A business plan is a blueprint for your venture. It details a company’s objective and the methodology it intends to use to achieve them.
You can consider it as a map for your business. Most investors will never take you seriously if your business has no plan.
A Harvard Business Review indicated that entrepreneurs with a business plan have a 16% higher probability of succeeding than those without.
Marketing strategy is one of the most important aspects of a business plan. It highlights the strategy to get your product to the target market.
Without consumers, there can be no business. According to the U.S. Bureau of Labor Statistics, about 20% of new businesses fail within their first two years. 45% fail within the first five years, and 65% during the first ten years
Failure to investigate the market and business plan problems are some of the main problems that cause business failures.
To increase the chance of your business success, it is recommended to have a sound marketing strategy in your business plan.
Marketing Mix
A marketing mix is a set of marketing tools to promote a product or business to achieve enterprise objectives.
These tools are summarized with the mnemonic of the 4Ps referred to as marketing concepts;
Product
Product details what you intend to sell and why you are confident the targeted audience will buy it. This will inform the strategy to employ.
You must be able to answer the following questions:
- What is your product?
- What problem does it solve?
- Who needs it?
- Are there other products solving similar problems, directly or indirectly? What edge does your product have over them?
You can structure the writing using this format:
Brand name and design
This should state the name you prefer for the product. Explain why you choose the name. It should not be unique and not confusing.
Ensure the name can be easily adopted into your logo and other packaging without looking boring or too long.
Related products or services
Research the market to identify similar products. Even in a market where you are the first, there will surely be an indirect competitor.
Examine your direct and indirect competitors to identify their weaknesses. This should form the main speech of your marketing. Your product needs to solve people’s problems and not just be an alternative to an existing solution.
Functionality
Highlight what your product or service can do. This may include solutions already provided by existing products.
You should be able to identify how your product is better while indicating it can solve the same problems as what competitors are already doing.
For effective marketing, your product has to be better than competitors. It should not only solve problems other products cannot solve; it should be able to address problems that they can solve in addition to what they cannot.
Packaging
Packaging is meant to protect the product. However, it serves more functions in marketing. How you package your product might determine if it will be picked when placed side-by-side with competitors on a shelf.
It should showcase the product’s best functionalities and create an unforgettable experience for the customer.
Quality
A good quality product without effective marketing is indeed unlikely to sell. Likewise, a bad-quality product with effective marketing will have only few returning customers.
A company’s or product’s quality image cannot be improved overnight, especially after damage.
It is important to ensure your product is of the best quality.
Warranty
This is most important if you are new in the market. Nobody knows your brand and one of the ways to gain customers’ trust is by offering a warranty.
Consider the following to set a warranty period;
- The industry standard
- What are your competitors offering
- The period of time the product is expected to be still functioning normally.
Promotion
Promotion should detail how you intend to communicate to the target audience and the best channels.
It should entail:
- Advertising method
- Budget
- Required sales force
Price
Pricing is the most flexible marketing tool. Experts consider it the strongest P among the 4Ps.
It determines the company’s profitability. Wrong pricing can be the downfall of a company. To decide on a price, consider the following;
- Production cost
- Market demand
- Targeted market spending power
- Product value
- Competitors’ pricing
Place
This section of your marketing strategy should discuss how you intend to deliver the product to consumers.
It should entail;
- Warehousing
- Transportation
- Logistics
- Inventory management.
Final Thoughts
In conclusion, creating a marketing strategy is a crucial aspect of any successful business plan. By identifying your target audience, setting clear objectives, and utilizing different marketing channels, you can effectively promote your products or services and secure desirable outcomes.
Remember to constantly track and analyze your marketing efforts to ensure that you are meeting your goals and making the most out of your strategy. With these considerations in mind, you are well on your way to crafting a successful marketing plan that will support your business growth for years to come.
