Introduction
A marketing plan has becoming an integral tool in light of the increasingly competitive and dynamic business environment. A marketing plan has the significant role to provide direction for a brand, product as well as organization. Marketing executives of firm rely on marketing plans to define their marketing environment, outline their objectives and marketing strategies to realize growth and profitability. The increasingly competitive business climate has rendered it no longer sufficient to manufacture goods or services and avail to the customers; there is great need to predetermine markets and convert a basic need into a positive demand. Furthermore, the time length between creation of demand and its satisfaction has considerably grown less, mainly because of improved technology and mass production techniques. As such, it no longer fit for management of business to deviate from an identified course of action without making sufficient preparation and planning to that effect. This paper discusses the nature, attributes and functions of a marketing plan tool in business.
Role and Nature of Marketing Plan
Definition of marketing plan
A marketing plan refers to a written document or blueprint that details the essential course of actions needed to achieve a single or several marketing objectives of an organization (Dibb & Simkin 2008, 2). Marketing planning is therefore the systematic process that entails assessment of marketing opportunities together with capabilities, determination of marketing objectives, identification of target market along with brand positioning strategies, search of competitive advantage, creation of marketing programs, allocation of adequate resources, and the development of an implementation and control plan (Luther 2011, 12). In this regard, market plans are widely used by all successful, market-focused, and customer-oriented organizations in all industries.
Lack of an effective market plan renders it highly difficult to conduct guided research and development (R&D); new product development (NPD); assess evolving market conditions; put into place desired standards for suppliers; give guidance to the sales team in terms of what needs to be emphasized and what/whom to avoid; establish realistic achievable sales target; avoid/react to competitor or emerging situations in the marketplace (Dibb & Simkin 2008, 78). In addition, lack of a market plan in an organization makes it less probable that the marketing strategy will be up to date or fully reflective of the organization’s marketing and sales activities, besides the resources failing to be realigned to the prevailing opportunities (McDonald & Wilson 2011, 123).
Relation between marketing plan and Business plan
A marketing plan is often a part of an organization’s overall business plan. The business plan entails all elements of business planning process, capturing the vision, strategy and sub-plans that address aspects of marketing, operation, human resources, and legal plan. A marketing plan pick up the established aims and objectives in the business plan and details a series of marketing activities aimed achieving them (Luther 2011, 45). Therefore, the business plan offers a favorable environment in which the marketing plan flourishes, and both documents must be consistent with each other.
Uses of Marketing Plan
Strategic uses of marketing plan
A marketing plan is used for tactical planning and strategic planning. A strategic marketing plan, which is given first prominence when designing a marketing plan, often covers a period between three-to-five years and is founded on the organizational business plan (McDonald & Wilson 2011, 33). The emphasis is placed on analyzing the future, which means that a facts and details used to build a strategic marketing plan are more difficult to gather and thus it is less detailed than a tactical plan. Strategic planning is critical for development of ongoing programs besides being essential to convince high value sponsors, or meeting commitment that go beyond one season or event (Luther 2011, 126). Upper management often develops strategic marketing plans because of the relative higher understanding of the business as a whole compare to lower managers (Dibb & Simkin 2008, 212). In order to undertake strategic market planning, the marketing team needs to have immense understanding of the trends in their industry, their competitive position, the demographics and purchasing habits of the target customer. As such, a thorough industry and market research is conducted prior to formulation of goals (McDonald & Wilson 2011, 47).
Tactical uses of marketing plan
Tactical marketing plan, on the other hand, is an offshoot the strategic marketing plan and largely focuses on real short-terms activities of different parts of an organization. The period is usually within one year. A tactical marketing plan is thus used by managers to detail the necessary steps to be undertaken by specific parts of the organization to realize success within a year (Tassiopoulos 2008, 95). Tactical marketing plan entails such activities as advertising, sales promotions, and community building activities. Lower level management favor tactical planning owing to their much understanding of day to day operations of This kind of plans are more common for organizations that deal with production, personnel, marketing, and finance activities (Tassiopoulos 2008, 125).
Generally, most organizations develop marketing plans for the following purposes:
• Updating the firm’s marketing strategy along with determining marketing objectives;
• To offer a road map for the implementation of the marketing strategy and meeting its objectives;
• To help in management control together with monitoring the implementation of the strategy;
• To inform and educate all participants in the marketing plan of their specific roles and functions (Bowen 2002, 73);
• To outline the prioritization and allocation of the firm’s resources;
• To stimulate more critical thinking and inspire better utilization of resources;
• To delegate responsibilities, tasks as well as timing;
• To create awareness among all participants towards challenges, opportunities and threats needing o be addressed by the organization;
• To align the firm’s management team with the prevailing market conditions as well as agreed priorities (Bowen 2002, 73).
