Developing marketing strategies and plans is vital to the success of any organisation, no matter its size or sector. By taking a strategic approach to marketing, businesses can better identify opportunities, simplify decision making and allocate resources more effectively. This guide sets out the steps involved in developing a marketing strategy and planning process.
What is marketing?
Marketing is the process of creating value for an organisation through the creation and distribution of products or services. It involves the planning and execution of all aspects of marketing communications, from market research and product development to advertising and promotion. Marketing also encompasses the management of customer relationships, including customer service and CRM.
Why is marketing important?
An effective marketing strategy helps businesses to communicate the value of their products or services to customers and prospects, build strong relationships and ultimately drive sales. Marketing also plays a key role in other areas of business operations, such as product development, human resources, finance and accounting.
What are the key elements of a marketing strategy?
There are several key elements that should be included in any well-developed marketing strategy:
* Market research – this helps businesses to better understand their target markets, including customer needs and buying behaviours. It can also help organisations to identify new market opportunities.
* Value proposition – what makes your products or services different from your competitors? This needs to be clearly communicated to customers and prospects.
* Target markets – who are you trying to reach with your marketing communications? This could be defined by factors such as demographics, geography or psychographics.
* Sales goals – what are your desired sales targets? These should be realistic, achievable and measurable.
* Marketing mix – this refers to the ‘four Ps’ of marketing: product, price, promotion and place (distribution). Each element needs to be carefully considered in relation to your target markets and overall business objectives.
* Budget – how much money do you have available to invest in your marketing activities? This will need to be reviewed on an ongoing basis in line with actual sales results and changing market conditions.
* Implementation plan – this outlines how you will put your marketing strategy into action, including details of who will be responsible for each task and when it will be completed. Regular review and adjustment may be required as you implement your plan and monitor results over time.
How do you develop a marketing strategy?There are eight steps involved in developing an effective marketing strategy:1) Define your business objectives – what do you want to achieve through your marketing activities?2) Conduct market research – gather data on your target markets, including customer needs/wants/behaviours3) Analyse your competition – understand who your main competitors are and what they are doing 4) Define your value proposition – what makes your products/services different from those of your competitors?5) Develop your target markets – who do you want to reach with your marketing communications?6) Set sales goals – establish desired sales targets for each target market7) Create a budget – allocate funds based on planned marketing activities8) Develop an implementation plan – detail how/when/who will carry out each taskOnce you have completed these steps, you will have a clear understanding of where you want your business to go (step 1), who you need to target (steps 2-5) and how best to allocate resources (steps 6-8). From here, you can start putting together a detailed plan for how you will achieve these objectives through specific marketing activities (see our guide on How To Write A Marketing Plan for more information).
What should be included in a Marketing Plan?A Marketing Plan should include:1) An Executive Summary2) An analysis of the current situation3) Objectives4) Strategies5) Tactics6) Control7-9 may also include secondary objectives, budgets & schedulesThe Executive SummaryThe executive summary is a brief overview of the main points covered in the plan itself. It should highlight key findings from the situation analysis stage as well as define any specific objectives that have been set for the business/brand moving forward. The executive summary should be no more than two pages long.Analysis Of The Current SituationBefore any specific objectives can be set, it’s important that all businesses take some time out to assess their current position within their relevant marketplace(s). This assessment process is commonly referred to as conducting a ‘Situation Analysis’; an essential component part of any successful Marketing Planner’s tool-kit regardless of experience level!A situation analysis generally has two distinct sections; Internal & External Analysis:Internal AnalysisAn internal analysis looks at all internal factors that could potentially impact on achievement of desired objectives; this might include assessment off strengths & weaknesses within core competencies as well processes & rumours circulated throughout an organisation which might impact negatively on public perception (reputation risk).External AnalysisIn contrast an external analysis reviews all external environmental factors that might present either opportunities or threats when compared with achieving success against set objectives; this might include conducting PESTEL Analysis ( Political / Economic / Social / Technical / Environmental / Legal )or SWOT Analysis ( Strengths / Weaknesses / Opportunities / Threats ).ObjectivesAfter conducting both internal & external analysis relevant objective(s)/goals need(!) setting which realistically align(!) with identified opportunities whilst realistically recognise(!) potential threats… these could either be SMART Objectivesor STRETCH Objectives but must always offer tangible evidence against which achievement can realistically be measured whether that’s short term (Short), medium term (Medium), or long term (Long).StrategiesDepending on findings during both internal & external analysis at least one growth strategy & protectionist strategy ought identified alongside rationale explaining selection… growth strategies tend focus exclusively on exploiting new opportunities whereas protectionist strategies work best minimising risks associated specifically with identified threats!TacticsTactics represent detailed actions designed explicitly deliver chosen strategy/strategies often involving cross-functional team collaboration ensuring sufficient resource allocation matching timescales set during earlier stages when formulating overall objective(s).ControlAny well executed Marketing Plan ought contain some form control mechanism helping ensure delivery planned tactics remain ‘on track’ highlighting potential issues requiring attention long before they become problems… regular review meetings organised between core team members help build accurate snapshots containing progress reports detailing successes achieved alongside improvements still required keeping everyone informed avoiding surprises further down project timeline!
