A Marketing Plan is a written document that defines the way in which the company will develop its objectives.
It is important that it includes 4 fundamental points: Market Analysis, Objectives, Strategy and Analysis of Results.
First of all, in this post, we are going to explain what each one of them consists of for the correct elaboration of our Marketing Plan.
The 4 fundamental points of the Marketing Plan
1. Market Analysis
The market analysis is the initial step that every company should take into account when making its Marketing Plan. This analysis requires being rigorous and describing in detail a series of specific aspects:
Resources and Budget:
Before putting into practice any type of action. It is necessary to know our starting point. In other words, what resources we have and what budget we have.
Legal, Economic, Social and Political Situation of my sector:
It is necessary to know in which environment we move if the economic situation is favourable if there are policies that affect our sector or what is the perception of our product in society, for example.
It is essential to know what our potential or target audience is like. That is, knowing their age, geographical location, socioeconomic level, tastes, lifestyle, etc.. We will see this in the definition of our “Buyer person”.
Knowing competence is fundamental. This point serves us to get ideas of what works and also to avoid falling into the same mistakes that others made.
Characteristics of my business:
Performing a SWOT analysis is the best way to get to know ourselves. The acronym stands for Weaknesses, Threats, Strengths and Opportunities. Weaknesses and Strengths are intrinsic characteristics of our product or business. However, Threats and Opportunities are the negative and positive points that come from outside but that affect us directly.
Once we have our market analysis, it’s time to set some goals. These can be defined as our goals or what we want to achieve. The more concrete they are, the easier it will be to elaborate on the next steps of the Marketing Plan.
Objectives must be real, achievable and measurable. If we also set realistic deadlines to achieve them, we will develop the necessary steps more accurately.
The strategy is the set of actions that we are going to put into practice in order to achieve the objectives that we have previously set ourselves. It is important not to confuse it with tactics. The latter is the way or form in which we carry out these actions.
4. Analysis of Results
It is important to measure the results at the end of the period we had set ourselves to achieve our objectives. A good evaluation of results requires knowing which metrics we are going to use. This is known as KPI´S (Key Performance Indicators). The most useful KPI´S are the following:
Cost of Customer Acquisition (CAC):
Consists of the expenditure that the company invests to obtain a new customer. It is calculated by taking the total cost that has been invested over a period of time and dividing it by the number of new clients that have been made during the same period.
Percentage of Marketing Cost Acquiring a Customer (M%-CAC):
This is the total part of the CAC calculated as a percentage. This metric tells us what impact the cost of the marketing team has on the cost of customer acquisition. It is calculated by taking all marketing costs and dividing them by the total marketing and sales costs used in the CAC.
LTV Life Time Value between CAC:
This metric provides information on the total value the company receives for each client compared to the investment made to achieve it. It is calculated by obtaining the Life Cycle Value and dividing it by the CAC.
CCS investment payback time:
This is the time your company needs to bring back the money invested in CCS to acquire new customers. It is calculated by taking the CAC and dividing it by the adjusted profit margin per month for the average number of new customers.
Percentage of clients originating from Marketing:
This metric shows us what new clients we have thanks to the efforts of the Marketing department. It is calculated by taking all new customers over a period of time and calculating the percentage of those generated by a campaign.
Percentage of customers influenced by Marketing:
This includes all customers with whom the Marketing department has interacted throughout the sales cycle. In order to calculate it. All the new clients are taken during a determined period of time and the percentage of those with which the Marketing department interacted is calculated.
Common Mistakes in Creating a Marketing Plan
Although it is hard to believe, there are mistakes that are repeated in companies with respect to the elaboration of a Marketing Plan. The most common are the following:
Lack of coordination between online and offline marketing
It is very important that the actions carried out in the online environment are coordinated with those carried out offline. It is essential to understand the company as a whole that moves in several environments but conveys a single message and uses the various tools of both to achieve their objectives.
Ignoring the competition
Many companies skip this important step that we detailed earlier in the market analysis. It is vital to be aware of what the competition is doing to anticipate and take advantage. Surely one (or more) of our competitors are aware of our movements.
Quantity prevails over quality
Today, there are many entrepreneurs obsessed with the number of followers on social networks or the number of people attending a particular event organized by the company. We will obtain much higher profitability if the users we attract are real potential customers of our product.
Lack of professionalism
There are still companies that do not give enough importance to the marketing department. And leave their development in the hands of the scholarship holder or amateur relatives.
If we want to achieve the expected results. It is important to have marketing professionals either internally or through an external agency.
Do not measure
There are wonderful Marketing Plans that are lame because once implemented they do not include the final step of evaluating results. If we do not measure. We cannot know what has worked in our Plan and what has not.
Nor will we know the impact of our actions. Knowing how the campaign has gone is fundamental to start a new one and continue growing.