Marketing Plan
Proforma
THE STEP BY STEP GUIDE TO DEVELOPING
YOUR OWN MARKETING PLAN
www.Sheltonassociates.co.uk
© Shelton Associates 2014
INTRODUCTION- What is Marketing?
The Chartered Institute of Marketing defines it as the ‘Management process for
identifying, anticipating and satisfying customer requirements, profitably’.
To work effectively, marketing requires thorough planning and this document
has been designed to help you in that process by developing your own
marketing plan.
The following pages highlight key areas of your business which need to be
reviewed and developed. We have provided prompts to help you to identify
further sources of information, where relevant. Used properly, this document
should enable you to develop and improve your own in-house marketing
capability. It can also be used in conjunction with a consultant/advisor to focus
on the main marketing management issues for your business.
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HOW TO USE THE MARKETING PLAN PROFORMA
The Marketing Plan Proforma is a working document, and uses a question and
answer approach to help you develop your own Marketing Plan. It covers the
main areas involved in marketing planning, but it is not intended to be all
embracing. You should therefore identify and substitute other areas more
relevant to your particular business, where appropriate, when completing the
document. Please ignore any sections which you consider do not apply to your
business.
There are 7 Main Stages to Developing a Marketing Plan
1
Business Review/Marketing
Audit
The Marketing Audit is a snapshot of your
company, the market in which you operate
and the effectiveness of your marketing
activity at the moment.
2
Market Research
Finding out information about your markets
and customers
3
SWOT Analysis
The SWOT Analysis examines the major
Strengths, Weaknesses, Opportunities and
Threats currently facing your business,
drawing from the information obtained
from the Marketing Audit and other
strategic issues
4
Set Objectives
Deciding what we want to achieve over the
next 3 years-firm, quantifiable objectives
5
Agree Target Segments
Agreeing who to target our marketing
activity at
6
Develop Marketing Strategy
Determining what we need to do to achieve
our objectives
7
Develop Action Plan
Making sure we document what needs to
be done, who will do it, costs etc
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To assist you with this work, we have included three sections attached to this
document entitled
 How to complete the Marketing Audit
 How to complete the SWOT Analysis
 How to complete the Marketing Plan
You should refer to each relevant section before and after completing the
appropriate element of the Proforma to ensure that you are on the right track.
You will note that spaces have been beside each section that forms part of the
Marketing Plan. This is where you start doing some work! You should fill in the
areas opposite the prompt questions to start developing your own Marketing
Plan
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STAGE 1-THE MARKETING AUDIT
Let’s look at the first area to examine then, the Marketing Audit.
Although it may sound a bit off-putting at first, and remind us a bit of the yearly
financial audit, the Marketing Audit is a straightforward and important exercise.
It is a review of how your business is performing from a marketing point of view
and provides the building blocks for the later stages of the Marketing Plan.
The Marketing Audit is divided into two areas, External and Internal. The
External audit involves reviewing factors and trends in the marketplace which
might affect your business and the Internal audit examines key areas inside your
own business and considering how they are performing.
Let’s take a look at each of these areas in turn.
Refer to the section ‘How To Complete The Marketing Audit’ at the end of this
document.
External Audit
The External Audit then basically examines factors that occur in the outside
world, which affect your business. The exact factors, and their importance to us
will vary, according to such things as the size of your business and the
sectors/countries in which we operate. The main areas to consider though,
have been summarised in the following sections. Let’s look at each of these in a
little more detail, with a few ‘prompt’ questions to help us. You should
complete the blank sections for your own business, covering each of these
areas.
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Economic
What are the current trends in terms of inflation, unemployment, investment,
consumer disposable income etc? How is this affecting our business?
Legal
What changes in legislation are taking place which could affect our business
(UK/EU)?
Social/Cultural
Are there any changes in population structure, lifestyles etc which could
influence demand for our products? What are they?
Technological:
What changes are taking place in your industry in terms of new equipment,
energy-saving techniques, substitute products, product development? How are
you responding to these changes?
