Components of a Successful Marketing Plan by Leigh A. Zaykoski
A marketing plan is a business tool that is used to communicate how, where, and
to whom a business intends to market is product and/or services. In order for a
company's marketing strategy to be effective, the master plan must contain
several essential components that serve as benchmarking tools and goal-planning
tools for the future. The following information will help you to construct
these essential components and produce a final document that is accurate,
detailed, and motivating.
Part I: What is your organization's purpose and mission?
The first section of the marketing plan should give readers information that
allows them to understand why the plan was written. This section of the plan
should also include background information about the organization and a copy of
its Mission Statement. This information will allow readers outside of the
organization to become familiar with the company's operations and mission. In
this section, the writer should explain why the plan was written and suggest
what should be done with the information contained in the plan. The Mission
Statement should explain what type of business the company is involved in, the
markets it servers, the benefits offered to clients, the type of products or
services offered, and what the company would like to accomplish within its
industry. Background information about the organization can include a history
of the company and a listing of company Subscriptions.
Part II: Analyzing the Situation
The second section of the marketing plan is a situational analysis that
analyzes where the company stands at the time of the plan's completion. This
analysis is comprised of eight major components. The first is an analysis of
current products or services offered by the organization. This involves listing
product attributes, pricing, distribution methods, promotional methods, and
support services offered to consumers. The second component is a description of
the organization's target markets. This section can include descriptions of the
demographic profile of each target market, characteristics of target consumers,
an evaluation of how customers perceive the products and services, a
description of the purchasing process, and size estimates of both the current
and target markets. A description of the current distributor network in place
is the third component of the situational analysis. This section includes a
description of the supply chain, the product or service's role within the
distributor network, the purchase process, and the demographics of the
distribution network. The fourth component of an effective situational analysis
is a competitive analysis of the organization. This involves examining the
major competitors serving the same target market. Components of this section
can include a discussion of competitive trends in the industry, a discussion of
major competitors' strengths and weaknesses, and a description of competitors
in terms of products, target markets, pricing, promotion, and distribution. A
financial analysis for a product or line of products is the fifth component of
the situational analysis. This section should include a current sales analysis,
a profitability analysis, and an outline of marketing expenses incurred by the
organization. The sixth component of a situational analysis should include a
description of the problems and opportunities present in the internal and
external environments of the organization. The plan writer must consider social
and cultural influences, demographics, economic factors, technological
considerations, political influences, and legal/ethical issues. A listing of
marketing analysis tools should be the seventh component of the situational
analysis. Finally, a summary of the current organizational situation should be
presented. This involves conducting a SWOT analysis to determine the strengths,
weaknesses, opportunities, and threats of and to the organization.
Part III: Marketing & Strategy Objectives
This component of the successful marketing plan should provide a clear picture
of the direction the product or product line will take. This section should
include three major components. The first is an outline of the marketing
strategy under which the marketing plan is being developed. This can include
market growth, market stability, cost control, and market exit strategies. The
second section should outline the organization's marketing objectives and can
be organized by target market objectives, promotional objectives, channel
objectives, research & development objectives, and other marketing
objectives. Finally, this component should include an outline of financial
objectives such as customer sales, channel sales, margins, profitability, and
ratios.
Part IV: Tactical Marketing Programs
The fourth component of the marketing plan contains important information about
the strategies that will be executed in order to achieve the goals and
objectives established in section three. Information is presented in six areas:
target marketing, product, promotion, pricing, distribution, and other areas.
The section on target market issues should include information about the
description of the target market, product positioning, and a sales forecast for
each product. The product issues section should include a summary of current
product decisions, identify any planned changes in marketing strategy, and
contain a description of planned changes. The promotion issues component should
include a summary of current promotional issues, identify planned changes, and
describe any planned changes. The distribution issues component of this section
should include a summary of current distribution network decisions, identify
planned changes, and describe any planned changes. Pricing issues is the fifth
component of the tactical marketing programs section. This should include a
summary of current pricing decisions, identify any planned changes, describe
planned changes, and outline pricing options. Finally, the sixth optional
section can include a listing of customer support services or an outline of
current market research effort. These components follow a similar format so
that the reader can easily see what has been done and what is planned for the
future.
Part V: Budgeting, Performance Analysis, and Implementation
This component of the marketing plan examines three important issues. The
presentation of proposed marketing expenses will outline the financial impact
that the plan will have on the organization. The presentation of the
performance analysis will show the anticipated results of the actions outlined
in the plan. Finally, a schedule for implementation will include timelines and
a listing of personnel involved in accomplishing the goals and objectives
contained in the plan. The budget should outline spending requirements for each
decision and include breakdowns by month and year. Expenses can also be shown
by individual product, geographic area, or distribution network. The
performance analysis section will detail revenue versus expenses for all
marketing decisions, a break-even analysis, and a ratio analysis. The
implementation schedule will discuss how the components of the marketing plan
will be carried out and by whom.
Part VI: Additional Considerations
This plan component will outline the potential issues that may affect the
implementation or success of the marketing plan. This can include a discussion
of internal factors, external factors, and limitations on research and
development. These six components of a successful marketing plan are
time-consuming to compile and may be difficult to put together. However,
spending the time and effort to prepare a detailed plan will give organizations
an excellent tool for benchmarking and assessing marketing effectiveness.
About the Author
Leigh A. Zaykoski is the President and CEO of A Wealth of Words, Inc. A Wealth
of Words is a corporation dedicated to providing high quality web content and
business writing services to companies in all industries. Working with Leigh
and her company can help you to more effectively market your business and boost
your profits. If you're interested in jumpstarting your online marketing
efforts, contact Leigh at ceo@premiumwriter.com for a free co
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