6 Important Elements of Marketing Plan

These are the elements of marketing plan:

  1. Product or Service
  2. Prices
  3. Promotions
  4. Distribution Channels

Product or Service

The first step of a market pan is to decide about how the product or service will be positioned in the grow market. The quality and reliability of product is important for its success in future. Plan also contains the information about use to the product to users.

Prices

Well-defined prices are obviously necessary to project sales volume and financial performance. As discussed earlier, prices also indicate quality an product image, and depending on the channels of distribution, prices w reflect the nature of the business.

Pricing policies relate to bulk, wholesale, retail and discount methods used to set prices. Such methods as cost-plus pricing or setting prices to match those of competitors indicate how entrepreneurs will make, strategic pricing decisions.

Promotions

Advertising and promotional strategies must be consistent with the product or service image. For example, quality office furniture is not apt to be sold through discount newspaper ads. Choosing proper media for advertising is one aspect of the plan, but introductory strategies should relate to the start-up stage.

For example, a new software program may be introduced at computer trade shows and be demonstrated at seminars offered to select clientele. Software developers may also sponsor business contests, set up displays in bookstores or computer retail outlets, or provide educational versions of programs to universities.

The promotional mix is determined by a conscious decision, selecting various promotional tools from advertising, personal selling, public relations, point-of-purchase displays, sampling, and direct-mail solicitation, among others.

Distribution Channels

If distribution channels have not been identified earlier, they must be described here. For example, unusual gift items ranging, from greeting cards to imported beef fillets are sold through catalogs, but Hallmark opened chain stores in shopping malls nationwide to market gifts and greeting cards. Liz Claiborne, Inc., reached $3 billion in sales by positioning fashionable women’s clothing in department stores through regional distribution centers, but recently the company opened a chain of exclusive stores supplemented with catalog sales.

Service and Warranty Considerations

Most retail stores offer warranties and service-after-sale guarantees in the event a product requires repair or adjustment. Often the distinguishing characteristic of a car dealership is its service and warranty policies. Appliance dealers may also base their strategies on follow-up-services and warranties.

Telemarketing companies invariably offer money-back guarantees because customers cannot evaluate products before they buy. On the other hand, there are many cash-and-carry discount outlets that sell “seconds” or flawed merchandise, and customers rarely expect warranty service.

Marketing Leadership

The market plan should address the way in which organizational members will be involved in the marketing effort. From a strategic perspective, investors want to know who is going to actually take the lead in making customer sales. If the venture requires a sales force, then issues such as sales training, commission structures, recruitment, and sales management become important.

Investors and lenders are accustomed to seeing two general patterns in poor business proposals that get rejected: First, there are technically competent entrepreneurs who have great ideas but who know very little about marketing. Their plans provide an over kill on product attributes but ignore marketing strategies.

Second, there are super sales people with brilliant ideas who are over enthusiastic about projected sales without providing sufficient supporting evidence to convince investors or lenders that they can achieve the results.


FAQs Section

What are the 6 important elements of marketing plan

The 6 important elements of marketing plan are: Product or Service, Prices, Promotions, Distribution Channels.