by Christina Pomoni

Created on: August 22, 2008   Last Updated: January 31, 2011

Marketing plan is a fundamental part of business plan. Marketing plan includes information about the marketing strategy that a firm plans to employ in the competitive marketplace ensuring a consistent approach to offering its products or services.

By defining the marketing strategy and the policies a firm should implement to achieve successful operations, the marketing plan is based on systematic market research. No matter how good a product or a service, it is risky to assume that the target market is already known. Market research ensures that the firm is adapted to market realities.

The key components of a marketing plan are:

1.      Situation analysis that includes the industry analysis and the customer analysis (they both provide details about competitors, suppliers, and the market)

2.      The marketing mix (4P’s) that includes the product, price, place and promotion.

a) Industry Analysis

Focusing on getting to know the competition, industry analysis answers questions such as facts and figures about:

* What is the total size of the market?

* What is the current demand?

* What are current trends in the target market?

* What is the growth potential and opportunity?

* Are there barriers to entry?

* What is the projected percent of market share the firm can acquire?

Other factors that need to be investigated in the industry analysis are related to:

* The number of competitors in the target market

* The nature of competition (direct, indirect competitors),

* The product range of competitors

* The distribution channels of competitors

* Capital costs

* Production costs

* Marketing costs

* Brand recognition

* Consumer awareness

b) Target Groups (Customer Analysis)

If the firm operates business-to-business (B2B), the target group section should mention information about:

* Industry

* Geographic location

* Size of firm

* Quality

* Technology

* Price preferences

If the operates business-to-customer (B2C) the marketing plan should identify the target group's demographics:

* Age

* Gender

* Geographic location

* Income level

* Social class

* Occupation

* Education

c) Product Mix

Product mix includes the most important features and benefits of the firm’s products or services. In doing so, the customers can realize the attributes of these products or services and why they should engage in a business relationship with the firm. For example, stressing the after-sales support offering warranty, service,

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