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It is only at this stage of deciding the marketing objectives that the active part of the marketing planning process begins'. This next stage in marketing planning is indeed the key to the whole marketing process. The "marketing objectives" state just where the company intends to be; at some specific time in the future.
James Quinn succinctly defined objectives in general as: They typically relate to what products or services will be where in what markets and must be realistically based on customer behavior in those markets. They are essentially about the match between those "products" and "markets. They are part of the marketing strategy needed to achieve marketing objectives. To be most effective, objectives should be capable of measurement and therefore "quantifiable.
An example of such a measurable marketing objective might be "to enter the market with product Y and capture 10 per cent of the market by value within one year. The marketing objectives must usually be based, above all, on the organization's financial objectives; converting these financial measurements into the related marketing measurements. He went on to explain his view of the role of "policies," with which strategy is most often confused: Simplifying somewhat, marketing strategies can be seen as the means, or "game plan," by which marketing objectives will be achieved and, in the framework that we have chosen to use, are generally concerned with the 7 P's.
In principle, these strategies describe how the objectives will be achieved. The 7 P's are a useful framework for deciding how the company's resources will be manipulated strategically to achieve the objectives. It should be noted, however, that they are not the only framework, and may divert attention from the real issues. The focus of the strategies must be the objectives to be achieved - not the process of planning itself.
Only if it fits the needs of these objectives should you choose, as we have done, to use the framework of the 7 P's. The strategy statement can take the form of a purely verbal description of the strategic options which have been chosen. Alternatively, and perhaps more positively, it might include a structured list of the major options chosen. One aspect of strategy which is often overlooked is that of "timing.
Taking the right action at the wrong time can sometimes be almost as bad as taking the wrong action at the right time. Timing is, therefore, an essential part of any plan; and should normally appear as a schedule of planned activities.
Having completed this crucial stage of the planning process, you will need to re-check the feasibility of your objectives and strategies in terms of the market share, sales, costs, profits and so on which these demand in practice. As in the rest of the marketing discipline, you will need to employ judgment, experience, market research or anything else which helps you to look at your conclusions from all possible angles.
Incorporate some way to monitor marketing communications, such as using coupons, electronic codes or website traffic statistics. Perform a careful study of the effects of using online selling, direct mail, wholesalers, retailers, distributors and outside sales reps to project how each method can affect your sales volumes, profit margins and total profits. The marketing budget is usually the most powerful tool by which you think through the relationship between desired results and available means. A marketing strategy [6] [7] is a process that can allow an organization to concentrate its limited resources on the greatest opportunities to increase sales and achieve a sustainable competitive advantage [8]. Small Business - Chron.
At this stage, you will need to develop your overall marketing strategies into detailed plans and program. Although these detailed plans may cover each of the 7 P's, the focus will vary, depending upon your organization's specific strategies. A product-oriented company will focus its plans for the 7 P's around each of its products. A market or geographically oriented company will concentrate on each market or geographical area.
Each will base its plans upon the detailed needs of its customers, and on the strategies chosen to satisfy these needs. Again, the most important element is, indeed, that of the detailed plans; which spell out exactly what programs and individual activities will take place over the period of the plan usually over the next year.
Without these specified - and preferably quantified - activities the plan cannot be monitored, even in terms of success in meeting its objectives. It is these programs and activities which will then constitute the "marketing" of the organization over the period. As a result, these detailed marketing programs are the most important, practical outcome of the whole planning process. These plans should therefore be:. The resulting plans should become a working document which will guide the campaigns taking place throughout the organization over the period of the plan.
If the marketing plan is to work, every exception to it throughout the year must be questioned; and the lessons learned, to be incorporated in the next year's planning.
A marketing plan for a small business typically includes Small Business Administration Description of competitors, including the level of demand for the product or service and the strengths and weaknesses of competitors. The main contents of a marketing plan are: In detail, a complete marketing plan typically includes: The final stage of any marketing planning process is to establish targets or standards so that progress can be monitored. Accordingly, it is important to put both quantities and timescales into the marketing objectives for example, to capture 20 per cent by value of the market within two years and into the corresponding strategies.
Changes in the environment mean that the forecasts often have to be changed. Along with these, the related plans may well also need to be changed. Continuous monitoring of performance, against predetermined targets, represents a most important aspect of this.
