Creating a solid marketing plan is essential for any small business or startup. You will need a marketing plan if you are planning to seek funding for your business. Even those who do not plan to propose to investors should create a detailed marketing plan with actionable steps to creating the product, generating awareness and delivering to customers.
Why Create A Marketing Plan
Your marketing plan will act as a roadmap for the development of your business. It will predominantly describe the next 12 months, helping you set short-term goals that lead to long-term successes. You will refer to it quarterly, or better yet, monthly, to assess whether you are reaching your anticipated business milestones.
Planning will not lead to a set-in-stone, concrete journey, but it will allow you to assess whether there is a business opportunity available and whether you will be able to profit from it. Early planning and market research can save you from wasting time on a project that just was not meant to be.
Before You Create A Marketing Plan
There are a few materials you will need before you begin writing. If it is not your business’ first year, you should have financial statements and sales data on hand to help you project the next year. You will also need any data related to your target market, competitive trends and industry statistics. Many helpful materials are available in city and state business publications, professional associations, your local Chamber of Commerce and associations of manufacturers. If you’re serious about becoming an entrepreneur, you will discover a lot of value in getting involved in any local professional and small business associations you can find.
The Basic Outline Of A Marketing Plan
There is no single formula for a marketing plan, and you may add or eliminate sections as it suits your business. You will most likely end up creating two marketing plans; one that you and your employees will refer to, and one that you will show to potential investors.
- Executive Summary makes up the first page of your plan, and no more. It summarizes the rest of the marketing plan and should engage readers, persuading them to read on.
- Company Overview describes your company as well as your products or services, and how they are unique from those of your competitors.
- Industry Analysis describes current trends in your industry. Here, you’ll illustrate where your company is positioned within your industry – do you differentiate yourself from your competitors by offering low-cost solutions? Do you offer exceptional quality or services that your competitors cannot?
- Customer Analysis contains data about your target market. You can gather information about your market through local business reports, trade publications and published statistics. You will also want to conduct your own research by surveying potential customers and getting to know how your company can satisfy their wants and needs.
- Competitive Analysis is where you’ll write data about existing competitors in your market. You’ll detail threats and advantages.
- Operational Plan describes how you will run your business. How many employees do you need to run your business? Include how many people you plan to hire, how you’ll source your product and your management strategies.
- Marketing Mix is where you will describe how you will raise awareness about your company. This includes online and offline promotion, advertising, public relations, personal selling; any method you will use to get your product in front of prospective customers.
- Pricing details how much your product or service will cost to your customers. In this section, you’ll go over fixed and variable costs, your break-even point and a comparison of your pricing to that of your competitors. If your product is more expensive, how will it be superior in value to cheaper competing products? If it’s cheaper than others, how will this affect your marketing strategy?
- Budget will describe your expenses, sales forecast, and expected profits. How much will you spend on employee wages? What sales figures do you expect to reach in the coming months?
- Conclusion ends your plan with any closing statements and summarizes your next year’s goals.
Your marketing plan should contain relevant information and actionable steps that will lead you to your goals in the coming year. While the next year will not necessarily be predictable, and your goals could change, you’ll find a plan with clear steps and milestones to be very helpful as you refer to it in the coming months.