business plan - this is now rightly a very general and flexible term, applicable to the planned activities and aims of any entity, individual group or organization where effort is being converted into results, for example: a small company; a large company; a corner shop; a local window-cleaning business; a regional business; a multi-million pound multi-national corporation; a charity; a school; a hospital; a local council; a government agency or department; a joint-venture; a project within a business or department; a business unit, division, or department within another organization or company, a profit centre or cost centre within an an organization or business; the responsibility of a team or group or an individual. The business entity could also be a proposed start-up, a new business development within an existing organization, a new joint-venture, or any new organizational or business project which aims to convert action into results. The extent to which a business plan includes costs and overheads activities and resources (eg., production, research and development, warehouse, storage, transport, distribution, wastage, shrinkage, head office, training, bad debts, etc) depends on the needs of the business and the purpose of the plan. Large 'executive-level' business plans therefore look rather like a 'predictive profit and loss account', fully itemised down to the 'bottom line'. Business plans written at business unit or departmental level do not generally include financial data outside the department concerned. Most business plans are in effect sales plans or marketing plans or departmental plans, which form the main bias of this guide.
strategy - originally a military term, in a business planning context strategy/strategic means/pertains to why and how the plan will work, in relation to all factors of influence upon the business entity and activity, particularly including competitors (thus the use of a military combative term), customers and demographics, technology and communications.
marketing - believed by many to mean the same as advertising or sales promotion, marketing actually means and covers everything from company culture and positioning, through market research, new business/product development, advertising and promotion, PR (public/press relations), and arguably all of the sales functions as well. Marketing is the process by which a business decides what it will sell, to whom, when and how, and then does it.
marketing plan - logically a plan which details what a business will sell, to whom, when and how, implicitly including the business/marketing strategy. The extent to which financial and commercial numerical data is included depends on the needs of the business. The extent to which this details the sales plan also depends on the needs of the business.
sales - the transactions between the business and its customers whereby services and/or products are provided in return for payment. Sales (sales department/sales team) also describes the activities and resources that enable this process, and sales also describes the revenues that the business derives from the sales activities.
sales plan - a plan describing, quantifying and phased over time, how the the sales will be made and to whom. Some organizations interpret this to be the same as a business plan or a marketing plan.
business strategy - see 'strategy' - it's the same.
marketing strategy - see 'strategy' - it's the same.
service contract - a formal document usually drawn up by the supplier by which the trading arrangement is agreed with the customer. See the section on service contracts and trading agreements.
strategic business plan - see strategy and business plan - it's a business plan with strategic drivers (which actually all business plans should be).
strategic business planning - developing and writing a strategic business plan.
philosophy, values, ethics, vision - these are the fundamentals of business planning, and determine the spirit and integrity of the business or organisation - see the guide to how philosophical and ethical factors fit into the planning process, and also the principles and materials relating to corporate responsibility and ethical leadership.
You can see that many of these terms are interchangeable, so it's important to clarify what needs to be planned for rather than assuming or inferring a meaning from the name given to the task. That said, the principles explained here can be applied to business plans of all sorts. Business plans are often called different names - especially by senior managers and directors delegating a planning exercise that they do not understand well enough to explain. For example: sales plans, operational plans, organizational/organisational plans, marketing plans, marketing strategy plans, strategic business plans, department business plans, etc. Typically these names reflect the department doing the planning, despite which, the planning process and content required in the document is broadly similar.
Other useful and relevant business planning definitions are in the business dictionary; the sales and selling glossary; some are also in the financial terms glossary, and more - especially for training - are in the business and training acronyms listing, which also provides amusing light relief if this business planning gets a little dry (be warned, the acronyms listings contain some adult content).
when writing a business or operating plan, remember...
A useful first rule of business planning is to decide what you are actually trying to achieve and always keep this in mind. Write your aim large as a constant reminder to yourself, and to anyone else involved. Keeping your central aim visible will help you minimise the distractions and distortions which frequently arise during the planning process.
An increasingly vital and perhaps second rule of business planning is to establish a strong ethical philosophy at the outset of your planning. This provides a vital reference for decision-making and strategy from the startThe American Marketing Association defines marketing as "the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives." Marketers use an assortment of strategies to guide how, when, and where product information is presented to consumers. Their goal is to persuade consumers to buy a particular brand or product.
