Nature and Characteristics of a Marketing Plan - Research Proposal Example

 Nature and Characteristics of a Marketing Plan Introduction One of the most important aspects of running a business is marketing. In a business, the most effective marketing efforts will be substantially enhanced if the organization has a plan. It is imperative to develop a traditional strategic marketing plan. But given the highly competitive nature of the business environment and the fragmented nature of the personal training industry, an organization will be required to develop a creative business plan. Business plans have numerous benefits for a business. Role and Nature of A marketing Plan Marketing planning engrosses planning operations linked to marketing goals and the varying marketing surrounding (Lamb, et al., 2011, p. 243). Arguably, marketing plan is the starting point for all marketing stratagems and resolutions. Therefore, according to Pride and Ferrell (2012, p. 321), a “marketing plan refers to a written document that acts as a guidebook of marketing activities for the marketing manager”. According to Stone and McCall (2004), a marketing plan generates a structure for the suggested marketing to be carried out (p. 267). By specifying the goals and delineating the operations needed to achieve them, a marketer can provide the starting point by which definite and anticipated output is evaluated. Marketing is a costly and complex business activity, but important to the business (Cohen, 1987, p. 134). Marketing plan in writing permits a marketer to scrutinize and evaluate the marketing atmosphere and the inner functioning of the organization. According to Longenecher et al. (2005, p. 295), after a marketing plan is presented in written form, it serves as an orientation for the achievement of coming operations. Needless to say, a marketing plan permits the marketer to penetrate the marketplace with awareness of opportunities and challenges. On the other hand, a business plan gives a wide preview of the organization, which includes the employees, geographical location and goals and missions (Pride et al 2011, p. 301). The business plan provides lenders and creditors with essential information to establish whether the business is feasible, financially stable and in a position to bring profits. Just like a marketing plan, a business plan gives the strategy of value generation (Pride and Ferrell, 2012, p. 342). Marketing Plan Structure and Elements A marketing plan can be offered in diverse ways. Many organizations require a printed marketing plan since a marketing plan is big and can be multifaceted (Pride and Ferrel, 2006, p. 253). Information about the task and action obligations may be misplaced if transmitted in words. In spite of the marketing plan presentation approach, some elements are frequent in most marketing plans (Payne, et al., 2011, p. 276). They include “defining the business mission, performing a situational analysis, defining objectives, delineating a target market, and establishing components of the marketing mix” (Pride and Ferrell, 2012, p. 332). Additional components contained in a marketing plan include “budgets, implementation time tables, required marketing research or elements of advanced strategic planning” (McDonald and Wilson, 2011, p. 312). According to Walker et al. (2005, p. 156), choosing a substitute to follow is dependent on company viewpoints and traditions. The selection is also dependent on the instrument used to make the resolution. Organizations have one or two viewpoints when they anticipate profits. They either trail proceeds immediately or aim to amplify their market share and then trail the earnings (Knight, 2004, p. 167). The establishment and execution of a marketing plan permits a company to accomplish promotion goals and thrive. Nevertheless, the plan is merely an equivalent to the details enclosed in it and the “effort, creativity, and thought that went into its creation” (Ferrell and Hartline, 2010, p. 219). Most of the marketing plan components are settled on concurrently and in concurrence with one another. Needless to say, every promotion plan has a diverse component, subject to the company, “its mission, objectives, targets, and marketing mix components” (Luther, 2001, p. 236). Many organizations have their own distinctive marketing plans. Each marketing plan must be exceptional to the company for which it was generated. However, though the design and arrangement may be different and elastic, the same nature of issues and subject areas must be enclosed. i. Business Mission Statement The basis of a promotion preparation is an organization’s “mission statement”, which responds to the query “what business are we in?” How an organization delineates its business undertaking intensely influences the organization’s permanent resource allotment, productivity, and endurance (Doole and Lowe, 2005, p. 192). The mission statement is founded on a cautious examination of the advantages required by current and prospective consumers and an examination of accessible and expected environmental circumstances. An organization’s undertaking declaration institutes limits for all succeeding resolutions, goals, and stratagems. In essence, an undertaking declaration focuses more on the marketplace the organization is trying to supply than on the goods or services supplied. If not, an emergent technology might rapidly make the products outdated and the undertaking statement inappropriate to the organization’s operations (Cant, et al., 2009, p. 342). Company mission statements stipulated shallowly experience marketing myopia. This is a condition where the statement defines an organization in the context of products rather than in the search of advantageous consumers. Alternatively, company missions may be stated too broadly. Care must be taken when stating the mission statement. By appropriately noting the organization’s undertaking declaration in the context of the advantages that consumers derive, the basis of the plan will be established (Cohen, 1987, p. 138). ii. Situational Analysis Marketing managers should comprehend the prevailing and prospective setting that the product will be sold (Doole and Lowe, 2005, p. 