Developing A Marketing Plan For Your Small Business

1. Developing A Marketing Plan For Your Small Business Presented By: Small Business Development Center Lock Haven University A marketing Plan is a vital element to the whole business planning process. Within a Formal Business plan, the plan itself will be a important asset to enable a potential investor or entrepreneur to assess the market viability, identify the key strategic components and characteristics, as well as understand the marketing Communication strategy of the business plan. Ultimately a marketing plan is the beginning in the creation of a business plan. A marketing Plan is a vital element to the whole business planning process. Within a Formal Business plan, the plan itself will be a important asset to enable a potential investor or entrepreneur to assess the market viability, identify the key strategic components and characteristics, as well as understand the marketing Communication strategy of the business plan. Ultimately a marketing plan is the beginning in the creation of a business plan.

2. Building a Successful Marketing Plan Every business, small or large, will be more successful with a business plan. And the key component of a business plan is the marketing plan. A good marketing plan summarizes the who, what, where, when, and how much questions of company marketing and sales activities for the planning year.

3. A Marketing Plan Typically Answers The Following ???�s: Who are our target buyers? What sources of uniqueness or positioning in the market do we have? Where will we implement our marketing spending plans? When will marketing spending plans occur? How much sales, spending, and profits will we achieve?

4. Major Elements of a Marketing Plan Situation Analysis Goals and Objectives Opportunity and Issue Analysis Marketing Strategy Sales and Marketing Plan

5. Situation Analysis Describes the total marketing environment in which the company competes and the status of company products and distribution channels. The primary purpose for the situation analysis section of a marketing plan is to describe what is happening in the markets in which the company competes, and the company's product and distribution trends.

6. Market Summary Market: past, present, & future Review changes in market share, leadership, players, market shifts, costs, pricing, competition A market summary should involve the collective information gathered through in-depth research regarding all market characteristics, past, present and future. This will enable a product or service to be positioned and segmented correctly in order to reach its target customers. It is important to note where the data and how the data is collected for the industrial analysis. All marketing efforts should conduct research in the areas of market share, market leadership, costing, pricing, competition and so on. Also Market research should focus both on the internal and external environments. There are many types of research tools to aid the data collection for a particular product or service. All market factors must be taken into consideration while undertaken research and formulating marketing plans for the size, life span, and potential sales for a product or service. Questionnaires, while time consuming and often inconclusive, have probably the best success rate of all the primary research sources. Of course secondary research is more efficient, its data can be questionable, as it relates to other research at a different time, presenting a less accurate picture. Markets and product life span are continuing to become shorter, therefore there should be a balance between primary and secondary research. A market summary should involve the collective information gathered through in-depth research regarding all market characteristics, past, present and future. This will enable a product or service to be positioned and segmented correctly in order to reach its target customers. It is important to note where the data and how the data is collected for the industrial analysis. All marketing efforts should conduct research in the areas of market share, market leadership, costing, pricing, competition and so on. Also Market research should focus both on the internal and external environments. There are many types of research tools to aid the data collection for a particular product or service. All market factors must be taken into consideration while undertaken research and formulating marketing plans for the size, life span, and potential sales for a product or service. Questionnaires, while time consuming and often inconclusive, have probably the best success rate of all the primary research sources. Of course secondary research is more efficient, its data can be questionable, as it relates to other research at a different time, presenting a less accurate picture. Markets and product life span are continuing to become shorter, therefore there should be a balance between primary and secondary research.

7. Product Definition Clear state purpose or function of the product or service. Identify its unique selling proposition and value added offered to its potential customers. Identify its target market, consumer profile and competitive arena. Within the marketing proposal there should include an in-depth description of the product or service that is being offered . This allows to focus attention in the USP and the value added offered with the product/service. By clearly identifying the characteristics, it will place the product or service in a particular market segment or segments and identify a target market, customer profile and competitive arena. Within the marketing proposal there should include an in-depth description of the product or service that is being offered . This allows to focus attention in the USP and the value added offered with the product/service. By clearly identifying the characteristics, it will place the product or service in a particular market segment or segments and identify a target market, customer profile and competitive arena.

