Approved Marketing Plans for New Products and Services

Recipe for Writing a Strategic Marketing Plan

Some students spend about $100 to buy those marketing plan authoring software in the hope that such software can help them write the perfect plan using the least amount of time. Unfortunately, many students just get confused and disappointed. Many of these software use Q&A-type processes to help you put the plan together. Unfortunately, students often get "stuck" with certain questions and the serial writing process stops.

As a professor, I've reviewed hundreds of marketing plans a year written by my MBA students. Is there a perfect template for a marketing plan? No, I don't think so. It really depends on your industry, the size of your organization, and the reason for writing such a plan. If your boss doesn't have much time to study your masterpiece, perhaps a 7- to 10-page document with a great executive summary would be sufficient. Remember, it's not a competition to write the thickest marketing plan on earth. Who has the time and energy to go through your 300-page marketing plan?

As a rule of thumb, a marketing plan should cover the following 12 major areas:

(1) Executive Summary
(2) Introduction
(3) Situational Analysis
(4) Target Market
(5) Competitive Analysis
(6) Financial Analysis
(7) Product Strategy
(8) Pricing Strategy
(9) Integrated Marketing Communications Strategy (Promotion)
(10) Channels of Distribution Strategy (Place)
(11) Resource Allocation and Monitoring
(12) Conclusion

In Chapter 2, I will discuss each of these major sections in more detail.

Chapter 2 - The 12-section Marketing Plan

Section (1): Executive Summary

The executive summary is a one-page synopsis of your entire marketing plan. It is an abstract of that which your boss is about to read, often on their Blackberries! In the executive summary, you should include:
- a measurable goal for your marketing plan and how your marketing plan’s success will be evaluated in quantitative outcomes;
- a mission statement that is a standalone paragraph, which should state the business or industry your organization is operating in; and
- a brief paragraph that shares specifics about each of the sections that follows.

Don't forget that the executive summary is just a quick overview of your marketing plan, so there's no need to dig into the details here. When your reader is done reading the executive summary, he or she should say, “OK, now I know what this company does and what you want to accomplish with this marketing plan.”

When writing the executive summary, make sure to include your financial highlights such as revenue forecasts, projected growth in unit sales, market share, and expected profitability. Briefly refer to the current market situation and how the recent changes (e.g., customer's shopping behavior, mergers and acquisitions (M&A) of the industry players, new government regulations, etc.) pose an opportunity for your product or service. Point out key success factors and/or major pitfalls you plan to avoid. Discuss major actions, changes, or trends that you anticipate over the planning period (e.g., the next three years), and how these will impact the marketing strategy that you are proposing.

I know you're tempted to write much more in this section, but try your best to keep it a one-pager. Don't worry if you've written a little bit more but never make it into three or more pages long!

Section (2): Introduction

This introductory section helps the readers quickly understand what you're trying to launch and the financial numbers that you are trying to achieve with your marketing plan.

First, start with a "mission statement" to show the reader what your organization is all about, as if you're talking to a stranger. Briefly mention where your company is headquartered and, if it's an MNC, the extent to which it is operating globally.

Then, describe for your reader what it is that you wish to bring to the market. If it is a product, describe the product, its functionality, and how it works. If it is a service, describe the service offering so that the reader understands what they would receive. Add a photo, diagram, or some basic drawings if the product or service is very unique to grasp the reader's attention.

When describing your product or service, (i) highlight the problem that it will solve, as perceived by the target market; (ii) show the competitive advantage that your product or service is offering; and (iii) discuss the challenges that you might face in the marketing of such product or service.

Make sure that you have adequately described your product or service. By the time the reader has completed reading the introduction, he or she should understand what you want to bring to the market. If you have a service description, the reader would know where your shop is located and what service is offered.

Wrap up the introductory with a "financial summary" to illustrate the revenue and profit projection for the full planning period. Add a line or bar graph if you can. Remember, VPs and directors love to see numbers!

Section (3): Situational Analysis

The major idea of the situational analysis is to educate the reader about the industry that you're operating in. Think about it: do you think a venture capitalist or a senior VP who is reviewing your marketing plan would know everything about your specific product and its market? No, they won't. The situational analysis section is the opportunity for you to show what's going on in the market place, and set the stage for the subsequent discussion to make it meaningful. Very often, this is the section in which the reader would say, "Ah...I don't realize that this market has gone through such changes in the past few years!"

Here, you should carry out a "market overview" to set the stage. Consider the following points as you begin to write this section:
- Market structure: What's the market and who are the players?
- Market trends: Has the market declined or grown?
- Key market segments: How does the market break down into customer segments? What are the trends in each of them?

There are many ways you can write your market overview. Many students often find it helpful to make use of academic frameworks such as SWOT analysis, product life cycle analysis, Ansoff matrix, and diffusion of innovation analysis to write their market overview. You can also perform a Gap analysis or a detailed marketing audit (see later sections) to explore the shortfall between the corporate objective and what can be achieved by various strategies.

Since the SWOT analysis is often included in the marketing plan these days, let me talk about it a little bit further. This analysis refers to analysis in the following four areas:
- S: "Strengths" that you bring to the market and that make you a formidable competitor.
- W: "Weaknesses" that you can identify and have to address, as your competition is aware of them and will likely exploit them to their advantage.
- O: Identify the "Opportunities" that allow you to capitalize on your strengths. Where might you grow your business in terms of market share, revenues, and profitability?
- T: Identify the "Threats" in the macro-environment. These include those aspects that you cannot control, but they are there – the economy, the competition, the political and legal environment. Are there any new laws and regulations that affect how your customers shop/buy/use/dispose of your product?