Marketing Plan
Entrepreneurship (10th Ed 2016)
by Robert Hisrich, Michael Peters,
Dean Shepherd
DIFFERENCE BETWEEN A BUSINESS PLAN AND A
MARKETING PLAN
Marketing Plan:
The marketing plan focuses on all marketing activities of a venture for one year or more
The marketing plan will vary significantly for a firm depending on the industry, target
market and the size and scope of the organization
it is also a standalone document that needs to be managed on a short-term basis to
ascertain whether the venture is meeting its goals and objectives
Business Plan:
The road map for the entire organization over time
It focuses on not just marketing issues but also such decisions as research and
development, operations, manufacturing, personnel, financial projections and
analysis, and future growth strategies
UNDERSTANDING THE MARKETING PLAN
Once the entrepreneur has gathered all the necessary information, he or she can
sit down to prepare the marketing plan
Primarily the marketing plan establishes how the entrepreneur will effectively
compete and operate in the marketplace and thus meet the business goals and
objectives of the new venture
Once the strategies of how the business will operate have been established, the
entrepreneur can assign costs to these strategies, which then serves the important
purpose of establishing budgets and making financial projections
It is designed to provide answers to three basic questions
Where have we been?
Where do we want to go (in the short term)?
How do we get there?
CHARACTERISTICS OF A MARKETING
PLAN
Some important characteristics that must be incorporated in an effective
marketing plan are as follows:
It should provide a strategy for accomplishing the company mission or goal
It should be based on facts and valid assumptions. It must provide for the use of
existing resources. Allocation of all equipment, financial resources, and human
resources must be described
It should be simple and short. A voluminous plan will be placed in a desk drawer and
likely never used. However, the plan should not be so short that details on how to
accomplish a goal are excluded
The success of the plan may depend on its flexibility. Changes, if necessary, should
be incorporated by including what-if scenarios and appropriate responding strategies
It should specify performance criteria that will be monitored and controlled
Cont…
Marketing System
The marketing system identifies the major interacting components, both
internal and external to the firm, that enable the firm to successfully provide
products and/or services to the marketplace
Cont…
The environment (external and internal) plays a very important role in
developing the market plan
These factors should be identified and discussed in the industry analysis
section of the business plan
It should also be noted that these (External) factors are typically
uncontrollable but need to be recognized as part of the marketing plan
There are internal environmental factors which, although more controllable
by the entrepreneur, can also affect the preparation of the marketing plan
and implementation of an effective marketing strategy
Steps in Preparing Marketing Plan
Defining the Business Situation
Defining the target market: Opportunities and Threats
Considering Strengths and Weaknesses
Establishing Goals and Objectives
Defining Marketing Strategy and Action Programs
Marketing Strategy: Consumer versus Business-to-Business Markets
Budgeting the Marketing Strategy
Implementation of the Market Plan
Monitoring the Progress of Marketing Actions