8. Competition The competitive landscape Provide an overview of product competitors, their strengths and weaknesses Position each competitor�s product against new product The competitive landscape will present a challenge to any new product or service development. To a large extent it will determine the level and success or failure of any new product development strategy. The goal in any new product development strategy is to position product/service within a niche market arena and provide a sustainable competitive advantage. The marketing plan should communicate, what and how is the niche market and the sustainable competitive advantage. Of Course it is realized that there are a number of factors which could eliminate those competitive advantages over time. The marketing plan should focus its attention on the external competitive strategies, namely Products, Substitutes, technology, positioning etc. A SWOT analysis is a helpful tool when producing a business plan in a competitive market. It provides a realistic overview of the potential damage that a competitor can inflict on a business. The competitive landscape will present a challenge to any new product or service development. To a large extent it will determine the level and success or failure of any new product development strategy. The goal in any new product development strategy is to position product/service within a niche market arena and provide a sustainable competitive advantage. The marketing plan should communicate, what and how is the niche market and the sustainable competitive advantage. Of Course it is realized that there are a number of factors which could eliminate those competitive advantages over time. The marketing plan should focus its attention on the external competitive strategies, namely Products, Substitutes, technology, positioning etc. A SWOT analysis is a helpful tool when producing a business plan in a competitive market. It provides a realistic overview of the potential damage that a competitor can inflict on a business.

9. Goals And Objectives This section of the marketing plan outlines major company goals, marketing, and financial objectives. All objectives should be carefully quantified, where possible, especially in terms of an achievable time or date. Objectives should be reasonable and attainable.

10. Major company goals should include both short- and long-term goals. For example: company definition (e.g., "to be a manufacturer of 100 percent all-natural snack food products") market definition (e.g., "to attain leadership in dollar market share and volume for the healthy, all-natural snacks segment of the salty snacks category") technology (e.g., "to become known in the industry as the leading developer of new vegetable protein products")

11. Positioning Positioning of product or service Statement that distinctly defines the product in its market and against its competition over time Consumer promise Statement summarizing the benefit of the product or service to the consumer

12. Opportunity And Issue Analysis This section of the marketing plan analyzes the internal strengths and weaknesses of the company and the major external opportunities and threats to the company, along with a discussion of key issues facing the company.

13. Three Elements of Analysis INTERNAL strengths and weaknesses of the company should be described in a competitive context. EXTERNAL opportunities and threats to the company should be described with possible programs to capitalize on the opportunities, and possible solutions to potential threats to the company. KEY ISSUES addresses decisions to be made by the company, based upon the analysis of these external opportunities and threats and internal company strengths and weaknesses, and helps to determine objectives, strategies, and tactics.

14. SWOT Analysis

15. Marketing Strategy Every business owner should develop a written guideline that sets forth the business's marketing strategy. This document is used to judge the appropriateness of each action that the business takes. If a company has to take an action that is off-strategy, it may indicate a temporary emergency action prompted by competition or other factors beyond normal management control. Or it may indicate the need to change or revise the company's marketing strategy.

16. A good marketing strategy provides specific goals and can include: a description of the key target buyer/end user competitive market segments the company will compete in distribution channels the unique positioning of the company and its products versus the competition the reasons why it is unique or compelling to buyers price strategy versus competition marketing spending strategy with advertising and promotion possible research and development market research expenditure strategies.

17. Communication Strategies Messaging by audience Target consumer demographics Communication strategy is the way the marketing effort is going to sell the product or service to its particular target market and targeted audience. Depending greatly on the product, a message can be created through a number of appeals using a variety of use's to attract the potential customers. Communication strategies should be tested through a number of sampling techniques in order to assess the viability. Target customer demographics involve the segmentation of consumer groups and consumer profiles, based on buying habits, Income, Occupation, Physical Handicaps, Gender, Home Owner/Rent, Age, Eating habits, race, education, Leisure Time, Area of residence, Vacation Activities, Hobbies, Automobile,Skills, Household pets, Religion, Martial Status, Number of Children, Health. These profiles should be customized for your list to best identify your potential customers. Communication strategy is the way the marketing effort is going to sell the product or service to its particular target market and targeted audience. Depending greatly on the product, a message can be created through a number of appeals using a variety of use's to attract the potential customers. Communication strategies should be tested through a number of sampling techniques in order to assess the viability. Target customer demographics involve the segmentation of consumer groups and consumer profiles, based on buying habits, Income, Occupation, Physical Handicaps, Gender, Home Owner/Rent, Age, Eating habits, race, education, Leisure Time, Area of residence, Vacation Activities, Hobbies, Automobile,Skills, Household pets, Religion, Martial Status, Number of Children, Health. These profiles should be customized for your list to best identify your potential customers.

