According to experts, your marketing plan should be separate from your business plan. Although both are expected to be consistent and work interdependently with one another, they are both separate documents. Keep in mind that both documents will evolve throughout the lifespan of the business to ensure they remain valid and in line with ever-changing customer demand and fluctuating markets.
A business plan represents the general view of a business. It tends to feature details on location, staff, finances, and marketing, coupled with every other necessary detail. Aside from that, they are most often used as a tool to ensure that lenders or shareholders have the right details they need to evaluate the viability of the business.
A marketing plan on its own is a vital section within the business plan and tends to necessitate comprehensive industry research and consideration.
If a marketing summary is featured within a business plan; does the company still need an independent marketing plan? The simple answer is yes. Just as was noted above, a comprehensive marketing plan is a separate, well-detailed document that features extensive information regarding the marketing objectives, goals, and strategies.
It is meant to coordinate the intentions and activities of the business’s marketing, sales, and promotion departments. The marketing plan takes into account the business’s price points, intended demographic, and competition. It is a vital document that is put together to ensure that the business can draw in customers, attain its sales objectives, go toe to toe with other businesses, and boost the company’s market share.
Difference Between Marketing Plan and Business Plan
Just as it was noted above, a marketing plan is meant to be separate from a business plan. While both plans might have similarities, they have numerous variations and you must pay good attention to understand them. They include;
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Scope
One of the most cognizant differences between a business plan and a marketing plan is the scope of things they are expected to cover. Although both documents are known to be quite lengthy and detailed, they really do not tackle the same information.
A business plan is a comprehensive document that features or encompasses every aspect of your business: operations, supply chains, human resources, materials costs, and even your marketing.
Howbeit, marketing plans precisely cater to the specifics of making customers conversant with and more inclined to purchase a product or service. Also have it in mind that this plan features some of the same things a business plan does, such as the cost of goods sold, because they have everything to do with being able to sell those goods or services to clients.
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Timeline
Note that how far into the future these plans take into consideration is another vital difference between them. Business plans, for instance, account for longer periods than marketing plans. According to experts, a viable window for a business plan is around five years.
Meanwhile, a viable window for a marketing plan tends to fall within one to three years. Also, keep in mind that both plans will have to be updated differently as well.
There is always little or no need to replace or update a business plan unless there’s a massive alteration in the business — a completely new product category, a new business model, or some global event that has a cognizant effect on the way a company carries out its basic activities.
Marketing plans will have to be updated every year to guarantee its viability. In most successful organizations, they are part of the yearly budgeting activities. Successful companies tend to modify their marketing plans more consistently than they modify their business model.
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Purpose
Another vital differentiation between plans is the purpose they are intended to serve. The essence of putting together a marketing plan and a business plan are quite similar but not identical. Ideally, business owners tend to leverage both to secure financing.
Banks and investors will most definitely request to see your business and marketing plans before agreeing to loan money or invest in the company.
Business plans are also necessary when looking to prepare the business for the future. By writing a well-detailed business plan, business owners obtain an in-depth view of where they are and the sort of initiatives and resources they require to attain their goals.
Marketing plans have also been proven to be resourceful and useful internally. They are a very vital part of the annual budgeting process.
Conclusion
Both documents are vital components of any successful business. But just as it was noted above, a marketing plan is meant to be separate from a business plan. While both plans might have similarities, they have numerous variations and you must pay good attention to understand them.
Howbeit, note that both will necessarily have to evolve throughout the lifespan of a business to ensure they remain valid and in line with ever-changing customer demand and fluctuating markets.