Successful marketing strategies create a desire for a product. A marketer, therefore, needs to understand consumer likes and dislikes. In addition, marketers must know what information will convince consumers to buy their product, and whom consumers perceive as a credible source of information. Some marketing strategies use fictional characters, celebrities, or experts (such as doctors) to sell products, while other strategies use specific statements or "health claims" that state the benefits of using a particular product or eating a particular food.
Impact and Influence
Marketing strategies directly impact food purchasing and eating habits. For example, in the late 1970s scientists announced a possible link between eating a high-fiber diet and a reduced risk of cancer . However, consumers did not immediately increase their consumption of high-fiber cereals. But in 1984 advertisements claiming a relationship between high-fiber diets and protection against cancer appeared, and by 1987 approximately 2 million households had begun eating high-fiber cereal. Since then, other health claims, supported by scientific studies, have influenced consumers to decrease consumption of foods high in saturated fat and to increase consumption of fruits, vegetables, skim milk, poultry, and fish.
Of course, not all marketing campaigns are based on scientific studies, and not all health claims are truthful. In July 2000 a panel of experts from the U.S. Department of Agriculture supported complaints made by the Physicians Committee for Responsible Medicine that the "Got Milk" advertisements contained untruthful health claims that suggested that milk consumption improved sports performance, since these claims lacked scientific
Companies often use characters to appeal to young consumers. Ronald McDonald first appeared on T.V. in 1963, portrayed by Willard Scott. The clown is known worldwide, and according to McDonald's, is the most recognizable figure next to Santa Claus. [Photograph by Tim Clary. AP/Wide World Photos. Reproduced by permission.]
Companies often use characters to appeal to young consumers. Ronald McDonald first appeared on T.V. in 1963, portrayed by Willard Scott. The clown is known worldwide, and according to McDonald's, is the most recognizable figure next to Santa Claus.
[Photograph by Tim Clary. AP/Wide World Photos. Reproduced by permission.]
support. In addition, the panel agreed with the physicians' claim that whole milk consumption may actually increase the risk of heart disease and prostate cancer, and recommended that this information be included in advertisements.
The tremendous spending power and influence of children on parental purchases has attracted marketers, and, as a result, marketing strategies aimed at children and adolescents have increased. Currently, about one-fourth of all television commercials are related to food, and approximately one-half of these are selling snacks and other foods low in nutritional value. Many of the commercials aimed at children and adolescents use catchy music, jingles, humor, and well-known characters to promote products. The impact of these strategies is illustrated by studies showing that when a majority of television commercials that children view are for high-sugar foods, they are more likely to choose unhealthful foods over nutritious alternatives, and vice versa.
Inappropriate Advertisements
Attempts to sell large quantities of products sometimes cause advertisers to make claims that are not entirely factual. For instance, an advertisement for a particular brand of bread claimed the bread had fewer calories per slice than its competitors. What the advertisement did not say was that the bread was sliced much thinner than other brands.
Deceptive advertising has also been employed to persuade women to change their infant feeding practices. Advertisers commonly urge mothers to use infant formula to supplement breast milk. Marketing strategies include
One strategy used by advertisers is to feature a celebrity in their advertisements or on their packaging. The implicit message is that the celebrity endorses the product, uses the product, and may even depend on the product for success. [AP/Wide World Photos. Reproduced by permission.]
One strategy used by advertisers is to feature a celebrity in their advertisements or on their packaging. The implicit message is that the celebrity endorses the product, uses the product, and may even depend on the product for success.
[AP/Wide World Photos. Reproduced by permission.]
giving women trial packs or coupons for several months of free formula. Often, women are not aware that supplementing breast milk with formula will reduce or stop their milk supply. When the samples and coupons are no longer available, women may try to "stretch" the formula by mixing it with water, unaware that diluting the formula places their infant at risk for malnutrition . Many groups have objected to the use of marketing strategies that include free formula and coupons, and infant-formula manufacturing companies have been forced to modify their marketing practices.
Other marketing strategies involve labeling foods as "light," meaning that one serving contains about 50 percent less fat than the original version (or one-third fewer calories). For example, a serving of light ice cream contains 50 percent less fat than a serving of regular ice cream. As a result, consumers mistakenly believe that eating light food means eating healthful food. However, they fail to realize that a serving of the light version of a food such as ice cream can still contain more fat and sugar than is desirable.