196). In the market analysis section of the marketing plan, the marketer delineates the target market. This description of potential customers is commonly called a customer profile. Marketing research information, compiled from both secondary and primary data, can be used to construct this profile. A situational evaluation is also known as SWOT analysis. By this, the marketer must recognize the “internal strengths, weaknesses, external opportunities, and threats” (Ferrell and Hartline, 2010, p. 223). When examining internal strong points and weak points, the marketer must center on company resources which include “production, costs, marketing skills, financial resources, company or brand image, employee capabilities, and available technology” (Knight, 2004, p. 173). In addition, the marketer should identify how marketing will support the organization’s mission, objectives and strategies (Knight, 2004, p. 173). When evaluating peripheral prospects and perils, the marketer must examine facets of the promotion atmosphere. This is referred to as environmental scanning. It refers to the compilation and understanding of data about strengths, occasions, and associations in the peripheral environment, which influence the company’s future or the adoption of the plan (Longernecker, et al., 2005, p. 298). According to McDonald and Wilson (2011, p. 315), the most identified and studied macro environmental aspects are demographic, economic, political, social, technical, competitive and lawful. The organization’s business mission and its objectives offer the structure for evaluating the organization’s “strengths, weaknesses, opportunities and threats” (Payne, et al., 2011, p. 281). The marketing plan considers the interior and exterior prospects and perils the organization faces. In examining the external environment of the business, the marketer should consider competitors. A SWOT analysis helps marketers identify their competitors and their competitive advantages (Pride and Ferrell, 2006, p. 255). Frequently, marketers and business owners ignore the reality of competition for their new ventures, believing that the market contains no close substitutes or that their success will not attract other entrepreneurs. The existing competitors should be evaluated carefully, and their primary management personnel profiled. A brief discussion of competitor’s overall strengths and weaknesses should be a part of the competition section of the plan (Pride and Ferrell, 2012, p. 351). The marketing plan identifies areas where the organization has strengths and weaknesses, and seeks to show where opportunities for expansion occur as well as any threats that may be encountered by these tactics. Awareness of these issues provides a framework for the marketer to implement an action plan to optimize the opportunities and minimize the associated risks (Walker, et al., 2005, p. 161). iii. Marketing Plan Objectives Objectives need to be stated before the marketing plan can be generated. Objectives provide a foundation for assessing the accomplishment of marketing plan operations. According to Stone and McCall (2004, p. 279), a marketing objective refers to “a statement of what is to be accomplished through marketing activities”. To be valuable, a marketing plan objective should be reasonable, quantifiable, time-bound, and evaluated according to set standards. A reasonable objective refers to an objective that can be met by the marketer (Pride and Ferrell, 2012, p. 352). Quantifiable objectives in the marketing plan must be quantified by the marketing managers. For instance, it would be difficult to measure an objective that states “to increase sales of product x”. If the company sells 1 percent more of product x, does this imply that the objective was met? Instead, a specific number should be stated. Time-specific objectives have a determined time when they will be fully met. In addition, stated objectives in the marketing plan should be compared to a benchmark. If the objective is to increase sales by 15 percent, it is essential to determine the baseline against which the objective will be measured (Luther, 2001, p. 241). The set objectives in the marketing plan should be conversant with and point out interiorities of the company. Goals should stream from the company’s undertaking declaration to the other parts of the marketing plan (McDonald and Wilson, 2011, p. 318). Cautiously stated goals serve numerous functions. They converse marketing administration’s doctrines and guide junior marketers so that marketing attempts are incorporated and positioned in a steady route. Objectives also motivate workers by generating something for them to work hard for. When the goals are achievable and demanding, they prompt the employees to take responsibility for achieving the objectives. Needless to say, the practice of inscription of goals compels managers to elucidate their thoughts (Pride, et al., 2011, p. 318). iv. Marketing Strategy A well-prepared situational analysis and a discussion of the competition are important to a formal marketing plan. The information on marketing strategy forms the most detailed section of the marketing plan and, in many respects, is subject to the closest scrutiny by potential investors (Longenecker, et al., 2002, p. 305). An effective marketing strategy should address product decisions that will transform the basic product or service idea into a bundle of satisfactory distribution activities regarding the delivery of the product to consumers; pricing activities that will set an acceptable exchange value on the total product; and promotion activities that will communicate the necessary information to the target market (Stone and McCall, 2004, p. 274). a. Target market and Positioning strategy A market fragment refers to a collection of people or firms that have similar attributes. They, therefore, have similar product needs. This strategy recognizes the section of the market where to center through marketplace prospect evaluation (Walker, et al., 2005, p. 159). This is the depiction and assessment of magnitude and prospective revenues of sections of concern to the organization and evaluation of the primary opponents present. The marketer may