Joseph Cuschieri
A Marketing Plan is one of the most important strategic business tools for any company and/or organisation. If you are looking for funding to start up a business, a credit institution would want to understand your marketing plan. If you are looking for investment to take your business to the next level, investors will want to see a marketing plan to understand how their money is going to grow the business. And if you are selling your business, your potential acquirers will want to understand both your marketing strategy and your marketing plan.
Developing a marketing plan for your business ensures that you have a strategy of how you’re going to position the business in the market, target your customers and provide a structured approach in the tactical execution of the plan. A good marketing plan examines in detail the internal and external business environment, product roadmap, customer needs and trends and provides a roadmap of activities which your marketing team will follow in line with the overall strategic direction of the business. It is important that the necessary funds and resources are allocated in the budget to ensure that the necessary resources (team, funds, collateral, technology, channels etc) are in place. The following are a few tips on how to create an effective marketing plan:
1. Analysis:
You need to have a good grasp of the market in which you’re operating, customer trends and behaviours, the product lifecycle, competitive landscape and buying behaviours of customers. These need to be well researched and backed up by good data and analytics so that on that you can identify your target audience and develop the right communications, set realistic targets, create strong marketing messaging and the distribution/communication channels to reach your customers.
2. Set realistic targets:
Once you obtain a strong understanding of the market and its potential for your business, it would be ideal to set realistic goals for the marketing and sales teams based on industry standards and budget expectations (e.g. target market share by product). Your distribution and marketing channels need to be aligned and calibrated to deliver the expected targets so that your forecasts are taking into account the opportunities and risks. Most importantly though, your sales and marketing team needs to own the numbers and have the belief that the targets are achievable and realistic.
3. Focus on the customer experience:
The marketing plan should not just focus on the messaging and customer acquisition. It is equally important to strategically focus on the customer experience and the entire customer lifecycle (e.g. customer on-boarding) to ensure that your products and services represent what the customer needs but most importantly, provide a high quality experience for your customers.
4. Focus on differentiation:
A differentiation strategy is the way in which your business stands out from otherwise similar competitors in the marketplace. Usually, it involves highlighting a meaningful difference in your products or services when compared to those of your competitors. Furthermore, a differentiation strategy has a tendency to allow your business to price higher than competition. Such a difference must also be valued and appreciated by your customers and target audience. From a messaging standpoint, it is also crucial to to have relevant and authentic marketing messaging which complements your differentiation strategy.
5. Seek feedback:
Marketing planning should not only take place at the senior executive level. Your marketing team can also be a great source of insights and ideas. You can assemble valuable feedback from your own team, but the product management, sales and customer service teams are also important stakeholders in any marketing plan. They can provide valuable information which can help to optimise the marketing plan and react to the dynamics of the market.
6. Be agile and flexible:
Not everything goes according to plan, and it’s important to think about potential risks in advance. Having a very rigid plan with large fixed costs like deposits or minimum spends can lock you into plans and create difficult situations if unexpected situations arise e.g. like changing market conditions or the introduction of a new competitor or launch of new products in the market. Conversely, you may not be able to take advantage of new opportunities if you cannot change your plans quickly. If you successfully achieve the targets set, you can replicate the strategy in the future. Marketing planning is so vital that it should not be a one-time, annual exercise – it should be something the Head of Marketing (or Chief Marketing Officer) leads throughout the year where it involves all stakeholders to create ownership. The exercise will ensure that the marketing strategy is optimised based on emerging trends, analysis of new opportunities and adapts to changing customer behaviours and new competition.
One final point. A good marketing plan is also a great motivational tool for any business and the team executing it. Therefore, celebrating success (at various stages of the plan’s lifecycle) is crucial in building and maintaining an effective, self-assured team, creating momentum, boosting the confidence and belief of the team and making your company/organisation a great place to work!
