Marketing Plan

A marketing plan is the road map that guides an organization in its efforts to achieve its objectives in its marketplace. Marketing plans should be specific to a particular brand or product or service category and should be consistent with the firm' overall strategic plans. For example, a pharmaceutical company should have a marketing plan for each major category of drugs that it markets, and in some cases, a separate marketing plan for each branded drug. A good marketing plan consists of the following seven elements:

• 1.
  Current market situation: Describes the current target markets and the organization' position in those markets. This situation analysis should include

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    A market description that defines the market and its major segments
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    A product review that describes the company' current major product lines
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    A review of major competitors, including assessment of their current market positions
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    A review of the current distribution structure
• 2.
  Threats and opportunities analysis: Assesses major threats and opportunities that major product lines may face in the short and long terms.
• 3.
  Objectives: States the marketing objectives that the company would like to attain. These objectives should be measurable and exist within a particular time frame. For example, a pharmaceutical company might set an objective of 30% market share for a particular drug within a one-year planning horizon.
• 4.
  Marketing strategy: Describes the logic that will drive the organization to achieve its objectives. The marketing strategy should include

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    Specifics of which defined market segments are to be targeted
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    How the brand will be positioned within each targeted segment
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    How each element of the marketing mix (product development, pricing, distribution, and integrated marketing communications) will be coordinated to respond to the threats and opportunities discussed previously
• 5.
  Action plan: Describes the specific tactics that will be employed to implement the strategy just described. Answers the questions about what will be done, who is responsible for getting it done, when it will be completed, and how much it will cost.
• 6.
  Budgets: Details a marketing budget, which is a projected profit-and-loss statement for the products or[Page 350] services that are covered in the marketing plan. It should show expected revenues and projected costs, including all marketing expenditures necessary to achieve the revenue goals.
• 7.
  Controls: Describes the process that will be used to monitor the implementation of the marketing plan, along with alternative strategies should marketing objectives not be met.

A marketing plan should be updated as often as necessary, to ensure that current objectives, strategies, and tactics are consistent with organizational goals and the external environment. This frequency will vary, depending on the volatility of the marketing environment. For example, a company in the business of disposable hospital supplies might be able to update its various marketing plans annually. However, a pharmaceutical company that competes in a rapidly changing marketplace may need to update its marketing plans much more frequently.