Food labels with conflicting information often confront consumers. For example, labels claiming "no fat" do not necessarily mean zero grams of fat. Food labeling standards define low-fat foods as those containing less than 0.5 gram of fat per serving. Therefore, consuming several servings may mean consuming one or two grams of fat, and people are often unaware of what amount of a food constitutes a "serving." In addition, foods low in fat may be high in sugar, adding additional calories to one's daily caloric intake. Too often, consumers mistakenly translate a claim of "no fat" into one of "no calories."
Other examples of conflicting claims include labels advertising foods as "high in fiber," without specifically indicating the presence of high levels of salt, sugar, or other nutrients . Also, labels advertising dairy products as high in calcium , and thus offering protection from osteoporosis , are often missing information relating to the high fat content and its possible contribution to the risk of heart disease.
Consumers are also misled by food comparisons. For example, one fruit drink may be advertised as containing more vitamin C than another, when in reality neither of the drinks are a good source of the vitamin. In addition, labels on some fruit drinks claim that the product "contains real fruit juice" when, in reality, the fine print reveals that one serving contains "less than 10% fruit juice."
Recommendations for Responsible Food Marketing
Consumers rely on product advertisements and food labels for nutritional education. The American Association of Advertising Agencies states that responsible food marketing strategies should: (1) avoid vague, false, misleading, or exaggerated statements; (2) avoid incomplete or distorted interpretations of claims made by professional or scientific authorities; and (3) avoid unfair product comparisons. Advertisers must also consider the long-term consequences or potential for harm stemming from their claims. While these recommendations are important in developed countries, they become even more critical in international marketing campaigns.
It is also important for consumers to recognize their role in evaluating health claims and product comparisons. While advertisers are aware of the need for truth in advertising, sometimes their desire to sell products over-shadows an accurate disclosure of product attributes. Advertisers should bear in mind that inaccurate or vague health claims have the potential to cause economic hardship, illness, and even death. Lastly, marketing strategies used in developing nations should be subjected to the highest standards of truth in advertising.
Read more: Marketing Strategies - calcium, food, nutrition, needs, body, diet, health, fat, nutrients, eating, vitamin, water, habits, Impact and Influence, Inappropriate Advertisements Introduction
Developing a marketing strategy is vital for any business. Without one, your efforts to attract customers are likely to be haphazard and inefficient.
The focus of your strategy should be to make sure that your products and services meet your customers' needs and that you develop long-term and profitable relationships with those customers. To stay competitive, you'll need to keep your offerings constantly fresh and new. You will need to keep up with the current trends in your market, any emerging technologies and changes or improvements to your existing products.
You will also need to create a flexible strategy that can respond to changes in customer perceptions and demand. It may also help you identify whole new markets that you can successfully target.
The purpose of your marketing strategy should be to identify and then communicate the benefits of what your business offers to your target market.
Once you have created and implemented your strategy, you should monitor its effectiveness and make any adjustments required to maintain its success.
This guide explains how to focus on reaching potential customers and your key objectives in doing so. It explains what to include in your marketing and promotional strategies and how they can be used as the basis for effective action.
How a Good Internal Management can Bring you New Clients
Did you ever wonder whether a good internal management can bring new clients, and keep the old ones, for a long time?
Weren’t you ever disgusted by the way some boss treated his waiter and made you feel not come back to that restaurant again?
You might be saying to yourself that he is making a strong authority on his employees, that he is keen on providing a high quality to the costumers, to which he always smiles, like if he were a very nice person... you know he is hypocrite, that’s clear like the shinning sun, and stupid like a pig to ignore that the human resources are the precious wealth of his business, who will make it bloom in the near future, as to the long term.
As I worked once in a restaurant, as manager assistant, we had the same problem every day: the waiters were usually absent without notice, the best ones used to come always late, even when we gave them warnings, so imagine the mess at a high class restaurant by then. Normally, no one could solve the problem in a timely manner, or even suggest a decent solution: to solve a problem, we need to understand it, so here is the explanation: the seasonal big boss at that time, was a real tough guy who was able to show you the stars in the sky on a bright day, just by humiliating you in front of all the costumers. As a result, I get many complaints because of that behaviour, which means that the costumers are no happy, as they are in that place to enjoy happiness ... Part of the plan failed! Will they come back next time?
Imagine if the situation was totally opposite, smiles on the face of the boss to his subordinates, like to his clients, happy employees, this is already an insurance that what you are consuming is quality. Will they come back next time?
This same scenario can be demonstrated anywhere, even in back offices. If you ignore it, the costumers sense it when things aren’t good enough, only by paying close attention to the results, which are what they get.