Marketing plan specifies the key factors of a marketing strategy of a business and clarifies the directions, objectives, and activities for the business and employees.
While the business plan shows how to transform the product idea to a commercially valid proposition, the marketing plan goes further and points out the issues related to the four Ps: product, price, promotion, and place.
Products: who will buy it and why? How is it better than your competitor’s product?
Price: how do you set your product or service price? Would you like to increase the sales volume to reduce your set-up costs and finished product price or you are going to develop a quality brand or market to a niche at a high price?
Promotion: how do you advertise your product as the most important part of your business in Germany? How is your product packaged and how will it be positioned in the marketplace?
Place: how is the sales channel established? How will your product be distributed? Will it be sold by retail stores or direct marketing?
Steps of marketing plan
There are 2 phases: preparation and actions
1. Preparation steps
- Identify products benefit
- What benefit does your service or product have for your customer?
Note: benefits are not features. If a TV screen is 45 inches, it is feature not benefit, also, internet applicability and Netflix. Customers justify their purchase by features but they buy because of the benefits the product is going to offer. Benefits mostly focus on the destination they take the customers to.
- What problems your product or service is going to solve?
- What emotions does your product or service trigger? (fear, pride, happiness, guilt, jealousy, etc) example: for the insurance business, the fear of losing property can be an answer, a good big TV can trigger the feeling or jealousy in your neighbor
- Identify your target audience (target market)
- Write down everything about your perfect customer: gender/income/age/marital status/occupation/travel-oriented/kids/live/home owners or rent
- Where do you find these people? the place they hang out/ shopping place, whom they are shopping with/ where do they eat?/ what kind of facebook group or other social networks might you find them in?/ what kind of magazines they read?/ in general where am I going to find these people congregating together?
2. Action steps
in the action step, you must implement the three Cs of Marketing
Create, capture, and convert
- Create: you would like to create offers that attract your targeted audience. Don’t create an offer which is good but not specific to your target audience, for example giving out IPods. It is very attractive to many people. So it increases your leads but they are not your targeted leads. They will come to your website or any other ecommerce interface and easily bail on you.
- Your offer could be a give-away, could be a contest or just information ->> people are looking for information in the information age. So the goal is that create an offer to attract people to buy your product or service
- Capture leads: get their information and over time and maybe right away convert them into sales but most of the time leads need multiple exposures to the product, follow-up, to think about it, so you need an automated sales process that convert these people to sales
- Convert to sales: when the right potential customer is directed to the bottom of your sales funnel and realizes the benefit your product will provide, he will definitely buy your product.
So imagine the funnel, at the top, there is a huge number of potential leads, some of which will turn to leads and finally convert to sales at the bottom of the funnel.