Structure of a marketing plan
A marketing plan must have a well planned structure so as to avoid omission of any relevant information, and all the material need to be presented in a logical manner. Generally, a typical marketing entails an executive summary; statement of objectives; brief market and product background; summarized market analysis and description of realistic marketing opportunities (i.e. environmental factors, competitor activity, internal capabilities, market segments, and customer needs); marketing strategy outline; target market priorities; the ground for competing; product and brand positioning; expected sales patterns; marketing programs for implement marketing plan and their controls; financial and budgetary needs; and other operational considerations arising from the new marketing plan (Bangs 2002, 25).
Given that different organizations have their own different and favored house style, there is no universal template for an ideal marketing plan. Individual organizations have their own house styles and requirements as relates to developing marketing plan. The content and procedure adopted in a marketing plan thus varies from company to company. They vary in length, with small companies having as a little as 5page plan while large companies developing over 50 pages marketing plans. Similarly, the marketing plans also vary in terms of duration of scope in different organizations – some develop short-range plans (cover a year or less), other draft medium-range plans (two to five years), while other firms write long-term plans (extending over five years) (Bangs 2002, 67). Most companies delegate separate managing executives or tams to address varied business sectors, brand, product groups, or market segments. Each team is often tasked with developing its own unique marketing plan that best suits is marketplace. In such cases, the marketing director develops an all-inclusive and over-arching marketing plan that summarizes the key aspects of the individual team’s plan. However, all marketing plans have the same essential elements that define the structure of a marketing plan.
Elements of Marketing Plan
I. The Executive Summary – this is a summary of the whole marketing plan, having an outline that communicates the main thrust of the proposed marketing strategy along with its implementation. The executive summary provides an overview of the marketing plan so as to provide the reader with a quick rundown of key issues and concerns concerning their individual and collective role in executing the marketing strategy (Kulakowski & Chronister 2008, 68). The synopsis outlines in brief elements relating to objectives, sales forecasts, costs, and performance evaluation measures. It also identifies the scope and time frame for the implementation of the plan. While the Executive Summary is the foremost element of a marketing plan, it is often always written last so accurately summary all the key aspects presented in the marketing plan.
II. Situation Analysis – This is the section of the marketing plan that summarizes all significant information gathered about the three major business environments: internal environment; customer environment, and the external environment. Analysis of the organization internal environment includes such issues as availability and deployment of the human resource; age and capacity of technology or equipment; availability of financial services; and the power or political struggles within the organization. This section also summarizes the company’s current marketing goals and performance. Analysis of customer environment investigates the firm’s current situation in terms of the needs of target market (business or consumer); the expected changes in these identified needs; and the effectiveness of the firm’s products or services in meeting the current needs. Finally, external environment analysis includes key external factors i.e. competitive, economic, political, social, legal, and technological factors which have both direct and indirect impact on the organization’s marketing activities. The situation analysis information is gathered internally from the company’s marketing information system, and externally through both primary and secondary marketing research.
III. SWOT Analysis – This section focuses on internal factors (i.e. strengths and weaknesses), as well as external factors (i.e. opportunities and threats) as established during the situation analysis of the firm. The SWOT analysis is done relative to the market needs and competition, and helps the firm to determine areas of strengths and areas that require improvements (Ferrell & Hartline 2010, 56). Towards the end of the SWOT analysis, the focus of plan should be put onto the strategic focus together with competitive advantages to be leveraged.
IV. Marketing Objectives and Goals – This section presents the formal declarations of the sought-after and expected results following the implementation of the marketing plan. Goals serve to guide development of objectives and direction relating to resource allocation decisions. Marketing objectives are stated quantitatively so as to enable reasonably precise measurement. Generally, this section outlines the performance targets that the organization seeks to achieve through its marketing strategy, and identifies the actual performance parameters to be used in the evaluation and control stage of the marketing plan.
V. Marketing Strategies – This is the section of a marketing plan that details how the organization plans to attain its marketing objectives. The strategy section is aimed to convince the firm’s management to support the marketing plan. The marketing strategies identify opportunities to be followed through, defining the target market and development of an appropriate marketing mix that would produce competitive and customer advantages (Ferrell & Hartline 2010, 84). The marketing strategy assesses buyer needs and the potential of the organization to gain competitive advantage and guide the corporate mission. Therefore this section describes the firm’s target market strategy along with marketing programs to be employed in developing a brand or product positioning to meet the needs of the business customers or consumer in the target markets.
