It is planning season for many tech companies and a good time to really look at the big picture issues in the industry. This means that you should not start with looking at last years plan an updating a few things. The recessionary markets has put more pressure on CMO’s and marketing departments to justify their spends. With a smart strategically based plan, the tactical elements and spend levels can be rationalized to top management. The process to develop the strategic insight can certainly be a laborious process, but the benefits will pay off over the year.
A smart approach is to perform a comprehensive review of markets and opportunities, then make long-term strategic decisions without the distractions of day-to-day marketing and sales activities. It’s important for a strategic marketing planning process to look at the company from the customer’s point of view by asking questions that have a long time horizon, such as:
- What needs or problems cause customers to consider buying from our tech solutions?
- What improvements in the customer’s personal or business life can we enable or improve?
- Which customer market segments are attracted to our company or tech service?
- Which customer motivations or values lead people to decide to purchase our solutions?
- What changes or trends in our customer base are affecting their general interest or attraction to solutions like ours?
Strategic vs. Tactical Marketing Plans
What makes a strategic marketing plan different from a more tactical marketing communications plan? The key difference is the focus on meshing overall customer situations with your overall company direction.Notice I don’t mention any tactical efforts such as “we should do more in social media,” that comes much later
For tech marketers, this means combining industry sector segmentation and product use with other factors related to purchase decisions. These include the purchase criteria and decision motivations that affect large, enterprise size purchases.
For example, the trend toward increased use of outsourcing to both domestic and global vendors creates markets for those suppliers. However, those vendors need to have a strategic marketing vision in order to see these new markets early enough to take advantage of the opportunity.
Without a strategic marketing plan a company could waste resources or miss an opportunity.
What’s the cost of missing an opportunity? Of course, it’s impossible to know at the time the opportunity is missed, but years later it will become clear when a competitor launches a new solution or enters a new market — and their revenue grows faster than their competitors.
In other words, the annual cost of a strategic marketing plan review is miniscule compared to the revenue, market share, and profitability it can generate.
Developing the Strategic Marketing Plan
The strategic marketing plan process typically has three stages:
- Segment the market
- Geographic
- Demographic
- Psychographic
- Purchase Behavior Drivers
- Profile the market segments
- Revenue potential
- Market share potential
- Profitability potential
- Develop a market segment marketing strategy
- Market leader or product line extension
- Mass marketing or targeted marketing
- Direct or indirect sales
After analyzing market segments, customer interests, and the purchase process, it’s time to create the strategic marketing plan. The strategic marketing plan document usually includes:
- Situational Analysis – Where is the company now?
- Market Characteristics
- Key Success Factors
- Competition and Product Comparisons
- Technology Considerations
- Legal Environment
- Social Environment
- Problems and Opportunities
- Marketing Objectives – Where does management want the company to go?
- Product Profile
- Target Market
- Target Volume in Dollars and/or Units
- Marketing Strategies – What should the company do to achieve its objectives?
- Product Strategy
- Pricing Strategy
- Promotion Strategy
- Distribution Strategy
- Marketing Strategy Projection
How to Use a Strategic Marketing Plan
Once a company’s executive team has approved the strategic marketing plan it’s time to take the next step — create the tactical marketing programs and projects needed to implement the plan.
These tactical programs can include:
- Product Development Plan
- Marketing Communications Plan
- Sales Development Plan
- Customer Service Plan
