Stages of the Marketing Plan

Due to the interdisciplinary nature of marketing, as well as the different size and activity of the companies, a standard program for the realization of the marketing plan cannot be provided; since the elaboration conditions that give it validity are varied and respond, in general, to different needs and cultures of the company. However, as guidelines, I advise against spending too much time preparing a marketing plan that is not needed; we must not get lost in complicated reasoning; marketing must be applied with an analytical spirit but at the same time with common sense; we should not work with endless data, only use the necessary ones; and, most importantly, make it workable and pragmatic.

The marketing plan requires, on the other hand, a methodical and organized work to gradually advance in its writing. It is convenient that it be widely discussed with all the departments involved during the preparation phase so that no one, within the company, feels excluded from the business project. In this way, the entire human team will feel linked to the objectives set by the plan, resulting in greater efficiency when it comes to implementation.

Regarding the number of stages in its realization, there is no unanimity among the different authors, but in the attached table I include the most important according to my criteria:

Graph 2.  Different stages for the elaboration of a marketing plan

5.1. Executive Summary

Its brevity is not directly related to the level of importance, since in a reduced number of pages it must indicate an extract of the content of the plan, as well as the means and strategies that are going to be used. Reading these pages, together with the recommendations that should also be included at the end of the plan, are what will help senior management to obtain a global vision.

5.2. Analysis of the situation

The marketing area of ​​a company is not an isolated department that operates apart from the rest of the company. Above any market objective will be the mission of the company, its definition will be given by senior management, which must indicate what the corporate objectives are, that is, what business we are in and what markets we should target. This will be the general framework in which we must work for the elaboration of the marketing plan.

Once this general framework has been established, we must collect, analyze and evaluate the basic data for the correct preparation of the plan, both internally and externally to the company, which will lead us to discover the past and present situation in the report; For this, it is necessary to carry out:

• A historical analysis. Its purpose is to establish projections of the most significant events and from which, when examining the past evolution and the future projection, quantitative estimates can be extracted such as sales in recent years, the trend of the market expansion rate, share of product share, average order trend, product turnover levels, price behavior, etc., the historical concept applies to at least the last three years.
• A causal analysis. With which it is intended to find the reasons that explain the good or bad results in the objectives set, and not the excuses and justifications, as sometimes happens. Regardless of the analysis that we make to each of the stages of the previous plan, the response capacity that was had in the face of unforeseen situations of the competition or conjunctural must be evaluated.
• An analysis of the behavior of the sales force. True architects of the achievement of commercial objectives, it is convenient to carry out a detailed analysis both at the geographical and zone level, as well as at the delegation and individual level, the comparative and analysis tool is the ratio.
• A market study. For a long time it has been thought that within the analysis of the situation, this was the only point that should be developed to prepare a marketing plan and always through a survey; Paradoxically, it is not always necessary to do it to know both the market and the situation from which it starts, since currently there are, as we have explained in the market research chapter, very valid alternatives to obtain reliable information.
• A SWOT analysis. Studied in the chapter corresponding to strategic marketing, it is in the marketing plan where it has its maximum exponent since in it all the strengths, weaknesses, threats and opportunities that exist or may arise in the company or the competition will be analyzed and studied. which will allow us to reflect not only the current situation but also the possible future.
• Analysis of the RMG matrix. Also studied in the strategic marketing chapter, it tries to analyze and evaluate the degree of acceptance or rejection that is manifested in the market regarding a product or company. If not contemplated in its proper measure, it leads to economic losses at the time, since when faced with the appearance of a new product that seems to meet the most demanding guidelines and that fully responds to all needs, its acceptance could be rejected. Without apparent logic, marketers always say that “the market always takes its toll.”

Within the marketing plan, when developing the situation of a company within the market, it must be considered that, together with carrying out the analyzes set forth herein, other external and internal factors must be considered that directly affect the results, for this reason It is convenient to include them within this stage and that they will be decisive in the following ones. Among the main ones, we can highlight:

