This is the third post in our Life Science Marketing Plan series, where we will describe the second half of the components. In the last post, we described the first half of the components, which are the Executive Summary, Situational Analysis, Sales History and Forecast, and Market Research. While this sounds like a weighty list already, it represents only the first half. Here, we describe the second half of the components, which will round out your plan and give you the perspective you need to define your life science marketing strategy and tactics.

Competitive Analysis. This is my favorite part of the marketing plan, finding out what the competition is up to! You likely have some ideas, as you should be following them all year, but this is a good time to take a hard look at them. You likely know who your competitors are, but keep an open mind and ear during your market research, do some internet research to see if any newcomers have emerged, and talk to others in your company, especially those who are customer-facing such as sales or customer service. As with other areas we’ve discussed, this exercise can be simple or elaborate, and the amount of complexity normally scales with the size of your company. Regardless of the scale, I always include a SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis to put the competition in perspective. Basically, this involves an analysis of the situation from both internal (Strengths and Weaknesses) and external (Opportunities and Threats) perspectives. In addition, it is also useful to make a table which lists each of your competitors in rows, with two columns for each indicating their products’ strengths and weaknesses. The purpose of this table is to determine what advantage your products have compared to your competition, if any. As with the rest of the marketing plan, which we describe as a journey, this part can be a bit of a soul searching exercise, as you may find that your products are poorly positioned. Better to find this out now and to develop an action plan involving focusing more time on product development, rather than miss your competitive edge and miss revenue targets.

Strategy. At this point in your ‘journey,’ you’ll have learned a lot about your customers, the competitive landscape, and the challenges you face in reaching your goals. It is here that you need to define your position and messaging, as these items will guide the strategy you will employ. Your position is a description of the unique benefit that your products provide, and the messaging is how you communicate it. For example, your position may be to provide ‘the fastest protein chromatography method for membrane proteins.’ This statement must be based on reality, not just hopes and dreams, as it will be apparent to everyone, most notably the customer, if you are not being honest with yourself. As you know, being market driven means identifying these issues and bringing them to everyone’s attention sooner rather than later, so that products that are positioned well can be developed. In this case, your strategy will involve more time in product development rather than advertising. If your positioning is on target, your messaging will focus on the benefits that your product’s positioning will provide to your customers, and will speak to what you know is important to them, or their ‘pain.’ Because you’ve spent time getting to know your customers in the market research area, you’ll know this. Following the example earlier, your messaging could focus on the benefits of publishing faster. You’ll also want to include a broad overview of your tactical plan in this section, backed by your strategy. For example, if your overall strategy is to reach out to more protein purification researchers through the internet, then your tactical plan will be focused on improving your website and online advertising.

Tactical Plan. This is where you outline your advertising activities by date and predicted expense. An excel spreadsheet works well, with months as columns and tactics as rows. Include advertisements, conferences, and note when product launches or other major events will occur. Of course, coinciding product launches with conferences and relevant articles in editorial calendars will help you to maximize your resources, as is a marketing mix which will expose customers to your message multiple times in a short period of time. In order to estimate the expenses, you’ll want to start at least a month before contacting media account managers to get their media kits and perhaps hear from them as to what’s new with their publication (see our 2010 planning guide for help). Your tactical plan is very important, as it will determine many of your deadlines throughout the year, so consider it very carefully.

A well written marketing plan serves many purposes, from giving you the necessary perspective on your products to communicating your strategy to others in your company. In the last post of this series, we’ll talk more about the big picture for the life science marketing plan, implementing it as well as changes you’ll need to plan for today’s new media. Check out the whole series here and sign up for updates so you don’t miss anything!

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Each post in our Life Science Marketing Plan series will help you piece together a ‘map’ that is representative of the analyses and learning process that will help you define your marketing strategies and tactics for the year. In the first part of this series, we provided and outline and described why marketing plans are needed for life science companies of all sizes to meet their goals. In this post, we’ll define the first half of the components in detail. Let’s get started!

