Marketing Plan Template

Writing a marketing plan that is both optimistic and ambitious while still being feasible can be a challenging task. Of course you need to show that the plan will work and is worth perusing, but being unrealistic will mean that the plan is dead before it was ever implemented.

Entrepreneur.com describes the marketing plan as - The written document that describes your advertising and marketing efforts for the coming year; it includes a statement of the marketing situation, a discussion of target markets and company positioning and a description of the marketing mix you intend to use to reach your marketing goals. - Quite a mouth full for the uninformed mind and if you have not done something like this before it may be a step to far. Using the latest small business software may be the answer as it may well save you an enormous amount of time and money in the long term.

It is important that you understand how the process works and we recommend the various steps below as a guide.

Before starting on your written plan, you should answer the following questions:

1. What is the product or service you are selling?

2. Who is your market that will buy the product or service?

3. What need does the above market have for your product or service?

4. What is the basic message that you would like to send to this market in regards to your product?

5. What is the best way of getting in contact with your projected market? (i.e.- T.V, Radio, Print, Online)

After answering the above questions you will ready to start on your marketing plan. When answering question five keep in mind your budget limitations as you do not want to set yourself up for committing too much money to advertising.

Follow the template below using your answers to the above questions to guide you through.

Executive Summary

The Executive Summary can be taken straight from the business plan or it can be newly written for the marketing plan. Below is a suggested list of things to be included.

Description of the Company

The description of the company should include a brief summary of the company including when it was founded and some general details about your company. It should not be more than about 10 lines and should not go into too much detail about the companies mission or products and services as this comes later in the Executive Summary.

Mission Statement

This should not be anything new and should be taken directly from the Business Plan. Most companies have mission statements from day one and this should be included on all marketing plans.

Products and Services

The information in this category could vary depending on the purpose of the plan. If this is a company wide marketing plan then all products and services should be listed briefly giving a good description of what each of them can provide. If this marketing plan were specific to a product, then a description in more detail would better suit the marketing plan.

Financial Feasibility

This section should also come straight from the business plan and give a brief description of the financial outlook of the company and what effects may arise if the marketing is not successful. You should not discuss financial plans for the marketing program in this section of the document.

Strategic Focus and Plan

Mission/ Vision

Not to be confused with the Company Mission, this statement is what you would like to get out of the marketing plan. If this is a marketing plan for a single product, then this statement should state what your company expects out of the product and they plan to achieve this.

Objectives

The objectives of the marketing for the particular product, service or company should be outlined in this section. If one of the objectives is to make 50,000 people aware of your new product then this is something that should be included in your objectives. You can also include company objectives in this section if they are directly affected by your marketing. For instance, if your goal is to make one million dollars in sales the first year, then this is an objective that comes in direct contact with the marketing program.

Competitive Environment

Here is where you need to outline the competitive environment of your market. This would include any competitors whether they are in direct or indirect competition.

Situation Analysis

There are two effective marketing tools that can be used in a situation analysis purpose. The SWOT analysis and the BCG Dot Matrix. (Please refer to article on Effective marketing tools for beginners if you are unsure about these two tools).

For an in-depth analysis include both the SWOT Analysis and the BCG Dot Matrix in the Situation analysis. These diagrams can compare your products to your competitors and help you to determine the best approach for winning your section of the market.

Competitive Analysis

This section differs from the competitive environment as it describes more in-depth how you plan to effectively market against the competition. This section should outline direct competition's weaknesses and how you plan to capitalize on these weaknesses to grab the market share.
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Market Product Focus

Marketing Objectives

These objectives can work in two different ways depending on what type of marketing plan you are writing. If you are writing a company wide marketing plan, then this section would outline all of the objectives you wish to attain through your marketing program. They should be listed in a number format along with a detailed description of how you wish to accomplish these objectives.

If the plan were being created on an individual product/service basis then the marketing objectives would be what the company expects to gain from this product/service. Once again, objectives should be listed in a number format with a detailed description of how this products/services marketing will tie in with the marketing of the program and how this will be accomplished.

Target Markets

This section will define in detail the market in which you will be marketing your product. It should be described in detail, and should outline how you come to the conclusion that this is the right market for your product/service. You should also state why this market is going to use your product and show what research has been conducted to come to this conclusion.

Marketing Program

Product Strategy

The product strategy should give a detailed description of what your product(s) are and how they are going to benefit your company. You describe which products you think will be most popular and describe which ones you want to be the most popular (The BCG Dot Matrix is very good in helping you determine this). If you are doing an individual product marketing plan, then this section would describe in detail what your product is and what strategies you have to make it beat out your competitors.

