Business operations have been the most viable economic development agent, and firms have realized the importance of having an executable marketing plan given the nature and level of competition in the market. As the marketing plan provides a complete and compressive forecast of future company’s dealings as far as the profit margin is into consideration.
A marketing plan is a guiding document that summaries a promotion tactic that an organization will implement to generate income, acquire market as well as convey product information to the target market.
With high revolutions in the business sector, firms have embraced the use of an effective and efficient market plan as it not only helps in budgeting but also acquires resources for adequate investments. It has generally changed the way firms operate with the available scarce resources.
Having a reputable and considerable market plan helps an organization concentrate on its core operations and processes, which in turn facilitates the attainment of the value of an investment.
Basics of a marketing plan.
The only profitable way to start a business is by preparing a plan that cuts across all internal and external factors that affect the firm. A marketing plan is not a one-time work but should be updated regularly to reflect the changing needs, wants, and desires of customers.
For a successful plan, the following components are essential.
- Market research; evaluate and examine data on the market base available and the purchase patterns of customers and competitors provisions in the market.
- Target market; find the most potential market base for your item and describe them.
- The product-define your offer concerning an existing gap and what benefits your products will offer more than that of your competitors.
- Competition- provide a unique and standardized selling proposition for the brand.
- Marketing strategies- discloses channels that will help in conveying information about the product in the market.
- Pricing and branding- it gives details on the methods and ways of pricing the product and the way to differentiate the product.
- Mission statement; provides a short description of the goal of the operation, the target market, and the geographical area of service.
- Budget; provides an estimation of expenses and the sources to acquire such resources.
Features of a marketing plan.
These are some features of a marketing plan;
- Brief and precise- it’s not a complicated document as information and strategies are understandable.
- Timely -regular updates are necessary concerning changing customer needs and preferences.
- Result-oriented- it projects the goal of operations to be achieved.
Merits and demerits of a market plan
By the use of the market plan, an organization is sure of higher-level development as well as the failure of the business if not well used.
- Helps inadequate budgeting- funds are diverted to more profitable ventures
- Promotes your business to the target market-with a market plan; it’s easier to identify the behaviors of customers.
- Helps in branding of your product -a considerable plan encompasses the culture, values, and purpose of the organization.
- The organization Identifies new business ventures through the identification of an existing business Gap.
- Allows for evaluation of strategies if they are meeting the projected outcome.
- High costs-regular checking of customer needs and preferences may be a problem to small business organizations
- Time –a more significant amount of time required to settle on a more efficient plan.
- Unrealistic forecasting- if the data is wrongly valued, wrong financial estimates can be made.
Steps of setting a marketing plan.
- Know the business that you want to operate in and the nature of the industry.
- Define the target market of your brands.
- Identify and analyze competitors.
- Set realistic and reachable goals.
- Outline the available operating strategies inline with your goals.
- Estimate the overall cost of operation
- Implement the plan and test how it is fairing.
- Communicate the plan-make it relevant to all involved parties
- Know your customers-do thorough market research to know potential customer base.
- Build up a realistic and executable time frame of events.
- Set up a benchmark to track operations.
- Regularly update the plan.
- Be ready and willing to changes and venture into risky but profitable ventures.
Build a potential and skilled implement