Steps in Preparing Your Marking Plan - cornubused.com in preparing marketing plan.pdf · We divided the Steps in Preparing Your Marketing Plan into two major headings: 1. The market

Steps in Preparing Your Marking Plan

Business Description

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B I Z B I T E C O N S U L T I N G G R O U P

Steps in Preparing Your Marketing Plan

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Table of Contents How is this module organized?.iii Suggestions on how to use this module ..........................................iv The six-pointed star ....................iv

Steps in Preparing Your Marketing Plan................................................ 1

Introduction..................................2 The Marketing Plan ..................3

Introduction..................................3 Elements of a Marketing Plan....5 Uses for this information......... 10 Summary..................................... 10

Target Market and Target Marketing ................................ 12

Introduction............................... 12 Target Market ............................ 13 Target Marketing Plan.............. 16 Summary..................................... 18 Other products and modules for sale............................................... 20

Glossary of Terms ....................... 21


Steps in Preparing Your Marketing Plan © i

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The personal experience of the content specialist, Graeme Robertson, forms the bases for this material. The company, 6023207 Canada dba CorNu Enterprises Inc. makes no representations or warranties regarding the use of this material in whole or in part and assumes no liability for any claims, losses, or damages arising from the use of the material. The use of this material (in any way) should not be construed as taking professional advice from the author or CorNu Enterprises Inc.

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Steps in Preparing Your Marketing Plan © ii

Credit Page

The founders of BizBite Consulting Group and developers of CorNu Enterprises dynamic approach to education are

Graeme Robertson and Dr. Shirley Chapman The following people contributed to this document:

Content Specialist JJJ... GGGrrraaaeeemmmeee RRRooobbbeeerrrtttsssooonnn

Graeme Robertson is a seasoned business management professional with over 30 years of experience. He has held senior positions in retail, wholesale, and distribution operations. Additionally, Mr. Robertson was Regional Manager for a national personnel-consulting firm and he has been actively engaged in business management consulting for over 20 years.

Designer and Developer DDDrrr... SSShhhiiirrrllleeeyyy CCChhhaaapppmmmaaannn

B. Ed. M.Ed. Ph.D.

Dr. Shirley Chapman is a veteran educator with over 30 years of experience. She is an expert in course/program design and development. Her experience covers public schools, colleges, and universities. Shirley is experienced in designing and developing training specifically for delivery via face-to-face, on-line (Internet), and manuals for organizations, colleges, and businesses. She is responsible for the page layout and format as well as the graphics in any materials that she designs.


Steps in Preparing Your Marketing Plan © iii

How is this module organized?

We divided the Steps in Preparing Your Marketing Plan into two major headings:

1. The market plan

2. Target market and target marketing

Within the module, the material is divided into these headings:

(Content of the section)

Uses Summary

Celebrate

Introduction

How to use this section New businesses

Existing businesses

Celebrate!

It is important that you recognize your achievements and celebrate each small step. Phone some friends and celebrate it. We will offer you opportunities to celebrate at the end of each part of the module. Have fun with them. We had fun creating them for you.


Steps in Preparing Your Marketing Plan © iv

Suggestions on how to use this module

This module is organized so that you decide:

• In what order you want to access the various titles

• What you want to ignore

• How many times you want to revisit the material

Just return to the Table of Contents and click on what you want to read or review again.

The six-pointed star

We have depicted business and a business plan as a six-pointed star. Each part of the star represents a major aspect of your business and an important element of a business plan. Together, they form a complete view of your business and your business plan.

We have carried this star throughout all the BizBite Consulting Group products and all the modules.

As each new section is begun or completed, the appropriate part of the star is colored and the rest of the star is colorless. This may help you to see how a specific topic relates to the whole business and to remind you that it is part of the whole.


Steps in Preparing Your Marketing Plan

Marketing is like fishing for clients/customers

You need a plan that uses the right bait, the

right fishing hook, and the right fishing rod

GGGlllooossssssaaarrryyy

Each term that is used in this section is defined in the Glossary of Terms. You will notice that the first time it is used it is coloured green in Bold Italics.

Click on the Glossary of Terms in the Bookmarks or Thumbnails and scroll down to find the definition. Alternatively, print the Glossary.

Steps in Preparing Your Marketing Plan © 1


Introduction

It is through marketing that a company expresses itself in the market. It is through marketing that the business' customers learn:

• Who the company is

• What the company is

• What the company has to offer to the market

• What is the style of the business?

• What is the total perception of the business?