However, perhaps even more important is the enforced discipline of a regular formal review. Again, as with forecasts, in many cases the best most realistic planning cycle will revolve around a quarterly review. Best of all, at least in terms of the quantifiable aspects of the plans, if not the wealth of backing detail, is probably a quarterly rolling review - planning one full year ahead each new quarter.
Of course, this does absorb more planning resource; but it also ensures that the plans embody the latest information, and - with attention focused on them so regularly - forces both the plans and their implementation to be realistic. Plans only have validity if they are actually used to control the progress of a company: Most organizations track their sales results; or, in non-profit organizations for example, the number of clients.
The more sophisticated track them in terms of 'sales variance' - the deviation from the target figures - which allows a more immediate picture of deviations to become evident.. Few organizations track market share though it is often an important metric. Though absolute sales might grow in an expanding market, a firm's share of the market can decrease which bodes ill for future sales when the market starts to drop.
Where such market share is tracked, there may be a number of aspects which will be followed:. There are a number of separate performance figures and key ratios which need to be tracked:. The above performance analyses concentrate on the quantitative measures which are directly related to short-term performance. But there are a number of indirect measures, essentially tracking customer attitudes, which can also indicate the organization's performance in terms of its longer-term marketing strengths and may accordingly be even more important indicators. Some useful measures are:.
A formal, written marketing plan is essential; in that it provides an unambiguous reference point for activities throughout the planning period. However, perhaps the most important benefit of these plans is the planning process itself. This typically offers a unique opportunity, a forum, for information-rich and productively focused discussions between the various managers involved.
How to Develop Your Sales and Marketing Strategy Look back at your best customers and identify the characteristics that make them profitable and enjoyable to work with. . 7) Review and Document Your Sales Process Could you be using any automated tools to make your process more efficient?. Creating an Effective Sales and Marketing Strategy. ••• Image (c) Reza How can you sell to more of the profitable customers? If you add.
The plan, together with the associated discussions, then provides an agreed context for their subsequent management activities, even for those not described in the plan itself. The classic quantification of a marketing plan appears in the form of budgets. Because these are so rigorously quantified, they are particularly important. They should, thus, represent an unequivocal projection of actions and expected results.
What is more, they should be capable of being monitored accurately; and, indeed, performance against budget is the main regular management review process. The purpose of a marketing budget is, thus, to pull together all the revenues and costs involved in marketing into one comprehensive document.
It is a managerial tool that balances what is needed to be spent against what can be afforded, and helps make choices about priorities. It is then used in monitoring performance in practice.
The marketing budget is usually the most powerful tool by which you think through the relationship between desired results and available means. Its starting point should be the marketing strategies and plans, which have already been formulated in the marketing plan itself; although, in practice, the two will run in parallel and will interact. At the very least, the rigorous, highly quantified, budgets may cause a rethink of some of the more optimistic elements of the plans.
A marketing strategy [6] [7] is a process that can allow an organization to concentrate its limited resources on the greatest opportunities to increase sales and achieve a sustainable competitive advantage [8]. A marketing strategy should be centered around the key concept that customer satisfaction is the main goal. A marketing strategy is most effective when it is an integral component of corporate strategy, defining how the organization will successfully engage customers, prospects, and competitors in the market arena.
Understanding how sales and revenue are related and how to increase both helps you market efficiently and optimize your profits. An obvious way to increase sales is to boost your marketing. Conduct marketplace research to learn which messages speak to your target audience. Run ads and promotions in limited locations and check the results before spending your entire budget.
Incorporate some way to monitor marketing communications, such as using coupons, electronic codes or website traffic statistics. If your product or service is price sensitive, pay special attention to your pricing strategies. Find out what your competition is charging and raise or lower your prices based on your goals. Lowering your prices can increase revenues to make up for lower margins.
Raising your prices can create a higher perceived value in the minds of consumers and increase your margins. Raising your prices can also increase your revenues without increasing sales. Changing where you sell your product can significantly boost your sales and revenues without requiring any changes to your marketing or pricing.
Perform a careful study of the effects of using online selling, direct mail, wholesalers, retailers, distributors and outside sales reps to project how each method can affect your sales volumes, profit margins and total profits. In some cases, new distribution channels require marketing support. You might need to replace old products with new ones. This might result in a decrease in sales, but higher revenues if the replacement product has a higher price.
Look for businesses that don't compete with you but which have the same target customer and develop cross promotions.