Developing the Marketing Plan

Nicanor P. Hayag
INTRODUCTION
The process of creating a marketing strategy has four main stages.
• Carrying out market research.
• Developing plans for market penetration.
• Planning the marketing mix that will make the strategy happen.
• Putting in place the sales activities and customer service support to
ensure sales growth and customer retention.
This will focus on the activities that follow on from the market research:
developing and implementing the marketing strategy and the sales and
customer service policies that need to be in place to make it work and to
ensure that the business is able to achieve sustainable growth by retaining
its customers so that sales effort can focus on generating new business.
A. DEVELOPING A COHERENT MARKETING PLAN
Market Penetration
Market penetration is about evaluating the market research which has been carried out and deciding
on the strategy that will be used to penetrate that market, by employing any competitive advantages
that the products or services offer.
Planning the Marketing Mix
The marketing plan for any product or service is concerned with formulating the right mixture of
characteristics and the way in which it is supplied and presented, in order to maximise its value and
interest to the target groups of customers which have been identified within the market research
process.
As a marketing theory, it is traditionally expressed in terms of the “Four Ps”. These are the four key
elements of the marketing mix.
• Product.
• Price.
• Promotion.
• Place.
A. DEVELOPING A COHERENT MARKETING PLAN
It has been argued (Broome and Bitner 1981) that for service industries three further Ps
should also be considered.
• People.
• Process.
• Physical.
A. DEVELOPING A COHERENT MARKETING PLAN
Accessing Markets and Distribution Networks
One of the biggest problems facing small firms is that of accessing new markets. Their large rivals will
typically have the staff and financial resources to spend on investigating new markets, not just through
desk-based market research activities but by visiting and meeting potential distributors and customers.
The process becomes even more important when the company is considering exporting or
establishing an operating base in another country.
In the home country, market research activities and sources of support and information are usually
relatively straightforward to identify, although the process itself can still be time consuming. Sources of
information, such as trade directories or trade associations. Depending on the country in which the
company operates, there will usually be some form of business support service – possibly quite well
developed like the Business Link and High Growth Coaching services in the UK, or maybe along the
lines of traditional chambers of commerce that inter-link with each other to provide their members with
access to their combined networks. Accessing markets in foreign countries can be a major challenge.
This is not just because of language and cultural barriers, but also because communications systems
may not be as well developed as the potential exporters are used to, and there may be legal
restrictions or barriers to non-domestic firms. In certain countries,
B. DELIVERING CUSTOMER SERVICE AND QUALITY FOR CUSTOMER RETENTION
Customer Retention
It is not sufficient just to carry out market research, and to define a marketing policy and the tactics to
implement it. It is essential to monitor the quality and efficiency of the service provision as the
customers perceive it. This is the key to customer retention.
Replacing lost customers is expensive in terms of both sales effort and actual monetary costs, and all
the time that sales effort is focused on replacing lost customers instead of expanding the customer
base by gaining new and additional customers, the firm’s potential for growth will be restricted.
Customer Relationships
Customers are usually lost because they are dissatisfied with the quality or functionality of the
products or services themselves, the reliability of the supplier in delivering them on time, poor after-
sales service, or because of a breakdown in the customer–supplier relationship. It is this relationship
that is the most important as if it is strong it will normally be possible to sort out problems or
complaints that the customer has. So, the process of building long-term relationships with customers
is essential for customer retention.
Understanding Customer Perceptions
When you as a customer deal with a shop or business, ask yourself what factors are likely to impress
you about the transaction, and what factors are likely to put you off dealing with the business again.
B. DELIVERING CUSTOMER SERVICE AND QUALITY FOR CUSTOMER RETENTION
Developing Customer Care Policies and Quality Standards
The primary objectives of customer care policies are as follows.
• To retain customers for repeat business.
• To increase the level of trade with existing customers by improving their confidence.
• To enhance the reputation of the business and its product or service quality to increase
customer loyalty and recommendations.
• To reduce the costs of business operations, over the longer term.
• Within the business itself, to increase the job satisfaction of staff.
C. THE SALES PROCESS
The Sales Plan
The Promotion section of the marketing mix should provide the basic
structure for determining the most appropriate methods of sales activity for
reaching the customer target groups.
Setting Targets and Measuring Achievement
• The sales plan is, then, about defining the range and combination of
promotional activities which will be employed to persuade the customers to
buy the products.
Sales Skills
• For new or aspiring owner-managers with no previous sales experience,
the most daunting prospect is that of having to sell their goods or services.
Sales skills have to be learnt and practised if they are to achieve good
results on a regular basis
C. THE SALES PROCESS
The Sales Plan
Some Basic Techniques of Selling
The following list of tips will help less experienced entrepreneurs or new business owners
to develop their personal sales skills and their ability to engage customers successfully
Before the sales meeting.
• Rehearse your sales pitch so that you can deliver it fluently.
• Research the target.
• Find the decision-maker(s) and get contact names and titles. • Plan what you want to
achieve from the meeting before you arrive, but be aware that those objectives may well
change during the meeting, or may not be achieved in just one visit.
• Have suitable information/literature/ website information available so that you can provide
it if asked.