VI. Expected Results – A marketing plan should contain a section that highlights the expected results and sales volumes/financials. These forecasts need to be quantified in terms of expected units of sales together with possible market shares (Ferrell & Hartline 2010, 93). Outlining the expected results is necessary to appeal to senior management and sponsors so as to earn their approval for the marketing plan.
VII. Controls and Evaluations – This section of the plan details the controls and evaluations and assessment measures for the ongoing execution of the marketing plan. The section discusses exactly how the results of the marketing plan will be gauged along with the time they will be assessed (implemented (Stapleton & Thomas 1998, 85). Furthermore, a schedule to compare the results attained with the set objectives is presented. It identifies the people responsible for monitoring of the program and taking remedial action in the events expectations are not met. Source of unprecedented variance as also included in this section (Wong 2010, 65). Best practices calls for adoption of a balanced report of financial and customer-facing measures.
VIII. Financial Implication/Budgetary Requirements – This section profiles the returns expected to the organization following the implementation of the marketing plan as compared to the cost of implementing the same plan. The organization’s management would review this section of the plan and approve it if the anticipated returns are more than the projected costs (Mac Donald & Keegan 2002, 154). A budget is prepared prioritizing and allocating resources to meet the set marketing objectives. This section contains estimates of the costs as a result of implementing the plan, such as advertising costs, sales team training and remuneration, marketing research and development of distribution channels. All core costs linked with implementation of proposed marketing program, including overheads should be stated.
Links between Marketing Plan Elements
The different elements of a marketing plan are interdependent. Building an individual section requires drawing information one or several other sections of the plan. The executive summary, for instance, depends on all the other sections so as to capture the key elements in brief and present to the reader. Similarly, data used to conduct a SWOT analysis is largely dependent on the findings of the situation analysis that was conducted both internally and externally (Mac Donald & Keegan 2002, 125). It also from the conditions established from the situation analysis and SWOT analysis that the marketing team is able to come up with effective and appropriate marketing strategies to meet the corporate objectives and satisfy the customers’ needs. Following the noting of the strategic direction and intention of the organization in the goals and objectives section, the marketers are able to develop the Expected results section justifying why the proposed need to be implemented (Stapleton & Thomas 1998, 63).
Assumptions
There are a range of misconceptions relating to a marketing plan. The first and probably the most popular misconception is that developing an effective marketing plan is a tough undertaking (Smith & Taylor 2004, 155). Some marketing literature advocate that organizations need to hire marketing gurus in order to create a proactive, market-specific plan that would articulate how to find and sustain profitable customers.
The second misconception professes that the scope and breadth of a marketing plan must be limited to best practices (Blythe 2006, 212). This implies that marketing executives have follow a predictable strategy that calls for making a series of safe marketing decision founded on best practices of others. The result of this is a marketing strategy that is similar to those of competing firms. Heavy reliance on best practices of others is a follower’s strategy which denies a firm the opportunity of becoming a market leader (Kulakowski & Chronister 2008, 263).
Thirdly, it is held in some quarters that creating a marketing plan is irrelevant because marketing strategy is similar to advertising campaigns. In this respect, advertising takes care of marketing strategies that would be captured in a marketing plan. On the contrary, marketing strategies are different from advertising in the sense that the former provides a much greater picture than advertising. Through a marketing plan, an organization is able to define its marketing strategies by identifying the target audience and how the strategies will be carried out (Blythe 2006, 247). Thus, advertising campaigns are borne from the ideas captured in the marketing strategy and several advertising campaigns can be created from a single marketing strategy in a marketing plan.
Conclusion
This paper has extensively discussed the role and nature of a marketing plan. A marketing plan is defined as a written document or blueprint which summarizes what has been gathered about the marketplace and details how the organization plans to meet its marketing objectives. Following plans laid down by senior management of an organization, a marketing team is able to develop a sound marketing plan that could be for individual brands, products, lines, channels, as well as customer groups. Having a functional marketing plan has become necessary in light of the increasingly competitive business climate environment. The structure of the marketing plan varies from one firm to another depending on the house style but incorporate the same elements: executive summary; situation analysis; SWOT analysis; marketing goals and objectives; marketing strategies; expected results; budgetary considerations; evaluation and controls. There is close relation between a business plan which relates to the entire organization and a marketing plan. The plan is used for both strategic planning and tactical planning. A marketing plan is therefore one of the most significant outputs of the entire marketing process.
The marketing team must take care to include all the elements of a marketing plan so that no important information is left out, something that would risk the approval from the senior management and the sponsors. However, paying much attention to misconceptions about a marketing plan would hinder development of a more effective marketing strategy.
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