How To Write A Marketing Plan

For every established business organization, there is a vision and a mission that guards the running of the organization.  Do you know what marketing entails?

Definition: Marketing involves the production, pricing, promotion and distribution of goods and services to customers. Many  times, the meaning of marketing by a large number of people is very limited but when marketing is talked about a whole lot of things are being referred to. Some terms have been mentioned from the definition of marketing which need to be well understood.

⇒Goods
⇒Services
⇒Production
⇒Pricing
⇒Promotion
⇒Distribution

• Goods: These are tangible products with a physical presence that are produced to satisfy customer needs through the value they provide. Goods therefore include pens, milk, shoes, bags, cars etc. 

• Services: These refer to those activities that offer benefits or give customers value but are intangible. Services are very essential in that they can be stand-alone or move in conjunction with the marketing of goods and services. They include banking, customer care and relations, teaching, coaching etc. Services are of two major categories which are core services and supporting services. 

Core services in the sense that the value being given out or sold is totally a service and not a combination of goods and services.

Supporting services can be referred to as those services that thrive in accompaniment to the marketing of goods and in other cases they support the production, delivery and promotion of goods.

• Production: This is the conception and the process of making a product to solve a problem encountered by a target market. It is a stage that is first preceded by market research and analysis to find out the need in a market and decipher the relevant solution or product. It is when a product is made to address a need that the success of a business is achieved for every customer pays for the value he or she derives from a product or service.

• Pricing: Pricing can be termed as the process of putting a monetary value on a product. The price of a product is the amount given to a product or service deliverer by a client, customer or buyer for a product delivered. The price of a product or service takes into account the cost and other expenses that go into the manufacturing as well as covers the percentage profit or gain to be made on a product or service.

• Promotion: This refers to all activities that make consumers aware of a product or service. Manufacturers can fail to reach the target market due to inadequate or lack of awareness creation by a product manufacturer.

• Distribution: Probably, the last stage where a product or good exits the walls of a manufacturer to the possession of a consumer.

What is a marketing plan?

A marketing plan is a strategically prepared documentation that highlights a company's plan to achieve its goals in the distribution of goods and services. The economics of every modern business organization now rests on the amount of available data on the state of the market in addition to the statistical data that depicts the resources of a business organization to achieve its goals.

A marketing plan, therefore, creates a directional path that leads an organization(the team) on the necessary actions to take in order to make their marketing goals an achievement. One essential thing that enables easy and quick evaluation of the plans outlined in a marketing plan is the factor of time allocation.

Elements of a marketing plan

• Situation analysis
• SWOT analysis
• Marketing objectives/strategies
• Marketing research

⇒Situation Analysis

The start of a marketing plan gives an executive summary of a company and also a little highlight of its ambition or vision for the future. The executive summary tries to give a brief of the state and plan of a business organization for a particular period of time. 

Situation analysis has to deal with the current state of a business organization. For example, a preparatory school that has up to JHS performs well in the final examination (Basic Education Certificate Examination) but the proprietor expects and envisions greater achievements. The situation analysis of the school therefore is like this, the school has teachers with varying qualifications from SHS certificate holders, HND and even degree holders who are retirees in teaching and will also include the current number of student population and performance metrics in academics and other areas of education. This therefore details or highlights the current milestones achieved accounting for the current state of the company.

⇒SWOT Analysis

S - STRENGTHS

W - WEAKNESSES

O - OPPORTUNITIES

T - THREATS

1. Strengths - In the manufacturing of advanced smartphones that were capable of multi-tasking you can mention the iPhone, Tecno, Samsung and other reputable brands leading the market and this list is based on certain peculiar features to these brands. The strengths are the competitive advantageous traits a company possesses over other rival firms in maybe the same market or industry.
2. Weaknesses - It implies or talks about the shortfalls existing inside of a company or business organization and may bring about poor performance. Weaknesses are not a thing to be ashamed of but rather areas to be carefully noted for relevant approaches to build a better product so as to stand the competition.
3. Opportunities - Marketers of organizations always look out for those great chances that appear in the market so as to take advantage of them and be successful. Look at this, at the time mobile phones were largely keypads, there was the opportunity to make things better and so the industries able to take advantage and produced touch phones or smartphones made user experience better and they experienced great income which has brought elevation to many of such industries. Unfortunately, those who couldn't meet the demands of the opportunities encountered losses.
4. Threats - As it has been stated at so many places that nothing new exists under the sun, so it is in the business world in that new firms keep emerging and some of them are able to out-perform great institutions in business. Threats therefore refer to all activities outside or within an organization.

