Small business guide to marketing planning part 3: Objectives and strategy

world map and compassTo give your business direction and enable it to move forward, you need to have a clear idea of your goals, objectives and strategy . You may have a general idea of where you’d like your business to be in one, two or five years time, but without setting specific targets you may find you lose track of where you’re going and have no way to measure the success of what you are doing.

So, welcome to part 3 of our small business guide to marketing planning. In Part 1, we  looked at the importance of marketing planning and how using a framework such as SOSTAC can help you build your small business marketing plan. Part 2 discussed the first step in marketing planning – situational analysis and examined the question ‘Where are you now?’ This post looks at the importance of  setting objectives and how to formulate your strategy by thinking about ‘Where do you want to be?’ and ‘How do you want to you get there?’

Where do you want to be?

Having undertaken your situational analysis you should have a pretty solid idea about where your business currently stands. You’ll have a good understanding of your customers, the marketplace and your competitors.  You’ll also be aware of  your business’ strengths and weaknesses, alongside any opportunities or threats that may be on the horizon. All this analysis will help you mould your goals and objectives. These may include wider, long-term goals such as your business mission and vision as well as more specific short to medium term objectives.

So for example; say your situational analysis has identified that one of your weaknesses is that you have only a small database of prospective clients,  one of your goals over the year is likely to be to grow your database. Put into a specific short-term objective that you can focus your strategy and tactics around, your objective could be something along the lines of:

  • To increase ‘prospects database’ contacts by 25% by 30th June 2014.

SMART objectives

To make you your objectives both useful and relevant, you need to make them SMART. This way it is clear to everybody what the target you are progressing towards is.

  • Specific – objectives should be detailed and specific to a particular area – not vague or wishy-washy as that will make them impossible to measure.
  • Measurable – the objective should be able to be quantified.
  • Achievable – is the objective likely to be achieved or have you overestimated targets?
  • Realistic – do you have the resources, time, budget to make the objective happen?
  • Timely – you need to have a specific target time frame to work to.

How do you get there?

Now you know ‘where you want to be’ through setting clear goals and objectives, you need to think about how you’re going to get there. Strategy is driven by your situational analysis and is essentially about how you intend to go about meeting the objectives you’ve set.  So in our example our objective was to increase the number of contacts on our database. Therefore we are likely to want to drive more traffic to our website, which may well mean improving our search engine visibility and ranking. Our strategy will be thinking about the best ways to do this. This may include looking at:

  • Customer segmentation and target marketing strategy. Probably the key element when formulating your strategy is your customers and segmenting them into clearly defined customer groups by identifying the different behaviour and needs of each group. You will have looked at segmenting your customers as part of your situational analysis, so your strategy should then focus on how you intend to target your marketing to each customer segment.
  • Your positioning and OVP ( Online Value proposition): Where is your business positioned within the market and what is it that makes your e-commerce offering stand out from your competitors? How can you exploit this to your advantage?
  • Content strategy:  So if your strategy is to drive traffic to your website,  you will want to improve your search engine ranking and therefore you will need to look at SEO (search engine optimisation) . Content is absolutely central to SEO And so you will need to think about ways to improve your online content.

Your strategy is all about what actions are you going to undertake to ensure you achieve you objectives.  Your next step will be defining the tactics you are going to use (the tactics element of the SOSTAC framework will be part 4 of our marketing planning guide).

So, how does all this fit into the SOSTAC framework?

Going back to our earlier example objective of growing our prospective database, lets look at it in the context of the SOSTAC  framework :

Situational Analysis

1. Where are you now?

SWOT analysis  identified that the current prospects database was poor

Objectives

2. Where do you want to be?

SMART objective: To increase ‘prospects database’ contacts by 25% by 30th June 2014

Strategy

3. How do we get there?

 Strategy: To drive traffic to our website in order to data capture new names and achieve our objective of growing our prospects database by 25%.

Tactics

4. How exactly do we get there?

What marketing tactics will we use in order to drive traffic to our website and data capture new names for our database?

