Main Aspects of Marketing Plan Creating - Report Example

Reflective Essay; Marketing Plan Marketing Plan Marketing is any viable activity that connects producers to their potential customers. Marketing plan is one of the most essential tools used in the entrepreneurial venture today. There are several issues, which revolve around marketing management and planning. The core aspects that will be discussed in the essay are the different roles and nature of the marketing plan. The elements entailed in the marketing plan will also be reviewed. Lastly, there are different assumptions derived from the marketing plan that are vital in everyday’s operations in terms of effectiveness of the managerial team of any venture involving in any business. Its essence and contents will be discussed A marketing plan is a document written down by prospective groups showing laid down plan of action of achieving marketing objective(s) of an existing entrepreneurial venture. The marketing plan could be short-term; for example, one year, or long term for a period of five years depending on the objectives. A marketing plan can cover a service, product, a product line or even a brand in a market. A well written marketing plan gives the user a well defined strategy, exposing all points of action that need attention for a successful operation in given period (Cravens & Nigel, 2009). On the other hand, a business plan is a descriptive document with complete information on the service or product. It brings out the main ideas behind what is to be achieved and how it is to be done. A business plan should be written down fully at the onset of the business. In case grants or loans are required as a way of financing the star-up process, the business plan can be used. For a business plan to be effective, it must focus on areas such as identification of the market of the service or the product, competition determination, an estimate of the start-up costs, income, projected expenses and expected profits and the worth of the business in focus, whether it is viable or not (Cravens & Nigel, 2009). The marketing plan acts like a tactical tool in the hands of the management of an organization. If not utilized, a marketing plan is of no or little use; it only remains a dormant document that fulfills a formality in the organization. It means that the well established strategy will not be implemented, and this is a shortcoming for the management. Therefore, the management ought to embrace the marketing plan (Burrow & Jim, 2009). For quantification of the market plan, budgets are used. They represent a projection showing the organization’s actions and the expected results. The marketing budget forms a part of the main review process for the marketing plan. It gathers all costs and revenues and consolidates them into a comprehensive document. This means that a marketing budget is also a strategic tool for the management that aids in monitoring the actual performance, and it is part of the marketing plan (Burrow & Jim, 2009). Marketing plans are used strategically by making them customer and competitor oriented. The market changes as the people’s demands and preferences change with time. This means that the marketing plan should be structured in such a way that it conforms to the uprising customer demands with adjustments made within the operation to make it relevant at any point. Planning in this case becomes a continuous activity that gives a logical flow to the management team (Burrow & Jim, 2009). Depending on the operation to be undertaken, marketing plans vary considerably, especially in terms of procedures and contents. The time of the plan also varies with the different categories of operation (Mullins, Walker & Harper, 2009). A strategic marketing plan should contain the executive summary, the mission statement, financial summary of revenue, expenses and earnings, marketing audit, the SWOT analysis, the assumptions of key determinants, the overall marketing objectives and strategies, the expected results, the alternative/contingency plan, and budget. The structure of a marketing plan revolves around the following essentials of marketing strategy layout, analysis which is done on marketing opportunities and the potential target markets. Planning that revolves around the laid down marketing objectives and programs including all strategic activities. Nothing should be left out of the bigger picture in this process, the implementation that involves the actual organizing and putting into action the marketing strategy as planned, and control that encompasses monitoring, measurement and evaluation of the degree of achievement obtained. This should always be done irrespective of the time targeted in the marketing plan (Mullins, Walker & Harper, 2009). The basic structure of the marketing mix involves the executive summary which is a presentation of the brief overview of the marketing plan. The executive summary appears first in the marketing plan although it is the last to be prepared (Gök & Gungor, 2010). Background gives the brief history and/or description of the business in focus. It presents the mission statement, vision statement, and the values statement. It also gives viable reasons why the plan has to be made; thus, it justifies that the marketing plan is viable. Current marketing situation analysis presents all relevant background data and any information on current external and internal environments that affect the business in focus. In this context, external environment refers to external forces and trends posing opportunities and threats to the business. They are