Difference between a Marketing Plan and a Business Plan - Essay Example

Reflective essay Introduction A marketing plan is a detailed outline which is meant to show the efforts in marketing that an organization has. A marketing plan therefore shows the goals that an organization seeks to achieve in selling it products be they goods or services. On the other hand, a business plan refers to a statement which is written and it sets out the goals that a business seeks to achieve. A business plan also set out reasons which inform the beliefs that the goals set by the business can be attained. A business plan often bears information about the organization which is attempting to attain the set goals. A business plan could be geared in changing the way that a business is viewed by various stakeholders in the business. The stakeholders who are important in this regard include the clients and also the community at large. Whenever an organization seeks to overhaul its business plan, it is important that such a plan should be made having in mind about three to five years. There is a marked difference between a marketing plan and a business plan. The difference lies in the fact that the marketing plan tends to be more specific. A marketing plan tends to cover only how an organization is going to achieve the set goals in its sales. On the other hand, a business plan tends to be more comprehensive and covers more ground and areas unlike a marketing plan (Abrams, 2003). A business plan could be said to cover the business as a whole and each and every aspect of the business. A business plan therefore, could have more impact on the image of the organization to the outside world since every person is able to understand the ideals of the business. At times, a marketing plan could be part of the business plan. This means that in terms of scope, the business plan covers more areas unlike a marketing plan which is only concerned in attaining certain levels of sales that an organization seeks to achieve. A market plan could act as a guide. In this respect, a marketing plan guides the organization to know how much to produce based on the perceived size of the target market (Mathur, 2006). A business plan should also act as a benchmark against which an organization is able to establish whether it has attained a given set of objectives. The following essay therefore looks at the important contents of a marketing plan and its central role in a business. Discussion The key purpose of developing a marketing plan is to enable a business to relate with its customers. However, a marketing plan is not only developed for the sole purpose of engaging with the customers that a business has. There are other functions that marketing plan serves and which are also very critical for the purposes of business (McKeever, 2008). For a business to grow, it requires to attract and retain customers. The attraction and retention of customers should be coupled with a bigger picture whereby this should not be a one off thing. The business should aim at having the customers attracting other customers and this would ensure that a business continues expanding (Cowper, 2006). A marketing plan should therefore be responsive to the changing and different needs of its clientele and this can only be discovered through constant interactions, research and getting of feedback from the clients of such a business. In addition to having a business interact with customers, a business plan has certain roles which are very specific and no less important in ensuring the attainment of the overall objective of the company. A marketing plan plays a key role during the introduction of a new product. Each and every day companies come up with new products (Cowper, 2006). Companies could also develop old products in a new way which makes such products to appear more attractive to the tastes of the clients. Whenever a Company is bringing a new product or service to the market the aim is usually to have the product or the service to become a major hit (Zamazalova, 2010). If the sales of a new product or service go according to the plans of the company, then such a company is able to recoup the finances which had been expended in the process of researching and developing the product or service (Berry, 2005). The company is able to break even and turn in profits within a very short time if its products do well in the market. When a marketing plan seeks to introduce new products, it is important that such a plan has details which are critical in ensuring that the products get to the people that the company intends to target. Products and services are usually developed with different audiences in mind. There could be products which are aimed specifically at people based on their gender or age (Finch, 2006). Therefore, a company's marketing plan should bear in mind the given audience that it seeks to reach with its products. Whenever a business expands, there is a natural urge to expand to new markets so that a company is able to turn in more profits. A marketing plan is indispensable whenever a company seeks to get into a new market. A business could be operating in a given state or country and it would see a potential for its products gaining favour in another market. A marketing plan would play a critical role in this regard since the plan gives the specific details of approaching the new market. There are no two businesses that are exactly the same and similarly no two markets are the same. Therefore, a company would need to find ways in which the new market is different from the one in which it currently operating in. After finding out the differences, the company is able to come up with the best approach to the new market. Markets differ in many aspects. The difference could be in purchasing power of the people and therefore a company would be obliged to package their products in quantities which are affordable by the people in the target market. The issue of language is also important and the company has to know whether certain words or a combination of certain words could be taken as demeaning in a different environment (Silverman, 2001). A marketing plan could therefore be said to ensure that a company does not get into a new business environment blindly which could have adverse effects to its business' performance. A marketing plan oftentimes serves the purpose of aiding a company to achieve goals in its sales. In developing a marketing plan, it is important to include information concerning the products and services that the company produces (Hsu & Powers, 2009). After obtaining the data on the current levels of sales, then the managers in developing the marketing plan would need to establishing what percentage increases would be required so that the numbers add up to the goals of the company. The managers involved in developing the marketing plan to ensure that set goals are attained would also need to have the methods which would have to be employed so that a company would manage to attain the set targets. A car dealer would realize that a given high end model is not moving as much as it should (Abrams, 2003). Such a dealer would realize that many people are interested in owning top of the range vehicles if the terms of payment were relaxed. To increase sales, the car dealer would probably provide for payment in installments or alternatively partner with a financial institution which would finance the purchase of a given car. The financier would then be left to recover the purchase money from the customer who would already be enjoying the services of the car and the car dealer would be save the headache of having to go after the buyer seeking the balance of the purchase money still owing. A company could also realize that attaining the level of sales required has been hindered by lack of information about the products and services of the company (Kotler, 2008). A marketing plan should ultimately be in a position to aid a company to not only set the goals for its sales, but also achieve such goals (Bangs, 2002). The marketing plan should