All of these things, and more, are the sum total of the marketing of the company. Thus, the marketing plan, the business plan, and their implementation are essential to the success of the business.

NB You should have completed the following modules before commencing the marketing plan section because you will be using the information that you collected and implementing the decisions that you made in your marketing plan.

1. Goals and results—you will return to this again just before writing your final business plan (found in Overview of Business Plan—Why you need one)

2. The business offering found in Market Analysis & Supplier Support—Keys to Success

a. The competition and your competitive edge

b. The customer/client base

c. Product and sources of supply

d. Market analysis

Marketing has been divided into two major sections:

1. The marketing plan

2. The target market and the target marketing plan



The Marketing Plan

Introduction

Now, it is time to prepare the marketing plan. It involves how marketing resources of a company will be deployed over a 3–5 year period and how it will involve all aspects of a company in some way. Once the 3–5 year plan is developed, the next step is to write a more detailed plan for either the present year or the next year, whichever one is most relevant.

There is no question that the success or failure of the business will depend on the marketing plan. Consequently, give it very careful attention. The particular focus or emphasis of a plan will vary and will reflect the personal perceptions and bias of the writer in regard to the needs of the business and its response to the market.

All marketing plans should: Show consistency in the way that the business presents itself to the

market. There should be no confusion as to the markets the business serves and its offerings.

Coordinate the marketing efforts addressing each market segment of the business in order that each market segment is part of the whole. In this way, there is synergy between the activities related to each market segment and how each benefit from advertising and promotion done for any other market segments.

Plan details for each market segment for all of the marketing efforts. Include implementation plans and expected results.

It also should detail the estimated cost of each part of the plan, the estimated time to measure and achieve the results.

Outline contingency plans and adjustments in the event scaling up or down of the marketing plan.

The overall marketing plan will often have within it a target market plan. We will deal with this in more detail in another section. However, the target market plan is a specific part or parts of the general marketing plan that is directed at a specific group of customers or market segment for a defined period.



How to use this material

New businesses

A new business will be putting together its first marketing plan. In every way, it will be a test of the conclusions derived from the market research. Many new businesses have limited financial resources. Therefore, it is usually better for them to take a more targeted approach to optimize results from what is perceived to be the primary market for the offerings of the company.

With new businesses, implementing a marketing plan in stages is sometimes a good idea rather than committing the business' entire marketing budget at one time. In case of results being much less than expected, there will then be sufficient funds to make adjustments and go to a contingency plan.

Existing businesses

Existing businesses will be reassessing the success of previous marketing plans. In addition, they will decide (in the light of the current research and analysis) if the existing marketing plan needs adjustments, or if they need to develop a new one.

In any event, it is important not to make too many assumptions based on historical data. History is important, but it can blind the writer of a marketing plan to changes that are occurring in the market.



Elements of a Marketing Plan

Nine elements make up a marketing plan. Each element represents an area that you should think about while you are developing a marketing plan. You will need to review and use the other parts of the business plan that you have already completed.

As each element is completed, place your summary, conclusions, or decisions into your draft-marketing plan. When all of the elements are completed, examine them and determine how they fit together to form a marketing plan. Design a final marketing plan and place it in your business plan.

How am I going to market my business?

Here are the nine elements. You can complete them in any order. As you complete one element, you may need to review a previously completed element and make adjustments.

Think of this process as a checkerboard. Each piece is a distinctive part of a connected pattern.

Are there elements listed here that do not apply to your business?

Are there any missing elements?

1. General statement Write an overall statement of your marketing strategy.

• Explain how your marketing strategy will affect your competitors.

• Explain what might be their reaction to your marketing strategy.

2. Promotion and advertising plans Describe the promotion and advertising plans for your business.

3. Goals and timetables Set goals and timetables for the implementation of the marketing plan.

What you are doing is projecting the expected results of the implementation of the marketing plan.

4. Financial Projections Prepare the financial projections on the cost of implementing the marketing plan.

Place the copy of the financial projections in your draft-marketing plan.



5. Major existing accounts Analyze the relationship with your major existing accounts

Existing businesses will usually have a few accounts that are responsible for a large portion of the volume of the business. There is often a long history of 'give and take' with these customers/clients.

Sometimes exceptions to policy are made for accounts like this. It is easy for this to get off the track; consequently, monitor the situation regularly. If not, 'sensitive' situations can develop and an account can be lost because the business was not on top of how the relationship was changing.

It is important to know the effect these major accounts will have on your business as it grows.

