The marketing plan refers the more detailed description of the products and services your institution will offer. The marketing plan will clarify what you will offer to whom and how this offer will look like.
a) Needs assessment
Summarise the findings of your market research and analysis to answer the following questions:
· What has been done to identify the needs (market research)?
· What is the identified need/demand?
· Already existing solutions (competition)?
· Did you identify unsatisfied needs, what is your competitive advantage?
· What are your weaknesses and did you identify any threats?
b) Definition of your target group and market
· Who is your target group?
The target group describes the group of people that is most interested in your products and services and can be characterised by common criteria. For example, the target group for professional training is defined by all residents of country xy with a relevant working experience of at least 1,5 years in the respective profession and an interest in further education and development.
The definition of your target group is the logical consequence of the findings of the needs assessment and the market research in general. The clear definition of target group(s) is indispensable in order to focus your efforts and decide on the marketing strategy.
See a collection of criteria to define your target group.
For a demonstration on how to identify target groups, see our brief case study on defining or choosing your target group
· What is the size of your target market
The size of the target market can be defined as the share of the total market that is represented by the target group. The size of the target market will reflect and limit the quantitative objectives of your institutions (e.g. number of people or companies trained that will be trained, number of corporate members, number of companies advised, etc)
Example “Size of Target Market”:
Our target group are buyers and purchasers in agricultural co-operatives. In country x there are currently 160 existing co-operatives. Each co-operative employs on average 6 buyers. Our potential target group for the buyer training is therefore estimated at a total of 960 buyers. The professional SCM training for an agricultural buyer comprises 16 hours. The total size of the target market is 15360 training hours. Of course we will not be able to reach the total potential market which would mean to train every purchaser in an agricultural co-operative.
Our objective for the first three years is to reach 20 % of the total target market, which is rd. 190 buyers in the agricultural sector or 3040 training hours.
c) Marketing strategy
The marketing strategy describes how you are going to achieve your objectives set in the business plan. In classical marketing this refers to the “4 P’s” and gives the answer to the following question:
How will you satisfy the identified needs of your target group and gain a place in your target market?
a) Product/Service:
Based on your needs assessment and the definition of your target group(s), you will now describe the character and objective of your revenue generating activities. In most cases your products and services will be adapted to your different target groups.
The description will contain the following elements:
· The goal of the activity
· What is done to reach the goal
· The expected result or output
Example: “SCM training for the target group "buyers in agricultural co-operatives”
The goal of the buyer training will be to improve the technical know-how of buyers in agricultural co-operatives by teaching them the contents and approaches of international purchasing management. The training will be held by especially trained trainers. Up to 15 buyers of agricultural co-operatives will be grouped together for a training event. The trainees will work with course materials especially adapted to the country's agricultural sector. The result will be that the buyers will improve their activities in terms of cost, time and risk reduction and therefore back the competitiveness of the agricultural sector.
b) Price:
You will need to find out how much you can charge for your products and services from the different target groups. Please be aware that you need to compare these prices with the costs of your operation. As a principle, at least the costs created by the activity have to be covered (including a contribution to the coverage of fixed costs in case they are not covered by separate funds).
Services and products not covering the full costs should not be offered at all - except you can get enough third party funding for it. This is especially important if your mission statement refers to training of SMEs or social groups like unemployed workers – target groups that might only afford a level of contribution that will not cover your costs.
In many developing countries associations need to be very creative in terms of funding their services and product. Try to think out of the box. Who else then the direct target group will benefit from your activities and why would they maybe provide you with some in-kind contributions or fund some of your expenses?
See also “Pricing”, "Financial Planning", and “Fundraising Activities”.
c) Place (distribution):
Your products and services need to reach your clients. How do you want to do that? Will you deliver directly to your clients or will you use "intermediaries" (e.g. other training institutions, consultants, event organisers, etc.)?
Describe for all products and services how they will be delivered to the respective target group. Information can for example be delivered via mail, via the Internet or via conferences. Some institutions might offer training courses in their premises others will use the premises of their clients or supporting parties.
Read about creative solutions regarding premises and administrative support from ITC’s current partner institutions.
d) Promotion:
Describe briefly how you plan to inform your target group(s) about your products and services? What are your convincing arguments, your message in order to raise their attention (your strengths)?
The more you focus on the benefits of the target group the better the impact of your promotion activities. Be also aware that the target group itself might not take the decision to choose your products and services. Your promotion than has to focus on the benefits of the likely decision takers (for a buyer training this could for example be the CEO, the Human Resources department or the purchasing director)
See "Marketing” " for more detailed information, examples and tools.
What are the typical forms of promotion that associations can use?
- Brochures and other information material
- Networks and contacts
- Presentations and company visits
- Advertisements in technical journals and newspapers (read by the target group)
- Direct marketing: direct contact (mail, telephone, Internet) with individuals from your target group. This is a very efficient form of promoting your products and services but you will need to have contact addresses of individuals of your target group
- Public Relations: publishing articles about your institution and its activities in newspapers
- Event participation: (inter)national conferences, fairs, discussion fori
d) What are the basic resources and support available to you (overview)?
You should give an overview which resources your institution will be able to use in years 1 - 3 to fulfil the marketing plan.
- Know-how (experience, skills, special services)
- Start capital, donors or companies backing your institution
- Professional contacts, networks, partnerships
- Facilities and equipment (existing and planned)
- Library access, databases, information sources
- Alliances and memberships