Promotional plan

From CEOpedia | Management online

Promotional plan is part of a business plan, which includes an organizational, production and financial plan. It is a document covering a period of at least one year, containing detailed information on the introduction of new products or services to the market or improvement of the approach to existing products(Liche B.M. 2019, 3-5).

Structure of of the promotional plan

The companies currently operating on the market compete with each other to attract customers for the products and services they offer, and thus the financial resources from their sales. The factor contributing to the increase of competitiveness of the company on the market may be a properly prepared marketing plan. The structure of the marketing plan includes (R.I. Choi, Ch.K. Jung,2015, pp.12-15):

  • a management summary,
  • current analysis of the marketing situation,
  • Analysis of opportunities and problems,
  • marketing objectives,
  • marketing strategy,
  • the action programme,
  • the budget,
  • a forecast of the profit and loss account,
  • control.

The promotionsal plan should be drawn up in such a way that it can be modified. The environment in which enterprises operate is changing very quickly, so it is necessary to adapt companies to new environmental conditions (R.I. Choi, Ch.K. Jung,2015, pp.12-15).

Creation of a promotional plan

Promotional plan can be drawn up according to two independent planning processes: strategic and operational. The logic of the company's decision-making process requires strategic decisions to be taken first and only then operational. The process of creating a promotional plan consists of four stages (P., Naik, K. Raman, R.S. Winer, 2005 pp. 25-34):

  • analysis of the situation,
  • target market selection,
  • the definitione of strategic objectives,
  • choice of strategy.

The analysis of th e situation is based on the detailed characteristics of the external and internal operating conditions of the enterprise (e.g. sales volumes, sales markets, competitors). After a detailed analysis of the situation, the undertaking selects the target market (P., Naik, K. Raman, R.S. Winer, 2005 pp. 25-34). The undertaking identifies target markets, presents a pricing strategy and presents distribution channels. The next element is the definition of strategic objectives, e.g. increase in sales, increase in product quality, etc (P., Naik, K. Raman, R.S. Winer, 2005 pp. 25-34). The next element is the definitione of strategic objectives, e.g. increase in sales, increase in product quality, etc. The final stage of strategic planning is the selection of a strategy that describes the most effective way to achieve the objectives. On the other hand, operational planning includes (P., Naik, K. Raman, R.S. Winer, 2005 pp. 25-34):

  • definition of operational objectives
  • formulation of an action plan
  • implementation of the plan
  • final control and evaluation of results

The operational objectives are defined by precisely defining the objectives that the company intends to achieve within a specified period of time, e.g. increasing sales by 10% within the next year. The next step is to define a plan of action to achieve a specific goal in the assumed time and the implementation of a specific plan. The last stage is to control the results, i.e. to check whether the adopted objectives and strategies have been achieved (P., Naik, K. Raman, R.S. Winer, 2005 pp. 25-34).

Analysis of the company's situation in the promotional plan

Starting work on creating a promotional plan of the company it is necessary to analyze its marketing situation. For this purpose, the following methods are used (H.J., van Heerde, et all., 2000,pp.383-395):

  • SWOT analysis,
  • a model of M. Porter's 5th force,
  • the life cycle of the product,
  • market segmentation.

Most often, marketing analysis includes (H.J., van Heerde, et all., 2000,pp.383-395):

  • analysis of general economic indicators for the country where the business activity is conducted,
  • industry analysis of sales, trends and trends;
  • target market analysis;
  • analysis of buyers' behaviour;
  • competitor analysis,
  • marketing-mix analysis,
  • identification of weaknesses in the company,
  • identification of the strengths of the company;
  • analysis of macro-environmental factors,
  • identification of market opportunities and threats (H.J., van Heerde, et all., 2000,pp.383-395).

Customer orientation in the promotional plan

The growing importance of marketing in the company was caused by factors such as(M. Trusov, et all., 2000, pp.71-81):

  • globalization,
  • intensifying competition on the market,
  • the creation of numerous substitutes for goods,
  • increasingly demanding customers.