target the market segment by pleasing the complete market with a single marketing mix, or pleasing numerous sections with various promotion mixes. b. Product strategy Within the product strategy, the marketer includes the name of the product or service and the name of the company and why they were selected. The marketer should ensure that the names of the products and company are legally protected so that no one else can use the names (Ferrell and Hartline, 2010, p. 226). In addition, the marker under the product strategy should identify the product packaging. The marketer may present it in a drawing if needed. The marketer should also discuss customer service plans such as warranties and repair policies (Cant, et al., 2009, p. 351). The marketer should ensure that the product strategy is tied down to customer satisfaction. c. Pricing Strategy Pricing strategy is the most elastic strategy among the promotion mix elements. Marketing managers can elevate or decrease values regularly and easily. It is a significant competitive advantage and is very essential to the firm since it determines the organization’s returns (Lamb, et al., 2011, p. 227). At a minimum, the price of the commodities should cover the costs of bringing them to customers. A marketer should include break-even computations for alternative prices. In addition, the marketer should consider the pricing strategies of his or her competitors (Knight, 2004, p.181). d. Promotional strategy The promotional strategy of the marketing plan should delineate the marketer’s approach to creating customers’ awareness of the product or service and motivating the customers to buy. Promotion includes “advertising, public relations, sales promotion, and personal selling” (Pride and Ferrell, 2006, p. 267). Promotion brings about mutual gratifying exchanges with consumers by notifying, enlightening, convincing, and prompting them of the advantages of the organization’s products (Pride and Ferrell, 2006, p. 276). e. Distribution Strategy A good marketing plan includes a sound distribution strategy. Distribution stratagems are apprehensive with availing products available to consumers (Luther, 2001, p. 240). This strategy outlines all the business activities related to the storage and transportation of the organization’s products. The main goal is to ensure that the products get to the customer at the appropriate time and in good condition. v. Implementation and Control of Marketing plan Implementation refers to the practice that translates marketing plan actions into reality and ensures the tasks are applied in a way that achieves the company’s goals (Ferrell and Hartline, 2010, p. 229). Although implementation is often neglected in favor of strategic planning, the implementation process itself can determine whether a marketing strategy succeeds. Strategic marketing planning without effective implementation and control can produce unintended consequences that can result in the customers’ dissatisfaction and feelings of frustration within the organization. The quality, diversity and skills of the personnel can make or break the implementation of marketing strategy. The marketer should ensure that different people have different roles in ensuring the success of the marketing plan strategies. In addition, the marketer should ensure that the employees are competent, evaluated and compensated. In this regard, the marketer should ensure that the employees are motivated, satisfied and committed to achieving the objectives and goals of the marketing plan (Stone and McCall, 2004, p. 283). The marketer should ensure that the stipulated marketing strategies are implemented within a given period. The marketing manager should ensure that the strategies are implemented within a given time frame (Pride and Ferrell, 2012, p. 360). The marketer should budget for the marketing strategies to ensure that there is an adequate allocation of resources to aid in marketing. Adequate allocation of resources to marketing strategies will ensure their success (Pride and Ferrel, 2012, p. 361). The control and monitoring of marketing plan activities involves establishing performance standards such as sales, production and quality standards, and assessment performance. An organization may employ techniques of controlling the marketing plan such as performance appraisal, variance analysis, and benchmarking and competitor performance (Walker, et al., 2005, p. 171). Common Marketing Plan Misconceptions Organizations have misconceptions related to marketing which have led to errors in the marketing planning and minimal or no results. Most organizations think that marketing is merely a cost center and a sales division is how an organization makes money. Many organizations think that marketing strategies are a waste of resources and no return (Longenecker, et al., 2005, p. 310). According to Longenecker et al. (2005, p. 311), marketing involves not only printing brochures and having someone to draft the brochures but also having outstanding knowledge on marketing beyond advertising. Many marketers and organizations think that marketing involves only brochures and having an art department to design the brochures. Conclusion Marketing plans are tools to implement marketing strategy; they are a formal proposal of marketing tactics needed to achieve the goals of an organization. They should reflect the theoretical process of organizational expansion. Typically, as discussed, marketing plans set out the organization’s strategies, mission statements and objectives. They analyze the market condition that exists in terms of the environment and competitors’ activity. Needless to say, they consider the organization’s strategic and marketing options and select the preferred marketing approaches. Reference list Cant, M. C., Strydom, J. W., and Jooste, C. J., 2009. Marketing management. (5th ed.). Juta and Company Ltd. Cohen, W. A., 1987. Developing a winning marketing plan. Wiley. Doole, I., and Lowe, R., 2005. Strategic marketing decisions in global markets. Cengage Learning EMEA. Ferrell, O. C., and Hartline, M., 2010. Marketing strategy. (5th ed.). Cengage Learning. Knight, P., 2004. 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