One of the most prominent parts of a company's business plan is the marketing plan section. Marketing is particularly important for a product-producing business for a number of key reasons. In some cases, you need a separate marketing focus for each one of your products. Once you understand the importance of marketing, get started right away on your plan.
Definition of Marketing
Marketing is the process of identifying customer needs and then delivering products and services that fulfill those needs. Marketing a product involves both formulating it to the needs of potential buyers and promoting it to those buyers to achieve a sale. Marketing involves four key elements called the four Ps --- price, product (how you present the offering), promotion (advertising methods) and place (where you distribute the product).
Attracting Sales
The main purpose of marketing a product is to attract new customers and new sales of the item. Without marketing, you may have a product but little chance of buyers. You need to take measured steps to first identify customers (called your target market), find ways to put the product in front of them and then convince them to purchase the item.
Branding
Marketing is also important for branding both the product and the company that sells it. Branding is the process of establishing an identity for your product. Marketing the product makes it more recognizable to the public. The goal branding is to make customers think of your product or company when they have a need for the type of product you sell. If you can successfully develop a recognizable brand for the offering, you then have a product that "sells itself."
Establishing Focus
Another reason why it's important to create a marketing plan for a new product is that it helps you to establish a clear focus. In a marketing plan, you identify the target audience so you know exactly who you need to speak to in your communications. Marketing a product allows you narrow your focus to the exact details, data and messages that will lead you to a steady stream of revenues from the product. When you have a clear marketing plan you can also apply the 80/20 rule, which says that 80 percent of your sales come from 20 percent of your customers, then focus your efforts on that group.
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