3. How to Write A Marketing
Plan
The Four P's of a Marketing Plan
The right Product or Service
The right Price
The right Place to Buy
The right Promotion to the right target markets
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The process of getting a product to market can be
as technically challenging as the invention, development and production
of a recycled-content product. "Going on the road" and
showing the product, or just providing a service does not sell
itself. A marketing plan is essential when a business is ready
to launch a product or when a launched product isn't doing well.
Carefully designed strategies based on sound research are necessary
to fully understand which market the product should cater to,
in order to succeed.
The marketing plan is a step-by-step recipe to launch
the product and reach many potential customers, as well as the
right distributor(s) and their respective customer base. Assumptions
and ideas from books or competitors may be helpful, but cannot
be the basis for the marketing plan.
The two major goals of a marketing plan are to educate
the end-user about the value of the product so that they will
go in search of it. The second goal is to educate the distributor
so that they will carry the product and sell it to the stores
or locations where the consumers will go to find the product.
Exceptions to this rule are when a direct sales
effort to the end-user is the most cost efficient method to achieve
sales, or when a custom product is developed for one or a few
specific end users that will be the primary, high-volume customer.
For example, ASAP Packaging developed a heavy-duty skid, made
from 100% recycled plastic, for shipping metal stock [link to
asap report]. The company's major customer buys a high volume
of their inventory. In this case, all strategies are geared towards
establishing relationships with the end-user.
Step 1: Collect the Information
A good marketing plan is based on the following accurate and current
information:
valid primary research data collected from distributors and end
users;
- competitive research on other products in the market;
- interviews with potential distributors and/or sales outlets;
- an understanding of why target customers would want the
product;
- an understanding of where customers buy such a product;
- an understanding of how customers would use the product
/service;
- test data to prove the product performance, including sample
products given to potential customers for feedback;
- an analysis of the price the current product (including
services) will get;
- an analysis of the actual cost to produce the product at
different volumes;
- an understanding of the different ways to deliver the product
and services to the distributor and end-user(s), including
packaging in different forms;
- a key list of benefits and product specifications;
- lists of appropriate trade journals and associations that
would be interested in knowing about such products or services.
Step 2 - Develop Strategies Based on the Market
Research
When the above information is compiled and understood,
team brainstorm on these elements to begin developing a marketing
plan:
- a creative strategy to guide the packaging of the product;
- an image strategy to guide promotional activities;
- a quality assessment and control plan
- a communications strategy to guide the preparation of brochures,
fact sheets, press releases, or product descriptions;
- a strategy to "seed" the market so that people
of influence can try the product and recommend it to others;
- distribution strategy
- a schedule of launch activities so the product receives
the necessary attention from distributors and end users;
- a sales strategy to guide presentations, demonstrations
and direct sales efforts.
Step 3 - Create Action Plans Based On Strategies
Marketing action plans can focus on several or all
of the following examples to ensure a functional marketing plan
that generates sales. These example actions follow the order or
the strategies presented above.
- Packaging
- Design functional, environmentally friendly, and aesthetically
pleasing (if applicable) packaging, to suit the place
where the product will be promoted.
- Image
- Coordinate with the communications strategy, to ensure
customers understand what type of company, personality,
ethics, product quality, and other merits the company
has to offer.
- Quality
- Conduct field testing to validate the product to performance
and aesthetic specifications before selling and distributing.
Get usable test data. Set up quality controls on the production
line.
- Communications
- Prepare a product package for each type of audience
from information for the end-user, direct sales team,
distributor, retail store to the trade journals. Also
prepare website product literature (if applicable). Clearly
spell out the benefits and features important to each
of different target audiences.
- Prepare consistent product demonstration/sales approach
and materials.
- Establish and develop relationships with the right
distributors.
- Provide free samples for trial periods (seeding).
- Launch product
- Prepare introduction letters and press releases. Send
the information to the right journal editors, website
distributors, and other venues.
- Direct mail - Most small companies can only afford
to start small by finding the right potential customers
and mailing them sample kits to encourage buyers. This
educational awareness process moves slowly but it does
work.
- Sales Strategies
- Pre-plan and rehearse all presentations.
- Be prepared to show customers how to use the product
to support the selling process and encourage the stores
and customers to try it.
- Advertising is very expensive, doesn't promote credibility
and generally is only useful once a company has a known
brand name. Once a company starts advertising it is difficult
to stop at one or two times.
- Trade shows may be better visited than exhibited. Attend
to find distribution contacts. Exhibiting is an expensive
use of resources that could be used more effectively in
direct mail activities and seeding.
Step 4: Document the Plan
Write the marketing plan by documenting how to implement
the strategies and action plans. Close with a list of the activities
and the time frame or schedule with which these activities needed
to be completed in order to launch the product.