How to create a marketing plan for your small business

Creating a marketing plan is your business’ roadmap to success. In fact, SimpleTexting reveals that 87% of small businesses have high success rates because of well-designed marketing plans.

Without a marketing plan, you might spend resources on ineffective marketing efforts that could cost you your customer base and brand visibility. You might also risk lower revenue and missed growth opportunities.

In this guide, we’ll help you create a winning marketing plan for your small business in eight easy steps.

What is a marketing plan?

A marketing plan details a business’ promotional and advertising strategies to reach their target market and increase sales within a set timeframe. It focuses on market research, tactics, tools, and budgets to achieve an organization’s business objectives.

Why do you need a marketing plan?

A well-structured marketing plan helps you stay focused, save time, and align your team around shared goals. It provides a clear system for tracking progress and adjusting strategies as market conditions or customer needs change. With the right plan, you can navigate challenges and maximize your marketing efforts effectively.

8 steps to create your small business marketing plan

Step 1: Define your marketing goals

Clear marketing objectives are the foundation of an effective marketing plan. Defined goals give your small business direction, help you prioritize efforts, and focus resources on what truly matters.

A great way to determine your marketing goals is by using the SMART Goals framework.  The framework helps organizations address objectives by defining each goal into set parameters:

  • Specific. Clearly define the exact goal you want to achieve.
  • Measurable. Track your progress with quantifiable metrics to determine whether your efforts are effective.
  • Achievable. Ensure you set realistic actions that you can accomplish based on your current resources, skills, and situation.
  • Relevant. Design your goals to align with your overall business objectives.
  • Time-bound. Set a deadline to avoid delaying the steps you need to take to achieve your objective.

This method focuses on attainable and measurable outcomes so you can create goals that will guide your strategy and motivate your team. SMART goals also keep your actions organized and make it easier to identify what works and what needs to change as your business grows.

For example, let’s say you own a small coffee shop, and you want to increase sales. If you use the SMART Goals framework, your marketing goals might look something like:

  • Specific. “Increase monthly sales of specialty coffee drinks.”
  • Measurable. “Boost sales by 15%.”
  • Achievable. “Introduce a limited-time promotion and train staff to upsell specialty drinks.”
  • Relevant. “Focus on specialty drinks to improve profit margins and attract loyal customers to my coffee shop.”
  • Time-bound. “Achieve this goal within the next two months.”

Step 2: Understand your target market

Aim to know your target audience so you can produce goods and services that resonate with their needs and preferences. Use tools and techniques like surveys and buyer personas.

Conducting surveys

Surveys provide clear, data-driven information on who your customers are and what they want. The insights gained help you make informed decisions and design tactics that drive better results.

You can ask targeted questions relating to your customers’ demographics, interests, purchasing habits, and pain points. That way, you discover what factors influence their buying decisions or what issues they face.

Surveys also allow you to segment your audience based on their responses. For instance, you might learn that one group of customers prioritizes price while another values premium quality. The responses help you tailor your messaging and offerings to appeal to each segment.

Creating buyer personas

Buyer personas are semi-fictional profiles of your ideal customers based on real data and research about your audience. By building these personas, you get to step into your customers’ shoes and see the world from their perspective.

The process helps you uncover their specific needs, preferences, and decision-making choices. For example, let’s say one of your buyer personas is a 35-year-old working parent who values convenience and affordability. The data can help you design marketing strategies that highlight those priorities.

Buyer personas also help you identify and address pain points. When you understand what frustrates your audience or prevents them from achieving their goals, you can position your products or services as solutions.

Example buyer persona

Product/service you sell: Affordable marketing solutions tailored for small business owners.

Name: Sarah “The Side Hustler”

Demographics: 29 years old, lives in a mid-sized city, works full-time, but runs an online handmade jewelry shop on the side.

Goals: Find affordable tools to market her shop, attract more customers, and grow her business.

Challenges: Limited time for marketing, limited budget, and difficulty standing out in a competitive market.

How to use this persona: If Sarah is your target customer, you can promote your marketing services through blogs or email campaigns that focus on practical, budget-friendly marketing tips. You can also offer content about using free social media tools to boost visibility.

Step 3: Conduct a competitive analysis

With competitive analysis, you can understand where your business fits in the market and develop strategies to stand out. This step requires researching your competitors so you can identify their strengths, weaknesses, and methods. It gives insights that will improve your offerings and attract more customers.

