FE967

Eight Steps to Developing A Simple Marketing Plan1

Edward A. Evans and Fredy H. Ballen2

Introduction
Marketing is an essential component of a business (Guidry
2013). In fact, it is the heart of any business, serving the vital
function of transforming production activities into financial
performance, thus ensuring the survival of the business.
Marketing is key regardless of the type of business (this
includes agriculture). Despite the important role of marketing,
many smallholding operators/growers are reluc-tant to create
a marketing plan. These operators continue to operate on the
basis of trying to sell what they can produce rather than
producing what they can sell. Some claim they do not have
time to develop a marketing plan, while others claim there is
no need for such a plan. The result of such shortsightedness is
that some operators eke out a meager living, witnessing their
profit margins evaporate as they continue being price takers
Credits: Thinkstock.com
instead of price makers. As the saying goes, “if you fail to
plan, then you plan to fail.” Whether you are a large-farm or Rationale for Marketing Plan
small-farm business, you can benefit from developing a
A quick online search will provide a list of reasons why
marketing plan. Contrary to popular belief, preparing such a
a marketing plan is essential for your business operation.
plan does not require an enormous amount of time and
A marketing plan
resources, but it does result in benefits that greatly exceed the
costs. • Helps you reach your target audience
In this article, we show how smallholders can develop a • Helps you boost your customer base
simple marketing plan using our eight-step guide and our • Increases your bottom line
marketing plan worksheet (Table 1). First, we explain why
• Assists you with obtaining finances
a marketing plan is important for your business and define
what a marketing plan is. Second, we list eight steps to fol- • Helps you set clear, realistic, measurable objectives
low to develop a simple marketing plan. Third, we provide • Helps you focus your total marketing efforts
a marketing plan worksheet for your individual use.

1. This document is FE967, one of a series of the Food and Resource Economics Department, UF/IFAS Extension. Original publication date April
2015. Reviewed September 2018. Visit the EDIS website at https://edis.ifas.ufl.edu for the currently supported version of this publication.

2. Edward A. Evans, associate professor, and Fredy H. Ballen, economic analyst, UF/IFAS Tropical Research and Education Center, Homestead, FL 33031.

The Institute of Food and Agricultural Sciences (IFAS) is an Equal Opportunity Institution authorized to provide research, educational information and other services only to
individuals and institutions that function with non-discrimination with respect to race, creed, color, religion, age, disability, sex, sexual orientation, marital status, national
origin, political opinions or affiliations. For more information on obtaining other UF/IFAS Extension publications, contact your county’s UF/IFAS Extension office.