It is equally important to anticipate what the effect of how losing these accounts would be on your business after committing a lot of your business resources to servicing that business.

Once this step is completed, place your summary, conclusions, or decisions into your draft-marketing plan.

6. Pricing policy analysis Determine how the pricing policy analysis and market forces may affect that policy. (Refer to your Break-even point (BEP) analysis in How to Test if Your Business Make Money)

After analyzing the pricing policy of suppliers and competitors in the market, decide what approach the business will take towards pricing.


7. Competitors' pricing Decide what part of the above analysis should be looked at to see how competitors are pricing their offerings.

Part of the marketing plan, but only part of it, is the way in which prices are structured and positioned to take advantage of competitors' strengths and weaknesses.

As for market forces, they are anything and everything that could affect the business.

Some examples of these market forces are Competition Foreign exchange Government regulations Raw material supply Stock market Politics



Investigate marketing support available from outside sources in terms of people, materials, and training to assist in accomplishing your goals. Some typical sources would be suppliers, franchise organizations, or multi-level marketing organizations.

What you are doing here is forecasting what impact the marketing plan may have on the market and what reaction there may be from your competition.

Some examples support may be in the form of Advertising allowances Brochures Training courses Signage Ad mats Marketing costs


8. Supplier service and warranty programs Research supplier service and warranty programs

You need to refer to Product and Sources of Supply (Warranty policy and procedures) for this information and your decisions. (Found in Market Analysis & Supplier Support—Keys to Success) Once this step is completed, place your summary, conclusions, or decisions into your draft-marketing plan.

9. Target Market and Target Marketing Determine the target market and plan how to market to them.

See the section Target Market and Target Marketing in Steps in Preparing Your Marketing Plan for details.



Writing a marketing plan

You have a draft copy of your marketing plan. Presently, it is a series of conclusions, summaries, and decisions from these ten elements:

6. Pricing policy analysis

7. Competitors' pricing

8. Supplier service and warranty programs

9. Target Market and Target Marketing

10. Any others you added

1. General statement

2. Promotion and advertising plans

3. Goals and timetables

4. Financial projections

5. Major existing accounts

Now you need to review each of them and examine them as whole plan. Do they fit together, are there conflicting decisions, and are adjustments required?

Before continuing with the process of writing a final marketing plan, you should complete this module.

1. From the information that you collected or decisions you made in elements 5–9, design your promotional and advertising plan(s).

2. Set your goals and results for the next 3–5 years. Set your goals and results for the following year.

3. Establish a timetable for the next 3–5 years in general terms. Establish a specific timetable for the coming year.

4. Prepare the financial projections on the cost of implementing the marketing plan for the next 3–5 years in general terms and, for the coming year, in detail.

5. Write an overall statement of your marketing strategy.

6. Place the final draft of your marketing plan in your business plan. File your drafts and research either in your filing cabinet or on your computer. Be sure to date it.



Example of a marketing plan

General statement

Goals and results for the coming year

Tools and strategies you will use to reach your clients/customers

1. 2. 3.

4. 5. 6.

Your marketing budget _______________

A month-by-month implementation timetable

Tools or Strategies Cost per use Yearly frequency

Total cost

Tool and/or Strategy Jan. Feb. Mar. April May June

How to use the marketing plan

We suggested in another module (Defining Your Business and Its Goals) that you develop a spreadsheet of your business plan and post it on your office wall. You could do the same thing for your marketing plan. It might be part of your business plan spreadsheet or a separate one.

You may want to place all the starting and completion dates of tasks in your scheduler.

As the year progresses and your marketing plan is implemented, note the progression on your spreadsheet. Note the changes or suggestions for the future on it as well. Make this marketing plan a useful living document.



Uses for this information

Use the information researched and developed for your marketing plan follows:

1. Identify the key elements of the marketing plan for your business.

2. Determine the relative importance of the marketing plan components to your business and your market.

3. Prepare contingency plans in the event of possible adjustments to the marketing plan.

4. Monitor the effectiveness of the marketing plan.

Summary

In this part, you have examined the important elements that likely need to be included in a marketing plan. We provided a number of examples to illustrate the application of these elements. A series of steps were suggested for writing the marketing plan. An example of a marketing plan was presented.

The marketing plan may be different for a new business as opposed to an existing business.



Celebrate!!

Now it is time to spend a little time fishing for

leisure.