Environmental
How will trends in ‘green’ considerations affect your business?
What EU legislation is or is likely to influence demand for, or the production
processes for, your goods?
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Checklist-External Audit
Am I sure that the information contained above is accurate?
Yes No Unsure
What sources of information have I used?
How could I illustrate to myself and others that this is an accurate
representation of the market?
Which of the above areas do I need to obtain further information on?
Are there any other areas not covered, but are specific to my business that I
need to obtain information on?
Action Point
Refer to Section 1 ‘How to complete the Marketing Audit’ together with the
further sources of information identified to assist you in completing the gaps in
information highlighted above.
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Internal Audit
The Internal Audit examines those factors over which you as business managers
have some direct control, unlike the External ones over which you generally
have little or no influence.
It involves building up a knowledge of your business. It is important that this
process is done objectively, and so if you are doing the audit yourself, be honest
and candid. Even ask some of your customers or suppliers for example what
they think of you in certain areas, to see if they agree with you!
The main areas that you should assess as part of the internal audit are outlined
in the following sections:
Company Background
When was the business formed?
Where is it located? Full address, telephone number and fax number?
What type of business is it? ie Sole trader, Partnership, Limited company?
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Is it an independent company or part of a group? Give details.
What is the ownership structure of the business?
Organisation Chart
Outline the company’s organisation chart and responsibilities?
How many people does your business employ?
Management Responsibilities
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Outline who are the key management staff in the business together with their
main responsibilities?
What are their skills and experience?
What are their qualifications?
Who is responsible for marketing?
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Sale and Profitability Performance
What has been the company’s profitability performance (gross and net) over
the past three years?
Year
Ending……..
20…..
20…..
20…..
Sales £
Sales Inc/Dec %
Gross Profit
GP%
Net Profit
NP %
What has been the company’s sales (volume/value) performance over the past
3 years analysed by:




Geographic area
Industry sector
Product
Major customers
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Products/Services
What are your company’s main products and services?
What benefits do your products/services offer to your customers?
Should certain products be dropped from the product range, should others be
modified? Do new products need to be developed?
Which products contribute most to sales and profitability?
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Pricing
What are your pricing levels? Do they differ by customer?
How do you determine your pricing levels? Are there opportunities for price
increases? What effect would this have?
How price competitive are you?
Do your prices reflect the perceived value of your products to customers?
How price competitive are you?
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Distribution
Are the current distribution methods used the most appropriate and cost
effective?
Have you considered others? What are their advantages/disadvantages for
your company?
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Promotion
How do you let the market know about your company and it’s products? Is this
effective? What was the overall budget last year?
What alternative options are open to you? Have these been considered in
relation to your own business?
Does your selling and promotional activity stress the benefits of your products?
What are they?
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Planning
Do you have a formal written marketing/business plan?
Have you established clear consistent marketing objectives? What are they?
What is your marketing strategy? Do you have one? Does it meet your
marketing objectives?
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Checklist-Internal Audit
Am I sure that the information contained above is accurate?
Yes No Unsure
What sources of information have I used?
How could I illustrate to myself and others that this is an accurate
representation of the market?
Which of the above areas do I need to obtain further information on?
Are there any other areas not covered, but are specific to my business that I
need to obtain information on?
Action Point
© Shelton Associates 2014
STAGE 2-MARKET RESEARCH
What is the market size for your products, and is it growing? (Analyse by volume
and value).
What are the levels/trends in pricing operating in the marketplace? What are
the normal trade practises re: discounts etc.?
What is the existing distribution structure within your markets (ie are goods
normally supplied to customers direct, through distributors/wholesalers etc.)?
Who are the major customers in the market and where are they located?
Is the market very fragmented?
What are the key factors in the customers’ buying decision? (eg. Price, quality
of product/service, location of supplier, customer support)
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What are the major methods of promoting goods to customers in your market
(eg Salesforce, advertising, exhibitions, public relations, direct mail)?
Who are the major competitors in the market? Where are they located? What
are their main strengths and weaknesses?