Price Strategy

The price strategy is where you will describe your key pricing issues. It is a good idea to state whether you are taking the high cost-low turnover method or the low cost/high turnover method. If you think your key selling point is going to be the price, then explain that here. If you are taking the low cost/high turnover approach then explain how your company will succeed with the low profit-margin on each product. Be sure to include rough estimates of profit-margins, manufacturing costs and end consumer prices.

Promotion Strategy

The promotion strategy is one of the most important sections of the marketing plan. This is where it can make or break a marketing program. This section should include advertising strategies you plan to engage in, any marketing strategies for your products such as attending trade shows, conferences etc. Also you should explain what message you want to promote in all of the items mentioned above. You should send the same message through all channels of communication.

The most important element of the whole process is of course that is is based on solid marketing research and possible field work conducted where your clients are. Make sure that the marketing plan is based on facts and not fiction.

Writing a Business Plan for a Paving Contractor

The business plan is increasingly becoming a crucial element of any startup business. Business raise money for different reasons of course. A fintech startup mught be raising funds to afford digital marketing and seo services in South Africa, while a paving contractor in Gauteng might be looking to grow their business by buying more machinery. Not only for business finance purposes but really important to ensure you have thought through the challenges the new business, clients and environment may through at you. No it’s not a rule book by which you have to keep every step of the way. Yes it is an essential point of  reference when making important decisions. The financial and marketing research elements of the business plan is especially important from a guidance perspective.

So how do you go about it? Do you use a business plan template, sample business plans or perhaps the latest in business plan software? Here are a few useful thoughts from Business link to point you in the right direction.

The audience for your business plan

There are many benefits to creating and managing a realistic business plan. Even if you just use it in-house, it can:

help you spot potential pitfalls before they happen

structure the financial side of your business efficiently

focus your development efforts

work as a measure of your success

Many people think of a business plan as a document used to secure external funding. This is important because potential investors, including banks, may invest in your idea, work with you or lend you money as a result of the strength of your plan.

The following people or institutions may request to see your business plan at some stage:

banks

external investors - whether this is a friend, a venture capitalist firm or a business angel

grant providers

anyone interested in buying your business

potential partners

You should also bear in mind that a business plan is a living document that will need updating and changing as your business grows. Regardless of whether you intend to use your plan internally, or as a document for external people, it should still take an objective and honest look at your business. Failing to do this could mean that you and others have unrealistic expectations of what can be achieved and when.

What a business plan should include

Your business plan should provide details of how you are going to develop your business, when you are going to do it, who's going to play a part and how you will manage the finances.

Clarity on these issues is particularly important if you're looking for finance or investment. The process of building your plan will also focus your mind on how your new business will need to operate to give it the best chance of success.

Your plan should include:

An executive summary - this is an overview of the business you want to start. It's vital. Many lenders and investors make judgments about your business based on this section of the plan alone. See the page in this guide on the executive summary.

A short description of the business opportunity - who you are, what you plan to sell or offer, why and to whom. See the page in this guide on your business, its products and services.

Your marketing and sales strategy - why you think people will buy what you want to sell and how you plan to sell to them. See the pages in this guide on your markets and competitors and marketing and sales.

Your management team and personnel - your credentials and the people you plan to recruit to work with you. See the page in this guide on your team's skills.

Your operations - your premises, production facilities, your management information systems and IT. See the page in this guide on your operations.

Financial forecasts - this section translates everything you have said in the previous sections into numbers. See the page in this guide on financial forecasts.

You can read sample business plans at the Bplans website - Opens in a new window or see a library of business plan templates on the Microsoft Office website - Opens in a new window.

The executive summary

The executive summary is often the most important part of your business plan. Positioned at the front of the document, it is the first part to be read. However, as a summary it makes sense to write it last.

It may be the only part that will be read. Faced with a large pile of funding requests, venture capitalists and banks have been known to separate business plans into 'worth considering' and 'discard' piles based on this section alone.

What is it?

The executive summary is a synopsis of the key points of your entire plan. It should include highlights from each section of the rest of the document - from the key features of the business opportunity through to the elements of the financial forecasts.

Its purpose is to explain the basics of your business in a way that both informs and interests the reader. If, after reading the executive summary, an investor or manager understands what the business is about and is keen to know more, it has done its job.

It should be concise - no longer than two pages at most - and interesting. It's advisable to write this section of your plan after you have completed the rest.

What is it not?

A brief description of the business and its products. It's a synopsis of the entire plan.

