We outline here, a simple step-by-step process that should enable you to write your first marketing plan. In 1776, Adam Smith said, “Consumption is the sole end and purpose of production.”
In essence, this is a good description of the marketing concept. In other words, the matching of a company’s capabilities and the wants of its customers in order to achieve mutual objectives.
Start by Looking at What You Are Doing Now
The marketing activities you use and the skills you have. You will probably discover that you are doing a lot of the right things already.
However, you should re-examine what your market wants; where, when, and why customers buy, what makes them buy, and what competitors are providing. Decide on your objectives, identify your target customer groups, and ensure your business is positioned to serve that market profitably.
Monitor the effectiveness of your activities in terms of customer satisfaction and the impact on your bottom line.
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Focus on The Customer
In a customer-focused company, marketing is something that everybody does, not just marketers; everyone has a role to play.
Managers who plan and look to the future and allocate budgets for marketing activities; the sales force, who are the eyes and ears of the company; your marketing staff, who develop and deliver marketing communications and support sales programs; and your external agencies and specialists, who from time to time provide additional support.
Good communication between all these groups is essential to good marketing. Together as a group, you must ensure that the company is committed to the customer at all times in every way.
Divide Your Customers Into Groups
Every customer is different, so why treat them all the same? Start treating them as individuals, look at how and when they buy. This will start to help put them into groups and understand the needs of each group. For example:
• High volume/high value buyers – place frequent large orders
• High volume/low value buyers – place frequent small orders
• Low volume/high value buyers – place occasional large orders
• Low volume/low value buyers – place occasional small orders
This analysis of customer groups produces what is known as ”market segments’—customers who have similar needs or who behave in similar ways. You will probably find that you need to use different marketing techniques and approaches to reach each segment.
Identify customer benefits
Having completed the above, you should now be able to identify why each customer segment buys your products and services and what benefits they are seeking. As a result, you can make better profits.
For example, you may find that low volume/high value buyers are more profitable to you than high volume/low value buyers. Future marketing activities can be planned with this knowledge in mind.
Decide how to deliver these benefits. You deliver benefits through what marketing people call the ‘Marketing Mix’. These are essentially the tools of the marketing trade. Your goal here is to define your ‘unique selling proposition’ (the USP) – something that truly sets you apart from your competitors.
The basic marketing mix consists of:
• Product – the goods and services you are offering.
• Price – what the customer pays.
• Place – How and where the customer obtains the product/service
• Promotion – The means and mix of activities used to promote the product/service.
You should also consider the three extras:
- People – the people you employ and how they deal with your customers
- Process – the way your business operates
- Physical evidence – the look of your premises, vehicles staff etc.
All can have an impact on how you are perceived. It is usual to tailor the marketing mix to the needs of each segment. Decide what and how to communicate.
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Now you know who your audiences are and what they want, work out messages for each customer segment. Since customers in each segment may want different benefits, the message to each segment may have to be adapted.
The messages need to underline and explain the specific and relevant benefits that you can provide them, You can then decide the best way of communicating, whether it’s through printed media, such as brochures or any of the other many other communication channels available.
Write a Marketing Plan
At last, armed with the above and having made some key decisions, you have already effectively developed a marketing strategy. Now write it down! The marketing plan may cover between 6 months and 5 years. Then you will have a document that explains to anyone who needs to know what you are doing.
This may include your bank manager, external marketing agencies and new members of your team. It is also a good idea at this stage to involve other team members who are going to be responsible for delivering the plan (not to say, of course, that they haven’t already been involved in its development).
Write a monthly ‘to-do’ plan on an Excel spreadsheet. Stick to it and don’t deviate. This plan should include costs. Set monthly budgets and don’t be swayed from them by people trying to sell you advertising that you don’t need or want.
Above all try to remain innovative. The most effective marketing mechanisms don’t need to cost the most money. Review your plan on a regular basis. Think ‘outside the box’, brainstorm and involve others.
Use as many ‘no cost’ mechanisms as possible.
Business networking costs nothing other than time. Consider producing your own in-house mail shots. Do your own telemarketing. Keep your name in front of your potential customers.
Putting it into action
The marketing plan specifies what the marketing activities are, who is responsible for carrying them out and when. Your job is now to motivate your team and make sure you get the results you have planned for!
Measure and control
Your marketing plan gives you something to rate your performance on as you develop your business. For instance, if you spend money on advertising or PR, you can evaluate this against any increase or decrease, in sales revenue, stock price or number of new customers contacting you.
This will now help you measure how effective your marketing activities are.
