How to Create a Marketing Plan

An effective marketing plan builds off of a well constructed company business plan. It charts the path to making the business goals a reality by establishing sales objective and outlining tactics to make these objectives a reality. It is also a road map that guides branding efforts and product development.

Problems arise when the marketing plan is based on poorly researched numbers or assumptions. Although many aspects of the marketing plan will require creativity, the basis of the plan must be founded in facts and figures.

Marketing plan formats will vary somewhat by industry, but below is a general outline for creating your plan.

Sales Objectives

Sales objectives may be brand specific, territory specific or a total company goal. What is important is that they be specific. The objectives must also be time sensitive so that the marketing tactics designed to accomplish these goals have defined timeframes for execution and evaluation.

It is wise to have the objectives be measurable by more than one standard. A consumer product, for example, might measure both revenue and units sold. For a retail establishment, revenue and number of transactions might be the sales objective. Projected profits are always a part of the sales objective. It doesn't do the company any good if revenue goals are met, but the cost of the tactics employed uses all of the possible profit.

Target Market

It is critical that you understand your target market before you design marketing tactic to try to reach them. You should know the general demographic data, lifestyle characteristics, and buying habits of this group inside and out. To reach your sales objectives the company's primary focus must always be serving the wants and needs of its target market.

A clear understanding of your target market is also necessary in determining whether your sales objectives are achievable. You may discover that your target market is too small to achieve the revenue goals established. If this is the case, you may need to find other targets, develop additional products, or lower revenue goals. Either way, the earlier you realize this, the better off you will be.

Target markets are usually divided into several segments; primary target markets, secondary target markets, even tertiary markets. The method with which you approach these groups will be different based on the specific market's behaviors and the percentage of potential revenue they contribute to your sales objectives.

Marketing Objectives

Marketing objectives are the method you will use to accomplish your sales goals. The objectives are stated broadly and will help direct which marketing tactics will be utilized. Examples of marketing objectives are; retaining current customers, increasing purchase frequency among existing customers, or gaining trial from potential new customers. Each one of these objectives translates into a different mix of marketing tactics. Gaining trial might mean planning sampling events, while increasing purchase frequency might involve creating a loyalty program.

Positioning

Positioning defines your product or company in your target's mind. The positioning should be unique and ownable. One example of this is Avis rental cars. Avis positioned themselves as number two behind Hertz, stating that this makes them try harder to please their customers. In the early eighties Michelin tires was the first to position themselves as the leader in safety instead of focusing on speed.

Your positioning will guide all communication, branding and advertising for your product. All marketing efforts should begin with and be measured against the positioning statements.

Communication Strategy

The communication strategy defines how you will talk to your target markets. The language used will vary slightly in different executions but the overall message will always reinforce the positioning. Michelin communicated their safety positioning effectively in their advertising with the visual of a baby sitting inside one of their tires and the slogan "Because so much is riding on your tires." In store merchandising, however, might have spoken more directly to the product functionality that made the tires safe.

You will communicate differently to your primary market than you will to your secondary market. For example in communicating to a target market of children you would use different language than you would if you were communicating to their parents, your secondary target.

Marketing Strategy

Your strategy is the approach you will take to accomplish your marketing objectives. The objectives are broadly described such as stealing market share from a competitor, using a seasonal approach, alternate distribution strategies, packaging or pricing strategies. The strategies chosen help determine which marketing tactics will be used.

Marketing Tactics

Marketing tactics are the nuts and bolts of the plan. These are the actionable steps that will be taken to meet the objectives and ultimately the sales goals. The tactics should include timelines, deliverables assigned to departments or employees, and clear criteria to determine success or failure. A few examples:

• Product development plans
• Pricing plans
• Promotional plans and calendars
• Merchandising plans and calendars
• Advertising plan
• Public relations plan

An effective marketing plan will be time consuming to develop and should not be created in a vacuum. All functional departments should be involved in the development and buy into the plan. This includes key members of your sales team, your operations team and financial team. The plan should also be a "living document" that should be reviewed and revised as market conditions change, and as your understanding of sales cycles and target market behavior increases.

It is a lot of work, but good marketing plan could be your map to success. For assistance creating yours, check out our Marketing Plan template.