A Financial Plan is a fundamental tool for any organization; however, the use of marketing strategies in our financial plan will benefit the long-term running of the company as well as the corporate planning and budgeting. Marketing strategies are focus on the mission and vision of the company and will help to guide any firm in the right direction; which in the majority of the cases involves better sales and profit maximization.
The importance of a financial plan depends on the type of ‘plan’ produced as it could include budgets; forecast, investment plans and in the accounting world the three more important are the balance sheet, profit and loss account and the cash flow statement. Any investment opportunity will demand to produce a single document with all the information needed to make a decision; in simple words a financial plan is the CV of any organization and will prove how solvent and focus on the long-term running and welfare of the organization as a whole; they will also analyze if your company is overtrading and any possible problem with business growing and expansion.
Importance of Marketing Strategy in Financial Planning
Financial plans are normally required by bankers, managers, investors and if the company is listed on a stock exchange for public trading then all stakeholders involved are heavily interested in the financial plans. The approval of a project will depend not only a good idea and great expectation but also in the financial feasibility of the company to deal with all the business requirements. Marketing strategy will use all the information provided by the financial planning team to guarantee a competitive advantage by offering strategies that will increase sales revenue and a better marketability of products, services and organization as a whole.
Strategic Planning and Marketing
Marketing is just a concept and in reality it is nothing more than ‘analyze and research what people and organizations want’; once they know the demands in the market they will start researching the best ways to give what the public want, which means an increase in demand for the products and services you are offering, as well as profit maximization. The main objective of marketing strategies is to satisfy needs and desires of human beings which is normally achieve through an exchange process Since the design of products and services are mainly focused on the detection of needs in the market, the marketing strategies should be based on the study of:
- Needs: it is important to understand what people want but on a deepest and something physiological study: do they need the product or is it something they can feel proud of? Is it social or individual need?
- Demand: even if there is a high need for the specific product or service; does it have a high demand? The need study is important to determine if it is a “wish” more than a “need”. Purchasing power is an important factor in demand. An iPad might be a wish in many countries but the poorest one are not able to afford it.
- Product or Service: the specific product that you are trying to market and achieve better sales; is it feasible? Do people really want it even if you improve it? Would promotion and publicity increase sales?
- Exchange: are people interested in buying your product or service? If so, how much money or credit are they prepared to exchange for it; understanding how much is the product worth is the key of success.
Even if you are not a believer of the main core of marketing; the four Ps’ are one of the most important variables to consider in terms of your business: Product, Price, Promotion and Place should be carefully studied; their effective application in your company will help to find the best path to success of any business; even if a not for profit marketing plan has been used.
Web Marketing or Internet Marketing; it doesn’t really matter the name you use; but the use of Internet to promote your products is the best strategy that any company can use; this is known as Web Business Success. Consumer Driven Innovation is not new in the marketing world but it has been greatly improved by the use of social media. Social media can allow any company to know exactly what people want; nowadays, it has become easier to interact with current customers and potential clients to identify what they want and need. The best part if that you don’t even need to spend thousands of dollars finding out this valuable information; in the majority of the cases they will come to you; although traditional marketing methods will be with us for a long time; there is a new world or marketing that all companies need to explore if they want to be successful; this is one of the reason why I have been researching this new world and prepared some articles than can be used in your favor: