How do I Write a Marketing Plan II

How Do I Write a Marketing Plan?
Part II – Goals & Objectives

By Stan Rydzynski
It is very important to understand the process of establishing a situation analysis before we develop the goals & objectives. Before you can set a goal you have to first understand, “where you are” This means asking” who you are, what can you do for the benefit of a customer, what are the markets you serve today and want to serve tomorrow, where you need to improve, what helped you get to where you are as well as what is your competitive environment and issues in your marketplace (competitive, market and product application needs)”. These questions help in understanding the issues that need to be reinforced and the ones that need to be corrected. The establishment of goals is the most important step in running a very successful business. Goals are the benchmark by which you will judge the success of your business. The goals provide a measurement to determine success.

How do I write a goal? A goal is a realistic measurable statement of the business targets and intentions. For example, I want sales to grow by a billion dollars. It is not measurable (when?) and it is not realistic (wishful thinking). Sales will increase in 2010 by 1.2% is a goal. It is measurable and realistic. The goals should be directed to change and grow the business profitably. The key words are profitably and grow. Beside serving a need and making you feel wanted and useful, a business exists to make a profit. When all is said and done the role of a business is to make its shareholders money. Once the business is established change for growth is the other must. If you don’t change the way you are doing business the economy or competition will challenge and destroy your profits. For this reason, your business should be in perpetual motion, always changing, adapting to your market and your customers. Working on the business is as important as working in the business.

To get you started, I will list goals which you could adapt for your marketing plan.

Sales in 2010 will increase by XX%
Gross margins will increase from XX% to ZZ%
Net margin dollars will decrease $XZXZX in 2010.
Starting in the second quarter obtain training on arc flash testing in preparation of launching a new arc flash testing service to our customers in the third quarter.
By the end of the second quarter decide if we could generate +$3.0MM in sales and make XX% profit within two years by adding a new sales person in two adjacent counties.
In August, conduct a new training program on how to talk to the customer for our inside and outside sales people
Redesign and introduce our new website by November.
Add another service truck in the third quarter to support anticipated increase in sales from the new expanded sales counties.
Investigate joining NARI, NAHB and the local Chamber of Commerce in the second quarter and take appropriate action to join if research is positive.
Research and identify ways we can improve our brand awareness with improved marketing graphics and copy by repainting our service trucks by May. If positive, have trucks repainted in June & July.
Improve our energy sales by $25,000 by having our local manufacturer sales people from Leviton (occupancy sensors) and GE (CFL &LED lamps) conduct energy audits in the second and third quarters with our top 10 customers.
Obtain 40 new qualified service work sales leads by exhibiting at the Rome Industrial Association Trade Show in October.
In the second quarter, introduce a commission incentive program for all our service truck mechanics to increase sales by 30%.
Introduce a safety program for our existing residential customers to increase sales of surge, GFCI, and arc fault protection by 35% in September.
Since April is fire safety month, launch a special program on smoke and CO2 detectors that will generate $11,550 in new business.
In March, change all business cards to include new company logo and list the most profitable work we perform as well as the reasons customers do business with us.

You can write as many goals you want. However, have a few macro ones to guide your company, and year. The remainder is more tactical, short-term goals that help you reach your long term goals. This is the difference between strategic and tactical. The key is they should be the most important that you can complete and within your budget. It is possible to list goals that will take more than one year to complete. Remember that this can be a three year plan with emphasis on the first yearr.

OK, you have now experienced the second part of a realistic and workable marketing plan. Writing and creating the plan takes time. Expect to work on your first plan for about 10-15 working days (obviously, this is spread out over time). Don’t rush the plan. Take the time to create the most effective profitable plan for your company.

There are five parts to a working marketing plan. They are:

Part I – Situation Analysis
Part II – Goals & Objectives
Part III - Action Plans
Part IV – Timetable
Part V – Forecasting and Budgets

Look for more articles in up coming newsletter issues.

Stan Rydzynski, Executive V.P., Channel Marketing Group, has over 35 years of experience in marketing/sales/product excellence in the electrical industry. The Channel Marketing Group provides strategic planning, marketing planning and market research for contractors, manufacturers and distributors with a focus on growth initiatives to accelerate performance. If you have a marketing/strategic planning question, you can contact Stan for a FREE consult at srydzynski@channelmkt.com or 516-319-1191. In addition, Stan conducts a 2-3 hour marketing/planning contractor seminar covering basic marketing concepts as well as teaching how to write an effective contractor marketing plan. Contact your local IEC, NECA chapters and/or your local distributor to arrange for him to conduct his highly effective and informative seminars.