18. Packaging & Fulfillment Product packaging Discuss form-factor, pricing, look, strategy Discuss fulfillment issues for items not shipped directly with product COGs Summarize Cost of Goods and high-level Bill of Materials Marketing plan should address the issue of packaging and fulfillment. This is used also to advertise and achieve product or service recognition. Marketing plan should address the issue of packaging and fulfillment. This is used also to advertise and achieve product or service recognition.

19. Launch Strategies Launch plan If product is being announced Promotion budget Supply back up material with detailed budget information for review Through the marketing plan the product develop is identified with its target market. It is given a face and a new product development strategy dependant on the time and market of the product/service. Within the Service sector it is important to co-ordinate the timely execution ant opening or facilities. The launch plan will include pre-opening advertisement and heavy promotion the initial stages of the operation. The launch and promotional strategies are completed within a phase period in order to have effective communicated and smooth transition between promotional campaign and operation commencement. Through the marketing plan the product develop is identified with its target market. It is given a face and a new product development strategy dependant on the time and market of the product/service. Within the Service sector it is important to co-ordinate the timely execution ant opening or facilities. The launch plan will include pre-opening advertisement and heavy promotion the initial stages of the operation. The launch and promotional strategies are completed within a phase period in order to have effective communicated and smooth transition between promotional campaign and operation commencement.

20. Public Relations Strategy & execution PR strategies PR plan highlights Have backup PR plan including editorial calendars, speaking engagements, conference schedules, etc.

21. Advertising Strategy & execution Overview of strategy Overview of media & timing Overview of ad spending

22. Other Promotion Direct marketing Overview of strategy, vehicles & timing Overview of response targets, goals & budget Third-party marketing Co-marketing arrangements with other companies Marketing programs Other promotional programs

23. Pricing Pricing Summarize specific pricing or pricing strategies Compare to similar products Policies Summarize policy relevant to understanding key pricing issues

24. Distribution Distribution strategy Channels of distribution Summarize channels of distribution Distribution by channel Show plan of what percent share of distribution will be contributed by each channel -- a pie chart might be helpful

25. Marketing Strategy Checklist define what your company is identify the products or services that your company provides identify your target buyers/end users establish the marketing category (e.g., fast food purveyor, high-end audio equipment sales, etc.) determine whether your company will be a market category leader, follower, challenger, or niche player describe the unique characteristics of your products or services that distinguish them from the competition.

26. Marketing Strategy Checklist define whether your pricing will be above, below, or at parity with your competitors and establish whether you will lead, follow, or ignore changes in competitors' pricing identify the distribution channels through which your products/services will be made available to the target market/end users describe how advertising and promotions will convey the unique characteristics of your products or services describe any research and development activities or market research plans that are unique to your business describe the image or personality of your company and its products or services

27. Sales And Marketing Plans This section of the marketing plan outlines each marketing event or action planned to increase sales. The plan will generally cover a calendar year, broken down by month or by quarter. For example, it may contain a summary of quarterly promotion and advertising plans, with spending, timing, and share/shipment goals for each program.

28. Sales and marketing plans should be a logical outgrowth of short- and long-term company objectives and your marketing strategy. In the business plan, the sales and marketing plans provide an outline of each marketing event for the year, covering the following information: description of each event vehicle (e.g., media, promotion, trade, sales) timing of each event event goals and objectives (e.g., volume, share gains) cost of each event

29. Vertical Markets/Segments Vertical market opportunities Discuss specific market segment opportunities Address distribution strategies for those markets or segments Address use of third-party partner role in distribution to vertical markets

30. International International distribution Address distribution strategies Discuss issues specific to international distribution International pricing strategy Localization issues Highlight requirements for local product variations

31. Success Metrics First year goals Additional year goals Measures of success/failure Requirements for success

32. Schedule 18-month schedule highlights Timing Isolate timing dependencies critical to success