To start, identify your main competitors. They could be businesses that sell similar goods or services or target the same audience. Look for competitors locally and especially online. Use tools like Google, social media, and online directories to help you find and assess them.

Once you’ve identified the competition, analyze their strategies. Pay attention to important areas, such as pricing, product features, marketing campaigns, and customer service.

Go to their websites, follow their social media accounts, and read customer reviews. You’ll see how they communicate with their audience and what customers appreciate or criticize.

Afterward, use a SWOT analysis to organize your findings and strengthen your market position. A SWOT analysis helps you evaluate your business and competitors in a structured way:

  • Strengths. What does your business do well? For instance, do you offer a unique product or excellent customer service?
  • Weaknesses. In what area can your business improve? Perhaps your online presence is less developed compared to competitors.
  • Opportunities. What market gaps or trends can you capitalize on? For example, is there a demand for cruelty-free products in your industry that competitors haven’t addressed?
  • Threats. What external factors could harm your business? This might include a competitor launching a similar product or changes in market conditions.

Step 4: Create your unique selling proposition (USP)

Your USP sets your business apart. It’s an important part of your marketing strategy as it highlights the distinctiveness and value of your product or service.

Consider a small bakery specializing in gluten-free desserts, for instance. Their USP could be: “Delicious gluten-free treats made with all-natural ingredients that taste as good as the real thing.”

It emphasizes the desserts’ unique (gluten-free) and valuable aspects (great taste and natural ingredients), helping the bakery appeal to customers with dietary restrictions.

To create your own USP, understand what your customers care about most. Look at your product or service through their eyes and think about what makes it special. Use these tips to get started:

  • Focus on your strengths. Identify the unique benefits your business offers that competitors don’t. It could be anything like out-of-the-box features or competitive pricing.
  • Be specific. Avoid vague claims like “We’re the best.” Instead, provide concrete reasons why your business is one of a kind. For example, “Next-day delivery on all local orders” is more compelling than “Fast delivery.”
  • Address customer needs. Your USP should solve a problem or meet a specific need for your target audience. Highlight how your product or service makes their lives easier or better.
  • Keep it simple and clear. A strong USP is easy to understand and remember. Aim for one to two sentences that convey your distinctive value.

Step 5: Select your marketing channels

Marketing channels allow you to reach your audience effectively and make the most of your budget. Different channels have unique strengths and weaknesses, so it’s best to understand how each works. The right channel can direct your marketing activities to reach the best outcomes.

Social media marketing

Social media marketing involves using platforms like Instagram where you can share content, promote your brand, and interact with your audience. A strong social media marketing plan builds brand awareness, drives traffic, and fosters direct engagement with your customers.

Pros

  • Builds brand visibility on platforms your audience frequently uses.
  • Encourages real-time interaction with buyers, creating a sense of community.
  • Allows for targeted advertising to specific demographics or interests.
  • Offers measurable insights into performance through analytics tools.

Cons

  • Time-intensive, as it requires regular content creation and active engagement.
  • Highly competitive, which makes it challenging for organic content to gain visibility without paid promotions.
  • Algorithm changes can impact content reach unpredictably.

Email marketing

Email marketing uses direct email communication to engage with your audience. It’s an excellent tool for cultivating leads, retaining customers, and promoting offers. Add to that, personalization and segmentation make it effective in delivering tailored messages to specific groups.

Pros

  • Cost-effective and provides a high ROI.
  • Allows personalized communication to build strong client relationships.
  • Ideal for attracting traffic to your website or promoting time-sensitive offers.
  • Easy to automate using email marketing tools.

Cons

  • Requires a well-maintained email list to avoid sending irrelevant or unwanted messages.
  • Emails can get lost in cluttered inboxes, requiring strong subject lines and content to stand out.
  • Comes with added complexity as you should conform to privacy laws like the General Data Protection Regulation (GDPR).

Pay-per-click (PPC) advertising

PPC advertising is when you bid for ad placements on platforms like Google, Facebook, or Instagram. It’s a performance-based model since you only pay when someone clicks on your advertisement.

PPC is effective for driving immediate traffic and visibility, particularly for businesses launching new products or targeting competitive markets.