What do my customers think of my products/services
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STAGE 3-SWOT ANALYSIS
Refer to the Section ‘How To Complete The SWOT Analysis’.
The next stage is to summarise the findings of the Marketing Audit, combined
with other important strategic issues into something called a SWOT Analysis.
This basically involves analysing the Strengths, Weaknesses, Opportunities, and
Threats facing your business. It can be a very powerful tool to assess your
business. When completing the SWOT analysis, it is important to remember
that Strengths and Weaknesses are internal to the business, and that
Opportunities and Threats are external.
Fundamental areas to consider in the SWOT analysis are outlined below:
Strengths and Weaknesses (Based on the Internal Audit)
Sales/profitability
Products
Promotional activities
Customer service
Pricing
Management skills, experiences
Resources
These example areas may be either strengths or weaknesses, depending on
your own company’s position. Outline your own business’ strengths and
weaknesses below. Rank A-D.
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Opportunities and Threats
Market trends/growth
Customer requirements
Competitive developments
Economic
Legal
Social/cultural
Technological
Environmental
These areas may be either Opportunities or threats, depending on your own
company’s position:
Outline the opportunities and threats for your own business below.
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Checklist-SWOT Analysis
Am I sure that the Strengths/Weaknesses outlined above are internal to the
business and the Opportunities and Threats are external? Yes No Unsure
If no or unsure, discuss them with your colleagues or business associates
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THE MARKETING PLAN
The Marketing Plan outlines in written format, what your business wants to
achieve over the next, say 2-3 years, and how this will be done.
A good marketing plan will demonstrate a clear understanding of your
marketplace, your position within it, your intentions and how these will be
carried out. It will outline what resources are required to implement the plan,
the costs associated with undertaking each activity, who is to undertake them
and when!
The Marketing Audit outlined what you have been doing in the past. The
Marketing Plan indicates what you will aim to do in the future.
The Marketing Plan itself needs to cover a number of important areas. These
are summarised again below:
Marketing Plan
 Set Objectives
 Agree Target Segments
 Develop Marketing strategy
 Determine:
 Product approaches
 Pricing approaches
 Distribution approaches
 Promotional approaches
 Develop Sales Projections
 Outline Assumptions
 Develop Contingency Plans
 Determine Resources
 Develop Marketing Action Plan
 Monitor Implementation
Refer to the Section ‘How To Complete The Marketing Plan’
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STAGE 4-SET MARKETING OBJECTIVES
Marketing Objectives should be ‘quantified’ and ‘measurable’ over a specified
time period. They outline what the business wants to achieve over the next, say
three years. Marketing Objectives normally relate to activities such as sales
levels, profit, market share, market penetration etc. Some examples of specific
Marketing objectives are outlined below:
- To achieve sales of £2m during the current year
- To achieve a market share of 5% by year 1
- To generate awareness of our product of 20% by year 2
Outline your anticipated sales projections over the next three years.
Year
Ending……..
20…..
20…..
Sales £
Sales Inc/Dec %
Gross Profit
GP%
Net Profit
NP %
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20…..
Assumptions
Outline the main assumptions that have been used to justify the sales
projections and why you think the sales projections will be achieved?
Contingency Plans
What effect will it have on your business, if say only 75% of the above sales
projections are reached?
What plans have you made to react to such a situation?
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STAGE 5-Agree Target Market Segments
Once you have agreed what you want to achieve, then determine which
marketing segments you want to target.
This might look at follows
Market Segment
Description
Existing Customers
Dealt with in the past 12 months
Past Customers
Not dealt with in the past 12 months
Lost Bids
Quoted but not Converted
Enquired
Enquired but not Quoted
Prospect Group 1
Prospects in targeted segment
Prospect Group 2
Prospects in targeted segment
Prospect Group 3
Prospects in targeted segment
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STAGE 6-Develop your Marketing Strategy
The Marketing Strategy outlines how the Marketing Objectives, determined in
the previous section, are to actually be achieved.