It is well known that the prerequisite for success on the market and the source of profit of any company are its customer (M. Trusov, et all., 2000, pp.71-81). Therefore, appropriate marketing activities are an important element in every enterprise. Contemporary marketing concept is characterized by constant undertaking actions aimed at gaining customer satisfaction and satisfying his needs. Each customer has different requirements and needs, therefore, it is necessary to identify groups of customers and prepare appropriate plans of marketing activities, enabling an individual approach to the customer. The main goal of marketing development in a company is to constantly expand the sales markets and increase the number of customer(M. Trusov, et all., 2000, pp.71-81) . Business management is the art of taking advantage of opportunities and limiting or avoiding risks. That is why strategic marketing plans are so important in the company. The strategic approach consists in perceiving the relationship between the enterprise and the surrounding environment (customers, consumers, suppliers) and the surrounding environment (economic, political and legal dimension). Marketing planning is therefore a process consisting in identifying, analyzing and interpreting many factors affecting the enterprise and determining the objectives of the enterprise and ways of achieving tchem(M. Trusov, et all., 2000, pp.71-81) .

Marketing research in the promotional plan

The market situation is constantly changing, new decision-making problems arise and it is more and more difficult to predict the consequences of decisions made. Therefore, it is necessary to conduct marketing research and market analysis (M. Camiller, 2017, pp.19-25). Marketing research covers the information needs of the company and analysing and interpreting data used to make important marketing decisions. Marketing research only minimizes the risk associated with the decisions taken, and does not completely eliminate them. However, skillful use of information from research helps in making accurate marketing decisions, which will be included in the promotional plan (M. Camiller, 2017, pp.19-25) .

Advantages of Promotional plan

A promotional plan can be a great tool for businesses to reach their target customers, as it provides an effective strategy to increase sales and brand recognition. Some of its advantages include:

  • It helps to define the goals and objectives of the company, as well as the target market and the strategies to achieve them.
  • It helps to focus the company’s resources on the most effective and efficient promotions.
  • It helps to make sure that the promotional activities are consistent and cost-effective.
  • It helps to develop a plan for tracking and measuring the success of the promotional activities.
  • It helps to identify potential problems early on and adjust the promotional strategy to address them.
  • It helps to create a consistent and recognizable brand that customers can trust and recognize.

Limitations of Promotional plan

Promotional plans have several limitations that must be considered in order to ensure success. These limitations include:

  • Unpredictable market conditions: Market conditions can change quickly, making it difficult to plan promotions.
  • Limited budget: Promotion plans must be within the budget set by the company.
  • Limited resources: Companies may have limited resources to create promotional materials and plan promotional events.
  • Lack of data: Limited data may make it difficult to develop effective promotional plans.
  • Time constraints: Promotional plans must be completed within a certain period of time in order to be effective.
  • Inability to measure success: It can be difficult to measure the success of promotional plans, making it difficult to decide whether or not to continue with a plan.

Other approaches related to Promotional plan

The following approaches are related to promotional plan:

  • Market Research: This involves obtaining data and information related to market trends, customer needs, competitors, and product performance. It helps businesses to better understand the target audience and make informed decisions when creating a promotional plan.
  • Advertising: This involves creating advertisements that communicate the company’s message to the target audience. It can include traditional media such as print, radio, and television, as well as digital media such as websites and social media.
  • Public Relations: This involves building relationships with media outlets, influencers, and stakeholders to create positive publicity for the company. It can include press releases, interviews, and other activities that help to promote the company’s products and services.
  • Events: This involves organizing events such as trade shows, conferences, and other gatherings to promote the company’s products and services.
  • Social Media: This involves using social media platforms such as Facebook, Twitter, and Instagram to reach out to customers and engage with them.

In summary, the approaches related to a promotional plan include market research, advertising, public relations, events, and social media. These approaches help businesses to better understand their target audience and create campaigns that will effectively reach them.

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Author: Bartosz Wojak