When you start a business, it is extremely important to have a marketing plan. A marketing plan is essential in helping you develop an understanding of what actions you can take to bring success. When people look at statistics about small businesses and see that only about half of all small businesses make it to their fifth birthday, it can be daunting to jump into such cold waters.
However, if you take the steps to prepare for entrepreneurship, you have given yourself a boost over the hurdles that plague the small business owners who become just another statistic. Your marketing plan establishes how and to whom you promote your product or service. Before your write your marketing plan, let’s review some crucial marketing terms to help you have a clear idea of what this approach entails.
The term marketing encompasses a large range of behaviors undertaken by businesses to communicate their brand message with their customers. In a nutshell, marketing presents products or services in ways that make them desirable. Your advertising, website, social media profiles, and newsletter are all part of your marketing efforts, and are the efforts you undertake to persuade potential customers to become paying customers. Marketing uses both emotional and rational appeals to attract customers and encompasses a wide variety of actions and components. Creativity in your marketing is vital, and the returns can be enormous.
2. Market Research
The term market research may seem overly dry or academic, but it is extremely important. In short, market research tells you who is your customer and why they could buy form you. It also can tell you how many potential customers exist for your market. You may think that everyone will want what you offer, but your market research will tell how likely that scenario is.
For example, the cost of your product may eliminate much of the potential market, or your product may be too specialized to attract enough customers to support your costs. It is important to not just examine the current market, but look ahead to the long-term as technological or cultural changes might transform the market. Good market research gives you solid ground on which to begin your endeavor.
Advertising is another broad category of marketing focused on bringing attention to a product or service in order to create a sale or build awareness. Product placement in movies is a form of paid advertising, as are pay-per-click ads online. Branding is a key component of advertising. You can use advertising to build brand awareness via media, such as a placing a Facebook ad. Your market research will tell you where, how, and when you should be advertising.
The culmination of all your efforts is sales — that moment when you have convinced your audience to take action and bring out that plastic to make a purchase. Sales is the goal where your marketing, market research, and advertising all lead. Sales activities include direct marketing, selling (including in person, via the Internet, phone, or networking) and trade shows. Any action that results in an exchange of goods or services for money or an equivalent is a sale. How much you sell and when you sell all factor into your bottom line.
Profit is how you measure your success in purely economic terms. It is the amount of money you’ve made after you deduct all your costs of doing business, such as direct and indirect expenditures. Pricing directly impacts your profit! A completed business plan gives you insight in how your specific profit model works. Remember, if you are prepared from the outset, you have strengthened your chances of success in the future.
Understanding these key terms and applying them in your marketing plan ensures that you have a solid plan for what you are selling, how you will sell it, and to whom you will sell. Marketing is the umbrella under which you will execute your marketing research, plan your advertising, make your sales, and calculate your profit. Social media — and media in general — is the means by which you take your message to you audience, but a tight marketing plan is meant to guide your messaging and help you identify the best channels for it.