Definition of the marketing plan
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What is 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. A marketing plan details the awareness and public relations campaigns to be undertaken over a period, including how the company will measure the effect of these initiatives. The functions and components of a marketing plan include the following:
- Market research to support pricing decisions and new market entries
- Tailored messaging that targets certain demographics and geographies
- Selection of platforms for the promotion of products and services: digital, radio, Internet, specialized magazines and the combination of these platforms for each campaign
- Metrics that measure the results of marketing efforts and their reporting times
A marketing plan is based on a company’s overall marketing strategy.
Key points to remember
- The marketing plan details the strategy that a company will use to market its products to customers.
- The plan identifies the target market, the value proposition of the brand or product, the campaigns to launch, and the metrics to use to gauge the effectiveness of marketing initiatives.
- The marketing plan should be continually adjusted based on the results of metrics that show which efforts are having an impact and which are not.
- Digital marketing shows results in near real-time, while TV ads require rotation to achieve any level of market penetration.
- A marketing plan is part of a business plan, which outlines all the important aspects of a business, such as its goals, values, mission statement, budget, and strategies.
Understanding Marketing Plans
The terms marketing plan and marketing strategy are often used interchangeably because a marketing plan is developed based on an overall strategic framework. In some cases, the strategy and plan can be integrated into a single document, especially for small businesses that may only run one or two major campaigns per year. The plan outlines marketing activities on a monthly, quarterly or yearly basis while the marketing strategy outlines the overall value proposition.
How to Create a Marketing Plan
A marketing plan considers a company’s value proposition. The value proposition is the overall promise of value to be delivered to the customer and is a statement that appears centrally on the company’s website or any branded materials.
The value proposition should state how a product or brand solves the customer’s problem, the benefits of the product or brand, and why the customer should buy from that company and not another. The marketing plan is based on this customer value proposition.
Quick fact
The most effective digital marketing techniques in 2020 according to marketers are content marketing and marketing automation.
The marketing plan identifies the target market for a product or brand. Market research is often the basis for decisions about target market and marketing channels. For example, if the business will advertise on radio, social media, online ads or regional television.
The marketing plan includes the rationale for these decisions. The plan should focus on the creation, timing, and placement of specific campaigns and include metrics that will measure the results of marketing efforts.
How to execute a marketing plan
A marketing plan can be adjusted at any time based on the results of the metrics. If digital ads perform better than expected, for example, a campaign’s budget may be adjusted to fund a better-performing platform or the company may initiate a new budget. The challenge for marketers is to ensure that each platform has enough time to show results.
Without the right metrics to assess the impact of outreach and marketing efforts, an organization will not know which campaigns to repeat and which to drop; maintaining ineffective initiatives will unnecessarily increase marketing costs.
Digital marketing shows results in near real-time, while TV ads require rotation to achieve any level of market penetration. In the traditional marketing mix model, a marketing plan would fall under the category of “promotion”, which is one of the four P’s, a term coined by Neil Borden to describe the marketing mix of product, price, promotion and place.
Marketing plan vs business plan
A business plan details how a business will run and function in its entirety. A business plan is a roadmap for a business. It will cover the goals, missions, values, finances, and strategies that the company will use in day-to-day operations and in achieving its goals.
A business plan will include an executive summary, products and services sold, marketing analysis, marketing strategy, financial planning, and budget, to name a few.
As mentioned, a business plan will include a marketing plan, which focuses on creating a marketing strategy on how to let the public know about the company’s product or service, how to reach the target market and generate sales.
Example of a marketing plan
John came up with a new business idea which he says is a niche offering in the market. He decides to start a business and his first step is to create a business plan that outlines all of his business objectives, goals, values, pitfalls and finances.
John is able to raise enough capital from friends and family to get started, hire a few employees, and eventually create his product. He now needs to start selling his product and generate sales to keep his business going.
To achieve this, John, with the help of a marketing company, creates a marketing plan. The marketing plan consists of market research that details the target market for John’s product, namely recently retired men.
The marketing plan then proposes the best methods to reach this target market. The marketing plan emphasizes radio and television as opposed to social media, as older and retired men use social media less than traditional forms of media, according to market research that was conducted.
The advertisements are tailored to the target market, showing how John’s product will benefit their lives, especially compared to market alternatives. Once the marketing plan is executed, the marketing team analyzes how the efforts translate into sales.
What is a marketing plan template?
A marketing plan template is a document that an individual can use to create a marketing plan. The marketing plan template will contain all the important elements and different languages needed with blank sections. A user can insert their own business information into the blank sections to ultimately create their own marketing plan.
What is an executive summary in a marketing plan?
The executive summary of a marketing plan provides a brief overview of the entire marketing plan. The executive summary will contain key market research findings, company objectives, marketing objectives, an overview of marketing trends, description of the product or service being marketed, target market information, and how to financially plan the marketing plan.
What is a top-down marketing strategy?
A top-down marketing strategy is a traditional marketing strategy. This is where a business determines who it should sell to and how, and the customer base is largely passive and incentivized to act once they hear the advertisement. For example, a top-down marketing strategy would include radio or television advertisements. Top-down marketing strategies are usually determined by a company’s executives. It’s usually about what a business wants to do, and then figuring out a way to do it.
What is a bottom-up marketing strategy?
A bottom-up marketing strategy focuses on discovering a viable strategy and then building that strategy to create an impactful advertising campaign. Today’s consumer wants to make a meaningful connection to a product or service and a bottom-up marketing strategy is best suited for this. A bottom-up marketing strategy should focus on the target market and how best to create value for them.
How much does a marketing plan cost?
The cost of a marketing plan will vary depending on the business, complexity and duration of the overall strategy. The cost can vary from $10,000 to $40,000.
The essential
A marketing plan is the advertising strategy that a company will implement to sell its product or service. The marketing plan will help determine who the target market is, how best to reach them, at what price the product or service should be sold, and how the business will measure its efforts.
Constantly monitoring and adjusting a market plan is an important part of running a business because it shows the best and worst ways to generate sales. Without a successful marketing plan, a business may not be able to continue operating for very long.
