The Marketing Plan
What is a Marketing Plan?
-
A marketing plan is a written document that summarizes what the marketer has learned
about the marketplace and indicates how the firm plans to reach its marketing objectives.
It contains tactical guidelines for the marketing programs and financial allocations over the
planning programs and financial allocations over the planning period.
Marketing plan contains the following sections
Executive summary and table of contents – the marketing plan should open with a table of
contents and brief summary for senior management of the main goals and recommendations.
Situation Analysis – This section presents relevant background data on sales, costs, the market,
competitors, and the various forces in the macro-environment. How do we define the market, how
big it is, and how fast is it growing? What are the relevant trends and critical issues? Firms will
use all this information to carry out a SWOT Analysis.
Marketing Strategy – here the marketing manager defines the mission, marketing and financial
objectives, and need the market offering is intended to satisfy as well as its competitive positioning.
All this requires inputs from other areas, such as purchasing, manufacturing, sales, finance, and
human resources.
Financial Projections – financial projections include a sales forecast, an expense forecast, and a
break-even analysis. On the revenue side is forecasted sales volume by month and product category,
and on the expense side, the expected costs of marketing, broken down into finer categories. The
break-even analysis estimates how many units the firm must sell monthly to offset its monthly
fixed costs and average per-unit variable cost.
Implementation controls – last section of outlines the controls for monitoring and adjusting
implementation of the plan. Typically, it spells out the goals and budget for each month or quarter,
so management can review each period’s results and take corrective action as needed.
Role of Research in Marketing Plan
Research plays a big role in the marketing plan. It helps to develop innovative products
that could be possibly sold in the market, successful strategies, and action programs, marketers’
need-up-to-date information about the environment, the competition and the selected market
segments. AS the plan is put into effect, marketers use research to measure progress towards
objectives and identify areas for improvement.
Role of Relationships in Marketing Plan
Although the marketing plan shows how the company will establish and maintain
profitable customer relationships, it also affects both internal and external relationships.
First, it influences how marketing personnel work with each other and with other departments to
deliver value and satisfy customers.
Second, it affects how the company works with suppliers, distributors, and partners to achieve the
plan’s objectives.
Third, it influences the company’s dealing with other stakeholders, including government
regulators, the media, and the community at large.
Markets must consider all these relationships when developing a marketing plan.
From Marketing Plan to Marketing Action
Most companies create yearly marketing plans. Marketers start planning well in advance
of the implementation date to allow time for marketing research, analysis, management review,
and coordination between departments. As each program begins, they monitor ongoing results,
investigate any deviation from plans, and take corrective steps needed. Some prepare contingency
plans. Marketers must be ready to update and adapt marketing plans at any time.