Marketing Plan for New Product
Marketing plan refers to operational documents that highlight an advertisement strategy that companies will execute for generating sales. In this article, our professionals will provide students with useful guidelines that will help them in developing an effective market plan. By reading this article, students pursuing an MBA will able to write a good marketing plan and would able to achieve a good score in their exams.
What is a Marketing Plan?
A marketing plan is a document that outlines organizational efforts of promoting goods or services. The main purpose of the marketing plan is to help the company in promoting its goods or services both at the global and international levels. A marketing plan is considered to be one of the most powerful strategic tools. It is a written marketing plan which can provide guidance and help you in accomplishing desired objectives. Good marketing planning can also help you in the identification of potential opportunities for launching new products in the market.
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How do you write a marketing plan?
Before starting to write a business plan you need to consider the purpose and type of business for which you are writing it. At the time of creating a marketing plan you also need to keep in mind the size and nature of the target audience. If you are writing the marketing plan then you need to start with the development of the product then move towards regular advertisement and finally the promotion of the final product. The main purpose of a marketing plan for a new product is to introduce good in the market at a later stage by using the latest information.
The 7 steps of writing a marketing plan include:
Step 1: Define the target market
At the initial step of writing a marketing plan you need to identify and define the target customer or market. You are required to specify the target customer group to whom you intend to sell the newly launch products. In simple words you need to perform demographic analysis. The best ideas are to perform market research, as these tactics will help you in identifying the people who want o buy new products. After successfully addressing the target audience, you need to categorize them based on different variables like age, gender, income, etc.
For example, Charles & Keith is a company in Singapore that operates a business in the apparel retail sector. An organization is planning to sell ethnic wear. A company is planning to target the audience within a locality. The marketing manager in an enterprise has planned to target women belonging to the upper-income level group.
Step 2: Write the benefits of goods or services
At this step of the marketing plan, you are requiring to determine the benefit which your customer can enjoy by using products or services. You need to think about providing benefits by considering the expectations of the target customers group.
For example, the marketing manager in, Charles & Keith’s organization is planning to sell its ethnic wear clothes online. Such a marketing strategy has been designed by the manager to provide customers ease in buying goods.
Step 3: Perform situational analysis
At the time of creating a marketing plan, it is very much important for you to have in-depth knowledge about the market. You should also have information about the strategies adopted by competitors for influencing people to buy products. It is very much crucial; for you to analyze strength, weakness, opportunities, and threats of your business.
For example The competitors such as Lee Ltd. Which is also an apparel company in Singapore that can give tough competition to Charles & Keith. By lowering the princes of products Lee Company can easily influence the sales and profitability of Charles & Keith Company. Therefore, it is required by the marketing manager in Charles & Keith to adopt either low cost or flexible pricing strategy.
Step 4: Define a unique selling point for your goods
It is a step, where you need to define unique features that are possessed by your product. It can be Quality, convince, discounting prince, etc.
For instance, a marketing manager in Charles & Keith has the plan to implement a discounting pricing strategy as this will help them in attracting customers to make purchases of newly launch products.
Step 5: establish marketing goals
Before starting to write a marketing plan, it is very much essential for you to set goals. The establishment of the goal will help you in determining the strategies.
For example, Charles & Keith Company intends to increase the sale of newly launch products which is its marketing goals. A business entity can achieve such an objective by offering a discount.
Step 6: Specify marketing methods
It is a step where you need to specify the techniques you will use for promoting your new launch product. There are several techniques such as TV advertisements, brochures, etc. You can utilize for advertising your newly launch product.
For example, marketing campaigning is the technique that the marketing manager of Charles & Keith will use for generating brand awareness.
Step 7: Prepare marketing budget
The last step in writing a marketing plan is to prepare a budget. It is steps where you require determining all money that you will invest in the promotion of your goods. At this step you should also determine the source from where you will obtain funds for marketing.
Things to consider before writing a marketing plan
Before writing a marketing plan for the launch of a new product in the market, you need to first develop an understanding of the process which customer undergoes before making a purchase decision. In simple fords, at the time of creating a marketing plan you need to first gain knowledge about buyers 5 step adoption process. The buyer adoption procedure includes 5 steps these are:
- Awareness: This is an initial step, where customers become aware of the existence of a particular brand in the market.
- Interest: It is a step, where customers became aware of a particular brand and conduct preliminary research for gathering more information about the organization.
- Evaluation: At this step, customers search for different brands selling the same products and after that based on information makes a comparison.
- Trial: it is a step where customers have developed an interest to make initial purchases or products.
- Adoption: It is a step when your product is finally liked and purchased by customers.
Advertising and promotion plans can help cover the first half of the adoption procedure. You are required to formulate a sales and distribution plan to cover the other half of the adoption process.
Techniques to evaluate the marketing plan
You can easily judge whether the marketing plan which you have design deliver the effective result or not based on analyzing the following such as:
- Return on investment
You can check whether the money you put into your marketing plan has resulted in a profit. You must measure the amount spent on each campaign, versus the number of sales each campaign brought in specifically.
- Review of sales
An increase in sales of products is an indicator of a good promotional plan.
- Response of customers
A high number of positive responses from customers means your marketing plan works.
- Feedback from sponsors
If you get a positive response from sponsors it means that your advertising plan is effective.
- Actions of competitors
By analyzing the actions of competitors you can confirm the success or failure of a marketing plan. If in case competitors copy your strategy that means your promotional plan is effective.
From the above article it has been concluded that considering the customer decision-making process is very much essential at the time of developing a marketing plan. Another fact which has been concluded from the above is that the marketing plan act as a blueprint for the sales strategy of the organization.