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STRATEGIZING WITH THE 4 P'S
Meeting marketing objectives should lead to sales. (If not, you need to set different marketing objectives.) They should:
- be clear
- be measurable, and
- have a stated time frame for achievement.
Examples of marketing objectives follow:
- Increase product awareness among the target audience by 30 percent in one year.
- Inform target audience about features and benefits of our product and its competitive advantage, leading to a 10 percent increase in sales in one year.
- Decrease or remove potential customers' resistance to buying our product, leading to a 20 percent increase in sales that are closed in six months or less.
If you have multiple objectives, make sure they are consistent and not in conflict with each other. Also, be sure that the remainder of your marketing plan components-the marketing strategy, budget, action programs, controls and measures, etc.-support your marketing objectives.
Setting your marketing objectives and finalizing the remaining components of your marketing plan may serve as a reality check: Do you have the resources necessary to accomplish your objectives?
STRATEGIZING WITH THE 4 P'S
The marketing strategy section of your plan outlines your game plan to achieve your marketing objectives. It is, essentially, the heart of the marketing plan. The marketing strategy section should include information about:
- Product - your product(s)and services
- Price - what you'll charge customers for products and services
- Promotion - how you will promote or create awareness of your product in the marketplace
- Place (distribution) - how you will bring your product(s) together with your customers.
These are the 4Ps of marketing and are described fully in the following articles on our site.
- Product
- Price
- Promotion
- Place (distribution)
However, brief explanations of what should be included in the marketing strategy section of your marketing plan pertaining to the 4 Ps appear below.
Product Description
A product can be a physical item, a service, or an idea.
- Describe in detail your products or services in terms of the features and benefits they offer customers.
- Describe what you need to have or do to provide your product or service (how it's produced).
Pricing
List the price of your products and describe your pricing strategy.
- List price ranges for product lines. For example, if your product is a line of cosmetics, include information in this strategy section about your lipsticks "ranging in price from $5.00 to $15.00 per item" rather than a detailed product price list. (You should, however, consider including a detailed price list in the Supporting Documents section.)
- Describe any price flexibility or negotiating room, as is common with large purchases such as houses or cars. Outline any discounts you offer for long-term customers, bulk purchases or prompt payment. Also, include the terms of sale, such as "net due in 30 days," extended payment plans, and whether you accept credit cards.
Promotion Plan
A promotion plan describes the tools or tactics used to accomplish your marketing objectives.
TABLE HERE
In your Action Programs section, you'll describe the steps that need to be taken in detail, when they should be done, who will do them, and so on.
Placement (Sales and Distribution)
In this section, describe how your products and customers "meet" or come together through sales and distribution.
- Describe your sales philosophies and methods. Do you employ an aggressive sales method for a large number of quick sales, or a relaxed method where the emphasis is on having customers feel comfortable to come back another time even if they don't buy now? Do you use contract sales people or employees? Explain your approach to sales issues.
- Describe your distribution system. (Where will your product be placed so customers have access to it?) A few points about distribution to address in your marketing plan are:
- Is the exchange of the product made in a store? Through the mail? Through a direct sales representative?
- What are your production and inventory capacities? (How quickly can you make products and how many can you store?)
- Are there cyclical fluctuations or seasonal demands for your products? For example, if you produce Christmas decorations, how will you manage peak production and sales periods as well as slow periods?
- Do you sell to individuals or to re-sellers? Your company may use more than one method. For example, you may sell directly to customers who place large orders but also sell to customers who buy small quantities of your product through retail outlets.
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