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Jan 02

The Importance of Marketing Strategy to Your Business Plan

The marketing strategy is a very crucial element in your business plan. This section exemplifies how you intend on facilitating the growth of your business by tapping into your target market or audience. For the investor that you are convincing to provide you funding, your marketing strategy will divulge a lot as to how feasible and successful your venture will be. As such, it is important that you put equal care and attention to your marketing plan, just as much as you would for the rest of your business plan.

For first-time entrepreneurs, it is a must for you to know and understand the basics of marketing before you can even lay out a marketing plan for your intended business. The Government of Western Australia’s Small Business Development Corporation uses this definition in their website:

Marketing is getting the right product or service in the right quantity, to the right place, at the right time and making a profit in the process.

Essentially, therefore, marketing is about identifying who your intended clients are, and how you can best deliver to them information about your product or service. It’s going to involve a lot of details, such as market profiling and research, particularly about the experiences that your potential clients would be expecting of your brand.

From the planning to promotion, packaging and pricing, all the way to actual selling and distribution, all of these processes would have to be founded on your marketing strategy.

Marketing Goals

In drawing up a marketing strategy, there are two essential goals that must be met. First, you should be able to reach your target market. Eventually, however, the goal would be for you to be able to reach out and expand further into other pockets of potential consumers or clients. The need to explore and tap into other markets is important to keep the influx of consumers going.

Businesses cannot simply rely on existing target markets, otherwise, the exposure of the product or service will be confined to a particular niche. If your intention is to eventually expand and grow your business, the last thing you would want is to limit yourself to one client profile.

Of course, it is a given that you would first want to make your brand established. Having the market familiar with your brand is going to be a huge boost to your business later on.

Important Questions to Ask

As you work on laying out the foundation for your brand, it is imperative that you are first able to ask the right questions. Not only will they matter to your potential investor, but more importantly, they will also prove to be beneficial for you as you will be properly guided by your objectives. Take it as a sort of guideline or reminder of your goals for this entrepreneurial endeavor.

Who is your chosen clientele, and what do they need? – Assuming that you have already identified the population group that you would like to attract for your business, you will have to get to know them very well so as to not only know what they need, but also to anticipate what they will need.

From this question, you should be able to glean whether or not your product or service can offer them a solution for this issue of need. Otherwise, you might as well change your target market and find someone else who will be more welcoming of your offer; that, or you change your product itself.

Who are your competitors, and how will you set yourself apart from them? – Inevitably, your business will be confronting competitors even before you actually open shop. You have to familiarize yourself with the industry that you are getting into, so that you may better be able to plan your strategy in how to deal with your competitors.

There will be a need to compare your business plan with how they are going about their business. What works for them, and what do you think are the areas of improvement that you can capitalize on? It pays to be as observant as possible, especially because businesses that have gone ahead of you may give you clues to what else you should do for your own business.

How is your product or service going to fare in the real world? – There’s only one way to find out, and that is by conducting a market test. If your business is, say, a restaurant, you may want to consider having a soft opening, duly supported by the first wave of marketing and advertising. At this stage, it’s mostly going to be about spreading word that there’s a new shop about to open down the street. If it is a product, you could send out trial kits to select consumers, and then have them note down their review and inputs on the product.

This is necessary because what you’re doing here now is actually typing into the psyche of your target market. It may even give you clues as to how the consumers can better accept your business.

Ultimately, getting into a business is all about being prepared. It’s not enough that you have a plan; you must also have a plan B, a plan C, or if possible, even a plan D. You never know what contingencies you will need later on, but at least with your marketing strategy plan, you can be a step ahead in setting the wheels for your business in motion.

 

About the Author:

Rabie Fares founded and chairs Associare, Australia’s leading source for business connections, allowing entrepreneurs vc investment for their business ideas.

1 comment

  1. orenkomp.ru

    There’s a customer waiting out there for every business. Great marketing makes it easy for them to find you. Over time, as you build a database with the information you’ve acquired from your marketing campaigns, it also becomes easier for

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