An extended table of contents. This makes for very dull reading. You should ensure it shows the highlights of the plan, rather than restating the details the plan contains.

Hype. While the executive summary should excite the reader enough to read the entire plan, an experienced investor or businessperson will recognise hype and this will undermine the plan's credibility.

You can read sample business plans on the Bplans website - Opens in a new window.

Your business, its products and services

You must be able to clearly describe what your business does, whether you are writing the business plan for your own purposes or if you want other people to provide funds through investments or loans.

This part of the plan sets out your vision for your new business and includes who you are, what you do, what you have to offer and the market you want to address.

Start with an overview of your business:

when you started or intend to start trading and the progress you have made to date

the type of business and the sector it is in

any relevant history - for example, if you acquired the business, who owned it originally and what they achieved with it

the current legal structure

your vision for the future

Then describe your products or services as simply as possible, defining:

what makes it different

what benefits it offers

why customers would buy it

how you plan to develop your products or services

whether you hold any patents, trade marks or design rights

the key features of your industry or sector

Remember that the person reading the plan may not understand your business and its products, services or processes as well as you do, so try to avoid jargon. It's a good idea to get someone who isn't involved in the business - a friend or family member perhaps - to read this section of your plan and make sure they can understand it.

Your markets and competitors

In this section you should define your market, your position in it and outline who your competitors are. In order to do this you should refer to any market research you have carried out. You need to demonstrate that you're fully aware of the marketplace you're planning to operate in and that you understand any important trends and drivers.

You should also be able to show that your business will be able to attract customers in a growing market despite the competition.

Key areas to cover include:

your market - its size, historical data about its development and key current issues

your target customer base - who they are and how you know they will be interested in your products or services

your competitors - who they are, how they work and the share of the market they hold

the future - anticipated changes in the market and how you expect your business and your competitors to react to them

For further information, see our guides on market research and market reports and how to understand your competitors.

It is important to know your competitors' strengths and weaknesses as compared to your own - and it is good practice to do a competitor analysis of each one. Remember that the market is not static - your customers' needs and your competitors can change. So, as well as showing the competitor analyses you have undertaken, you should also demonstrate that you have considered and drawn up contingency plans to cover alternative scenarios.

Download a guide on getting to grips with your competitors from the Chartered Institute of Marketing website (PDF, 159K) - Opens in a new window.

Marketing and sales

This section should describe the specific activities you intend to use to promote and sell your products and services. It's often the weak link in business plans so it's worth spending time on it to make sure it's both realistic and achievable.

A strong sales and marketing section means you have a clear idea of how you will get your products and services to market.

Your plan will need to provide answers to these questions:

How do you plan to position your product or service in the market place? For further information, see our guide on how to create your marketing strategy.

Who are your customers? Include details of customers who have shown an interest in your product or service and explain how you plan to go about attracting new customers. See our guide: know your customers' needs.

What is your pricing policy? How much will you charge for different customer segments, quantities, etc? See our guide on how to price your product or service.

How will you promote your product or service? Identify your sales methods, eg direct marketing, advertising, PR, email, e-sales. See our guide on sales & marketing: the basics.

How will you reach your customers? What channels will you use? Which partners will be needed in your distribution channels? See our guide on how to reach your customers effectively.

How will you do your selling? Do you have a sales plan? Have you considered which sales method will be the most effective and most appropriate for your market, such as selling by phone, over the internet, face-to-face or through retail outlets? Are your proposed sales methods consistent with your marketing plan? And do you have the right skills to secure the sales you need? See our guide on the sales appointment.

Your team's skills

Your business plan needs to set out your own background and skills and the structure and key skills of both your management team and your staff. It should identify the strengths in your team and your plans to deal with any obvious weaknesses.

The management team

If you're looking for external funding, your management team can be a decisive factor. Explain who is involved, their role and how it fits into the organisation. Include a CV or paragraph on each individual, outlining their background, relevant experience and qualifications. Include any advisers you might have such as accountants or lawyers.

If you're looking to satisfy your bank manager or other investors, you need to demonstrate that your management team has the right balance of skills, drive and experience to enable your business to succeed. Key skills include sales, marketing and financial management as well as production, operational and market experience.

Your investors will also want to be convinced that you and your team are fully committed. Therefore it's a good idea to set out how much time and money each person will contribute to the business and the salaries and benefits you plan to draw. You can find more practical tips in our guide on how to use your business plan to get funding.

Your people

Give details of your workforce in terms of total numbers and by department. Spell out what work you plan to do internally and if you plan to outsource any work. Other useful figures might be sales or profit per employee, average salaries, employee retention rates and productivity.

