Business and Financial Tips

Posts Tagged ‘Marketing plan’

Running a successful business is not like a field of dreams; you can build it but they might not come. Marketing is all about leting people know about the product or service you offer, and persuading them to buy or use it. And for effective marketing you have to let people know about your product or service repeatedly.

To do this, you’re going to have to come up with both a marketing strategy and a marketing plan.

What’s the difference between a marketing strategy and a marketing plan?

The marketing strategy is shaped by your overall business goals. It includes a definition of your business, a description of your products or services, a profile of your target users or clients, and defines your company’s role in relationship to the competition. The marketing strategy is essentially a document that you use to judge the appropriateness and effectiveness of your specific marketing plans. The CCH Business Owner’s Guidebook has an excellent explanation and checklist that you can use to work through your marketing strategy.

To put it another way, your marketing strategy is a summary of your company’s products and position in relation to the competition; your sales and marketing plans are the specific actions you’re going to undertake to achieve the goals of your marketing strategy.

The marketing plan, then, can be thought of as the practical application of your marketing strategy. If you look at my article, “Writing The Marketing Plan”, you’ll see that the marketing plan includes details about your business’ unique selling proposition, pricing strategy, the sales and distribution plan and your plans for advertising and promotions.

So in effect, you can’t have a marketing plan without a marketing strategy. But a marketing plan without a marketing strategy is a waste of time. The marketing strategy provides the goals for your marketing plans. It tells you where you want to go from here. The marketing plan is the specific roadmap that’s going to get you there.

Continue on to the next page to learn how to start developing a marketing plan to put your marketing strategy into action.

Think of how much advertising you run into every day. Magazine ads, television, radio…in some places you’ll even find advertising in bathroom stalls!

You must make a marketing difference. You need a strategy. You have to be distinct.

So just how do you stand out from the competition? It’s a long, well-thought out process. And it begins with your marketing plan.

There are several key factors you must identify to make your marketing plan a strong one:

• Who are your potential customers?
• What’s the most effective way to inform your potential customers?
• What do your customers want?
• How can you position your product/service in an appealing manner?
• Look closely at your target market. What’s their age, sex, profession, income level, educational level and residence?

If you’re selling $70,000 vehicles, it really is a waste of time to target an audience who’s making minimum wage. Sure, they may come by the dealership and test drive the car. But will they be able to afford the payments? It may sound like a cold way to approach your marketing strategy but, after all, you’re in business to make money.

Learn all you can about your competitors:

• Who are your nearest direct and indirect competitors?
• What are their strengths and weaknesses?
• Analyze market research data.

Now compare your product/service to your competition:

• Is there a demand for your product/service?
• What are the similarities and differences between your product/service and the competition?
• Assess the unique features of your product/service.

Once you identify how your product/service is different, you can begin your description. Emphasize the special features.

Hit your selling points. Is your product easier to use, faster, smaller, cheaper?

You know your company provides a product or service that’s better than your competition. Now you’re ready for the meat of your marketing plan. Your marketing budget includes:

• Advertising and promotional plan
• Costs allotted for advertising and promotions
• Advertising and promotional materials
• List of advertising media to be used and an estimate of costs for each medium

You know how much you can spend now and just where you should spend it. You’re ready to focus on your product’s pricing strategy.

Write a brief description of your pricing techniques. Several elements can help you determine your pricing strategy:

• Retail costing and pricing (for retail businesses only)
  Competitive position
  Pricing below competition
  Price lining
  Multiple pricing (for service businesses only)
  Service components
  Material costs
  Labor costs
  Overhead costs

Overall, your marketing plan is designed to give you short- and long-term goals as well as a strategy to achieve those goals. Spend as much time as you need on your marketing plan.