• Around:
  • Socioeconomic situation.
  • Legal regulations.
  • Changes in cultural values.
  • Trends.
  • Appearance of new market niches.
  • Etc.
• Image:
  • From the company.
  • of the products.
  • Of the sector.
  • From the competition.
  • On an international level.
  • Etc.
• Professional qualification:
  • Management team.
  • External collaborators.
  • Sales teams.
  • Equipment identification degree.
  • Etc.
• Network positioning:
  • Analysis web pages.
  • SEO positioning.
  • Content manager- keywords .
  • Presence social networks.
  • Possibility of e-commerce.
  • Etc.
• Market:
  • Degree of implementation in the network.
  • Size of the same.
  • Segmentation.
  • Buying potential.
  • Trends.
  • Offer analysis.
  • Analysis of demand.
  • Qualitative analysis.
  • Etc.
• Distribution network:
  • Types of point of sale.
  • Professional qualification.
  • Number of points of sale.
  • Commercial actions exercised.
  • Logistics.
  • Etc.
• Competence:
  • Market share.
  • RRP.
  • Discounts and bonuses.
  • Distribution network.
  • Services offered.
  • Professional level.
  • Image.
  • Implementation to the network.
  • Etc.
• Product:
  • Technology developed.
  • R+D+i
  • Share of global sales.
  • current range.
  • Rotation levels.
  • Analysis of the different variables (core, size and brand…).
  • costs.
  • Prices.
  • margins.
  • Guarantee.
  • Delivery times.
  • Etc.
• Communication policy:
  • Selected targets .
  • Communication objectives.
  • Budgets.
  • Work teams.
  • Existence of internal communication.
  • Internet positioning.
  • Etc.

5.3. Goal Determination

The objectives constitute a central point in the elaboration of the marketing plan, since everything that precedes them leads to the establishment of the same and everything that follows them leads to the achievement of them. The objectives in principle determine numerically where we want to go and in what way; These must also be in accordance with the general strategic plan, an objective also represents the desired solution to a market problem or the exploitation of an opportunity.

5.3.1. Lens Characteristics

With the establishment of objectives, what is most pursued is the determination of the sales volume or market share with the least possible risk, for this the objectives must be:

• viable. That is to say, that they can be achieved and that they are formulated from a practical and realistic perspective.
• Concrete and precise. Fully consistent with company guidelines.
• In the time. Adjusted to a work plan.
• agreed. Included in the general policy of the company, they must be accepted and shared by the rest of the departments.
• flexible. Totally adapted to the need of the moment.
• Motivators. As with sales teams, they must be set up with an achievable challenge.

They are also controlled with the mnemonic word MARTE that we saw in the section on control and supervision of sellers, in chapter 8.

Graph 3.  Types of basic objectives

I am aware that not all marketing professionals accept the term qualitative objective, but my experience indicates that while quantitative objectives are set to give results in the short term, it is the qualitative ones that make us consolidate over time and obtain better results in the medium and long term, therefore I consider:

• Quantitative. To the forecast of sales, percentage of benefits, acquisition of new clients, recovery of lost clients, market share, penetration coefficient, etc.
• Qualitative. To the improvement of image, greater degree of recognition, quality of services, opening of new channels, professional improvement of the sales force, innovation, etc.

5.4. Development and selection of strategies

The strategies are the paths of action available to the company to achieve the planned objectives; When a marketing plan is drawn up, these must be well defined in order to position themselves advantageously in the market and against the competition, in order to achieve the highest profitability for the commercial resources assigned by the company.

Likewise, one must be aware that any strategy must be formulated on the basis of the inventory that is made of the strengths and weaknesses, opportunities and threats that exist in the market, as well as the internal and external factors that intervene and always of according to the corporate guidelines of the company.

In the strategic marketing chapter, the different types of strategy that a company can adopt have been indicated, depending on the character and nature of the objectives to be achieved. We cannot always obtain the same results with the same strategy, since it depends on many factors, the word “adapt” once again takes center stage. Therefore, even if the strategy we establish is correctly defined, we cannot have a guarantee of success. Its effects will be seen in the long term.

The process to follow to choose the strategies is based on:

• The definition of the target audience that you want to reach.
• The general approach and specific objectives of the different marketing variables (product, communication, sales force, distribution…).
• The determination of the budget in question.
• The global valuation of the plan, preparing the provisional operating account, which will allow us to know if we obtain the fixed profitability.
• The designation of the person in charge who will be in charge of achieving the marketing plan.

Both the establishment of the objectives and the marketing strategies must be carried out, at the proposal of the marketing director, under the supervision of the company’s senior management. This is the most appropriate way to establish a true and solid commitment towards them. The rest of the company’s staff should also be aware of them, since if they know where the company is going and how, they will feel more committed. Therefore and in general terms, they must be given enough information so that they get to know and understand the total context in which they move.

