Marketing plays an important role in the economy of enterprises. It necessitates the use of marketing decisions based on the in-depth study of the market and consumer needs. Marketing is a part of a modern management system. Its subject is a system of measures to improve the competitiveness of enterprises by streamlining the analysis of the marketing environment, product portfolio management, pricing policy development, and sales promotion.
Marketing Plan Definition
The marketing department has a decisive word when it comes to strategy, tactics, and means of competitive struggle. The marketing plan places market tasks in front of all units, coordinating their efforts
Marketing is based on the principle of complexity and synchronization, which means the subordination of all parties of production and economic activity to meet demand. Separate measures cannot provide the synergistic effect.
Ignoring marketing principles in practice unequivocally leads to the loss of competitive positions of the enterprise and the commitment of its consumers, and as a result, to reducing sales volumes and profitability. The marketing tool is used in various sectors of the economy and fields of business, so marketing is the business philosophy today. Marketing is a universal theory that covers all aspects of the entrepreneurial activity, considering them in inseparable unity and interconnection. The most important thing in it is the recommendations of a purely applied nature, which allow a successful competitive struggle and achievement of significant financial results through the establishment of mutually beneficial cooperation and harmony in relations with consumers. This circumstance determines the popularity of marketing, its internationalization, and widespread use. Today, marketing indicates an effective way of operating in conditions of instability, unpredictability, and turbulence of the environment.
Marketing And Business Plans
If you correctly approach the thinking of all the nuances of a new business initially, you can count on its profitability. The first step should be the creation of a business plan for a new business. It is a document that describes the state of a business according to stipulated parameters in a specific period.
It is also one of the most critical parts of a business plan since it describes the nature of the future business and the way in which one can hope for success. Its goal is to describe the number of buyers of a certain product in the market, to justify why consumers should choose not your competitor’s but your products, show where to put stress in advertising and sales strategies, as well as in price policy. It is also a description of the set of decisions and activities that will be implemented in practice at the scheduled time. It is issued in the form of a separate document.
The financial plan precedes the marketing plan, and it is an equally crucial section. It is a complex part of the development and operation of the company in monetary terms. The organizational plan, in turn, shows that the company has valuable and qualified personnel who are able to carry out an investment project, and experienced managers will be able to distribute responsibilities for the project implementation. The basis for writing is the data on the study of market segments in which companies operate, the study of internal resources and situations, goals and objectives of the enterprise, which need to be achieved over a certain period. It usually includes marketing research. Therefore, if you compose it, conduct at least the smallest market research and internal audit.
Goals And Objectives
Before you make a marketing plan, you need to set specific objectives. They should give a clear understanding of what should be sought. For example, an entrepreneur who has decided to produce a new food product may set the following tasks for the first year. All these goals should be justified, based on the current situation in the market.
In general, the goal is reduced to one thing, to maximize profits. However, for each case, the goal must be formulated more specifically. The goal you ultimately hope for may depend on many factors. Imagine that your business has been developing for more than a year, and you are using news document and conclusions. Made on the basis of market research, they intend not only to increase sales but also to provide a new product or redirect the old product to a different group of buyers. The main task should be clearly articulated. In addition, your goals must be specific, realistic, achievable, time-limited, and consistent with each other.
Here is the standard structure example:
- Marketing plan executive summary. A brief description of the main directions. Here you must set out the main conclusions, goals, and recommendations for the next couple of years.
- The results of the situational analysis of the enterprise. This section is defined to form a complete picture of the market, its features, trends, and size.
- Selection of competitive advantages and SWOT analysis.
- Definition of objectives and goals of marketing. You need to define two types of goals: marketing goals and business goals.
- Formulation strategy.
- Business model and financial targets.
- The main points of control and tactical actions.
- Possible risks, assumptions, and resources. This section is not mandatory, but since planning is a very laborious process, it is better to highlight all assumptions in advance and to pay attention to the main risks and additional resources that may be needed for business development.
After determining the objectives and structure, you need to go to the stage of identifying the target customer of your product or service, which has now become much easier to imagine. Given the various characteristics and available data, it is necessary to formulate a clear image of the target client, and then think about how to attract his or her attention.
This activity is followed by the stage of disclosing the benefits of goods and services since a unique market offer is exactly a thing that will make your company stand out from the crowd of thousands of others. It is necessary to highlight the competitive advantages of the company, for this, you need to study the strongest competitors in more detail.
The next step is to work on market positioning. It depends on the image of your company (how its customers and even competitors will perceive it). Then the most important stage comes: the choice of marketing tactics. Marketing tool must match the positioning of the company. Inconsistency may cause hostility among potential customers.
The last stage is the preparation of the marketing budget. Considering the results of the above-mentioned stages, you need to decide on the financing of the project. It is necessary to calculate all the smallest costs in order to avoid unnecessary costs, as well as to analyze the feasibility and effectiveness of all spending.
The segmentation of the market is its division into smaller, homogeneous areas. This approach allows us to understand what opportunities are available and develop a more “targeted” strategy for satisfying consumer needs. Knowing which segments the market consists of, an entrepreneur can choose which particular segments to focus on. It is recommended to analyze the potential and limiting factors for each of the selected segments.
Imagine that an entrepreneur has invented a new cleaner that can be used to clean grill ovens, household ovens and cookers, car engines and any surfaces on which grease accumulates. In other words, here we are dealing with a fairly universal product, which can be used for different needs. Therefore, potential consumers of a new product are restaurants, hospital, school kitchens, canteens at enterprises and in state institutions, i.e., catering sector. Suppose that an entrepreneur decides that a new tool can give the greatest effect in restaurants after analyzing all the possibilities of this sector. After exploring all the opportunities, it can be concluded that orientation to restaurants will require the least financial expenditures since the entrepreneur already had experience in this area, and therefore it was not difficult to make the necessary contacts with the help of sales agents. In addition, there are no competitors for the products offered in this sector. Thus, the advantages of this particular sector of the market were revealed from the very beginning. The threat could be represented only by demand constraints associated with high prices and the appearance of competing products.
Advantages And Disadvantages
It is very critical to find out all the advantages and disadvantages of the product from the point of view of the chosen market segment. In the case of degreaser, it was clear from the outset that the strengths of this product lay in its own merits. Another advantage consists in the entrepreneur’s experience in the restaurant business.
The disadvantages in this particular case had to be attributed to a weak production base and limited production capabilities. In addition, the company did not have its own sales network and could only be satisfied with the services of sales agents. The lack of funds for an advertising campaign is also a fairly common “weak spot” of new enterprises.
Distribution Of Duties
Creation of a marketing plan is only a preliminary step to winning the market. In order to fulfill the plan and achieve the goals set, it is necessary to appoint executors who will be responsible for the implementation of each program or activity envisaged by the plan. However, talking about a newly created enterprise, one person, as a rule, takes the full responsibility for the implementation of the marketing plan (the president of the company) since he or she is the person who is the most interested in the success of the firm.
Monitoring the implementation of the marketing plan usually involves checking specific indicators. Their choice depends on the goals and objectives formulated in the marketing plan. Receiving any signal of trouble will allow the entrepreneur to restructure his or her strategy.