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 Writing a Sales
and Marketing Plan
By Mike Adams
"Would
you tell me, please, which way I ought to go from here?"
"That depends a good deal on where you want to get to," said the Cat.
"I don't much care where," said Alice.
"Then it doesn't matter which way you go," said the Cat.
From Alice in Wonderland by Lewis Carrol
Why should companies write a
sales and marketing plan? For the same reasons all businesses should have a
business plan, because if you don't know where you want to go, how will you ever
get there?
Actually, all businesses do have a business
plan, it just may not be written down. There are many resources available to
help write business plans. The U.S. Small Business Association has a series of
publications as well as freeware and shareware software programs and templates
that make writing a business plan much easier. If you have access to the World
Wide Web, the SBA makes these and many other resources available at: http://www.sbaonline.sba.gov/
The sales and marketing
plan is an integral part of a good business plan, but it is usually not given
the attention it deserves. Some companies pride themselves on the fact that they
have no marketing or sales efforts. They say, "We have grown to this size
just on word of mouth," Or "Salesmen are a waste of money." These
companies generally have one person who deals with the customers, usually the
owner, who is, in reality, the salesperson. Unfortunately, the owner usually
also manages the production, makes deliveries and does anything else that needs
to be done in a crisis.
This way of thinking will always limit the size
of a company. That size varies with each individual; it is the amount of sales
and production that one person can handle. If a company wants to grow past that
level, it must have sales and marketing efforts, and any company involved in
these efforts should have a written plan. What justifies the additional
time and effort you'll spend creating a written plan? An increased chance for
success. More specifically, a plan is:
 | A reality check when you first
examine the results of your efforts |
| A timetable, helping you to
coordinate all the activities |
| A tool that helps you evaluate your
position in the market |
| A vehicle for tracking the progress
of your plan |
| A blueprint for adjusting your
efforts to respond to changes in the market |
| A starting point for future planning |
Where
Are You Now?
This question involves
more than just the current sales figures. Who are you as a company? What
do your customers think of you? Do you specialize in one or more segments
of the market? Do you sell to customers nationwide? Regionally? Locally?
Where Do You Want To Go?
Some organizations
really do not want to grow, and that's okay. However, if growth is a goal, you
need to ask, "where do I want to go?" The answer might be "I want
to increase sales by 50% of current levels each year for the next four
years" or "I want to be the leading company in my region within two
years." If you want to grow, however, you must be ready to increase
production and willing to accept all the changes growth brings.
The Market
The next step is to
identify your market. Asking the following questions helps to clarify this. What
is the market? How large is the market? Where is the market headed? How is the
market segmented? Who is your competition? How are they marketing? Why do
customers buy from you instead of the competition?
Why do customers buy from the competition instead of you? Is your company
perceived as a technological leader or follower? Is your company aggressive and
not averse to risk-taking, or do you plan to grow carefully and slowly? Have you
acquired an reputation for fast and reliable service by expanding your business
only as quickly as your service organization can support it? Do you aim for the
high-priced, high-quality end of the market, or does your company try to make an
adequate product that can capture a large market share by selling at a low
price?
Market Research
Some of the answers to
the questions above can be answered by trade associations, magazines, and
journals. The most important aspect of market research, though, is feedback from
prospective buyers. How do they feel about the product or service you are
offering? What do they like, and what do they dislike?
Getting such information, of course, requires that you speak with these
prospects or get them to fill out questionnaires. In any case, the more hard
data you have from potential buyers about their needs and preferences, the more
valuable the marketing plan will be.
Writing the plan
Once you have answered
the questions above, you are ready to begin writing the plan. If you
plan to consult with a sales and marketing firm, this would be a good time to
bring them into the picture. Otherwise, the plan is generally divided into the
following sections, including information from the questions asked above.
Executive Summary
This section summarizes
the information in the entire plan. It provides a quick overview for new
management or marketing employees who need to be familiar with the plan.
Market Analysis
Market Definition: Who
are your customers?
Market Segments: How are they segmented?
Current Strengths: What are the strong points (from a marketing position) of
your company?
Weaknesses: What are the weak points (from a marketing position) of your
company?
Opportunities: What are some areas that could easily be exploited?
Competition: List each competitor and analyze their strategies.
Pricing: What do your competitors charge?
Marketing
Plan
How do we get from here to
there? Marketing must be distinguished from sales. Marketing is the art (and
science) of identifying a need and then developing a strategic plan to satisfy
it with convincing prospective buyers to purchase your product or service.
Marketing Objectives: What do we intend to do?
Positioning/Repositioning: How do we want to be perceived by the customer?
Advertising: How much do we want to spend (and where) on advertising?
Editorial: Identify individuals in the organization that can write technical
articles to be published in trade journals. Plan to write a minimum number of
articles each year.
Public Relations: Send press releases, product announcements, and sales
announcements to the trade journals and industry association journals of your
customers at every opportunity.
One-on-One Contact: Many companies choose their sources because of a solid
personal relationship with their vendors.
Trade Shows: Determine the trade shows and industry association meetings you
want to attend.
Direct Mail: Is direct mail advertising appropriate for your business? Plan the
number of campaigns you want to do each year.
Telephone Marketing: Is telephone selling appropriate for your business?
Corporate Capabilities Brochure: This is a brochure outlining the capabilities
of your organization.
Sales support Materials: Other Printed materials used by sales.
World Wide Web Presence: A home page or website outlining your company's
strengths.
Sales plan
No single aspect of the
business is more important than determining how to sell. Without sales there is
no business, no matter how well production, marketing research, and other
functions are handled. Your plan must first address the question of exactly how
your product or service will be sold.
Sales objectives: Outline specific measurable objectives.
Pricing: How do we intend to price our products?
Commissions: Everyone involves in selling needs incentives. The incentives must
be properly structured and clearly explained if they are to be effective.
Discounts: Company policy should be determined as to the discounts and those
doing the selling should be aware of the policy.
One important thing to keep in mind is
that this type of plan is a starting point. It should be reviewed often and
changes should be made accordingly. After all, as Dwight D. Eisenhower said,
"In preparing for battle I have always found that plans are useless, but
planning is indispensable."
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