direct the efforts and resources of the firm towards achieving business goals such as growth, survival, minimizing risks, maintaining a stable business, maximizing profits, serving customers, diversifying, creating an image, and so on.
What is a marketing plan (MP)? Usually it is a tool for the implementation of the concept of the company, connecting the firm and the markets, the basis of corporate planning. Simply put, this is a document that is drawn up by the developers, approved by the manager, and contains a detailed description of the goals of the enterprise. In addition, it clarifies how the governing bodies will apply control tools for product design, promotion channels and pricing to achieve goals. It is the main tool for directing and coordinating the efforts of an enterprise related to sales goals.
This marketing plan is used for almost all modern companies, contains a resume. It also includes information about the current situation, an analysis of the areas of activity, a projected income statement and controls.
Marketing planning, which is an integral part of the overall planning of the firm, defines the roles and responsibilities of team members regarding when and to what extent to promote the goals of the marketing plan. This management function, which determines the future course of action based on the analysis of past events, forms a program that facilitates executive action, which is mainly related to the distribution, development and future use of marketing resources.
Assessment of company strategies
Marketing strategy is used by various companies to cooperate with their consumers. It is also used to inform customers about the features, specifications and benefits of a company's products and aims to encourage the target population to buy specific products and services. Effective strategies help a team get ahead of the competition.
There are different types of marketing strategies. The firm must select one according to the business requirement. Before choosing the right strategy, study the following directions:
- Defining the target population is a basic and necessary step. This provides the proper demographics to help you select the most appropriate MP for your business.
- Check custom audience. Create a hypothetical buying process to test their potential buyers. Once a firm begins to understand the behavior of its target audience, it can choose a more appropriate strategy.
- Strategy evaluation. Once the strategies have been considered and suitable ones have been found, they are applied and evaluated. This process is conducted for testing purposes and the most suitable and productive strategy should be chosen.
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