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. He or she is, in reality, the salesperson and 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:
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 a 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 a particular product or service. Sales has to do 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 the 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 involved 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 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."