There are 4 broad strategies for the development of a company, and it is likely
that your Marketing Strategy will fall into one or more of these areas, which we
have summarised below:
Markets
New
Existing
New
Products
Existing
Market
Market
Penetration
Development
Product
Diversificatio
Development
n
Market Penetration
Expanding sales of your present product range into existing markets is known as
market penetration. This essentially involves increasing sales to your existing
customers and to similar potential customers in the markets in which you
already operate.
Market Development
Developing new markets for your range of products is market development.
This can involve actively seeking opportunities for your products in other
geographic areas, ie other parts of the UK, the EU or overseas.
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Product Development
Product Development involves producing/supplying new products/services to
markets in which you already operate. It is often easier to sell new products to
customers you know than to introduce products to those that you do not know
already.
Diversification
Diversification is the process of the development of new products for new
markets. This strategy is often the most difficult and most expensive to
undertake.
Within the chosen Marketing Strategy, however, there a number of specific
areas which need to be considered in further detail to add depth and
understanding to the plan.
You will need to consider these areas outlined below, using the prompt
questions as guidelines, bearing in mind the Marketing Objectives that you have
set and the broad Marketing Strategy that you have adopted.
You already looked at these areas in the Marketing Audit, but that was in
relation to what you have done in the past. You now need to consider them in
terms of what you need to do under each of the headings in the future to
ensure that the Marketing Objectives that you have just set, can be achieved.
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Product/Service Strategy
Do you need to consider changes in terms of product performance of your
current product range? Specify.
Are any changes required in the quality/features of your current products?
Do you need to consider the rationalisation of your product range?
Do you need to consider new product development?
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Pricing Strategy
What is your pricing policy?
What costs have you taken into account when finalising your pricing decision eg.
production, distributor margins etc. Are these reasonable?
Are your products priced with a view to the competition, the image, quality and
benefits of your product?
What is your approach to discounts?
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Distribution Strategy
Do you need to change your delivery arrangements/distribution channels? If so,
how and for what reasons?
What are you doing to improve customer service?
Promotion Strategy
What promotional methods are you planning to use?
Exhibitions, Direct Mail, PR.
eg: Advertising,
Why have these methods been chosen?
How will you measure the effectiveness of your promotional activity?
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Marketing Resources
Who will have overall responsibility for the implementation of the plan?
What are their skills?
Do they need additional training in sales in marketing? Specify.
Indicate plans to rectify the situation.
Do you need additional help to implement the plan eg new staff, consultants.
Specify.
Monitoring
How do you intend to monitor the implementation of the plan?
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STAGE 7-Marketing Action Plan
An example of a typical Marketing Action Plan is outlined below for guidance.
Activity
Responsibility
Timing
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Cost
Marketing Budgets
Outline your anticipated expenditure on marketing over the period of the plan.
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Checklist-Marketing Plan
Have I formulated my Marketing Objectives?
Yes?
No?
......
......
Are they quantifiable, measurable and over a specified period of time?
Yes?
No?
......
......
Will the Marketing Strategy that I have developed ensure that the Objectives
are met?
Yes?
No?
......
......
Do the various elements of the strategy (product, price, distribution promotion
etc) make sense. Are they consistent?
Yes?
No?
......
......
Action Point
Refer to the Section How To Complete The Marketing Strategy’.
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Support Information
HOW TO COMPLETE THE MARKETING AUDIT
The first stage of the Marketing Audit then, the external audit, is a review of the
marketplace in which your company operates, your customers and competitors
and your position within the market. This is followed by the internal audit, a
detailed review of how your business is performing in a number of key areas.
External Audit
To complete the sections in the external audit, you will need to:
- Review the information that you already have ‘in-house’ on the areas
identified
- Identify what gaps in information remain
- Undertake some research to fill in the gaps.
The research can be undertaken either by you or your colleagues, or by
commissioning consultants.
