The proof is in the planning

Carefully conceived marketing plans can improve cost efficiencies and maximise sales lead opportunities. Here, Paul Cross, Head of Product and Marketing at thomsonlocal.com, explains why thorough planning is a vital component of small business marketing.

Planning is always of paramount importance and particularly at a time of tight economic conditions and wide ranging cutbacks.  As small companies focus on achieving maximum efficiency across their operations, planning can help to ensure that every penny spent is a worthwhile investment. Marketing budgets are of course not immune to efficiency drives and cost cutting measures, yet these pressures can hinder the crucial role of marketing in attracting new customers. Planning an effective marketing strategy in advance is therefore an essential step to achieving wider business goals.

"Spending time developing a robust marketing strategy will have a strong, positive impact on business success and profitability," says Paul Cross, Head of Product and Marketing at thomsonlocal.com,  "This is because companies that employ a marketing strategy tend to focus on their customers and markets, integrate their marketing responses and work out in advance where their profits will come from."

Small companies must consider a wide range of factors when devising marketing plans. Issues like new marketing techniques and forums, time-specific promotions and business networking opportunities will all come into play, although the driving force behind any marketing plan will be the need to generate maximum revenue in the most cost effective way possible. "For most small businesses the key business objective will be to increase sales and customers," comments Mr Cross. "Marketing objectives to help achieve this include reaching new customers, increasing the number of repeat purchases and launching new products."

As with all areas of their operation, small companies should be able to put together their own strategy and plan for marketing. However, busy business owners may benefit from outside input to help them get everything done. Mr Cross suggests that the core tenets of a marketing plan should include the specific marketing activities to be performed, as well as the associated budgets and timings. Where such plans are not effectively drawn up and carried out, businesses may struggle to contain costs.

"Businesses may end up exceeding their marketing budget if they do not plan well initially and project manage individual marketing projects effectively," he says. "Any third parties should be made aware of any budgetry restrictions."

Balancing budgets with wider marketing aims can be a tricky task, particularly as the growth of new, digital platforms serves to create a fluid marketing landscape. While Mr Cross stresses the need to keep a grip on costs when it comes to marketing plans, he also argues against excessive rigidity in their execution.

"It is important to try and remain in budget and not let costs spiral out of control," he says.  "However, a marketing plan and assigned budget should be flexible. For example, if certain marketing channels are found not to be as effective at generating new customers, the marketing plan should be adjusted and more budget assigned to other more cost effective marketing channels."

Small businesses can keep a check on the latest market trends by conducting thorough reviews of their plans. This should involve comparing investment against performance to determine which promotions are working well and where improvements could be made.

"Usually the annual marketing plan and associated budget is agreed well in advance of the start of the business year," says Mr Cross. "However, it is important to review performance on a regular basis to ensure that key business objectives are being met. The marketing plan and budget may need to be altered if performance is not as expected."

One of the best ways for measuring the return on investment from a marketing plan is to set measurable targets which assess whether a business is on track to deliver objectives within an agreed budget. Mr Cross suggests that each marketing promotion should provide businesses with insights into how many leads, customers and how much revenue they are generating.

"Use unique, trackable phone numbers, quoting codes and online landing pages and keep a record of leads and results by campaign," he suggests. Indeed, by combining such performance analysis with detailed marketing plans and budgeting, small businesses can achieve a competitive edge and build strong platforms for future growth.