For information purposes, we indicate below some possible strategic orientations that can be considered, both independently and in combination with each other:

• Get better search engine rankings.
• Eliminate less profitable products.
• Modify products.
• Expand the range.
• Be a reference in social networks.
• Support the sale of the most profitable.
• Focus on the most profitable channels.
• Support the sale of “boy” products.
• Close the less profitable branches.
• Support the point of sale.
• Modify distribution channels.
• Improve production efficiency.
• Modify delivery systems.
• Withdraw from some select markets.
• To work or not with a distributor brand.
• Specialize in certain products or markets.
• Etc.

5.5. Action plan

If you want to be consistent with the selected strategies, you will have to draw up an action plan to achieve the proposed objectives within the specified period. Any objective can be achieved from the application of different strategic assumptions and each of them requires the application of a series of tactics. These tactics define the specific actions that must be implemented in order to achieve the effects of the strategy. This necessarily implies having the human, technical and economic resources capable of carrying out the marketing plan.

It can be affirmed that the marketing objective is the point of arrival, the selected strategy or strategies are the path to follow in order to achieve the established objective or objectives, and the tactics are the steps that must be taken to travel the path.

The different tactics used in the aforementioned plan will be included in the marketing mix , since different specific strategies will be proposed, combining the marketing variables appropriately. They can be supported in different combinations, which is why at this stage we limit ourselves to listing some of the actions that could be implemented, which of course will be based on everything analyzed in the previous stages.

• About the product. Eliminations, modifications and launching of new products, creation of new brands, range expansion, quality improvement, new packaging and sizes, added values ​​to the product, creation of new products…
• About the price. Review of current rates, change in discount policy, incorporation of rappels , purchase bonuses…
• About distribution channels. Marketing via the Internet, support for retailers, setting conditions for wholesalers, opening new channels, stock policy , improvements in delivery times, transport subcontracting…
• About the commercial organization. Definition of functions, duties and responsibilities of the different commercial levels, increase or adjustment of staff, modification of sales areas and routes, remuneration and incentives for sellers, fulfillment and processing of orders, subcontracting of task forces …
• About comprehensive communication. Recruitment of a press office, promotion of the website, media and support plan, determination of budgets, promotional campaigns, direct marketing policy, presence in social networks…

It is very important to point out that the tactics must be consistent both with the marketing strategy that must be supported and with the commercial resources available to the company in the established period of time. The determination of the tactics that will be carried out for the implementation of the strategy will be carried out by the marketing director, as well as the establishment of objectives and strategies. In the same way, the human means and material resources necessary to carry them out must be determined, indicating the degree of responsibility of each person who participates in their realization, as well as the specific tasks that each of them must carry out, coordinating all them and integrating them into a common action.

5.6. budget setting

Once you know what to do, all you need is the necessary means to carry out the previously defined actions. This materializes in a budget, whose spending sequence is done according to the work and time programs applied. In order for the general management to approve the marketing plan, they will want to know the quantification of the effort expressed in monetary terms, since money is a common denominator of various resources, as well as what it leads to produce in terms of benefits, since in view of the provisional operating account may issue a judgment on the viability of the plan or show interest in carrying it out. After approval, a budget is an authorization to use economic resources. It is not the means to achieve an objective, that means is the program.

5.7. Control systems and contingency plan

Control is the last requirement of a marketing plan, management control and the use of scorecards allow us to know the degree of compliance with the objectives as the defined strategies and tactics are applied. Through this control, it is intended to detect possible failures and deviations based on the consequences that these generate in order to be able to apply solutions and corrective measures as quickly as possible.

If these control mechanisms are not established, we would have to wait for the exercise to end and then see if the objective set has been achieved or not. In the latter case, it would be too late to react. Thus, the control mechanisms make it possible to know the partial achievements of the objective in relatively short periods of time, so that the ability to react is almost immediate.

The methods to be used will be made once the key result areas (ARC) have been selected and identified, that is, those aspects that provide the greatest contribution to the performance of commercial management. Below we will briefly outline the type of information that the marketing department will need to evaluate possible deviations:

• Sales results (by delegations, range of products, by vendor…).
• Profitability of sales for the same concepts previously exposed.
• Control ratios established by management.
• Our position in the network.
• Control of the activity of the sellers.
• Result of the different communication campaigns.
• Rates of visits per order.
• Revenue ratios per order.
• Etc.