Why does the owner of a small business need a successful marketing plan?
As a business owner, if you want to expand your small business, you must create a marketing plan. Many business owners consider that the marketing plan is an activity only for large companies. This is completely wrong. If you want your business to grow, a proper marketing plan is an absolute necessity. A proper marketing plan is essentially a roadmap for your future success. In this article, I will explain how to create a successful marketing plan for your small business for a financial year.
1. Summary of the plan: First fix your goals. Repair what your sales volume would like to have this year. How much percentage of growth do you want to achieve? To achieve the goal, how much production do you need to produce? Budget your marketing accordingly.
2. Analyze the current marketing scenario and the SWOT analysis: you must analyze where the sales will come from. Obtain comments from the markets in which you are going to sell your product. For example, you have three markets to concentrate on. Urban, semi-urban and rural market. If you find hard competition, for example in urban areas, you should go to semi-urban and rural areas. To achieve this you need to strengthen your distribution reach. Everything depends on your product niche. Discover your competitors Who to avoid and who to take seriously. Perform a detailed analysis of SWOT (Strength, Weakness, Opportunity, Threat) of your products.
3. Establish marketing objectives: here you are supposed to set significant goals for the future. Significant means that the objective must be intelligent, specific, measurable, achievable, realistic and with specific deadlines. Just by saying that we will grow, our business will not work. Must you be clear about what percentage of growth you are projecting? Is it 5%, 10%, 20%? You should mention how the sales volume will increase. Now sales can be increased mainly by price or volume. If you find that there is tough competition and there is no additional value proposition you can offer in the product, focus on increasing sales volume. Each of your marketing objectives must have clarity of what you intend to achieve with realistic figures to support the objective description.
4. Marketing strategy: Here you will establish your target market, the positioning of your product. Create a comprehensive plan to decide which target audience to attend and how to reach them. Position your product according to your audience. Establish your marketing mix in your marketing plan. Have an elaborate plan regarding the product, price, distribution strategy and promotional campaigns. You must include the production plan, the distribution plan and the promotional plan in your marketing strategy plan.
5. Marketing budget: it is impossible to fix the amount of budget that a small company must spend on marketing and advertising. Because it depends on a number of factors, including your objectives, your projected sales and your excess revenue. However, just to give an idea if you are opening a new business, you may need to inject more funds into the marketing budget. Many marketing experts recommend that start-ups dedicate 20 to 25 percent of their total annual budget to advertising and marketing during the first and second year of operation. However, if you bought an existing business with a goodwill, 8 to 10 percent of your total budget should be adequate.
It is always recommended to take expert advice to create a successful marketing plan for your small business. Never forget to have your financial reports (profit and loss statement, balance sheet, etc.), the list of all the products and their sales reports, the details of the company’s personnel before writing a marketing plan. And, finally, take feedback from your team where necessary.
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