Why A Marketing Plan is Crucial for Any Size Business
Fractional CMOs - Astute Group
We develop and implement FULL-SCALE MARKETING PROGRAMS that generate substantial growth for $10MM+ companies.
A Strategic Marketing Plan is the Key
Want to know why two businesses can offer the same products and services, while operating in equivalent market conditions, sizes, etc. yet one achieves $5 million in annual revenue and the other $50 million?
The difference is strategic planning!
I cannot tell you how many times in my career as a Fractional CMO, I have had potential clients respond to my recommendation for a marketing plan with "That only works for big businesses, we cannot afford to do that". My response to that is "Actually you cannot afford the mistake of not developing a marketing plan". I explain that the fundamental principles of marketing apply to any business, regardless of its size or budget. The difference is that these principles must be scaled to the businesses resources and goals. Savvy business owners and executives realize that successful enterprises provide the example to follow, just on a smaller scale.
A Marketing Plan is the Roadmap to Prosperity
If your business does not have a strategic marketing plan, your business is DEFINITELY missing opportunities and giving up potential revenue that competitors are gaining. A strategic marketing plan is the roadmap that guides your business to prosperity. Sure you may reach your destination without clear directions, but you are almost certain to get lost, encounter a traffic jam or accident, maybe even a potential closed road. Which means your trip took longer, consumed greater gas, and increased the wear and tear on your vehicle. Worst of all if you arrive to late, you missed the party, or at best, caught the tail end of it. You know right about the time where half the people of left, all of the good food is gone, the ice is melted, and the available drinks are very limited.
In that scenario, the trip is your marketing activities, the vehicle is your business, and the party is potential customers. You made it to the party, and enjoyed some of it if your lucky. Unfortunately, in reality, most businesses do not realize that they are only capturing a small piece of whats available. They work harder, and potentially spend more to make less than competitors that have developed a marketing plan to guide their efforts and generate revenue growth.
A Look at the Numbers
A crucial aspect of running a business that is often overlooked, marketing is essential for success. One study estimates 50% of small businesses operate without a marketing plan – this study also concluded that 55% of small business owners spend less than 5% of their annual revenue on marketing, and 86% would rather spend time on other aspects of their business.
But – did you know that increasing your time and money investment on a marketing strategy as much as 5% can positively affect your revenue? This study remarks that 81% of respondents who invested between 5% and 10% of their annual revenue saw revenue growth last year.
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That’s the point of having a business – to grow your revenue! So, what happens when you don’t use a marketing plan?
The Pitfalls of No Marketing Plan
A lack of strategic planning can be detrimental for the growth of a company. Without a marketing plan, businesses have no sense of focus or knowledge of who they’re marketing to, making their message come across as disjointed or muddled. This means that potential customers won’t be able to quickly understand if your business is what they need, and they’ll pass you along.
It also can cause a waste of money and resources. If, instead of having a plan, time and money is spent on experimenting and trying random techniques, more money can be wasted in the long run. Having a step-by-step process can help a business have a better grasp on what’s doable, what’s not a waste of time, and what exactly can fit towards the budget.
How to Develop a Marketing Plan
There are numerous theories on how to develop a marketing plan, these include the 4P's, the 7P's, and several other approaches. Frankly, if you want a plan that is going to generate substantial results, look to an expert to create the marketing plan. Especially if you have never developed one before. We offer strategic marketing plan development, as well as implementation services to help your business Realize its Full Potential. Learn more at https://www.astutecmo.com