A marketing plan lays down the necessary actions required to achieve an organization’s marketing objectives. It revolves around the four Ps of marketing, namely product, price, place (target market) and promotion. For decisions related to the four Ps, a marketing plan takes into account a company’s marketing strategy, competitors and budgeting. The marketing plan evolves from a company’s broader objectives and helps in creating an action plan for different products. Marketing plans are typically formulated for one to five years.
Objectives of a Marketing Plan
A business may formulate a marketing plan to:
launch new products
alter existing products
enter new markets
How to create a Marketing Plan
To ensure success, businesses create marketing plans by taking the following steps:
Preparation of a mission statement: Dr. Derek F Abell, a PhD scholar from Harvard Business School, proposed that this statement must address aspects related to the potential ‘customer group’ to be served; the ‘customer need’ to be met; and the ‘technology’ to be utilized while doing so.
Identifying the target market: Classify the target market into different segments on the basis of demographic attributes. This step may include identifying niche markets within the broad market.
Describing the offerings: It includes systematic market research. This is used to identify the needs of potential customers and to develop products catering to these requirements. It analyses the market reception of the current product line and suggests any upgrading that may be required.
Listing the promotional techniques: It deals with the identification and implementation of different marketing techniques, such as direct marketing and one-to-one networking, with respect to the characteristics of the target market.
Understanding the competition: Businesses study their position with respect to their competitors and change the current positioning of the product. SWOT analysis with reference to direct and indirect competitors is also undertaken.
Establishing quantifiable marketing goals: Marketing goals are quantified and the budgeting and promotional strategy are finalized.
Monitoring the results: The effectiveness of the promotional mix is monitored on a regular basis through surveys or interviews. Modifications, if needed, are made accordingly to generate more leads.
The creation of an effective marketing plan involves regular adjustments to the plan.
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Eric J. Gleacher Distinguished Service Professor of Finance at the Booth School of Business at the University of Chicago. IMF’s Chief Economist from September 2003 to January 2007. Inaugural recipient of the Fischer Black Prize.
Professor of Economics & Director of the Earth Institute at Columbia University. Special Adviser to the UN Secretary-General on the Millennium Development Goals. Founder & co-President of the Millennium Promise Alliance.