Business Plan / Marketing Plan Are they the same?

Business Plan vs Marketing Plan

 
In talking with some folks the other day about strategic planning for their business, the question was asked:  “What is the difference in a business plan and a marketing plan? For most small businesses the distinction is small but important enough to consider. They are both essential for a successful business. Plans help businesses organize their operations and benchmark their success or failure.

As the business climate changes with customer demand and economic environmental conditions, the business plan and marketing plan must evolve. It is important to remember that revision and updating are an on-going process.

The Business Plan
There are many parts to the business plan and it can vary in size from a few pages to hundreds depending on the size and complexity of the business. It will include at least the following:
·         A wide overview of the business and the business type (LLc, sole proprietor etc. )
·         Information on staffing requirements and structure
·         Business Operations
·         Location
·         Finances
·         Outline of mission statements and goals.

Often the business plan is used as a financial tool. It gives lenders most of the details they need in order to determine if the business is viable and financially sound.  A business plan states goals for businesses and should be used as a living document throughout the life of the business. Not only does it help to develop competitive strategies, the business plan can determine if a new business activity matches the forcasted plans.

Marketing Plan
The marketing plan details actions that achieve the stated goals of the business plan. For example it  will go into much detail to clearly  identify such things as:
·         Price points for what the business has to offer
·         Target Markets
·         Competition and competitive strategies
·         It defines the how of customer acquisition and retention
·         Defines how to overcome competitive situations
·         Advertising and trade show participation
·         Provisions for measurement

 In short,  the marketing plan is a key section within the business plan and requires detailed industry research and consideration. To be sure, the business plan and marketing plan are like a horse and carriage. They must be consistently with one another to be effective. The business plan identifies the goals and missions of the business, while the marketing plan explains how the business will achieve.

When  the plans of the business change, the business marketing action also changes. A good marketing plan should never deviate from the objective of the business plan. It is important to have both plans should be reviewed periodically. Usually the business plan can be reviewed annually while the marketing plan should be reviewed quarterly. The reviews help revise what is, and is not working in the marketing plan and allows changes to take place to meet changing business criteria.

Comparing actual versus outlined activities helps measure business success and identify any new or updated strategies in response to the current economic environment. Both documents should be detailed enough to provide concise and explicit information. This will require the plans to be well-researched and include supporting evidence for the presented data.

I hope your Q2 is off to a good start,