Pros

  • Provides quick results by showing your ads to customers actively searching for you or the products you sell.
  • Allows you to track performance and ROI.
  • Enables precise audience targeting by location, interests, or search intent.
  • Makes flexible budget control possible so you can adjust campaigns based on performance.

Cons

  • Costs can quickly escalate if campaigns aren’t optimized regularly.
  • Requires expertise in managing ad platforms and analyzing data.
  • Might not deliver long-term benefits compared to organic efforts.

Content marketing

Content marketing leverages valuable and relevant content to attract and retain your target market. This can include blog posts, videos, infographics, eBooks, and more.

Pros

  • Fosters trust and credibility by providing valuable information to your audience.
  • Drives long-term organic traffic through well-optimized, evergreen content.
  • Supports other marketing channels like social media and email campaigns.
  • Boosts your brand authority.

Cons

  • Takes time to produce high-quality content and see measurable results.
  • Requires consistent effort and creativity to keep content fresh and engaging.
  • Needs additional support through cross-promotion across different channels.

How do you determine where your target audience spends time?

Discover the platforms your customers usually turn to by using the following tools:

  • Google Analytics. A free tool to track where your audience discovers your website.
  • Meta Business Suite. Platform for analyzing engagement on Facebook and Instagram.
  • SEMrush and Hootsuite Insights. Tools that analyze audience behavior and preferences across different channels.

Step 6: Set a marketing budget

Setting a marketing budget helps you execute your marketing plan effectively without overspending. A clear budget enables you to prioritize your efforts, allocate funds to the most impactful tactics, and measure your ROI.

Typical marketing costs for small businesses

When planning your marketing budget, it’s important to know the key areas small businesses commonly spend on.

  • Content creation. Writing blog posts, creating videos, and designing graphics often take up 20–30% of the budget. This varies depending on whether you handle these tasks in-house or outsource them.
  • Advertising. Launching PPC ads, social media ads, and print or radio advertising can account for 25–35%. Do note that paid ads provide quick visibility but might require constant investment.
  • Website maintenance. Paying hosting, domain registration, and site update costs often make up 10–15% of your budget. If you’re building a new website, the cost might temporarily increase.
  • Email marketing. Using email platforms like Constant Contact is relatively affordable and typically uses 5–10%.
  • Search engine optimization (SEO) and analytics. Investing in SEO tools or hiring experts for optimization might take 10–15% of the budget. Meanwhile, you’ll find that there are many free applications for analytics tools.
  • Miscellaneous. Running a business often includes unexpected expenses that can account for 5-10% of the budget. These fees can include last-minute promotions or tools you might need to experiment with.

Budgeting tools and templates

To simplify your budget planning, use tools or templates to organize your process.

  • Google Sheets. Google Workspace provides free tools that help create a custom spreadsheet to list expenses and track spending. You can find free marketing budget templates online to get started.
  • Budgeting software. Tools like QuickBooks let you categorize expenses and monitor how much you’ve spent in real time.
  • Trello or Asana. While primarily project management tools, these can also help you visually map out your budget allocations alongside marketing tasks.

Pro tip: If you’re unsure where to begin, start with a smaller budget and prioritize affordable strategies like social media or email marketing. Track your performance closely to see which areas bring the best results, then adjust your spending as needed.

Step 7: Develop actionable strategies

Focus on implementing practical and cost-effective approaches that align with your marketing goals. By using inexpensive tools, forming partnerships, and looking at customer feedback, you can create methods that deliver positive results.

Leverage free and affordable tools

Productivity tools can enhance efficiency and offer valuable insights about approaches that are working and areas that need improvement.

  • Content calendars. Tools like Google Calendar help you plan and organize your social media posts, blog articles, and email campaigns. This ensures consistency and avoids last-minute rushes.
  • Email workflows. Certain email platforms let you automate follow-ups, welcome emails, and promotional campaigns. It’s all about saving time and maintaining engagement with your audience.
  • A/B testing plans. Tools like Optimizely allow you to test variations of your ads, emails, or landing pages. Analyze what resonates with your audience so you can optimize your campaigns for better performance.

Build partnerships with local businesses

Collaborating with local businesses is a smart way to expand your reach. For example, if you run a coffee shop, you could partner with a nearby bookstore to offer discounts for each other’s customers.

Similar collaboration benefits both businesses by increasing visibility and attracting more foot traffic. Other than that, you can boost your efforts without requiring costly additional resources by doing joint promotions, co-hosting events, or cross-promoting on social media.

