How to put together a Marketing Plan

The important aspects of a Marketing Plan

Every marketing plan will be different depending on the individual business. The secret to developing a business and being successful in a chosen market is to put together a marketing plan that includes the following:

·         How to attract  more customers.

·         Increasing sales.

·         Making your customers buy from you again and again.

·         Keeping your customers for life.

Most small businesses don't have a marketing plan but by putting one together and referring to it and using it you will realize what areas of marketing work for you and what areas do not.

Developing the marketing plan.

This should be short and to the point, clear and concise. Do not make it too complicated.

Recognising  your market

Your marketing plan will provide the detail about your understanding of the market or target audience you are aiming your product or service at. Many small business owners make a big mistake by starting with a product or service they believe is fashionable without first considering and understanding who will buy it.

You cannot sell something to people who don't want it - it's that simple. A profitable market will consist of people who genuinely have a need for your solution and will jump at the chance of buying it when you offer it to them.

Your marketing plan should provide answers to the following questions about your target market:

·         Are there segments in your market that are currently underserved?

·         Are the segments you are aiming at big enough for you to make money?

·         How much market share do you need to capture, just to break even?

·         Does the market already have too much competition?

·         Have you spotted any weaknesses in your competitors - and can you capitalise on this?

·         Does your target audience really want your product or service, and what value do they place on your unique competitive offering?

Understand your customer

Knowing your customers intimately is the key first step to effective marketing. To prepare a marketing plan you must know exactly:

·         Who your customers are.

·         What they want.

·         What will motivate them to buy from you.

It is important to note that people will generally buy what they want rather than what they need. This rule even applies when you are selling to business executives and professional buyers.

To help you really get to know your customers your marketing plan should provide answers to the following questions:

·         How do your potential customers normally buy similar products?

·         Who is the primary buyer and who has the primary influence in the purchasing process? These may not always be the same person (husband or wife, purchasing agent, project manager, company director, secretary).

·         What kind of habits do your target customers have? For example, where do they get their information to help them make decisions? (Television, newspapers, specialist magazines, Internet.)

·         What are the main emotional motivators that will make someone buy your product or service? (Looking good, feeling smart, avoiding pain, saving money, being healthy, being popular.)

Develop your marketing message

Once your target market audience has been identified you will need to focus on defining your marketing message. This should explain what your product offers and persuade people to become your customers.

There are generally two types of marketing message. One is short, to the point and often referred to as the 'elevator speech'. It's your once in a lifetime opportunity to be with someone important who asks you 'what do you do?' and you have 30 seconds to make your pitch.

The second type is the complete marketing message and the plan should have developed this idea and identified everywhere that it's going to be used. This type of marketing message needs to be compelling and persuasive, and should include the following elements:

·         An explanation of your target customer's problem.

·         Proof that this problem is important and that it should be solved without delay.

·         An explanation of why you are the only business that can solve the problem.

·         An explanation of the benefits people will get by using your solution.

·         Examples and testimonials of satisfied customers who have used your service.

·         An explanation of prices and payment terms.

·         Your unconditional guarantee.

Define your marketing medium

This is a crucial part of your marketing plan, and will define the methods and media you will use to ensure your message reaches the target audience. It should identify exactly how you will sell your product or service.

Your marketing medium is the way you communicate and deliver your marketing message. The medium that's best for you will be the one that reaches the most people in your niche at the lowest possible cost. The following is a selection of tools you can use to get your message out:

·         Newspaper, magazine and radio advertising.

·         Online advertising in directories and search engines.

·         Posters.

·         Competitions.

·         Seminars and talks.

·         Leaflet drops.

·         Trade shows.

·         Yellow Pages.

·         Press articles.

·         Classified advertisements.

·         Charity events.

·         Networking.

·         Telemarketing.

·         Sales letters.

·         Flyers and brochures.

·         E-mail.

·         Postcards.

·         Sales agents.

·         Press releases.

·         Gift vouchers.

·         Word of mouth.

·         Website links.

·         Business cards.

·         Catalogues.

·         Window displays.

The route to market

Your route to market will largely depend on the type of product or service you are selling and the target market you are trying to reach. For example, you may choose to sell by mail order, via the Internet, through distributors or sales agents or direct to consumers. You must be very clear in your plan about how and why you are choosing your particular market route, and what alternative you will use if your initial route does not produce the results you expect.

Set sales and marketing targets

Goals are critical to marketing success, and these should not be pie-in-the-sky dreams. If you haven't written down your goals and targets in your marketing plan then you are simply wishing for success, instead of aiming for it.

·         Specific.

·         Measurable.

·         Achievable.

·         Realistic.

·         Time-defined.

These goals should include financial values in terms of volume sales, monthly and annual revenues, profit targets and sales per salesperson. You can also include other targets such as enquiry levels, sales conversion rates, website traffic generated, contracts won, press releases and articles published.

Once these targets are set your marketing plan should indicate how and when they will be reviewed and adjusted.

Set your marketing budget and timetable

Your plan should include a realistic budget to allow you to undertake all of your desired marketing activity, and a timetable for its implementation. When calculating your budget this can either be exact or you can estimate what it's going to be.

If you have been trading for a year or more already, then you will be able to calculate your 'cost to acquire one customer' or 'cost to sell one product', by dividing your previous year's annual sales and marketing costs by the units you have sold or number of customers acquired. You can take this unit cost and multiply it by your sales or customer acquisition goals for the year ahead, which will give you an indication of the investment required to achieve your marketing targets.

Once you have calculated or estimated your budget you will need to produce a timetable to implement the plan. This timetable will identify:

·         Each specific marketing action you are going to undertake.

·         Who is going to carry them out.

·         A timescale for each activity and when it will start.

·         Key events during the year, such as trade shows and exhibitions.

·         When any additional or external resources will be required, such as services of specialist agencies for PR, graphic design or direct sales.

Monitoring and reviewing progress

Once your marketing plan is underway you will need to continually monitor and review its progress, ideally on a monthly basis.

You should also consider possible scenarios, like how to handle responses to particular marketing activities or how to deal with seasonal aspects of your market.

Additionally you will need to consider how to manage your marketing plan overall. You must ensure that your entire budget is not spent in the first couple of months. Decide how you will monitor and interpret results and think about how you will adjust the plan or introduce new tactics as you progress.