What is a marketing business plan?

Probably, many economists will agree with the opinion that any type of commercial activity cannot do without the important document, which is the business plan.

One of the key sections of this document is a marketing business plan, the correctness of compilation of which depends on the effectiveness of the business plan itself, since it prescribes the main aspects of the proposed entrepreneurial activity, as well as the ways of implementing the business idea.

To understand the importance of the marketing plan, here is a detailed description of all the important points in the compilation of this section of the business plan.

What is the role of the marketing part?

The marketing plan is a kind of strategy for the development of a start-up business, the significance of which lies in the following important points:
  • Due to the detailed development of each sub-item of the marketing plan, not only you can plan the initial stage of business development, but also use economic developments directly at each stage of commercial activity.
  • The advantage of this section of the business plan is that it calculates the exact amount of funds necessary for the development of commercial activities, as well as how much you need to attract money from the side to the economic project.
  • A well-designed marketing plan contributes to the efficient distribution of invested financial resources, while the problem of their misuse is absolutely eliminated
  • One of the advantages of marketing planning is the careful evaluation of potential economic risks, which, in turn, will allow you to focus on the main way of business development, while avoiding unnecessary spending.

As you can see, the significance of the marketing plan is very important, therefore, in the first place, it is necessary to know about the proper construction of the structure of this section of the business plan.

Basic aspects of the structure

Typically, the marketing business plan consists of the following main components:
  • Goals and objectives of marketing include information about the company or firm, as well as their direction of activity.
  • The description of the produced products or the provision of services is intended to give a complete and qualitative description of the main product of production.
  • The definition of the target audience, whose representatives will be the main consumers of the product.
  • Pricing shows economic ways of determining the value of products or services.
  • The analysis of the market and competitors promotes the realization of the created product.
  • Forecasting of production costs.
  • Ways of promotion.
  • Marketing of products is a key element of the marketing plan.
  • The calculation of the marketing budget allows you to clearly establish how much you need to invest in the successful implementation of business ideas.

Description of items in the plan

To make the marketing part of the business plan very effective, it is worth following the recommendations when developing this section of the document.

Aims and objectives of marketing

This item should highlight the following important aspects:
  • Full information about the enterprise being created
  • For what purposes the production is created
  • What should be the result of the organization of the business

In other words, this section of the marketing plan should contain the main aspects related to the data on the company being created, as well as in general terms about the products.

Characteristics of goods or services

The main purpose of this item of the marketing plan is a clear and detailed description of the product or service produced so that the consumer clearly understands why he will need to purchase this product.

It is also worth noting that the characteristic of the produced product or the provided service as a whole significantly improves the effectiveness of the invented business idea.

In this part of the marketing business plan, there should be the following important points:
  • Summary, which greatly facilitates the writing of all subsequent paragraphs.
  • The description of the product or service, first of all, should give answers to the following questions: what the product is; the benefit of the consumer from the acquisition of a given good or service; what the characteristics of the product are; for which category of persons products are proposed; the manufacturing process is so well established; if there are shortcomings in the products, then, as in the future they are going to be leveled.
  • Comparison with competing product analogues should give an answer to the question of how your products are better and optimal for purchase.
  • Planning the release of new products should show the prospects for the development of your business, respectively, significantly improve the image of goods or services already produced.

Definition of the target audience

This item should contain more detailed information about those people for whom it will be optimal to purchase the product or service provided.

For example, this paragraph may have the following content: “The target audience of our products are men of New York with a monthly income of 10 thousand dollars. And this is about 50 thousand customers of our company. With the help of our products, you can easily solve this or that problem.”

Pricing

In this sub-item of the marketing plan, you must describe the detailed information about the viewpoint that was generated when the cost of the product or service was formed.

In this case, it is necessary to take into account a number of the following important aspects:
  • The formation of a price must attract consumers
  • If the competitive price for similar goods is low, then, accordingly, you must bring the value of the output to these prices
  • If the target audience of the produced product or the provided service has a good income, then your aspiration should be aimed at the validity of the high price
It is also worth noting that compliance with the above recommendations can be implemented in the following ways:
  • Comparison with the prices of competitors for a similar product or service
  • Description of the popularity of the produced product among consumers
  • Make emphasis on the unique qualities of the products or services provided
  • Give weighty arguments about the rule: price of products = cost of production plus net profit.

Analysis of the market and competitors

Many beginning entrepreneurs often underestimate the importance of competition in the development of their business, and as a result, produce a superficial market analysis, which in the future undoubtedly leads to the collapse of the conceived business idea.

It is recommended paying special attention to this section of the business plan, even if you are, almost the only producer of products in a particular region.

The analysis of market relations in the marketing plan should be reflected in the form of answers to the following questions:
  • What is the market size in the segment of the goods produced by the enterprise?
  • Assessment of the dynamics of the market, in other words, whether it is progressive, stable or unprofitable.
  • What will be the share of goods or services provided by your company?
  • The prospect of achieving a maximum market share.
  • What needs to be done to expand the implementation market.
  • Which funds should be allocated to expand the marketing of products or services?
  • Whether there are alternative ways to take a weighty place in the market for the sale of goods or services.
  • What are the chances of the company being created in the competitive perspective on the market?
  • Factors affecting the pricing policy of the enterprise.
  • Whether consumers are satisfied with the quality of products or services.
As for the analysis of competition, here, first of all, it is worth highlighting the following important aspects:
  • Who is a direct competitor that offers similar goods or services in the market?
  • Which of the competing companies distribute a substandard product, but can lure a significant number of consumers to their side?
  • Pricing policy of competitors, and if there are differences in the cost of goods and services, then what they are?
  • On which geographic regions the commercial activities of competing production are extended?
  • What segment of the market is the competitor, and whether it is going to develop its sales areas.

Thus, by following the above criteria, a full analysis of the market and competition, in terms of marketing, you will display the potential opportunity to sell your products or services.

Production costs

This item in the marketing plan should be reflected in a detailed disclosure of the following facts:
  • The cost of purchasing raw materials
  • Cleaning and office expenses
  • Staff salaries
  • Payments for utilities
  • Rent of premises and equipment for production
  • Other expenses related to a single business

The totality of all specified items of expenditure will directly indicate the level of the cost of goods or services produced by your future company.

Ways to promote goods

It is worthwhile to understand that the main way to promote products is advertising.

In the marketing section of the business plan, you need to clearly indicate information about promotional materials that will help promote your product or service on the market, namely:
  • Advertising in the media
  • Polygraphic production
  • Advertising clips on network resources
  • Carrying out of advertising actions
  • Personal sales of manufactured goods
  • Other promotions promoting the goods or services

However, it is worthwhile to know that all advertising products should be aimed at a group of consumers who have the opportunity to purchase this type of product.

The funds spent on advertising promotion of goods are an integral part of the cost of production.

Sales of products

Successful sales of products depend on the following three important aspects:
  • Established communication with the consumer
  • Storage of goods
  • Transportation of products
Therefore, in order for the relationship of these aspects to be complete, a number of the following factors should be indicated in the marketing plan:
  • Who will be the consumer? The cost of the average purchase should also be indicated.
  • Information about the product must contain technical characteristics, including cost, storage period, weight, and other indicators.
  • he way of selling the goods, while the direct or indirect supply channel must be stipulated, and also what arrangements exist for various kinds of agreements and all kinds of restrictions.

Budget

When planning the budget of commercial activities, the marketing part of the business plan should reflect the following points:
  • The organization of a reliable network for the sale of products or services
  • Improving the level of product quality in a competitive environment
  • Constant analysis of the movement of commodity and material values in the market situation
  • The use of advertising methods of marketing products

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