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Marketing Plan for the Independent Inventor

The Advantages and Disadvantages of a Marketing Plan

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A well-written, comprehensive marketing plan is the focal point of all business ventures because it describes how you plan to attract and retain customers, the most crucial aspect of a business.

The marketing plan is essential to any successful business. It is the heart of the business, the basis from which all other operational and management plans are derived. Marketing offers you a wealth of information that if applied correctly virtually can ensure your success.

Therefore, it is important that you, as a first-time business owner, develop a comprehensive, effective marketing plan. If you need assistance in accomplishing this task, contact your local SBA office. Consult the local telephone directory under "U.S. Government" for the telephone number and address of the office nearest you.

An effective marketing plan will certainly boost your sales and increase your profit margins. You must be able to convince customers that you have the best product or service for them at the best possible price. If you cannot convince potential customers of this, then you are wasting your time and money. This is where the marketing plan comes into play, and this is why it is so important.

There are numerous advantages you can extract from the marketplace if you know how. And the marketing plan is an excellent tool for identifying and developing strategies for extracting these advantages.

Business Advantages

  • identifies needs and wants of consumers
  • determines demand for product
  • aids in design of products that fulfill consumers needs
  • outlines measures for generating the cash for daily operation, to repay debts and to turn a profit
  • identifies competitors and analyzes your product's or firm's competitive advantage
  • identifies new product areas
  • identifies new and/or potential customers
  • allows for test to see if strategies are giving the desired results

Business Disadvantages

  • identifies weaknesses in your business skills
  • leads to faulty marketing decisions based on improperly analyzed data
  • creates unrealistic financial projections if information is interpreted incorrectly
  • identifies weaknesses in your overall business plan

Review

Now is good time to review what goes into a marketing plan. Write down what you can remember on a blank sheet and then compare it to this quick fact sheet. The marketing plan offers numerous advantages; however, as you can see, there can be drawbacks. Remember, however, the advantages outweigh the drawbacks, you can seek professional assistance when you are developing the marketing section of your business plan. It may be worth the investment.

Next: Making An Effective Plan

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