Internal Audit
The internal audit involves an objective look at your business, from a marketing
point of view. Often this process is undertaken by a consultant , though it can
also be undertaken with care by existing management. In these cases we would
recommend that the major findings are ‘tested out’ on people who know the
company well, such as customers or suppliers in order to verify the information
obtained.
© Shelton Associates 2014
HOW TO COMPLETE THE SWOT ANALYSIS
One of the best ways of conducting a SWOT Analysis, if possible, is to get 2-3 of
the senior people in the business together in a room with a flipchart and
‘brainstorm’ to identify the Strengths, Weaknesses, Opportunities and Threats
facing the business
One person should take responsibility for running the session and writing the
key points on the flipchart for reference. For the sake of a constructive session,
everyone should agree that no negative comments are made about suggestions
put forward. ( The idea here, is that people do not feel intimidated by putting
forward potentially good suggestions by the fear of rejection or looking silly).
Once all the Strengths, Weaknesses, Opportunities and Threats have been
identified on the flip chart, then there is an opportunity to take the process to
the next stage and rank them in order of importance to the business. For
example, there may have been 10 opportunities identified for the business. On
further ranking, however, only three of these may have been listed as A’s, 2 B’s,
1 C and 4 D’s. (Ranking from A-D is common, where A=Highly Significant and
D=Not Very Significant). This approach should be applied to the other areas of
the SWOT Analysis to complete the overall picture for the business.
© Shelton Associates 2014
HOW TO COMPLETE THE MARKETING PLAN
You will already have identified from the section on the Marketing Plan, which
broad strategy you will be adopting, ie whether it will be a Market Penetration,
Market Development, Product Development or Diversification Strategy.
As was indicated, the next stage is to determine what specifically you need to
do/consider under the following areas:
- Product
- Price
- Distribution
- Promotion
Let’s consider these issues in a bit more detail below, as they are so important
to the successful development of the plan:
Product
Your response to issues concerning your product range will naturally be
influenced by your choice of broad strategy. For example, if you have chosen a
Market Penetration Strategy ie to increase your share of your existing markets
with your existing products, new product development will not be a key issue.
If, however, you are attempting to sell new products to your existing markets,
Product Development, the introduction of new products is obviously
fundamental and needs to be given detailed consideration.
Price
Pricing is an important area over which you have responsibility. It is vital that
your products and services are priced at a level which fits in with your image
and position within the marketplace, how the competition prices etc.
Pricing is a strategic decision. In many ways the level at which you price is
influenced by what you want to achieve in the market. For example if you want
to gain a high level of penetration in a particular market, with a mind to longer
© Shelton Associates 2014
term profits, then you might price at a relatively low level to achieve this
objective. If, however, you have spent a lot of money developing a new
product, with which you have a short-term technical lead, then you may decide
to price at a high level in the early stages to ‘skim’ as much return for your
business as possible. This approach is not surprisingly called ‘Market Skimming’,
whilst the former approach is called a market penetration or market
development pricing strategy. Most companies, however, tend to price at a
level similar to their main competitors. This approach is called ‘competitive
parity’. You should decide upon your approach to pricing and why.
Distribution
Distribution relates to more than the physical transportation of goods. It also
relates to the actual ‘channels’ chosen to move your products from your
business to the end-user. Options to consider can include:
Direct to end user
Via agents
Via Distributors
Via Wholesalers
The route chosen will be determined by a number of factors such as:
What is common practise in the market
Number of potential customers and where they are located
Requirements in term margin (ie you gain a greater margin by supplying directly
to the end user customer, but you may not have the resources or capability to
do this on your own).
Based on an analysis of the above factors, your resources and strategy you will
need to determine which is the most appropriate distribution approach for your
business.
© Shelton Associates 2014
Promotion
Promotion covers the methods of communicating with your customers. The
various methods to consider should include the following:
Promotional Mix
Websites
Email Marketing
Social Media
Advertising
Public Relations
Direct Marketing
Exhibitions
Sales Promotions
Packaging
Merchandising
Sponsorship
Word of Mouth
Corporate Identity
Networking
© Shelton Associates 2014