Explain the various steps involved in preparing a marketing plan?

Question

Accepted Answer

The various steps involved in preparing a marketing plan are:

1. **Business situation analysis** — This answers the question 'Where have we been?'. For a new venture, the focus shifts to the entrepreneur's personal profile, emphasis on product development, what need it 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 deciding the general market or industry based on research or analysis, dividing the market into smaller groups based on consumer characteristics (Geographic, Demographic, Psychographics) and buying situations, selecting segment(s) to target, and developing a marketing plan integrating product, price, distribution, promotion.

3. **Conduct SWOT analysis** — Consider the enterprise's Strengths, Weaknesses, Opportunities, and Threats. Marketing plan considers strengths and weaknesses for success.

4. **Establish goals** — Answer the question 'Where do we want to go?' by establishing realistic, attainable, well-defined goals and objectives, quantifying goals for measurement and control, setting standards for qualitative goals, and limiting the number of goals to avoid chaos and confusion.

5. **Define marketing strategy** — Answer the question 'How do we get there?' by outlining specific activities to meet goals and objectives. 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 if necessary based on changing market conditions.