Target Market and Target Marketing

Introduction

Many businesses have what they consider a comprehensive marketing plan. However, to be effective, the plan must be directed and targeted. Accordingly, a marketing plan will usually have within it a target market plan. This is an integral part of the overall plan, but is targeted at specific groups of customers/clients that the market research indicates are the prime users of the business' offerings.

How am I going to market to my target market?

Without target marketing:

1. At the territory or field level, marketing plans often breakdown, lose their effect because of poor territory planning, and target marketing.

2. Field activity loses focus and tends to drift along paths of least resistance.

3. Mount campaigns periodically that tend to take a total market approach. Consequently, rather than being focused, marketing budgets may be spread too thinly.

4. Personnel may appear to be very busy, but in reality, are often spinning their wheels and not making the best use of their time. The business would be better served by concentrating the business' effort on major business segments.

How to use this material

New businesses

It is particularly important for a new business to focus its efforts and generate a consistent revenue stream as soon as possible. Thus, a major thrust of the market research and analysis should be to identify significant market segments and any target market groups within those market segments. Based on this, the business formulates its target-marketing plan and considers how that will relate to the overall marketing plan.



Existing businesses

Existing businesses will be reviewing the effectiveness of previous target marketing plans and determining what adjustments, if any, may be necessary. Again, history is important, but the writer should keep an open mind and give full reference to the current research and analysis and any apparent shift in market trends. Often, in an existing business, the timing of marketing events should be looked at carefully.

For example A previous marketing approach that was

not very successful, may have been very effective if the timing ere different

Target Market

The following material indicates the type of information needed to determine the potential customers/clients that make up the target market. Probably, you need to study these three modules:

• Market Analysis and Supplier Support (Customer/Client base & The Competition and Your Competitive Edge)

• How to Test if Your Business will make Money (Financial Feasibility of Business Offerings)

• Market Analysis and Supplier Support—Keys to success (Customer/Client Base)

You should now have a very good idea of your total market and its various market segments. Now, that research data should be re-examined in even more detail to determine the make up of each of the market segments. The purpose is to reveal those subgroups within each market segment that have the greatest revenue potential, hence, marketing programs can be designed to target those groups.

Depending on the area, business situation, business resources, and competitive activity, a business market may be divided into the following areas:

Market trends or changes Number of existing customers Number of potential customers Offering provided (kinds and numbers of offerings, and offering mix)

Geography Kind of customer Size of customer base Volume contribution Profit contribution



Use the ideas below with particular reference to your research data in the Customer/Client Base section in the module, Market Analysis and Supplier Support—Keys to success.

Identify and describe the target market (target audience and/or customers/clients) and, as much as possible, prepare lists of potential customers/clients or, in some cases, a geographic location that may be targeted.

For example If the target group is a type of business such as a plumbing

business, small engine repair, or a restaurant, then lists of the businesses in the local market are easily prepared.

If the target group were a certain type of homeowner, then urban areas housing those types of homeowners would be identified.

Estimate the size of the target market. How big is it in terms of the numbers of potential customers and

dollar volume? Estimate the growth potential of the target market. That is, how mature is the market? What does market research indicate about how many potential

users of the offering have yet to be sold? Is the offering a consumable that would be used repeatedly by the

target market group?



The selling cycle of a particular offering used by a target group of customers is very important.

When a business is analyzing the total market in order to develop a target marketing strategy these are very important considerations.

This is because every business segment will have different needs and the resources necessary to serve those customers are different.

For example If you are selling products with a useful life of a

few weeks or are consumed every few weeks by its users, these are considered a very short selling cycle.

On the other hand, if you have products with long useful life and customers frequently for technological reasons do not replace them, then they will have a long selling cycle.

These target market considerations will affect everything the business does.

Therefore, target-marketing analysis is a very important part of preparing a marketing strategy and the business plan.

Some of the data sources to use in this kind of analysis are:

Contacts Influential Publication Associated companies Telephone Yellow Pages Government business support agencies See the Appendix for more sources

Existing account information Trade journals Industry statistics The Dominion Bureau of Statistics

Financial Post Survey of Markets

You need to summarize what you know about your target market. You may need to list the various kinds of target markets that you expect to service or are serving and describe each of them.

Place this information in your draft-marketing plan. Use this information in: Targeting Marketing Plan.



Uses of target market information

The target marketing information gathered is an essential part of:

• The development of a market analysis

• The development of a marketing plan

Target Marketing Plan

Once you have determined and described your target market or target markets, you need to design a target-marketing plan for each target market or groups of target markets.

