Creating a marketing plan

The result of strategic marketing planning is a marketing plan for a particular product or product line. In the case of a small business, the marнketing plan may even cover the marketing activities of the entire firm. The following text outlines the information a marketing plan should contain.

In studying this material, keep in mind that managers in various organizations will expect to see specifics in a marketing plan. For example, the procedure at one organiнzation might be to prepare a marketing plan for an entire division, rather than a single product, unless the product is new. Some organizations call for a section analyzing the risks involved in the plan. When preparing an actual marketing plan, the marketing manager should verify exactly what information management wants included.

Although marketing plans need not follow identical structures, the following compoнnents constitute a complete marketing plan: 

╖        Title page

╖        Executive summary  

╖        Table of contents 

╖        Introduction

╖        Situation analysis

╖        Marketing planning

╖        Implementation of the marketing plan

╖        Summary

╖        Appendix: Financial analysis

╖        References                                                                    

A neat title page gives the marketing plan a professional appearance and makes it easy to identify. The title page should contain the following information In preparing the title page, keep in mind that it is the basis for forming a first impresнsion of the overall plan.

The executive summary sums up the contents of the marketing plan in a maxiнmum of three pages. It is a useful source of information for managers who want to be familiar with the plan but do not need to approve its details. The executive summary should state the basic opportunity identified and the overall strategy for taking advanнtage of that opportunity. A budget summary also is helpful here.

The table of contents lists each section of the marketing plan and its page number. If the marketing plan contains numerous tables and figures, these may be listed after the table of contents. Preparing a table of contents helps the marketer determine that the plan is complete and well organized.

The introduction provides the background necessary to understand the marketing plan. For a new product or strategic business unit, the introduction explains the prodнuct concept and the reasons it is expected to succeed. For an existing product or strategic business unit, the introduction summarizes the product's recent perforнmance. The introduction can also tell the reader what the remainder of the marketing plan will cover.

The situation analysis describes the relevant conditions in the environment. In effect, it describes where the organization is now. This discussion generally include an "industry analysis"Чa section describing the competitive environment. The indusнtry analysis covers such issues as who the competitors are, what market share each holds, what strengths and weaknesses each has, and whether new competitors are likely to enter the market.

Next the marketing plan describes where the organization wants to go. The secнtion on marketing planning covers the marketing objectives, target market(s), and marketing mix and often describes the rationale for each. The section on the marketнing mix details the selected strategies for product, price, channels, and communicaнtion. The marketing planning section can also include plans for marketing research.

After the objectives and strategy comes a description of how the marketing plan will be implemented and controlled. This description should specify who will be responsible for the efforts and provide a timetable. A marketing plan typically covers one year, though some plans cover a five-year time frame. The discussion of impleнmentation and control also spells out how success or failure will be measured (usualнly, by comparing the results of implementing the plan with the marketing objectives).

The summary section of the marketing plan is similar to the executive summary. However, it may be somewhat longer and more detailed.

A financial analysis of the marketing plan may appear in an appendix. This should contain at least a sales forecast and an estimate of the marketing costs involved in carrying out the plan. Items to include in a cost estimate are advertising, marketing research, product development, package design, development of distribuнtion channels, and training and compensation of the sales force.

Any sources of information used in compiling the marketing plan should be listed in a section titled "References." Sources may include books, journals, business periнodicals, and company reports or memos.