Explain the steps involved in preparing the marketing plan.

Question

Accepted Answer

The steps involved in preparing a marketing plan are:

1. **Business situation analysis** — This answers 'Where have we been?'. It reviews the past performance of the enterprise or, for a new venture, focuses on the entrepreneur's personal profile, emphasis on product development, the need the product satisfies, any other enterprise or experience, and any planned market segmentation.

2. **Identify the target market** — Clearly define the specific group of potential customers. This involves first deciding the general market or industry on the basis of market research or industry analysis, then dividing the market into smaller groups based on consumer characteristics (geographic, demographic, psychographics) and buying situations (conditions, usage, desired benefits), selecting the segment or segments to target, and finally developing a marketing plan integrating product, price, distribution and promotion.

3. **Conduct SWOT analysis** — Consider the enterprise's Strengths and Weaknesses (internal factors) and Opportunities and Threats (external factors), so that the marketing plan builds on strengths and overcomes weaknesses.

4. **Establish goals** — This answers 'Where do we want to go?'. Goals and objectives should be realistic, attainable and well-defined; they should be quantified for measurement and control, standards should be set for qualitative goals, and the number of goals should be limited to avoid chaos and confusion.

5. **Define marketing strategy** — This answers 'How do we get there?'. The entrepreneur outlines specific activities to meet the goals and objectives; the strategy and action plan comprise decisions on the 4 P's — Product, Price, Promotion and Place.

6. **Implementation and monitoring of the plan** — The marketing plan is a commitment. The entrepreneur should be flexible and prepared to adjust the plan as and when required by the changing environment.