⇒Marketing objectives/ strategies

 Objectives are under the broader umbrella known as AIMS and they are time-bound. Objectives are marched to different durations which when successfully attained adds to the achievement of goals. Marketing strategies are the various steps planned out for the successful execution and achievement of marketing goals. They include advertising plan, target market analysis, financial vision and mission statements etc.

⇒Marketing research

A marketing plan should inculcate insights about the market like taste of consumers, consumers' financial status or ratings and many others. A good research data will inform proper decision about a marketing budget and other useful elements.

Effects of marketing plan on a business

• Improves tracking of performance.
• Aids in prediction and readiness for outcomes.
• A great tool to stay ahead of competition.
• Enhances good planning of activities.

Now, to be looked at is a very simple marketing plan that was developed by a startup business to help explain further what a marketing plan can look like.

MARKETING PLAN

Executive Summary

Longevity Gas is an innovation-driven business that has the sole aim of providing its customers with affordable biogas systems that help them solve their daily energy needs. As a startup, there is a great deal of optimism about the performance of the company and to track operations, this marketing plan details some of the necessary elements the company is considering for its operations.

Situation Analysis

According to Population and Housing Census (PHC) in Ghana for 2010, 70% of the total population depended directly on the environment for fuel needs such as cooking and the rest 30% on other sources. Currently in the Volta Region, many of the people have low income levels and their major source of fuel is charcoal and firewood. These sources of fuel have negative impact on the people like health problems and the environment too is not spared either.

Longevity Gas as a company in the energy industry has the sole aim of providing safe biogas systems to households and businesses to support them with their fuel needs.

 

Company Analysis - SWOT Analysis

Strengths

1.      Sizeable biogas systems to produce gas for daily energy needs.

2.      Advanced features for volume measuring and pressure regulation (customer safety is a surety).

3.      Affordable prices of the products.

Weaknesses

A new kind of venture with limited product research and awareness campaigns.

 

Opportunities

1.      Large market for business.

2.      Very scarce number of related products in envisioned area of operation.

 

Threats

Availability of an alternative and related product which is bio-digester toilets but this is not really a threat to our business for the time being.

Marketing Strategies

·         Engage in one-on-one marketing with potential customers and community forum engagements.

·         Radio and television advertisements.

·         Print advertisements like posters, billboards and brochures.

·         Social media advertisements.

Mission

[Produce and distribute according to need biogas systems that help all our customers solve the current challenges they have with fuel access which will help them cut down on too much expenses.]

 

MARKETING OBJECTIVES

·         Produce biogas systems at affordable prices.

·         Help customers cut 25% of current expenses on fuel.

·         Create awareness of our products to boost sales.

Financial Objectives

Generate Ghs500,000.00 within first year as revenue.

Target Market

Schools, households, cooked food vendors etc.

Positioning

Secure a high market position and create awareness.

 

 

 

MARKETING RESEARCH

Sales Forecast

With our product functioning to expectations and approved standards, we hope to sell to 50+ food vendors, 100+ households and schools in the Volta Region in the first year. Product price (unit price) ranges from Ghc500 – Ghc1000 and so with our beachhead market, 50 sales at the minimum price should amount to Ghc25,000.

Expenses Forecast (12 months)

Item	Estimated expense
Advertisement	Ghc2000
Product distribution	Ghc2000
Salaries	Ghc5000
Procurement	Ghc5000
Utilities	Ghc2000
Others	Ghc2000

 

Contingency plan

For every sale made, 25% goes into company savings account for any future emergency.

With steady sales, the company will commence the construction of a factory for bulk production of biogas and fertilizer.