Your plan should also outline any recruitment or training plans, including timescales and costs.

It's vital to be realistic about the commitment and motivation of your people and spell out any plans to improve or maintain staff morale.

Your operations

Your business plan also needs to outline your operational capabilities and any planned improvements. There are certain areas you should focus on.

Location

Do you have any business property?

What are your long-term commitments to the property?

Do you own or rent it?

What are the advantages and disadvantages of your current location?

Producing your goods and services

Do you need your own production facilities or would it be cheaper to outsource any manufacturing processes?

If you do have your own facilities, how modern are they?

What is the capacity compared with existing and forecasted demand?

Will any investment be needed?

Who will be your suppliers?

Management-information systems

Have you got established procedures for stock control, management accounts and quality control?

Can they cope with any proposed expansion?

For more information, see our guides on stock control and inventory and financial and management accounts: the basics.

Information technology

IT is a key factor in most businesses, so include your strengths and weaknesses in this area.

Outline the reliability and the planned development of your systems.

For more information, see our guide providing an overview of IT and e-commerce.

Financial forecasts

As part of your plan you will need to provide a set of financial projections which translate what you have said about your business into numbers.

You will need to look carefully at:

how much capital you need if you are seeking external funding

the security you can offer lenders

how you plan to repay any borrowings

sources of revenue and income

You may also want to include your personal finances as part of the plan at this stage.

Financial planning

Your forecasts should run for the next three (or even five) years and their level of sophistication should reflect the sophistication of your business. However, the first 12 months' forecasts should have the most detail associated with them.

Include the assumptions behind your projection with your figures, both in terms of costs and revenues so investors can clearly see the thinking behind the numbers.

What your forecasts should include

Sales forecast - the amount of money you expect to raise from sales. See our guide on how to forecast and plan your sales.

Cashflow statements - your cash balance and monthly cashflow patterns for at least the first 12 to 18 months. The aim is to show that your business will have enough working capital to survive so make sure you have considered the key factors such as the timing of sales and salaries. See our guide on cashflow management: the basics.

Profit and loss forecast - a statement of the trading position of the business: the level of profit you expect to make, given your projected sales and the costs of providing goods and services and your overheads.

Your forecasts should cover a range of scenarios. New businesses often forecast over-optimistic sales and most external readers will take this into account. It is sensible to include subsidiary forecasts based on sales being significantly slower than you are actually predicting, with one for sales starting three months later expected, and another forecasting a 20 per cent lower level of sales.

You can download our sample profit and loss forecast template (XLS, 50K) - Opens in a new window.

Risk analysis

Alongside your financial forecasts it is good practice to show that you have reviewed the risks your business could be faced with, and that you have looked at contingencies and insurance to cover these. Risks can include:

competitor action

commercial issues - sales, prices, deliveries

operations - IT, technology or production failure

staff - skills, availability and costs

acts of God - fire or flood

See our guide on managing risk.

Presenting your business plan

To make sure your business plan has maximum impact, there are a number of points to observe.

Keep the plan short - it's more likely to be read if it's a manageable length. Think about the presentation and keep it professional - even if you only intend to use the plan in-house. Remember, a well presented plan will reinforce the positive impression you want to create of your business.

Tips for presenting your plan

Include a cover or binding and a contents page with page and section numbering.

Start with the executive summary.

Ensure it's legible - make sure the type is ten point or above.

You may want to email it, so ensure you use email-friendly formatting.

Even if it's for internal use only, write the plan as if it's intended for an external audience.

Edit the plan carefully - get at least two people to read it and check that it makes sense.

Show the plan to expert advisers - such as your accountant - and ask for feedback. Redraft sections they say are difficult to understand.

Avoid jargon and put detailed information - such as market research data or balance sheets - in an appendix at the back.

You may have detailed plans for specific areas of your business, such as a sales plan or a staff training plan, but it is best not to include these, though it is good practice to mention that they exist.

While it is sensible to seek advice from external advisers, it is not a good idea to get them to write the plan for you. Investors and lenders need to have confidence that you personally understand your business plan and are committed to the vision for the business.

Make sure your plan is realistic. Once you have prepared your plan, use it. If you update it regularly, it will help you keep track of your business' development. See our guides on budgeting and business planning and how to prepare a business plan for growth.

Get as much help and advice as possible

Show the plan to an independent third party - such as friends or family who have run their own businesses - who will be able to point out if anything is missing. It's much better to make mistakes on a practice run than when it really matters.