On seeing the title to this article, one question probably immediately comes to mind: what is the difference between a Marketing Plan and a Business Plan?

Following immediately behind this question would be another: why should it matter as to which comes first?

In response to the first question, Jenny Weeden, HubSpot expert, and B2B growth specialist is quick to answer: “the marketing plan should come second simply because you need to understand your market/buyers first.”

Your business plan and your marketing plan are both essential aspects of a successful business. Not only will these plans together help you organize your business operations, but they’ll help benchmark their success or failure. You need to allow for the changes which come with customer demand and the state of the economy. Thus, both your business plan and marketing plan must evolve over the lifespan of your business.

Here’s a summary of what each of the two plans includes:

Business plans are designed to cover the entire business. They are an overall strategy which provides for financial plans and goals, target markets, products, sales, services, and operations. They also show the way they will all relate to each other.

Marketing plans, on the other hand, focus on the marketing strategy, target markets, marketing mix, messaging, programs, to name the most important.

The Business Plan

Your business plan provides a comprehensive overview of your business. Detailed information on location, operations, staffing, mission, and goals, not to mention the inclusion of the precise details around marketing and the financials.

Aspects of your business plan can be considered to be a financial tool. For example, your plan can provide the details required by lenders to approve funding for your business.

Not only are business plans used in setting up a new business, but they can prove to be essential throughout the life of the business. Competitive strategies can be worked out, and the business plan can determine if the business’ actual activity matches the plans forecast.

The startups and small businesses Jenny Weeden works with include the following basic information in their business plans:

• Contact information (Company name, phone number, email)
• Company profile (What does your company do?)
• Market (Who are your customers?)
• Product or service (What is it? What are its benefits?)
• Financial analysis (Financial predictions)
• Strategy & implementation (Long term goals)
• Management team (Do you have partners? What are your skills?)

At her agency, Accelity Marketing, Weeden provides a comprehensive business plan template/checklist for her startup and small business clients. A simple signup is required after which the 4-page checklist is available for download and printing.

Another business strategist, John Rampton, has published his “7 Steps to a Perfectly Written Business Plan,” which includes:

• Doing the research
• Determining the purpose of the plan
• Creating a company profile
• Documenting all aspects of the business
• Developing a strategic marketing plan
• Keeping the plan adaptable
• Being clear on why you care about it all.

The Marketing Plan

Your marketing plan contains the details of the actions aimed at achieving your company’s missions and goals. This plan lays out the business’ target markets as well as the competition and price points. It details just how your business will attract customers through advertising, trade shows, new client referrals. This marketing should also have social media marketing outreach as a significant component as well.

By describing how your business will overcome the competitive challenges presented by other companies, your marketing plan is a crucial element within your business plan. It requires detailed industry research and consideration in its creation.

Entrepreneur, Business Planner, and Angel Investor, Tim Berry, in his “Five Steps to Create a Marketing Plan” helps business owners to put together a detailed marketing guide for business growth.

Berry clearly explains that your business plan generally outlines your entire business. While the standard components of an effective marketing plan can vary depending on whom you ask, a standalone marketing plan explicitly focuses in more detail, on that single business function.

When business owners want to create their marketing strategy, they should put together a detailed step-by-step plan outlining their marketing goals. Here is Berry’s summarized five-step process:

Step One: Look inward at all aspects of your company to understand its unique personality and identity. Doing this will help identify your business’s strengths, weaknesses, and goals.

Write everything down into a list. Without editing, prioritize the items you have listed and in the process, remove those that are less important to your business success.

Step Two: Looking outward is the next item to focus on to identify your business’s opportunities and threats. Think of these as external to your business, factors you can’t control but can perhaps predict.

Opportunities can include new markets, new products, new customers, as well as trends that favor your business. Threats include the competition as well as advances in technology that might put your business at a disadvantage.

Step Three: Focus on strategy by looking for the intersection of your unique identity and your target market. In terms of your business offerings, select what could be dropped off the list in terms of its relevance or not fitting into your target market.

Step Four: Decide on measurable steps to monitor your marketing strategy. These can include customer leads, presentations online or in person, phone calls, shared internet links, blog posts, page views, conversion rates, proposals, and social media shared.

Step Five: Review and revise your marketing plan often, which should continue to evolve along with your business. Your original assumptions will change, which makes it essential to adapt to the business landscape as it changes. Some parts of the plan also will probably work better than others. Continue to review and revise to accommodate what you learn as you go.

The Takeaway

Keep in mind that your business plan and marketing plan are interdependent plans. For these to remain consistent with one another is vital. While your business plan identifies the goals and mission of the business, your marketing plan details how your company will achieve, if not exceed, its purpose and mission. If the plans of your business change, the business’ course of action will also change. In other words, a good marketing plan should never deviate from the associated business plan.

Just as the two plans are interdependent, it’s essential to review both plans periodically. Doing this ensures that the business is operating according to outlined strategies.

While there are no length requirements for your business plan or marketing plan, both should be long enough to provide concise and sufficiently detailed information. The information contained within the plans should be well-researched.