Statistics indicate that UK companies used 62% of their internal finances to take care of marketing and advertising activities. The fact that more than half of annual spending was committed to these activities indicates the importance of marketing and advertising in the lifespan of a business. Also, the statistics show that budgeting plays a significant role in marketing plans. However, there is more to it, and below is a discussion on some other factors that influence marketing plans.
Competition is a healthy component of every business venture. Without it, many companies may not feel compelled to pull their weight in the marketing department. Competition is an external influence, and regardless of the product or service you render, you are bound to find others doing exactly what you do. The truth about business competition is that it enables companies and organisations to assess their internal operations to determine how they influence external processes.
Furthermore, business opposition gives crucial insight into marketing methods and whether or not they should be reviewed, scrapped, or intensified. Competition influences your marketing plan because, without it, your business may struggle to determine what it is doing right or wrong. Again, because your business competitors are out to capture your clients or your market, you cannot afford to miss out on any strategy that stands to benefit you in the long run. If your marketing plan is good, you stand a chance to perform at a higher rate than competitors who may not be paying much attention.
It is almost impossible not to deal with budgets as a business. This is because finance plays a significant role in business operation, and a lack of it can bring everything to a halt. Indeed, it can be heartbreaking to go through the tedious processes of setting up a business only to have it grind to a stop because your finances are insufficient.
In the area of marketing planning, your budget will determine what you can do and to what extent. As expected, your marketing activities need to conform with the sum set aside for it. Admittedly, marketing a product or service does not come cheap. This explains why most companies will set budgets slightly above what they can comfortably part with. That way, in any eventuality or unforeseen event, the extra put aside to complement the budget can adequately see to everything else.
If you plan to under-budget, you may be setting your business up for a fall. That is why financial experts recommend planning a budget slightly above what you originally planned for. Additionally, setting a budget is not entirely about setting money aside. Instead, it includes setting a realistic amount with regards to the existing marketing trends. Additionally, you will need to use these funds effectively to accomplish your goals. Moreover, if you’re using multiple marketing methods, having a higher budget set makes sense.
The people you work with or your employees make up your internal customers. In other words, they are the group of individuals who first believe in your business dream and come on board to help push the brand. When your staff sees the effectiveness of your marketing plan, the possibility of pushing it is further heightened. Usually, when it is a small business, there may not be the need to have a committed team of workers whose sole responsibility is marketing.
However, for medium to large companies, a dedicated internal team can be tasked with planning realistic marketing strategies. If you need to outsource your marketing, you can consider places like a reliable PPC agency for your business publicity needs. Such companies are experts in the field, allowing you to achieve your goals effortlessly.
- Economic performance
The economy is an external influence that can have direct bearings on your business’s marketing plans. As a matter of fact, the country’s economic performance can positively or negatively affect your business. A growing economy ensures that more people spend money on what they need and want. When this happens, it spells good news for businesses. During times of good economic performance, marketing activities increase, and competitors benefit as well.
On the other hand, a failing economy results in people holding on to the little they have. This is why businesses grind to a halt during major economic recessions, causing consumers and businesses to operate below the average. According to marketing experts, even when economic parameters appear low, it will be in your best interest to still remain in active business. Although it is a lean period, the people you market to will continue to be aware of your brand.
Closely related to the country’s economic performance is legislation. In planning your marketing, new laws and regulations can influence your activities. Every sovereign nation is bound by specific rules that flow into trading and business activities. Therefore, the slightest change in legislation may have a direct or indirect bearing on your business. For example, new regulations may affect the handling of personal data. This is crucial because marketing involves handling a significant amount of data. Therefore, any legislation that restricts personal data usage may affect how your business handles customer data.
The pressure of compliance can be burdensome for a budding company. Even for well-established companies, this can be quite a headache as marketing departments re-strategise plans to avoid flouting the new laws. A typical example of such new legislation binding businesses was the 2018 nationwide rule on data. It became mandatory for companies to ask consumers to opt-in for specific services before subscriptions could be confirmed.
- Business objectives
Your company’s business objectives will determine what marketing plans to run with. For instance, if you intend to grow your company at an annual rate of 10% for the next five years, it is expected that your marketing plans will reflect that. The higher the annual growth rate, the more intensive your marketing plans are expected to be. Moreover, it would be wise to set realistic business objectives to help strengthen your company’s marketing plans.