Tips and articles
Building the marketing plan: the way of the pharaohs
As each turn of the calendar brings us closer to a new year, tradition dictates that work on next year’s marketing plan must occupy the dwindling days of this year.
Marketing planning challenges every marketing manager. Many meet the challenge head-on; others simply turn the other way. Some plans sit on the shelf collecting dust. Others become working guides to a successful business year.
Marketing plans that fail often do so because they are fundamentally unsound. Marketing plans that succeed do so because they are constructed on a strong foundation, much like the Egyptian pyramids. Among the world’s architectural wonders, the pyramids have lasted for thousands of years. They were built on sound foundations of rock and concrete. Each block of stone was carefully placed and was essential to the structure’s stability. Each level supported those above. Those few pyramids built on sifting, eroding sand foundations quickly crumbled. A successful marketing plan is much like a pyramid. It results from a sound foundation and carefully placed building blocks in multiple levels.
Level One: information
Level one of the marketing plan is formed from information, the foundation or keystone of our pyramid. Information provides the basis for our objectives, our action plans, and even our budget. Our information building blocks include general economic conditions and forecasts, specific market conditions, competitive analysis, pricing and distribution, market demographics, the needs and wants of customers, company sales history, product strengths and weaknesses, analysis of prior marketing plans and programs, company goals, company market position. You’ll find additional information requirements as you build your plan.
Level Two: objectives
Using the information from Level One and other available resources, the next step is to simply determine what we want to do, what we want to achieve. These objectives can cover sales, profitability, market awareness, expanded distribution, share of market, return on investment. They’re the result of the information gathering in Level One. They are achievable. They are consistent with overall company policy and direction. And, they are measurable in order to use them to help form your information for future plans.
Level Three: action plans
Now knowing what we want to do (objectives), we continue up to Level Three and develop the action plans to achieve the objectives. Pricing, trade shows, publicity, new product development, advertising, distribution incentives, all support one or more objectives from the previous level.
Level Four: budgets
The final step is to develop the costs and budget required to implement the action plans in support of the objectives. Far too often the budget comes first and we try to make things fit the dollars. When the pyramid is turned upside down, it becomes heavy, unbalanced, and likely to topple.
The advantage of viewing the marketing plan as a pyramid is two-fold:
- The Marketing plan becomes based upon a sound foundation of information and analysis.
- Completion of each level helps assure that the necessary input is available to construct the next level of the plan. No building blocks are missing. The support structure is complete.
Although the preparation of the annual marketing plan may be a daunting task for many, the challenge can be made easier if we follow in the footsteps of the pharaohs. Build a sound foundation, then enhance it at successive levels.
July 2003
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