Use customer feedback and reviews

Customer feedback reveals what your customers like and where you need to improve. Use this information to tweak your products, services, or marketing approaches. For instance, if customers frequently praise your quick delivery but mention a lack of product variety, consider expanding your inventory to meet their expectations.

Add to that, showcasing positive reviews in your marketing materials builds your credibility and encourages customer engagement.

Step 8: Track your performance and adjust accordingly

Tracking your performance enables you to identify successes, pinpoint areas for improvement, and continually optimize your marketing activities. It’s a necessary step to ensure that you’re on track with your business goals.

Key performance indicators (KPIs)

KPIs are measurable values that indicate you’re using the right strategies to achieve your objectives. Define your KPIs and make sure they correspond to your marketing goals.

Here are examples of KPIs to incorporate in your marketing plan:

  • Website traffic. Monitor the number of people who visit your site.
  • Conversion rate.  Determine what percent of visitors accomplish a goal, such as making a purchase or signing up for a newsletter.
  • Engagement rate. Keep an eye on likes, shares, comments, and interactions on social media.
  • Email open and click rates. Check the number of recipients who open your emails and click on your links.

Apart from Google Analytics, there are other platforms you can use to track your marketing progress.

  • Klaviyo. A tool that helps you understand customer behavior and campaign performance to enhance your email marketing efforts.
  • Mixpanel. Mixpanel specializes in tracking user behavior and engagement across websites and mobile apps to help determine factors affecting conversions.
  • Adobe Analytics. A tracking platform that provides in-depth insights into customer journeys that impact your marketing performance. It offers advanced segmentation and user-friendly data visualization to help you optimize your campaigns.

Why are regular reviews and adaptability important?

Marketing isn’t a one-and-done effort. Regularly reviewing your performance ensures you stay on track and adapt to changing circumstances.

Schedule monthly or quarterly check-ins to evaluate your KPIs and overall progress. If a strategy isn’t delivering the expected results, don’t hesitate to make adjustments.

For instance, if your social media engagement isn’t performing well, then consider experimenting with other kinds of content or posting times. Similarly, if you’ve released a new product but aren’t seeing conversions, design a new product launch marketing plan that hooks your audience better.

Markets change, customer preferences shift, and competitors use new tactics. Staying flexible and open to change ensures your marketing plan remains effective and relevant.

Success story: Canva’s rise to global domination through strategic marketing

As of November 2024, investors valued Canva at nearly $49 billion with approximately 200 million users worldwide. Their story showcases the power of a comprehensive marketing plan that adapts user-focused strategies and global outreach.

Canva’s USP centers around their mission to offer individuals the opportunity to create designs regardless of their skill level. The freemium model is one notable example that supports it.

It allows beginners to access design tools for free while encouraging upgrades to premium plans as they upskill. The model attracted millions of users and even made Canva accessible to businesses of all sizes.

Apart from that, Canva’s marketing team focused on content marketing and SEO. Their blog and resources, like design tutorials, provide value to users while driving organic traffic. Additionally, Canva prioritized localization by tailoring their platform for audiences in 190 countries, making their tools versatile and accessible.

By combining education, accessibility, and a global mindset, Canva built a marketing plan that launched their products effectively and sustained long-term user engagement.

Ready to claim your marketing success?

Creating a marketing plan for your small business is a powerful tool to guide your efforts and reach your goals. A well-thought-out plan helps you focus on what matters most, allocate resources wisely, and adapt to changes as your business grows.

Remember, the most important step is getting started. Use this guide as a blueprint, develop it one day at a time, and watch your business thrive in no time.

Since you’re already here, why not revamp your business plan? We have a separate guide on writing a business plan where you might find tips you haven’t tried before.


Joan Lora
Joan Lora

Joan is a Content Marketing Writer at Domain.com. She aims to create blog articles that inspire brands and businesses to take their online ventures to the next level. Outside of work, you'll find her posting song covers and self-help content on TikTok. She's also into cosmetics and wants to become a sought-after makeup artist one day.

Joan Lora
Joan Lora

Joan is a Content Marketing Writer at Domain.com. She aims to create blog articles that inspire brands and businesses to take their online ventures to the next level. Outside of work, you'll find her posting song covers and self-help content on TikTok. She's also into cosmetics and wants to become a sought-after makeup artist one day.