therefore come up with a plan which is very clear. After a good plan has been developed, then it is incumbent upon the management to developed clear directions as to how such a plan would be accomplished (Kotler, et. al, 2007). After these two have been established then the rest of the marketing plans help in weaving together the specifics details which aid the goals of the organization to be achieved. Attaining the overall objective of the marketing plan means that the right leadership should be present coupled with people who have the right skills to develop and implement the marketing plan (Baker, 2008). Good leadership could involve ensuring that the people involved in developing the marketing plan act as a team and each and everyone is appreciated and their views are respected. A good leader is therefore able to bring out the best in each and every person who is involved in the development of the marketing strategy. Marketing plans are supposed to meet the unique needs of every business. Since no two businesses are the same, the marketing plans would vary depending on the business in question. However, despite the existence of the differences in businesses, there are certain elements which should be present in each and every business plan (Webb & Gorman, 2006). The first element of a marketing plan is the situation analysis. The situation analysis is supposed to feature within it a market analysis. In addition, the situation analysis should also have a SWOT analysis (Strengths, Weaknesses, Opportunities, and Threats). A SWOT analysis is strategically used by a company to evaluate what strengths it has, the weaknesses that such a business has, the opportunities available to the business and also threats that such a business faces. In developing a SWOT analysis, the business is able to come up with the objectives of the business and identify the internal and external factors which could be consider being in favour of the business or the factors which undermine the objectives of the business (Pinson, 2001). Finally, the situation analysis is required to have within it a competitive analysis. The analysis of the market includes getting information as to what the future holds for the market. The market analysis should also include information which relates to the customers, the segmentation and the needs of the specific market (Kotler & Academic Internet Publishers Inc. 2007). Another important part of a marketing plan is the marketing strategy. A marketing strategy refers to a process which should help a given business organization to utilize the limited resources available areas that have the greatest potential to raise the sales of such an organization and also ensure that the business is able to have an edge over its competitors (Zamalova, 2010). A marketing strategy looks at the activities of the business in the long term and therefore when coming up with a marketing strategy, it is important ant that proper evaluation is conducted and strategies adopted which are relevant to the company (Berry, 2005). A marketing plan is therefore very crucial in any given marketing plan especially where such a plan is geared towards reaching given objectives of marketing. Before developing a marketing strategy, it is important that the company looks both internally and externally (Callen, 2008). The internal environment which is relevant in developing a marketing strategy would include the analysis of performance and certain constraints available. The external factors which should be considered include the analysis of the competitors, the customers and the market that is targeted by the company. There are other relevant considerations which come into play such as the culture, the level of technological development and also the legal and political environment (Jobber & Lancaster, 2009). A marketing strategy must be made bearing in mind what the company's mission statement is. A Strategic plan should be developed following an analysis of the environment (Blackwell, 1998). Sales and Marketing Actions is the next vital component of a business plan. A sales and marketing action is developed based on the marketing strategy that has been developed. Thus, after coming up with a marketing strategy, it is vital that a company comes up with actions which it is going to employ in carrying out the marketing strategy. The actions that are developed in meeting the marketing strategy ought to be specific and this enable the company to come up with a plan which can be applied very successfully (Lamb, 2006). Another important section of a marketing plan is the Sales Forecast. Forecasting entails trying to predict the outcome of events that have not yet happened. Sales forecasts entails predicting what the levels of sales for a given company are likely to be in the future. A company would need to predict how much sales it expects. This could be done on a monthly basis and the annual total should also be provided for. By having a forecast in sales, the company is able to track how the specific products are moving and in the end we can determine whether the company is meeting the set objectives or not (Baker, 2008). The final part of the marketing plan is the expense budget. An expense budget should be detailed enough so that the expenses incurred by the company can be tracked on a monthly basis (Bangs, 2002). A budget aid in keeping tabs on the way money is spent. Lack of a budget could result in more money than necessary being spent and the company cannot run its affairs properly. It is evident that there are certain things which have to be done after the accomplishment of others. A company can only set its objectives after performing the SWOT analysis. By developing the company objectives after performing the SWOT analysis, the company would in essence be positioning itself in setting goals which can be achieved within the timeframe that such a company has set for itself. Therefore, it is paramount that a company is able to assess the strengths that it has in business, its weaknesses, the opportunities available and the threats posed to its business. Setting objectives before the SWOT analysis would be tantamount to placing the cart before the horse (Blackwell, 1998). The process of SWOT analysis should be involving as many people as possible who are conversant with the business. The reason for this is that coming up with the best information based on SWOT analysis would ensure that a business can be certain of attaining its set goals in terms of sales. It is also evident that a Sales and Marketing actions cannot be developed if the marketing strategy is in place. The expense budget cannot be developed without first knowing what is to be budgeted for. Therefore, in as much as a marketing plan is made up of different parts, though independent, they are highly related. The different parts play different roles which determine whether the company can attain its set goals. Conclusion Marketing plans play a very vital role in the success of any given organization which is involved in business. A marketing plan could be said to serve the same purpose that a map and a compass plays when a person is travelling in an unfamiliar territory. A marketing plan is thus a planning tool. A marketing plan enables the business organization to develop realistic plan and it helps in determining whether such plans are working out by providing for a basis of assessment. The results are more important than the plan itself and therefore a business plan can only be termed as effective if the results produced are pleasing. Therefore, in addition to coming up with a very good marketing plan, care should be taken to ensure that those charged with implementing the plan do so with utmost care. A successful marketing plan should not be seen as an end in itself. The business world is dynamic and hence there is need to have the marketing plan to be versatile and capable of being changed to suit the changing circumstances prevailing in the business world. References Abrams, R. M. (2003). 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