U.S. Department of Agriculture, UF/IFAS Extension Service, University of Florida, IFAS, Florida A & M University Cooperative Extension Program, and
Boards of County Commissioners Cooperating. Nick T. Place, dean for UF/IFAS Extension.
Definitions of a Marketing Plan Preparation of a Marketing Plan
Marketing has different definitions depending on the As we say in economics, “there is no such thing as a free
person you ask. Many people define marketing as selling lunch.” The good news is that preparing a marketing plan
and advertising; however, marketing is much more than is not as difficult as it sounds. It does require a minimum
just selling and advertising. Concentrating only on selling amount of market research, which involves collecting,
(closing the deal) will not ensure that you develop a long- analyzing, and organizing information so you can plan
term customer base. Marketing is about discovering and your actions. Market research entails obtaining information
satisfying your customers’ needs and wants while earning a from whatever sources are available to help you answer the
profit. This involves attracting and retaining customers. following questions:
You attract customers by promising and delivering better
value than your competitors. You retain customers by • What is your product/service?
continuing to deliver satisfaction. Marketing is creating • What market(s) do you serve?
value for your customers while extracting value from them
• What unique (special) features distinguish your product/
(McDonald and Wilson 2011).
service from the others?
How do you create value for and extract value from • What is the best way to get your product/service into
customers? Without getting too theoretical, it involves the hands of targeted consumers?
creating the best mix of what is known as the 4Ps so that • Who are your customers?
the customer realizes the highest level of benefits per unit
of cost (Value = Benefits/Cost). The 4Ps include • How should you price your product/service?
• How should you promote (advertise) your product/
1. Product/service (having something to offer that your service?
customers or potential customers need)
• How is the targeted market changing or is likely
2. Price (charging a price that is in line with the to change?
value customers place on your offering)
Such information can be obtained in a variety of ways besides
3. Promotion (letting customers know what you have hiring paid consultants. You can search for informa-tion
online, use social media to network, communicate with others
to offer and what is special about it)
in the industry, visit similar businesses, attend trade shows
4. Place/distribution (getting your product/service to and conferences, and/or join professional organizations. Once
customers at a time and in a form that is most beneficial you have gathered sufficient informa-tion to answer the above
to the customers) questions, you can then follow our eight-step guide below and
use our marketing plan worksheet (Table 1), to be on your
A marketing plan is a set of orderly actions aimed at achiev- way to developing
ing specific objective(s) within a given timeframe. First, you a successful marketing plan. Over time, you can refine and
first must have a set of objectives when creating a plan. elaborate on aspects of the marketing plan as more
Second, you should specify a timeframe (usually a calendar resources become available and your business expands. It
year) within which to achieve your set of objectives. is important to remember that your marketing plan is not
static. It is a living document that needs to be routinely
Therefore, a marketing plan is a strategic document outlin- checked for relevance and revised accordingly. It also
ing the actions/steps you propose to take to achieve your provides you the basis to assess each new opportunity to
marketing objectives. A marketing plan helps you focus your see if it is in accordance with your overall goals and
efforts on maximizing profits for your business. It helps you objectives and to make adjustments as needed.
to clearly define the product and/or service you are offering,
to identify your customers and competitors, to outline a Steps for Creating a
strategy for attracting and retaining customers, and to
anticipate changes in the marketplace. While the actual Simple Marketing Plan
document is of tremendous importance, the process of Below are the eight steps to follow in developing a
preparing that document is invaluable. Developing a simple marketing plan. Follow these steps and fill out the
marketing plan will help you spend your time, energy, and market-ing plan worksheet (Table 1) to get you started.
resources as efficiently as possible.

Eight Steps to Developing A Simple Marketing Plan 2

Step 1: State your marketing objectives weaknesses? What do the customers think about your
Perhaps you would like to increase awareness of the prod- competitors’ product/service? Can you capitalize on some of
uct or service you provide, increase sales and revenues by your competitors’ weaknesses? How can you create better
a certain percentage, and/or increase the number of value for your customers? What pricing strategies are your
custom-ers who purchase your product or service. For competitors using? Can you improve on their strategies?
example, your objective(s) could be to increase sales by 10
• TIP: Select a set of competitors and identify their
percent by the end of next year, sell 50 more boxes of your
strengths and weaknesses. How do they promote their
product, sell 10 percent of what you produce directly to
product? What is their pricing strategy? Is there
consumers, or participate in at least one trade show.
anything unique or special about their products?
• TIP: Be realistic about your marketing objectives;
make sure they are specific and quantifiable so you Step 4: Describe your product/service
can measure your progress toward achieving them A product may be a commodity or service, or both. What
• TIP: Your marketing objectives can be expressed products/services are you offering? How is what you
offer different from your competitors’ product or
in terms such as sales dollars, sales units, market
service? How do customers perceive the benefits of the
share, distribution levels/channel, and awareness
product/service you are providing? What do customers
• TIP: Try to limit the number of marketing objectives perceive as the special features of your product/service?
to less than four; two is ideal for most companies
Other questions to keep in mind when defining your
Step 2: Identify demographics of product/service include the following: Can you appeal to
your target market environmentally conscious or health-conscious customers?
One way to determine your customer demographics (e.g., How are you going to present your product/service to
age, sex, profession, income level, education level, resi- customers? Is there an increase or decrease in the supply of
dency, individual or business, etc.) is to write a description your product/service on the market?
of your target audiences. Once you have done so, focus on
• TIP: Remember that without customers your
only those customers who are most likely to purchase your
business is out of business; it is important that you
product or service. As your business and resources grow,
give your customers a reason to buy your product
you can focus on a wider segment of the overall market.
and to remain loyal (long-term, repeat customers)
• TIP: The target market is a group of customers (people • TIP: Always aim to produce what you can sell
or firms/packinghouses) for whom your marketing ef- rather than sell what you can produce
fort is intended; your target choice will determine your
production and marketing practices, not vice versa Step 5: Define place (distribution strategy)
• TIP: A target market is not simply whoever is When we talk about place, we are thinking about more than
buying, or will buy, your products; rather it just the physical location of a business; place also includes
consists of the individuals or businesses you identify how you plan to get the product/service into the hands of your
as your most desirable customers customers (the place they need it). To do this, you need to
answer the following questions: How widely do you plan to
Step 3: Identify your competition geographically distribute your product/service (e.g., locally,
There are several ways to go about identifying the competi- in-state, multi-state, nationally, internationally)? Are you
tion. One way is to identify other farm businesses that are going to be selling directly (direct marketing) to customers?
offering somewhat similar products or services to the (Direct marketing includes community sup-ported agriculture
customers you are targeting and within your price range. (CSA), home delivery, farmers’ markets, mail order and
Once you have identified your competitors, analyze two to internet sales, pick your own (U-pick), and roadside stands.)
four such businesses by answering the following questions. Are you going to be selling indirectly (intermediary
How are these businesses doing in terms of sales and demand marketing) to packing houses or retailers?
for their product/service? What are the similarities and • TIP: Consider your product distribution plan
dissimilarities between your product/service and theirs? What
and determine the best type of packaging
are some of your competitors’ strengths and

