A key ingredient in growing your business is developing a strategic marketing plan.

Developing a strategic marketing plan is one of the most important steps a company takes to reach business goals and attain long-term growth and success, yet it is many times ignored.

An effective marketing plan supports a company’s overall business goals and objectives, with detailed marketing strategies and tactics answering the essential questions of Who? Why? What? Where? When? How? and How Much?

Who? Who is the “situation analysis” of your specific marketplace, including company background, products and/or services and the company’s mission. This also identifies key prospects by distinct market segments (Who are they? How many? Where are they located? What are their needs and values? What are their buying motives? etc.) Who also addresses marketplace issues such as: Who are your competitors? What are their strengths and weaknesses in comparison to your company? What trends, issues and opportunities exist in the marketplace, and what strategic options are available in which to benefit from them.

Why? Why focuses on your company’s specific goals and objectives, and what role marketing will play in achieving them. The best goals are S.M.A.R.T. (Specific, Measurable, Attainable, Relevant, with a Timeline for achieving them.)

What? What is the “game plan” through which marketing objectives are achieved. This determines the best marketing strategies to be used. The key aspect here is company positioning: the key benefit or promise your firm delivers; how your company is currently perceived by customers, and how it should be perceived; and how your company differentiates itself from competitors. It also forms the basis of the creative sales message that will be the foundation of your marketing.

When? When is the marketing timeline: the chronology and deadlines for meeting each task, by what date, and by whom.

How? How is the actual implementation or action plan. It specifies which marketing tools, tactics and media to use, along with timing and weight. This is where most creative work is done: advertising created, news releases distributed, brochures developed, trade shows attended, digital media created, etc.

How Much? How much refers to the budget that is necessary to fully implement your market program, and how to best allocate funds for each tactic.

Benefits of a strategic marketing plan:

• Encourages a thorough review of all factors that impact success for your business, and brings to light opportunities and pitfalls often overlooked by “winging it.”
• Provides a powerful direction and long-range view to minimize impulsive and costly decisions.
• Stimulates optimum use of marketing budget and re­sources.
• Provides an accurate market-driven foundation on which to build operating plans.
• Builds consensus and support with internal staff and departments.
• Fosters coordination and consolidation of efforts; maximizes efficiency and effectiveness.
• Empowers team members to take action appropriate and consistent with overall company goals.
• Facilitates an objective evaluation of past actions and results; fosters increased utilization of strengths, avoids repetition of mistakes, and indicates where improvement is necessary.
• Clearly delineates goals, facilitates measurement, course corrections when necessary, and recognition of superior performance.

Avoiding a case of “sticker shock.”
As a marketing consultant, many times I work with businesses that are new to marketing. Invariably, I need to prepare them for a strong case of “sticker shock.” A fair part of my initial consulting work is in educating clients as to the real cost of doing marketing if they truly want to achieve the results they seek. Often the client may need to rethink their business goals to one that best fits their marketing budget. One of my most important responsibilities is to ensure clients know exactly what they can get for how much.

Get your budget in place before you start marketing.
Developing a realistic budget before one begins marketing is a critical factor of marketing success. Too often a company will dive right into marketing efforts, and realize too late it did not adequately plan to have the financial resources available to sustain success.

Know the costs associated with your marketplace.
One of the things that drive costs is location. Here, outside of New York City, we are easily overwhelmed by one of the world’s largest media centers. For example, WCBS-AM radio effectively reaches a very large business audience. But if your market is located primarily in Fairfield County, CT, you’ll be paying a lot of money to reach only a sliver of WCBS’s audience. Many business owners are surprised at the cost of advertising to reach their demographic and geographic markets, but are still unwilling to budget appropriately. This is like trying to fly across the Atlantic on a half tank of fuel. Sure you’ll make progress, but you won’t reach your destination. This is a recurring theme with educating clients as to the return-on-investment to their marketing dollars, but one that must be overcome if their business is to prosper.

Don’t worry about spending too much, worry about spending too little.
Recently, I was retained by an established, $6 million business in the document management industry. We create a five-year marketing plan with the goal to grow the business to $20 million in sales. I established an initial marketing budget of $65,000, which represented just 1% of gross sales. Sensitive to the fact they had not done much marketing prior, I felt confident we could do an effective job promoting their business with this budget amount. The program included advertising, direct mail, website development, and a PR campaign, and specifically detailed where every dollar was allocated.

Surprisingly, the owner thought it was much too expensive and could not justify such an expenditure on marketing.

When a $6 million company resists allocating 1% of gross sales for marketing, a major disconnect exists between what marketing actually costs and what clients think it should cost. And that’s a problem. It is impossible to grow a $6 million company to $20 million with a minuscule marketing budget.

Have you ever been in such a situation? You expect something to cost a certain amount, but it costs much more. You’re frustrated, the client’s frustrated, but there are expenses to make marketing happen; it doesn’t happen in a vacuum and it doesn’t happen all by itself.

If you’ve read my other blog posts, you know I am a strong advocate of first developing a marketing plan before you invest money into advertising or other marketing tools.

A marketing plan should have specific goals you want to achieve for your business. But to achieve them, your plan may possibly recommend TV advertising, building an e-commerce website, or going to national trade shows — all costly endeavors.

Your marketing plan may initially be a “blue sky” approach — meaning there are no limiting factors to your ideas or goals. This is an excellent way to start your planning, as you don’t want to limit your initial creative brainstorming. But eventually every “blue sky” meets a cloud. And the cloudiest forecast for ambitious marketing is money — do you have enough marketing dollars to ensure a good shot in achieving your business objectives? If your budget is limited, and you can’t afford to implement your marketing plan in full, then you may need to readjust how ambitious your business goals can be.

Starting an aggressive marketing effort and not having enough money to finish is poor planning. As a pilot, I’ll use this analogy: it’s like flying across the Atlantic with a half tank of fuel. Sure, you’ll make progress, but your plane better have floats because you’ll be landing in the Atlantic, and not in Paris.

Occasionally, I’ll get a call from someone who wants to do some advertising in Westchester to promote their business. I’ll ask them what kind of budget they have, and they often ask, ‘what can I do $10,000?’

Unfortunately, not much. Westchester County, New York is not only an expensive place to live, but also to advertise. You can easily spend 10 times that amount on advertising and it may still not be enough, depending on what you’re advertising, and to what audience.

Okay, so as not to be a total pessimist, what can you do for $10,000? Well that amount could nicely fund a public relations program, which would help build awareness by getting your name out in the marketplace. Don’t ask PR to generate direct sales like advertising, but it could however, generate indirect sales and get your business off to a good start.

With PR and a $10,000 budget, you may not fly across the Atlantic, but you could go to beautiful Bermuda, and that’s not half bad, now is it?