Four Steps for Effective Market Planning

Insights are as equally important as inspiration when launching a new offering or opening your doors for the first time. Market planning helps to understand opportunities and risks. Businesses that thrive rely on well-researched strategies. In a recent survey 86% of businesses said market research delivered a return on investment of over 400%.1 Sixty-four percent increased sales and 62% improved customer retention.2

Develop a cohesive plan to successfully market your business.

Market planning is intended to help draw conclusions about demand, trends, potential, saturation, competition, target channels and even pricing. It’s important to conduct research, evaluate a variety of scenarios, carefully prepare a business case. In-depth research will reveal what is most likely to work for your company and may inspire new and different ideas that succeed. Be prepared to pivot if necessary.

1. Perform a market opportunity analysis.

   A market analysis provides a comprehensive view of intended markets, customers, and competitors. Its goal is to help you determine whether your product or service is viable, identify how to competitively position it in the marketplace, and pinpoint opportunities for growth and profitability. It also helps to rank new ideas based on revenue potential and risks. There are specific areas of focus in a market opportunity analysis.
   • Target audience
     Who are your potential customers and what problems will your offering help solve for them? What does the buyer’s journey look like? Client data and market research helps identify specific customer – and prospect – segments based on revenue potential, as well as lays the foundation for determining potential market share. Demographic data provides an additional layer of insight to further refine segmentation and marketing strategy.
   
   
   • Product research
     This step will help you determine potential opportunities for new products or services. You’ll better understand what is required to fully develop and sell the product, as well as how it should be priced, packaged, and distributed. You’ll also need to consider how you’ll fund development and set a timeline for when the product/service will be self-sustaining financially. Research on existing products will help to determine whether repositioning or expansion is needed. Industry and trade research can help with facts and figures, but you may need to do custom analysis – including querying customers – for specifics.
   
   
   • Competitive analysis
     Who are your competitors and what is their market share? How do they differentiate themselves? Are there gaps in the market you could address? If your product or service isn’t easy to differentiate based on performance, features, quality, service, or price, you’ll want to regroup and redefine to give yourself the competitive advantage.

2. Conduct a SWOT analysis.

   One of the most common approaches to evaluating a business or idea is a SWOT (strengths, weaknesses, opportunities, threats) analysis. Strengths and weaknesses are internal factors that help to determine what your company does well and where there’s room to improve. Opportunities and threats are external influences, such as a competitor leaving the market or regulatory changes.
   
   When using a SWOT analysis for market planning, you’ll get a clearer picture of where your business currently stands. The structured framework is adaptable, so it’s also ideal for assessing campaign strategies. Setting up a SWOT analysis is straightforward – use a quadrant with one factor per square and list items as you identify them. Free templates are available online or you can purchase software.

3. Establish actionable objectives and measurements.

   A plan is just a dream without goals. In addition, goals for every aspect of the plan should be SMART — specific, measurable, attainable, relevant, and time-based. Areas in which you should apply this approach include:
   • Sales
     Establish average sales goals that you need to be profitable. Also specify per-unit sales goals detailing how many items you need to sell and at what price.
   
   
   • Revenue
     Define how much you intend to earn with monthly, quarterly, or annual time frames. Of course, this is heavily dependent on pricing and sales plans.
   
   
   • Customer Base
     Document how many customers or prospects you want to acquire from each segment. How many do you want to add per month or quarter? Again, be specific about time frames.
   
   
   • Market Share
     What percentage of the market do you want to own? Outline reasonable target dates for when incremental increases can be achieved in each intended region.
   
   Using the SMART framework keeps you on track for growth. It’s important to periodically follow up with customers and sales representatives to assess how your offering is received. If you’re meeting your goals, keep at it. If you’re not, it will be easy to see why and take steps to correct course.

4. Create a strategic marketing plan.

   An effective marketing plan details how you’ll attract new customers and increase sales. Your plan should answer questions like:
   • What is my unique selling proposition?
   • Who are my target audiences and what messaging resonates with them?
   • What channels are most effective to promote my products and services?
   • How much should I allocate for marketing?
   
   Marketing plans should be thorough, so it’s important to start work early. The STP (segmentation, targeting, positioning) model is an effective means to create a marketing plan. This marketing plan structure involves choosing valuable segments (identified from your marketing opportunity analysis) and developing a positioning strategy and marketing mix for each segment.3 The marketing plan should include goals and measurements, as well as budgets and timelines.
   
   • Write a positioning statement.
     What is your product or service and why is it needed? Positioning statements define the product, what it will do for customers and how it is different from other offerings. Communicate this positioning to your entire employee base – not just sales – so that everyone knows how to effectively promote your product.
   
   
   • Consider pilots and soft launches.
     Depending on the nature of your product and revenue goals, a pilot or soft launch might be appropriate to test the market response prior to a broader release. The reason for testing is not to see if buyers will buy — this was addressed in the market analysis — but rather to address any unforeseen technical, sales or support issues that might arise during a larger rollout. Pilots and soft launches also provide opportunities for product reviews and case studies, which are valuable in communicating the benefits of the product.
   
   
   • Define the marketing mix.
     The marketing plan is how you’ll introduce your product to the world. The market analysis should’ve provided details about your target audiences, including the types of media they rely on for information. Is it digital, radio, newspaper? Will they require 1:1 communication and product demos? An agency can help develop a plan that includes the right messaging and marketing mix to reach the various segments you are targeting, as well as executing creative that reflects your company’s brand.
   
   
   • Think big when budgeting.
     Marketing can be expensive. Establish a cost for launch activities, agency fees, and each element of the marketing mix but remain flexible as you will likely need to make adjustments. Include a cushion for cost overruns and unexpected expenses.
   
   
   • Create a detailed schedule.
     Decide on an overall launch date. Work backwards from that timeline, detailing critical dates for every launch activity. Be sure to confirm timelines with team members who share launch responsibilities (e.g., sales, product management, compliance, etc.).
   
   
   • Measure and refine campaigns.
     Regularly track and document campaign performance, with an analysis of related spend. This will help to determine return on investment. Frequently reviewing performance will also provide an opportunity to adjust the campaigns as needed.
     
     A well-defined marketing plan aligns with your overall business goals and includes measurable results to gauge your strategy’s success. Regularly revisit your plan and track your metrics to see whether adjustments are needed to maximize resources. Ensure you stay current with trends to keep pace with shifting consumer preferences and can adapt your plan to meet them.

Business success requires creativity, flexibility, and discipline. Our Treasury & Payment Solutions Consultants can provide targeted financial insights and assist with market planning for successful business growth. To learn more, complete a short form and we’ll contact you with more details. You can also stop by one of our local branches.