External Enviroment Essay

480 Words2 Pages
Ruth Abel Marketing Plan Discuss the importance of Marketing plan A marketing plan clarifies the key marketing elements of a business and maps out directions, objectives and activities for the business and its employees. The marketing plan draws on the broader perspectives outlined in a firm's business plan. The business plan states how a company will take a product idea and transform that into a commercially viable proposition. The marketing plan focuses on issues related to the four Ps: product, price, promotion and place. Addressing these issues and putting them into written form can be useful for a business owner, in that it forces them to analyse their business. It can be good for employees, as the marketing plan can provide them with essential orientation and be a source of motivation. Product The marketing plan identifies the 'hook' for a product or service. Who will buy it and why? How is it better than its competitors? Price What pricing strategy will the company follow for this product? Is the plan to sell large volumes so that economies of scale can keep the price low? Or will it be marketed to a niche at a high price? Promotion What is the advertising strategy? How will the product be packaged? What will its marketplace positioning be? Place - How will the product be distributed? Will it be sold by retail stores or by direct marketing? The business should also be assessed with SWOT analysis - in terms of Strengths, Weaknesses, Opportunities and Threats. SWOT analysis evaluates a company's competitors and identifies areas of opportunity that can be exploited and possible commercial threats. It analyzes a business and how it will fit into the marketplace. Part of the analysis will focus on internal issues. For example, is a company hampered by a lack of worker training? Other analysis will be external. For example,

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