Eight Steps to Developing A Simple Marketing Plan 3

• TIP: Packaging serves to protect and preserve your • TIP: Estimate how much it will cost for any
product and to advertise and differentiate your product marketing strategy you propose in your marketing
plan and stick to your budget (e.g., if you plan to
Step 6: Choose your promotion strategy
participate in a trade show, estimate the costs for
Promotion refers to the entire set of activities that inform traveling, marketing materials, and booth rental)
people about your product/service. Promotion induces
customers to prefer your product/service over those of
your competitors. Promotion is simply how you get people
Summary and
to know about the product/service you provide. It deals Concluding Remarks
with how and what you want to communicate to Components of a marketing plan may vary, but
customers/ buyers. Several tools can be used, including most should contain the following components:
mass media (radio, television, internet, newspapers,
magazines, yellow pages, billboards, etc.), direct mail, 1. Executive Summary
personal contacts, trade associations, and social media
(Facebook, Twitter, Pinterest). 2. Your Goals/Objectives

You also need to identify the amount of resources (human 3. Your Business
and capital) you can set aside for your promotions.
4. Your Customers
• TIP: Social media is one of the most cost-
effective means of promoting your business 5. Your Competitors

Step 7: Develop a pricing strategy 6. Your Product or Service

There are several pricing strategies such as cost-oriented
7. Your Distribution Strategy
pricing, flexible pricing, and relative pricing. Cost-oriented
pricing strategy involves setting your price at a certain 8. Your Promotion Strategy
percentage level, say 25%, above your production cost. Flex-
ible pricing strategy is where you vary the price depending on 9. Your Pricing Strategy
the buyer or time (e.g., time of year). Relative pricing strategy
is simply using the prevailing market price to set your own 10. Your Marketing Budget
price whether it is above, below, or at the same price. No
matter which pricing strategy you use, you need to be aware To market your product or service effectively, you must
of the following: What are the pricing strategies used by your identify your customers, know their needs and wants, and
competitors? What is your cost of production? satisfy those needs and wants. Developing a simple
market-ing plan is not as time consuming and expensive as
Typically, your price should be based on the prevailing you may believe. While a marketing plan is not the sole
market prices and your costs. It should cover your full factor in ensuring success for your business, it will greatly
cost of production and include a profit. You can do increase the likelihood that your business remains relevant
simple market research to learn about what prices and has the greatest chance of succeeding. Using our eight-
customers would be willing to pay and what prices your step guide and marketing plan worksheet provides an easy
competitors are charging. way to get started.
• TIP: To get the maximum price, try to schedule pro-
duction when there is limited competing supply
References
Guidry, K. 2013. Marketing risk: Current issues for risk
Step 8: Create a marketing budget management. Southern Extension Risk Management
Since you do not have unlimited resources, it is best to Education Website. University of Arkansas, Little Rock,
AR. http://srmec.uark.edu/Publications.html.
identify how much time and money you want to allocate
to marketing. McDonald M, and H. Wilson. 2011. Marketing Plans: How
to Prepare Them, How to Use Them. West Sussex, UK:
Wiley and Sons.

Eight Steps to Developing A Simple Marketing Plan 4

Table 1. Marketing
5