Most small business owners don't have a marketing plan, but by creating and introducing one, your business will gain a unique opportunity to stand out above your competition.

Step 1 - Defining your market

Your marketing plan should provide detailed information about the market or target audience at which you are aiming your product or service. Many small business owners make a big mistake by promoting a product or service they believe is fashionable without first considering and understanding who will buy it. Think about segments in your market that are currently underserved and if the segments you are aiming at are large enough for you to make money, how much market share do you need to break even, does the market already have too much competition, are there any weaknesses and does your target audience really want your product or service?

Step 2 - Understanding your customers

A thorough understanding of your customers is the starting point for effective marketing, you must know exactly who your customers are, what they want and what will motivate them to buy from you rather than a competitor.

To help you really understand your customers, your marketing plan should provide answers to these questions:

  • How do your potential customers normally buy similar products or services?
  • What are the demographic characteristics of your target customers in terms of age, education, location, etc.?
  • Who is the primary buyer and who has the most influence in the purchasing process (eg husband or wife, purchasing officer, project manager, company director, secretary)?
  • What media do your customers use? (eg television, newspapers, specialist magazines, social media)?
  • What are the emotional motivators that will make someone buy your product or service (eg looking good, feeling smart, avoiding pain, saving money, being healthy, being popular)?

Step 3 - Identifying your market niche

If you define your market as everybody and anybody, then you are very likely to end up selling to nobody. The best marketing plans concentrate on supplying products and services to customer groups that fit a lifestyle and demographic (such as age, gender, occupation or income) profile of a specific market.

Your marketing plan should outline how you will carve out your specific niche. By defining the niche and narrowing your market focus, you will find that your product or service becomes more desirable, it is easier and cheaper to contact potential customers and you will almost certainly face less competition.

Step 4 - Developing your marketing message

Once you have identified your target market and profiled your marketing niche, you will need to focus on developing your marketing message. This should explain what your product offers and why people should buy from you.

There are generally two types of marketing message. The first is the complete marketing message and your plan should develop this type of message and identify everywhere that it's going to be used. It needs to be compelling and persuasive and should typically include the following elements:

  • An explanation of your target customers' problem.
  • Proof that this problem is important and that it should be solved without delay.
  • An explanation of why you are the only supplier that can solve the problem.
  • An explanation of the benefits people will get by using your solution.
  • Examples and testimonials of satisfied customers.
  • An explanation of prices and payment terms.
  • Your unconditional guarantee.

The second is short and to the point and draws from the core elements of your main message and is often referred to as the 'elevator pitch'.

Step 5 - Defining your marketing medium

This is a crucial part of your marketing plan and will define the methods and media you will use to ensure your message reaches your target audience. It should identify exactly how you will sell your product or service.

The best medium for you will be the one that reaches the most potential customers in your niche at the lowest possible cost. The following is a selection of different types of marketing media you can use to get your message out:

  • Newspaper and magazine adverts.
  • TV and radio adverts.
  • Online search results such as via Google or Bing.
  • Mobile apps.
  • Online directories such as Yell.com.
  • Social media platforms such as Twitter, Facebook and YouTube.
  • Posters and billboards.
  • Leaflet drops.
  • Trade shows.
  • Networking.
  • Telemarketing.
  • Sales letters.
  • Press releases.
  • Business cards.
  • Brochures and catalogues.
  • Window displays.

Step 6 - Choosing your route to market

Your route to market will largely depend on the type of product or service you are selling and the target market you are trying to reach. You must be precise and clear in your plan about how and why you choose your particular market route and what alternative you will use if your initial route does not produce the results you expect.

Step 7 - Setting sales and marketing targets

Targets are critical to marketing success, and these should be realistic and specific. Ensure that your goals and objectives use the SMART formula:

  • Specific.
  • Measurable.
  • Achievable.
  • Realistic.
  • Time-defined. 

These goals should include volume of sales, monthly and annual revenues and profit targets. You can also include targets such as enquiry levels, sales conversion rates, website traffic generated, contracts won, press releases and articles published.

Once these targets are set, your marketing plan should indicate how and when you will review and adjust them.

Step 8 - Setting your marketing budget and timetable

Your plan should include a realistic budget to allow you to undertake all your marketing activity and a timetable for its implementation. If you have been trading for a year or more already, you will be able to calculate your 'cost to acquire one customer' or 'cost to sell one product' by dividing your previous year's annual sales and marketing costs by the number of customers you have acquired or units you have sold. Take this unit cost and multiply it by your sales or customer acquisition goals for the year ahead. This will give you an idea of the budget you need to achieve your targets.

You will also need to produce a timetable to implement the plan including information about who will carry out these actions, the timescale for each activity, milestones during the year (trade shows, product launches, etc) and when you will need to bring in external expertise, such as specialists in PR, graphic design or direct sales.

Once your marketing plan is underway, you will need to monitor and review its progress continually, you should also consider how to handle responses to marketing activities or how to deal with seasonal aspects of your industry. You will also need to consider how to manage your marketing plan overall and ensure that you don't spend your entire annual budget in the first couple of months. Decide how you will monitor and interpret results and think about how you will adjust the plan or introduce new tactics as you progress towards your marketing objectives.