Actions

5. What is our plan – who is going to do what and when?

Who is taking responsibility for our tactics. What is the schedule and timeframe required in order to meet our objective’s deadline? What is the budget? What resources do we have?

Control

6. How are we going to measure our success?

We need to be able to measure our performance through analysis such as, KPI, web analytics, conversion rates in order to be able clearly measure whether we have met our objectives.

Part 4 of our Small Business Guide to Marketing Planning will be looking at marketing tactics.

Image courtesy of Keerati at FreeDigitalPhotos.net

We’d love to hear your experiences and thoughts on this post, so please do leave a comment

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Small business guide to marketing planning : part 1

marketing plan conceptWelcome to 2014. It’s the start of a brand new year and now is the time to start planning your marketing activity for the year ahead.  

We realise it’s not always easy to discipline yourself to put time aside for planning. Small business owners often have to juggle multiple roles, and planning can feel like it’s just one more thing to add to the bottom of a long of list of priorities – and before you know it you’re already halfway through the year. However, we firmly believe that putting some time aside now to plan your small business marketing strategy for the year ahead is well and truly worth the time and effort you put in.

Over the next few weeks, we’ll be looking at each of the elements that make up a successful marketing plan in more detail. First though we’ll look at why creating a marketing plan is so important for SME’s.

Why a usable marketing plan is so important for small businesses

Spending time planning your year ahead will actually help you focus on the areas that will help drive your business forward. By the end of the process you should have a relevant, useful working document that you can refer to time and time again over the course of the year. A good marketing plan will:

  • give your business direction through creating clear goals and objectives
  • help you to better understand your customers, online environment and competitors
  • help you put your resources and budget in the right places
  • provide a marketing strategy and plan of action for the year ahead
  • give you benchmarks by which to measure your performance.

How to write a marketing plan

How formal and structured you maker your marketing plan is  up to you. It  will depend on your business and the time and resources you have available. However at the very least you should consider and each of the areas we’ve outlined below as they’ll help you formulate your strategy and marketing activity for the coming year.

There are plenty of useful marketing planning models – marketers all  have their own particular favourites. In this post we’ll be using SOSTAC as it is a simple, useable framework to structure your plan around.  The SOSTAC model was created by Paul Smith in the 1990’s and is still one of the most widely used and popular models for marketing planning.

SOSTAC marketing planning model:

Situation Analysis – where are we now?  This is where you review your current environment to give you a better idea of where your business currently stands – what the current opportunities and threats are.  Situation analysis involves undertaking some marketplace, customer and competitor analysis enabling you to gain a better insight into your current situation and help you focus on where you want to be.

Objectiveswhere do we want to be? Setting clearly defined goals and SMART (Specific, Measurable, Achievable, Realistic, Timely) objectives will enable you to focus your marketing strategy to support your overall business strategy and business objectives. For example, if growing your online sales by x% is one of your business objectives this year then a key marketing objectives is likely to focusing on increasing traffic to your website.

Strategyhow do we get there? Your marketing  strategy essentially defines how you will achieve the marketing objectives you have set out. For example how you will position yourself in the market place and differentiate yourself from your competitors, and how you will segment and target your market.

Tactics exactly how do we get there? Tactics are simply the tools you use to achieve your objectives and support your marketing strategy. Tactics are essentially based around the 7ps of the marketing mix (product, promotion, price, place, people, process and physical)

ActionsWhat is our plan? Actions are the specific details of the tactics you have decided upon –  essentially who, when and how you intend to implement them. This often involves putting together of schedule of actions, budgets, timeframes and responsibilities.

Controlmeasuring success?  Control is how you intend to monitor the performance and evaluate the effectiveness of your marketing, using measurements like web analytics, customer feedback, sales, conversion rates and so on.

We’ll be looking at each of these elements in more depth over the coming few weeks so by the end of the process you should be able to create a useful marketing plan that supports your overall business objectives and gives direction to your marketing activity over the coming year.

Marketing Plan Book image courtesy of Stuart Miles at FreeDigitalPhotos.net
 

We’d love to hear your experiences and thoughts on this post, so please do leave a comment

Online objectives – drive traffic, generate new customers,  retain existing customers,