By:
Allan Greig
www.allangreigmarketingassociates.co.uk
Few small
business's enjoy the benefit of a well researched, well constructed
Marketing Plan, yet this is the blueprint they should be working
from.
An annual Marketing Plan starts with a Sales Forecast and finishes
with a P&L Statement. In between, it embraces each element of the
business, what it's role is, how it needs to be manned and what it's
costs will be.
A P&L for a
typical manufacturing business would have the following key elements:
Gross Sales, Discounts and Allowances, Net Sales, Cost of Sales, Gross
Margin, Expenses, Operating Profit. Within each key
element there would be a further breakdown into cost centers.
For example Cost of Sales would be broken down into; Materials, Direct
Labor, In Direct Labor, Factory Overheads, Production Admin, etc.
etc.
Once approved, and spread across the year, the Marketing Plan
Presentation becomes
the operating budget and the results achieved are measured against
this 'budget' each period.
This simplifies management of each business center, variances are
highlighted and action can be taken to correct performance.
Marketing Plan
Presentation Development:
The development of
a Marketing Plan Presentation is not particularly difficult, it does however, call
for input from each element or business center of a business. By
their involvement each business center is committing to the plan,
making it their plan, not some one else's.
Key areas in the Plans development are Finance and Marketing.
Finance has the role of converting data and plans into financial
statements. Marketing defines the strategy to be used to achieve the
plans objectives.
With proper management and good communications, any business can
develop and implement a sound Marketing Plan.
Marketing Plan
Presentation Implementation:
The development
implementation of the first Marketing Plan Presentation can be quite traumatic
particularly for a smaller business. The role of AGMA is to
co-ordinate and communicate what the plan is, then guide everyone
involved through the planning process. This is a 'hands-on' phase,
but people are left enough room to make their own contribution.
Regular review sessions are vital to ensure that the plan makes sense
and that planning objectives are met in good time.
