Profit Impact Marketing Strategy

An Insight into Profit Impact of Marketing Strategy (PIMS): What Makes it Essential

Profit Impact of Market Strategies (PIMS) is a long-term study of the performance of strategic business units (SBUs). It is implemented in 3,000 companies belonging to all major industries. If we look into history, the PIMS project started at General Electric in the mid-1960s. It was conducted at Harvard University between 1972 and 1974. In 1975, PIMS was implemented by Massachusetts-based nonprofit organisation. It is called The Strategic Planning Institute (SPI). Since then, SPI researchers and consultants have been working hard on the development and application of PIMS data.

The work of PIMS is to improve the profit margin of a company strategically. There should be a systematic approach to building marketing strategies to ensure a profit. According to marketing experts, there is a different data gathering process that every company needs to follow. As per the data collected, the strategies will need improvisation.  The primary function of PIMS is to emphasise the relationship between the critical strategic decisions and its result. The data that is collected from different companies are meant to promote a better understanding of the business environment.

PIMS and its research are all about identifying the critical factors in improving the position of the companies. A database is created to collect information about different companies. According to the data collected, the strategic implementation of the business plan is executed. PIMS is indeed a significant part of businesses that want to grow and reach the zenith of success.

How to make the perfect Business Plan?

Making a business plan is not an easy affair. When a business owner makes a business plan, there are a lot of things that are to be kept in mind to nail the process. Given below are a few steps to build a successful business plan.

1. Focus on market research

According to many marketing experts, it is essential to consider spending twice as much time researching. It can help you to evaluate and think about the business plan. Thus, to make a business plan, researching is very important. You need to remember that market trends are changing now and then. When you make a business plan, knowing about other companies is essential.

 According to many marketing experts, if you want to write the perfect plan, you must know your company, your product, your competition and the market intimately. Otherwise, making a proper market plan will be impossible.

In other words, it is your responsibility to know everything you can about your business and the industry that you are venturing into. Read everything you can about your industry and the audience you aim to target.

2. Determine the purpose of your plan.

A business plan, as defined by various entrepreneurs, is a written document describing the nature of the business, the sales and marketing strategy, and the financial background, containing a projected profit and loss statement. You need to determine the purpose of your plan. The first thing that you need to do is to find out the areas of your business that need improvement,

It is equally important to keep in mind if you’re self-funding or bootstrapping your business. Apart from that, the area that needs a quick plan to improve should also be considered wisely while deciding the business plan.

3. Make a profile for your company

Your company profile includes the history of your organisation, the products or services you offer, your target market, the audience, your resources, how you are going to solve a problem and what makes your business unique. The profile of the company will help the audience to recognise your business as a brand.

4. Have a strategic marketing plan in place.

A perfect business plan should include a strategic and aggressive marketing plan. This includes achieving marketing objectives such as:

• Introduction of new products
• Extending or regaining the market for existing products
• Indulging in entering the new territories for the company
• Boosting sales in a particular product, market or price range. Be specific about the intention of the product.
• Cross-selling one product with another
• Long-term contracts with desirable clients to ensure more profit in the long run.
• Raising prices without cutting into sales figures
• Refining a product according to changing market trends

Apart from that, it is also essential to have a content marketing strategy and then find out how to increase sale. It is important to know your target audience and their needs. Thus, your marketing strategy should be set accordingly.

There is no denial of the fact that achieving marketing objectives will have costs. Your marketing plan should have a section in which you can allocate budgets for every activity that needs to be conducted. It will be beneficial if you create separate budgets for internal hours (staff time) and external costs (out-of-pocket expenses).

5. Keep your audience in mind

Ensure that your business plan is according to the preference of your audience. Your audience is the key to the success of your business. Therefore, you have to make the plan accordingly.

For example, if your target audiences are the teenagers, then you have to make a plan to reach them via social media or popular messaging app. However, if your audiences are aged people, then you have to make a separate marketing strategy and business plan to persuade them.

Make sure that your plan can be changed or altered depending on the audience reading your plan. However, these alterations need to be limited from one plan to another. This will help to get the desired result accordingly.

These are the 6 best steps to make a stellar business plan and achieve the desired result.

What are the different functions of the Profit Impact of Marketing Strategy (PIMS)?

A business owner needs to take care of multiple aspects while making a business plan. According to the marketing experts, there are certain important factors that you need to keep in mind while creating a business plan.

• Market Share: To come to any conclusion with the profit impact of marketing strategy, the first thing that you have to keep in mind is the market share of the competitors and their values.
• Market Trends: To ensure the profit impact of marketing strategy, it is important to understand the trends that your audience follows. The marketing strategy is to be formed accordingly.
• Profit comparison: The percentage of the profit margin with the competitors can be done by keeping in mind the profit share that every company earns per month. Marketing strategies for profit require a proper comparison with competitors.

These are the three basic functions that one should take care of while making a business plan as per the PIM measures.

What strategies are likely to improve future operating results?

According to the experts, the strategies to improve the operating results are as follows:

• Staying updated: The first thing that an entrepreneur needs to do is to stay updated with the market trends and other relevant factors of the business.
• Understanding the changing needs: You need to understand the changing needs of the audience and make your plans accordingly. Otherwise, it will be impossible to make your business a successful one.
• Improvising now and then: You should work to devise an efficient work process every day. Improvising can help you to stay ahead of your competitors.

These are the strategies that can help you to earn the desired result and make your business reach the pinnacle of success.

Strategic Market Planning: Problems and Analytical Approaches

The strategic market planning process includes four important factors. These are as follows:

• Market segmentation: Segmentation includes geographical and behavioral factors. You need to understand how you can target your audience according to the geographical locations. If you notice that developing the business in such a location is problematic, you need to find out other alternatives.
• Consumer behavior: You need to understand how your consumers behave when it comes to buying your product. Analyse their behavior and bring about necessary changes in the product.
• Market value and share: Compare your market value with your competitors. Identify the areas where you are lagging and make changes accordingly.
• Analysis of the outcome: You need to analyse the outcome of the new changes by using the PIMS method.

Following these marketing policies, you can excel in business and achieve success.

The Impact of Marketing Strategy on Business Performance

Your business plan is set according to different marketing strategies. No wonder it can have an impact on various aspects of business performance. Some of the effects are mentioned below.

• Consistent increase in sales and revenue: With a proper business plan with stellar marketing strategies, a sound increase in sales and revenue can be ensured.
• Boosts customer base: With the increase in sale and revenue, there is also a boost in customer base.
• Improves the brand image: It is important to maintain a brand image while setting the marketing strategy. When the business plan and its execution are successful, your brand image improves automatically.
• Promotes business growth: A good business plan always results in profitable business growth. Once you abide by a stellar business plan, you can watch your business reach the pinnacle of success.

These are the effects that a proper marketing strategy can have on business performance. Follow these steps and create the best marketing plan for your business.

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