demographic, economic, political/legal, environmental, social/cultural and technological factors (Gök & Gungor, 2010). The Internal environment refers to internal marketing skills, knowledge and marketing trends that depict strengths and weaknesses in the business. The areas whose strengths and weaknesses are covered include customers and their characteristics, products/services and their pricing, promotion, distribution channels and competition, showing the competitor’s characteristics, strengths and weaknesses, their objectives, strategies, and evaluation levels and procedures. The public (general and internal) should also not be left out, and its full potential in the business should not be under or over estimated (Grewal & Michael, 2010). SWOT analysis helps to identify, with relevance to the business venture, the main strengths/weakness, which are always internal, and the opportunities/threats, which are always external to the venture. Planning entails definition of goals and objectives that define the planning for all financial and marketing goals hooked to the venture’s mission statement. The goals and objectives are expressed in measurable terms in terms of usage volume, cost and revenues, consumer satisfaction, consumer awareness and market value (Grewal & Michael, 2010). Marketing strategy presents the broad marketing route that will be used to achieve the marketing plan’s objectives. Implementation involves taking of the action programs. Action programs are special marketing programs designed to achieve the business objectives. Projected budget refers to the marketing budget that gives a forecast of the marketing plan’s expected inputs and financial outcomes and profits (Grewal & Michael, 2010). Controls cited in a marketing plan indicate how the plan will be monitored, measured and evaluated. This can well be implemented by practicing audits regularly. The elements of a marketing plan exhibit the atmosphere of the venture operation. This includes the description of market, description of the competitors, the description of the products or service, the pricing strategy and the description of the location. In target marketing, the marketing plan needs to define the market that it targets with its product/service. Age groups should be considered; people have varying tastes and preferences depending on their age group. Old people have different tastes compared to the youth. Gender effects should also be taken into account; for instance, when establishing a market niche for a certain garment, sex is always an issue. Another issue includes profession where high ranked professional may prefer high grade items although they are costly due to the class and status quo, which they maintain, unlike low income earners (Luther, 2001). Income level influences the amount that an individual is willing and able to buy. The different levels of income limit what a potential market can buy. Educational level determines the literacy degree, which affects how much a potential market is informed about a given product. The place of residence is an element of marketing. For instance, people living in the slum areas cannot be compared to the people living in the high established areas; there is always a gap that exists between them (Solomon, Marshall & Stuart, 2012). Market research data avails data on the current and future potential competitors. The demand for a product makes it possible to evaluate how a competitor is selling a product that the business intends to sell. The nearest direct and indirect competitors affect the investment directly and indirectly. The strengths and weaknesses of competitors help to evaluate the available opportunities and threats that exist in relation to the competitors. The assessment of competitors’ businesses shows the likelihood of success under the existing strategy. The description of unique features of the product or service that take advantage of the competitor is crucial. The similarities and dissimilarities of an organization’s product and the competitors’ product or service should be outlined (Luther, 2001). Marketing mix is a general term defining different choices of organizations of bringing service or product to the market. The 4Ps encompasses Product, Place, Price and Promotion. The product encompasses the needs of the end user where he gets satisfaction. It entails the marketing features necessary to meet these needs, and where and how the customer uses it. This is the first requirement when starting the business. It is the first variable within the marketing mix. Product encompasses core product, tertiary product and the augmented product. Before any decision on the components of the program, various factors like the type of the product and the USP of the product are should be considered (Jones, Chris & Craig, 2003). All pricing techniques should have a brief description for the estimates in retail costing and pricing. The marketing plan should show clearly its competitive position by indicating the pricing below competition and pricing above competition. Pricing depends on different variables and is constantly updated. Considerations in product involve advertising, costing and distribution. Pricing bears the brunt changes in a specified period of time. Place determines the channel of distribution for the product. A consumer product is available to customers only while a premium consumer product is available to selected stores only. The place of product distribution is dependent on the product and the pricing decisions. Description of the business location should be clearly shown. Location of an enterprise is vital. All the advantages