How to write a marketing plan (Part 2)

In this article, we will study the marketing strategy. Strategy is required for all activities, from sales to marketing or macro operations of the government. It does like to answer why the marketing plan and how?

This section includes the following elements:

Development of a mission statement

Statement of objectives

Strategy and tactics to accomplish the objectives

MISSION STATEMENT

Your mission statement is a formal commitment and focus for the business. It should explain to customers concisely what the nature of your business is and where you are going, and also provide a motivational tool for employees. It should be aspirational, something to strive for, yet obtainable and relevant. Once this has been defined it should form the focus for your business strategy.

VISION STATEMENT

A vision statement is a more long term, ideal-world statement which outlines where you would like to take the business in the long run.

OBJECTIVES

Combined with the mission statement, your objectives should be the key statements that drive your business. The most successful goals follow the SMART acronym. Specific, measurable, achievable, realistic and time bound.

What do you want to achieve by the end of this year?

Where do you want to be in one, five, ten years?

This question is seem to ask you Who you are and how you want to be? Objectives must be in answered in S.M.A.R.T. For example, 'sell 600 units in the next year' or 'increase customer retention by 20%'.

SELECTING A SUITABLE STRATEGY

DEVELOPING A STRATEGY FOR GROWTH - THE ANSOFF MATRIX

Most businesses need to grow, and the Ansoff Matrix (below) is a method of determining the best course of action if growth is your priority.

The Ansoff matrix

Market penetration

Increasing market share in a current market with a current product.

Example tactics:

Aggressive pricing policy (see 'cost leadership' in Porter's model)

Re-branding

Increasing marketing spend

Market development

Taking existing products into new markets

Example tactics:

Finding a new use for an existing product

Expanding the distribution network

Strategic partnerships in international markets

Product development

Developing a new product for a market that you have already entered

Example tactics:

Creating a range of similar products, for example, shaving foam if you are already manufacturing razors

Diversification

Developing a new product for a completely new market

Example tactics:

Market research

Product research and development

DEVELOPING A PRICING STRATEGY

Once you have determined the product and market you want to be in, the next problem will be setting a price. Porter's model discusses three strategies for competitive advantage based on price.

Three generic strategies for competitive advantage - Porter's model

Cost leadership: A good quality product at a lower price than the competitors

Differential strategy: A product or service which is perceived as unique within a particular market

Focus strategy: Delivering focused attention to a particular segment to deliver service which competitors cannot compete

DETERMINING WHICH PRODUCTS TO INVEST IN

If you have a range of products, it is likely that some will do better than others. The Boston Consultancy Group matrix is a method of determining which to invest in, and which to drop, shown below.

Stars: High growth products with a strong market presence. Probably need high investment to maintain position.

Cash cows: Low growth products with a high market share. Probably don't need much investment, but require management to maintain profitability.

Question marks: Products which have potential, but may require investment to yield decent profits.

Dogs: There are rarely worth investing in. Dogs should at least break even to be retained.

TACTICS - THE MARKETING MIX

The marketing mix is a selection of customer focused business elements which work together as a toolkit to market your product or service. The tactical section of a marketing plan summarises how you intend to use each element of the marketing mix, which can be summarised in seven 'Ps' as shown in the illustration below.

Actually, from Philip Kotler on Wiki the Father of Modern Marketing, Marketing Mix is just for 4 Ps, over the time, it has been developed and divided into some more Ps are depend on which Ps are as important as the other in an Entrepreneur

To be continued