Developing a Marketing Plan for Your Baby Store

By Andrea F. Fitting

Operating a business without a marketing plan is no different than trying to reach an unfamiliar destination without a road map. Why then, do so many business owners neglect writing a marketing plan? It may be the lack of understanding of what a marketing plan is and how it can and should be utilized. In the next few paragraphs, I'll summarize what a marketing plan should contain, how to get the information you'll need, how to use the information and how to assess whether the plan is working.

The basics are simple. If you make customers aware of your products and services, supply them with what they want and need at a fair price and with good service, and do so even a little better than your competition, your business will grow and prosper. Everything else is detail.

The first phase of a good plan answers these questions: What business are you really in? What are the strengths and weaknesses of your business, your products and your services? What are your business goals? Answer these questions by developing a mission statement, a brief couple of sentences that define your purpose, your customers and the goals of the business. This is more difficult than it sounds. Some business owners rewrite their mission statements time and time again without considering the big picture.

Identifying strengths and weaknesses is another important part of the marketing plan. Consider things like your cost of goods, human resources, location, financial strength and company image. It's important to be as impartial and honest with yourself as possible. You won't be able to improve what you haven't admitted is a problem.

In setting company goals, make sure the goals you choose are measurable. Try to aim high but at the same time, be realistic.

Now that you've completed phase one, it's time to move on to analyzing the market. In this second phase, you will need to describe your customers, describe your competitors, estimate your market share and do some market research. Knowing your customers means knowing where they live, their age, gender, occupation, level of education, family composition, income level, wants, needs, buying habits and how they spend their free time. Customer surveys are a good way to get this information.

Analyzing your competitors will help you market your business more successfully. In your marketing plan it is important to have a detailed description of who they are, what products and services they offer, their level of success, their image in the marketplace, whether they discount, how, where and when they advertise and a multitude of other facts.

Understanding your customers and your competitors will enable you to estimate your market share. A good source of statistics on the total sales in dollars for your industry in your market is the Small Business Development Center usually affiliated with a local University.

In phase three of your marketing plan, you will be focusing on planning (both short and long-term), describing your products, location of your business, prices and advertising or promotions. These are often called the four P's (product, place, price, promotion).

Your products go through a life cycle from introduction to the marketplace through obsolescence. You can use this information to help you adjust your inventory, refresh your presentation, and determine your advertising or offer discounts.

Of course, in any retail business, location is very important. Your location will determine everything from who your customers are to how you distribute your products. It can even have an effect on your selling price, the third important "P". Prices will be determined by the cost of the product, your overhead, your profit goals, what competitors are charging and the demand for the product. But all of these factors aside, you prices will speak volumes about your company image and your competitiveness. Your accountant will be very useful in helping with this part of your plan.

The fourth "P", promotions, really includes advertising, public relations, sales promotions and salesmanship. But before we discuss those, there's another very important factor to consider in your marketing plan: customer relations. Above all, in your marketing plan, it is essential to define your customer service policies and to live and breathe them throughout your organization. Remember, customers are difficult to win and easy to lose.

And now for the part that everyone thinks about when they think 'marketing'. Promotions and advertising are your means of communicating with your market. In order to get the most out of your budget, you must plan extensively, execute consistently and track carefully. Set goals and make sure they are measurable. Recognize that advertising and promotions are an ongoing activity and necessary to stay in business. Keep a little part of your budget in reserve for the unexpected; it always happens. When choosing your advertising and promotions, focus on your customers and try to think like they think. Compare sales before, during and after you run ads or promotions. Keep good records of your competitors ads and promotions as well as your own. Plan to take advantage of publicity whenever you can. Send information to your local news directors and editors whenever anything is happening.

Finally, your marketing plan must have a budget. There is really no formula here. You can calculate your budget one of several ways or use a combination of methods. Percentage of sales is a simple method but may be too restrictive. Industry averages can be a good benchmark, as long as you also consider your goals. An effective marketing plan will be an essential part of your overall business plan and will be worth many times the effort you put into it.

Andrea F. Fitting is CEO of Fitting Kolbrener, Inc., a Pittsburgh-based marketing communications firm, and recipient of the 1998, Pennsylvania's Best 50 Women in Business Award.