Target marketing involves the process of analyzing and segmenting the total market to identify, in order of importance, the market segments that will yield the best return on investment of resources, people, and time. It is limited to homogeneous market segments.

Use target marketing to gain a competitive advantage that should be more profitable to the business.

Target marketing is not mass marketing. Here is a simple example of the difference.

For Example A business specializing in the installation of new

fences might mail a handbill to every household in the city. This would be a small example of mass marketing. The results achieved by this sort of mailing are typically as little as .05% of the handbills mailed.

The same business could obtain a list of all the new houses built in the last 18–24 months and mail the handbill only to them.

This would be an example of target marketing. The results of this target approach can boost results to 3–5% (or even more) of the handbills mailed.

Refer to Marketing (Elements of a Marketing Plan) and determine how many of those nine elements apply to your target-marketing plan. Complete them for each target market.



Writing a target marketing plan

You have defined your target market or target markets. You have walked through the nine elements or those that apply to each target market. Now you need to examine the parts and view it as a whole. Do they fit together; are there conflicting decisions that need adjustments?

1. From the information that you collected or decisions you made in elements 5–9, plan you're promotional and advertising plan for each of the target markets.

2. Set your goals and results for the next 3–5 years. Set your goals and results for the following year.

3. Establish a timetable for the next 3–5 years in general terms. Establish a specific timetable for the coming year.

4. Prepare the financial projections on the cost of implementing the marketing plan for the next 3–5 years in general terms, and for the coming year in detail.

5. Write an overall statement of your marketing strategy.

You could use the same sample-marketing plan for your target-marketing plan.

Place the final draft of your target-marketing plan in your marketing plan. File your drafts and research either in your filing cabinet or on your computer. Be sure to date them.

Uses for target markets and target marketing

Target marketing, within the context of the overall marketing plan, results in:

1. A more cost-effective marketing plan

2. A better return on investment for the business

3. Designed advertising and promotional programs that are directed towards target markets

4. Better results because the target market plan is integrated within an overall marketing plan

It is generally true that special or targeted marketing efforts are effective because of the general, on-going marketing activity that supports them.



Summary

Target marketing is an important part of a marketing plan. There are several key elements of a target-marketing plan. Identifying your target market is an important part of this process as well as how to use that information in preparing a target market plan.

There are a number of advantages to the business in preparing a target market plan within the context of the overall marketing plan. Finally, we provide suggestions on how to write target market plans. They become part of the general marketing plan.



Celebrate!!

Here is a red, red tulip for you. It is to help you celebrate your learning about how to prepare a

marketing plan.



Other products and modules for sale

Other modules available on this site deal specifically with aspects of business planning research and analysis. For a complete, in depth treatment of business planning the BizBite Consulting Group product The Business Plan is also available. For detailed information on the content of these products, please go to ‘Product’ on the menu bar on the web site.



Glossary of Terms Break-even point (BEP)—the sales quantity where the firm's total cost will just equal its total revenue.

Break-even point formulae—(S = FC + VC)(FC + VC = Fixed Costs + Variable Costs)

Break-even analysis—an approach to determine whether the firm will be able to break-even that is, covers all its costs with a particular price.

It is a method to determine the point at which business will neither make a profit nor incur a loss. That point is expressed either in the total dollars of revenue exactly offset by the total of the fixed and variable expenses or, in total units of production, the cost of which exactly equals the income derived by their sale.

Marketing plan—a written statement of a marketing strategy and the time-related details for carrying out the strategy.

Marketing strategy—specifies a target market and a related marketing mix. It has two parts: target market and marketing plan.

Marketing mix—the controllable variables the business puts together to satisfy this target group. It has four components: product, place, price, and promotion. These components are sometimes referred to as the four P’s of marketing.

Offerings—the products and services that a business provides its clients/customers

Product—the needs satisfying offering of a business. It includes physical goods, services, features, quality level, installation, instruction, warranty, product lines, packaging, and branding.

Promotion—communicating information between seller and potential buyer to influence attitudes and behaviour. That includes promotion blends, salespeople, advertising, sales promotion, and publicity.

Target market—is a homogeneous (similar) group of customers to whom a company wishes to appeal.

The specific individuals, distinguished by socio-economic, demographic, and/or interest characteristics, who are the most likely potential customers for the goods and/or services of the business.

Target marketing—a marketing mix that is tailored to fit some specific target customers/clients.


Steps in Preparing Your Marking Plan - cornubused.com in preparing marketing plan.pdf · We divided the Steps in Preparing Your Marketing Plan into two major headings: 1. The market

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