Importance of marketing strategy in business plan - Business Plan: Marketing And Sales
Video embedded · Companies have many options when it comes to gaining market share and increasing profits. Learn about strategic marketing and the tools companies.
Effective marketing and promotion strategies drive the long-term success, customer development and profitability for companies. Marketing Mix The marketing mix is a central tool used in the development of the strategic section of a company's marketing plan.
It is a blend of four key elements that go into developing and promoting a product offering. The product component is the specific tangible good you have developed to sell.
The Importance of Business Strategy
Distribution refers to how you bring products to market. Pricing strategies help project your value proposition and relate to your profitability. The final component, promotions, involves your strategies to communicate your brand benefits to customers.
Research and Development One of the early stages of the marketing process is research and development of product and service solutions. This includes the use of a variety of quantitative and qualitative research studies to figure out what customers need or want from a particular solution.
Marketing-oriented companies tailor their offerings to suit market demands to sleepwalking essay plan competitive advantages and loyal customers. Ultimately, to promote and sell products and to retain core customers, you need solutions that are of valuable quality and desired by the market.
Role of Promotions Promotions is essentially the alarm that you sound to let customers know you exist and why they should care.
Without the use of promotions, your fabulous products and services can't garner the interest of preoccupied and on-the-move customers. In this part you have to mention financial and non-financial goals of your marketing plan. This section sets the goals of a marketing plan and hence sets the tone of rest of the marketing plan.
For plan, if you are a startup looking for series A fundingthis section will be more concerned to increase sales and increase the importance of product whereas companies looking for series B funding will speak more about branding and so on. In strategy words, that is what a company is best at marketing. Focusing on core competencies can business a firm better align its resources and efforts and thus increase the value creation.
A company should usually outsource all the non-core activities if economically feasible. What was the source of this hunch or inspiration? How do you establish that this need is something, which will have a sizable market? This is the section to mention all the effort you have put into market research.
This section is used to present the methodology and findings of your market research. Appropriate emphasis should be given on this part as it basically sets the direction of the product development process as well as tone or theme of marketing communication a firm is sending out.
The Role of Marketing in the Strategic Planning Process
This ensures that the management and execution team is aware of various factors which are going to determine the amount of resources and efforts in successfully executing the marketing plan.
If you are going to target everyone, then your precious marketing dollar is going down the drains.
Target market is defined as a group of customers that the business has decided to aim its marketing efforts and ultimately its merchandise towards. A startup should always concentrate on customers who are ready to adopt the product easily. Going for the total market will take a lot of resources and thereby is not advisable for the initial go-to-market strategy.
How to Create an Effective Business Marketing Plan
Furthermore it is important to include the market segment which you are going to serve and in what fashion. Segmentation can be done along the following dimensions: Demographics — Age, sex, educational qualifications, income, occupation, household size etc.
This step is important as this has a big impact on marketing mix, which is covered thereafter. You need to pick one of the following marketing strategies: Mass marketing — This is a push market strategy in which segmentation is completely ignored and an attempt is made to reach the largest number of potential customers possible.
This technique relies on the persuasion potential of communication.