How to Create Your Marketing Plan

An edited version of this article appeared in the May/June 2005 edition of Retail News Magazine, Ask an Expert column, written by Harp Arora. This is the full-length version of the article, answering the question in greater depth.

Q: “I’m a new retailer and not sure which advertising and marketing avenues I should be exploring. Is there any kind of basic marketing plan for store owners just starting out?”

A: You’ve already honed in on the key word here, which is “plan”. Every business including yours needs one – a roadmap to guide marketing decisions in the short and long term. With a well-thought out plan you can increase revenues, establish a consistent brand, and increase your overall chances for success.

Before we get into the details of the plan, there’s a distinction we need to make between a marketing strategy and a plan. Many business owners get confused between the two.

A marketing strategy:

• Lays out the broad game plan
• Has goals and objectives tied to your business
• Is long-term

A marketing plan:

• shows how you will accomplish the strategy
• Includes specific details or tactics
• details the timelines for the plan, the media you will use, and the creative or messaging (graphics and wording)
• is short-term, usually covering a time period of a year or less

For example, your marketing strategy might be to increase revenues by 30% by 2008 focusing on targeted advertising and promotions.

Your marketing plan would then specify the details of how you will accomplish that. So for example, your plan might include the following for 2005:

• bi-weekly print advertising in your community newspaper, consisting of 3” x 5” black and white ads
• targeted direct mail postcards mailed in spring and fall to single-dwelling homes within 30 kilometres of your store, in those neighbourhoods where the household incomes tend to be greater than $ 70,000, and the residents are in their fifties
• Making six presentations to service groups or women’s networking groups in the area on trends in decorating
• Sending a monthly e-mail newsletter to all existing customers with tips and store promotions
• Implementing a customer loyalty program that will provide a $ 25 gift certificate to customers each time they reach $ 200 in purchases.
• A budget of $ 10,000.

Here are seven steps to create your marketing plan. If you focus, you can get through this in a day, honest. As you go through each step, answer the questions that appear:

Step 1. Understand your market and competition

• Are there underserved segments Ð this might be a demand for certain products not available in stores in your area, or people may be looking for a more complete line of products
• Are these segments large enough to make money?
• How much competition is there?
• What are the competition’s weaknesses?
• Does your market want or value the offering?
  

Step 2. Understand your customer

• What do your customers look like? Build a detailed profile of your typical customer – age, income, hobbies, marital status, etc. Be able to clearly visualize this person.
• How does your customer normally buy similar products?
• Who is the primary buyer and influencer of purchases?
• What are the customer’s primary motivations for buying?

Step 3. Define and occupy a niche

What is your niche? Carve out a special niche and own it e.g. “handcrafted jewellery created by Canadian artisans for upscale women”. Ensure your retail atmosphere and customer service approach reinforce your message.

Step 4. Develop your message

• What problem are you trying to solve?
• Why is your business the only one that can solve it?
• What is your brand positioning – your unique promise of value?
• What are the benefits of your solution?
• Include client testimonials
• Explain prices and payment terms and options

Step 5. Determine your tactics

Select programs most likely to reach your audience and meet overall budget requirements. Here are some examples:

• Advertising – print, radio, TV, web
• Signage
• Consumer shows
• In-store promotions
• Newsletters
• Networking
• Sales letters
• Flyers
• Media coverage
• Seminars
• Banners
• Yellow pages advertising
• Community involvement
• Brochures
• Event sponsorships
• Postcards
• Website
• E-mail promotions

6. Set your sales and marketing goals

These can include overall revenues, number of customers, dollars per customer, dollars per square foot, market share, new products, etc.

Are they SMART?

S = Sensible
M = Measurable
A = Achievable
R = Realistic
T = Time Specific

7. Develop budget and timelines

The key is to make sure both budget and timelines make sense for your business and marketplace.

For timelines in particular, it will really help you to put a calendar together for the year, so you can see all of your marketing activities at a glance. For example, you should be able to quickly and clearly identify which weeks you’ll advertise, when you’ll do in-store promotions, when you’ll send direct mail, when you’ll do seminars etc. Make sure you have outlined who is responsible for completing each task.

If you follow the above steps you’ll build a strong foundation for your marketing plan. Don’t set yourself up for failure by procrastinating or neglecting to make a plan – a good one can pave your way to success, today and in the future.

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