and limitation related matters should also be cited (Pride & Ferrell, 2008). Promotions encompass the integrated marketing communications like the BTL and the ATL. Promotions depend on the decisions in pricing and product. Promotions decide on the segmentation positioning and targeting. Right promotions affect product, pricing and place. Generally, the above marketing mix variables are interrelated, and they affect each other. Increasing prices for the products may results to decreased demand and lesser distribution of resources. The product USP creates maximum concentration on the brand awareness, thus increasing the need for better pricing and promotions increase. Overlooking one factor could imply that decisions made about other elements will not be sufficiently informed and applied. The elements interlink to take care of the general plan of the enterprise (Pride & Ferrell, 2008). The product in focus could be tangible or intangible or have both aspects. Product range, product design and quality, sizing as well as packaging, should be considered. This ensures customer satisfaction with the product (Solomon, Marshall & Stuart, 2012). The pricing decisions should be very sound. This is crucial to the success of a business. It should be evaluated at both long-term strategic levels and short-term tactical levels (Wood, 2011). The pricing elements checked include list and discount price, payments terms and conditions and price sensitivity. Price gives a connection between the market niche and the product/business. In some instances, price signifies the quality of the product or service. Promotion is an element of the marketing mix, which is used as a communication tool about certain benefits of the product. The techniques used in promotions can give the market the confidence in the product; therefore, the sales may increase. They involve direct selling, advertising, relations, and sales promotions. They give a direct contact between the entrepreneur and the market (Waddell, 2000). Place refers to the channels of distribution used to exhibit the way marketers work. This could be physical route or even trading online. The channels chosen link the marketer and potential buyer easily, thus facilitating business (Waddell, 2000). The people’s impact on the whole line of product and customer interaction cannot be ignored. This covers the front line sales, as well as customer care. They give an impact of the peoples’ perception about the product. Their knowledge, skills, competence and motivation towards the product are vital (Wood, 2011). The physical evidence is the tangible and visible touch-points given to a customer prior to buying. At the reception, staffs avail brochures showing what is offered. Some of the assumptions in marketing plan may adversely affect their performance and how well they get in touch with their customers. Such misconceptions involve overlooking how to measure results. This makes people ignore the aspect of budgeting as a tool of measuring and controlling. They think that it is only a way resources go out with no returns. The in house marketing assumes that all products in an enterprise should be exposed to the potential customers. One should have brochures and even go internet where possible (Zhu, Vishal & Mark, 2009). Conclusion Planning on how to market the products in an enterprise is paramount and cannot be ignored. Businesses that have done marketing plan tactfully and strategically can use it both as a tool for management, as well as one that can allow expansion and growth within the venture. In an enterprise, failing to plan on marketing strategies and failing to evaluate it with the quantified tools would affect the business adversely. This means that if all the elements are put together, coherence will be achieved, and continuity of the business will be assured. References Burrow, J., & Jim, B. (2009). Marketing. Mason, OH: South-Western Cengage Learning. Cravens, D. W. & Nigel, F. P. (2009). Strategic Marketing, 9th Edition. New York: The McGraw- Hill Companies, Inc. Gök, O., & Gungor, H. (2010). The Organizational Roles of Marketing and Marketing Managers. Marketing Intelligence & Planning 28(3), 291-309. Grewal, D., & Michael, L. (2010). Marketing. Boston: McGraw-Hill Irwin. Immergluck, D. (2008). From the Subprime to the Exotic: Excessive Mortgage Market Risk and Foreclosures. Journal of the American Planning Association 74(1), 59-76. Jones, C., Chris, L., & Craig, W. (2003). Structural Change in a Local Urban Housing Market. Environment and Planning 35(7), 1315-326. Luther, W. M. (2001). The Marketing Plan: How to Prepare and Implement It. New York: AMACOM. Mullins, J., Walker, O. & Harper, B. H. (2009). Marketing Management: A Strategic Decision-Making Approach, 7th Edition. Australia and New Zealand: McGraw Hill. Pride, W. M., & Ferrell, O. C. (2008). Marketing. Boston : Houghton Mifflin. Solomon, M.R. Marshall, G.W. & Stuart, E.W. (2012). Marketing: Real People Real Choices (7th edn), Upper Saddle River, New Jersey, USA: Pearson Education Inc. Waddell, P. (2000). A Behavioral Simulation Model for Metropolitan Policy Analysis and Planning: Residential Location and Housing Market Components of UrbanSim. Environment and Planning B: Planning and Design 27(2), 247-63. Wood, M.B. (2011). The Marketing Plan Handbook, (4th edn). Upper Saddle River, New Jersey, USA: Pearson Education Inc. Zhu, T., Vishal, S., & Mark, D. M. (2009). Market Structure and Competition in the Retail Discount Industry. Journal of Marketing Research 46(4), 453-66. a64e20c5-4fef-4b15-aa6f-3146882a1556 Y2:a64e20c5-4fef-4b15-aa6f-3146882a1556 Read More