What is marketing Plan and Components of a Marketing Plan

A marketing plan is an operational document that outlines an advertising strategy that an organization will implement to generate leads and reach its target market and marketing company. A marketing plan details the outreach and PR campaigns to be undertaken over a period, including how the company will measure the effect of these initiatives.

Marketing plans function to provide organization and direction to marketing efforts as a business takes a new service, product or even the business itself live. Depending on the scope of the marketing effort, marketing plans can often prove very complex affairs. No matter how simple or complex, though, marketing plans need to include some essential components.

 

Components of a Marketing Plan

Target Market

The diverse interests of and resources available to consumers makes it next to impossible to appeal to everyone in the market and folly to try to do so. In ideal circumstances, businesses and products get developed with a market segment in mind from the start. Demographic factors may determine the target market — for instance, marketing luxury products to those with high incomes. Psychographic factors are another way to determine the target market, such as only marketing a product or service to those with certain lifestyles. The marketing plan needs to detail a profile of this target market to avoid delivering marketing messages to the wrong consumers.

Differentiation Strategy

When customers view products and services as generic, they tend to expect mediocre performance and often prove unwilling to pay premium prices. The marketing plan needs to set out a clear line of thinking about what differentiates your product or service from the others on the market and gives it an air of uniqueness. Pricing can offer a differentiation strategy, but technological innovations, product features and customer service can also provide effective differentiation strategies.

Budget

Like any other business activity, marketing should happen on a defined budget. In some cases, the business owner or management provide a budget cap and marketing efforts get built around that constraint. In other cases, the decision makers set out broad goals and the people in charge of marketing propose a budget to meet the goal. In either scenario, the marketing plan should include a budget that breaks down where the money gets spent, such as print ads, television spots and online marketing.

Price Strategy

The marketing plan must set out a price strategy for the product, service or business. Determining a pricing strategy depends in part of the business goals, market penetration versus profit, but also on the financial resources of the business. A business with significant cash reserves may employ penetration pricing that loses the business money in order to capture competitors’ customers or drive out competitors entirely. For high-end products or services, the business may use skim pricing that sets the price tag very high in order to capture affluent customers by sacrificing volume sales. Whichever price strategy the business employs, it must still work within the accepted range of prices for comparable services or products in a given region.

Importance of marketing plan

Marketing plan is an important factor that affect the economic status and vale of a business venture. Planning for marketing shows a clear idea and directions for a successful and intelligent marketing procedures. Planning is the process of deciding what should be done and how, to achieve a target. Planning is the first stage before marketing and it includes preparation of the policies, marketing procedures, budgets, etc. proper marketing plan increases the market and economic value of the business. Marketing plan works on the principle of marketing-based actions for the future minimising the cause of any uncertainties and risks and producing decisions for that. Marketing planning determines the future of a business or an organisation, showing light upon the product and marketing development, sales promotion and profitability.

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