Marketing Plans - Concepts and Positioning Elements

Marketing - It is an essential component of every business enterprise for attracting new customers, as well as retention of existing ones. There is no single marketing solution to fit all situations. A marketing plan is unique to each enterprise even if the same product (service) type is sold by competing companies in the same marketplace. The plan must also be dynamic because the market demands are in a constant state of change.

Plan review must be frequent. Market conditions analysis is also a constant process. Strategies require revision to meet the expectations of targeted verticals. Knowing the difference between perceived buyer needs and buyer wants will directly influence demand. Market feedback is also very important to adjust tactics accordingly to meet the expectations of the marketplace.

A marketing plan is problem-solving process. Internally, the problem is centered around how to sell products and at acceptable profit margins. Externally, the marketplace's demand for a product must be identified and accurately understood. Is there a market void that a product can fill? Is there enough demand for the product or can demand be created? Will the product have enough sustainability for long-term buying? Problematic questions are many. Most questions are rooted first by an idea, but research is required to support any validity of the idea.

Once an idea is validated, the next step involves product development if it does not already exist. Although related to marketing, new product development is a complex process requiring distinct procedures to analyze the feasibility of a product. We will assume the product is already developed and ready for market.

Market Positioning is a module of the Marketing Matrix used to influence demand. Positioning can also create brand loyalty for repeat purchases. Briefly, the marketing matrix is comprised of product, pricing, promotion, placement, and persuasion. A product cannot be all things to all people -- universal appeal is a myth. Tastes are varied and preferences are diverse making it impossible to satisfy everyone with the same product. Therefore, identification of a target niche is critical. A niche market is one that research establishes a base demand for a product. Creation of brand awareness is essential once a niche is identified. The intent of branding is to promote and imprint the product into the minds of a niche market. Differentiation tactics and concepts need to be developed if there are similar competing products in the market. Demonstrating the differences in product and the company offering it is a comparison between them and us. It should show impactful benefit that distinguishes a product from alternate choices. Prospective buyers should be able to readily recognize unique benefits, enabling purchasers to make better assessments between products.

The Marketing Concept - Marketing is a management tool designed to facilitate sales. As a management tool, marketing is part of the overall business process operation involving effective planning, project organizing, staffing concerns, direction, and control systems. Selling cannot be productive without good marketing. Both marketing and sales are dependent upon each other even though they are different disciplines. Think of marketing as a way of managing business processes so decisions are made with the awareness of what the impact will be on the customer. For example, in sales, a product is created with the intent of offering it to potential buyers resulting in revenue. The sales staff is told to find prospects and turn them into buying customers. Sales practices are influenced by the marketing plan. Under the sales approach, a customer exists for the business. Under the marketing concept, the business exists to serve the customer.

Ultimately, marketing initiatives must result in revenue generation and profit. Many company policies and operational activities are directly related to satisfying market demands with products for sale. Profitable sales transactions are a better goal than maximum sales volume unless the product is turn-key and frequent purchases allow for low margins. An example of low margin - high volume is a grocery store. Considerations for pricing and profit margin depend on cost of production, cost of marketing and sales, and buying habits of a target market. Whatever pricing policy is established, controls are required to constantly review the profitability of the product offering and market demand influencing sales volume. Revenue outcome can be improved with a better understanding of customer buying habits and motivation to buy a product. Many businesses operate under a classic approach - "everyone is potential customer for our product". This is simply untrue. Products must be able provide a solution for a buyer and the buyer must be able to recognize benefits from a purchase. Revenue will be hard to generate if a product does provide a solution to satisfy what a buyer wants to achieve with a purchase.

A good starting point to building an effective marketing model should include the following:

• Self-Assessment (current situation)
• Plan Outline with Objectives (basics)
• Market Research and Analysis
• Segmentation (target niche) identification
• Product Positioning (marketing mix)
• Testing and Evaluation
• Refinement

A good marketing plan must compliment the overall business plan of an enterprise -- both are dependent upon each other. An enterprise's survival depends how effectively it is positioned in the market. Planning is the first step, but it must always be dynamic to meet the ever-changing demands of prospective customers. It does not matter how complex or simple a plan is, so long as it is implemented and managed effectively. An imperfect plan that is implemented well is better than a perfect plan without conviction.