1. Executive Summary. Even though this part of the marketing plan is at the beginning, it is written at the end. Writing a marketing plan is like a journey, and at the end of it you will have learned a lot and have a clear understanding of the strategies and tactics needed to help you reach your goals. Keep in mind that several people, especially senior management, will read only this part of your marketing plan, so summarize the report here and don’t worry about being a bit redundant. Feel free to reference figures and tables in the report for easy and quick analysis. Also, if there’s a point you’d like to make to senior management (e.g., I need a bigger marketing budget to meet my numbers!) this is a good place to make your case.
2. Situational Analysis. Before getting started on an in-depth analysis, you need to provide details about your products, internal factors, and external trends which will help explain where you’re starting from. Remember that the marketing plan is a tool to help you communicate to others, so this is a good place to step back and set the stage so that anyone in your company who reads the plan will understand it clearly. Be very literal and don’t worry about explaining things you think everyone knows, such as defining the products included in the marketing plan and that big acquisition that occurred 3 months ago (a safe bet you’ll need to include that these days). In this section you will describe broader issues such as the life cycle stage of your products and any history that is relevant such as trends in the industry and current attitudes about your company’s brand.
3. Sales History and Forecast. This is fairly self-explanatory, but sometimes a bit tricky depending on when you are writing your plan. Because you normally need to start your plan well before the year ends, having a full year of sales history is difficult. In my experience, projections are normally used to estimate sales for the current year, and remember that sales fluctuate from month to month (e.g., December is usually lower) so base the remaining months’ sales based on these changes. Sales forecasts for the year that the marketing plan describes may need to be done at the end of the report, as the complete analysis may be needed to make predictions. Consideration of the historical sales growth, the size of the marketing budget in comparison to yearly revenue, and other factors will be important. In addition, my experience has been that ‘top down’ forecasts are sometimes given to marketing and product managers, indicating the revenue growth they must achieve in the coming year. While this is sometimes disheartening, the marketing plan can be used to explain why a higher budget is needed if these growth figures are too ambitious. A general rule of thumb is that the marketing budget should be at least 10% of the annual sales for the products it supports. In practice, I’ve seen the budgets run much lower than this, perhaps because marketing is sometimes under-appreciated in life science companies. However, it’s a good number to shoot for, and a strong marketing plan will provide confidence to the management that you will meet your goals if given the appropriate budget (and be prepared to work hard to reach them if your wishes are granted!).
4. Market Research. One of the objectives of a marketing plan is to ensure that your company continues to be driven by the market. In other words, you need to know about your customers’ needs and about factors that are driving their purchases, and there is no substitute for getting this information straight from them. Market research can be done many ways–you can buy off-the-shelf reports (Price $3-10K), hire a company (broad price range, $5K minimally), or conduct research yourself (price varies greatly). The scale can be large or small, from online surveys of hundreds to phone interviews of 10. Larger and purchased surveys will give you estimates on the size and growth of the market and each company’s share of it, while smaller surveys help you understand your customers more on a personal level (which is very important as we’ve discussed). Another consideration is whether you want the survey to be blind, and whether it should focus on only your customers or more broadly. One of my fantastic mentors Michael Gonzales told me once at the start of a market research project to define very specifically what internal decisions you need to address before you begin, and write each question to definitively provide answers to them. There is no point in posing a question unless it will have an unambiguous effect on a decision that you will make. It is easy to get carried away designing questions related to your company or products, as you’re curious about so many aspects, but keeping your objectives clear helps to focus the effort. Questions should center around the customers’ needs and habits and how they relate to your product development and tactics. What are their daily struggles or ‘pains’ in the broad area of your products? What conferences are they attending this year, and which publications do they read? Perhaps most importantly, you should give customers a chance to give you any feedback they have for you in an open-ended format, as they’ll often have great ideas and opinions and appreciate being heard. Even with a focused effort, you’ll learn a lot about your customers and their needs, and can use the information all year for many different purposes.

   After you’ve completed these tasks, you’re well on your way towards completing your ‘journey’ towards defining your marketing strategy and tactics. The way the pieces fit together will become even more clear after the next post in our series, The Life Science Marketing Plan, Part 3: Components (Second Half). Sign up for updates so you won’t miss anything, and see the whole series here.

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We talk a lot about social media on this blog, and are of course strong proponents of its utilization for life science and biotech companies. One of the aspects we like about it is that the basics of traditional marketing planning are also the cornerstones of social media planning. For this series of posts, we’ll go back to basics and explore traditional marketing plans–beginning with their ‘raison d’etre’ to the details of developing one. We see marketing plans as a journey in which you learn along the way, and we’ll provide one ‘piece’ of the map in each of these posts, helping you to see the big picture by the end of this series.

What is a marketing plan? Marketing plans can be centered around a product, product line, brand, or small company. My experience has been that they are developed early in the fourth quarter preceding the fiscal year they describe. While they can be discussed by a team, normally I’ve seen one person taking the lead in writing the document–of course this is dependent on the scope of the plan. Input can come from anywhere, but the marketing group and the management should own them and have the research to back up the marketing plan’s claims. They can take the form of a text document with figures (e.g., Microsoft Word) and usually include a summary presentation (e.g., Microsoft PowerPoint). In theory, they should be considered living documents which can be modified by the owners (in practice this often proves too difficult for the busy marketing professional).

What are the components? Of course you can find marketing plan templates online, and you can certainly customize them to fit your needs. Here are what we consider to be the basics:

1. Executive Summary
2. Situational Analysis
3. Sales History & Forecast
4. Market Research
5. Competitive Analysis
6. Strategy
1. Messaging & Positioning
2. Overall Plan
7. Tactical Plan
1. Events (Conferences, Ad planning, Product Launches)
2. Budget

You’ll often hear the components referred to more generally as strategic and tactical marketing. Overall strategy is determined by the careful analysis of components 2-5 above, and it guides the tactical plan. We’ll go through each of these in detail in subsequent posts.

Why do I need a marketing plan? We all understand that having a plan makes everything work better, but I’ve worked in smaller companies in which it has been very difficult to justify taking time off to write a formal document. Let me give you a few examples for why it is so important, and why it will actually make your work easier.

Consistency. Working through a marketing plan will help you to see your path clearly for your product or product line and to quickly communicate it to others. For example, let’s say your objective is to be the leading provider of fast, high performance protein chromatography, and your target customers work mostly in pharma companies. This is all part of defining your positioning in the market, and will guide all of your marketing materials and actions. Every time you or your colleagues communicate with a customer, write a marketing piece, etc. you’ll be guided by this principle. This will result in a consistent message which will improve your brand perception.

Better product development. Successful companies are driven by the market. In a smaller biotech or life science company, the products (at least initially) are by nature driven by the market, because the company was likely founded based on strong need. However, as companies grow, there is a tendency for scientific companies to produce what they ‘can’ rather than what they ‘should.’ Developing a yearly marketing plan is a great way to get a reality check and to define your product line’s direction and be ready to give solid reasons to back your decisions. Additionally, having a document that can be forwarded to the R&D team is a powerful way to help everyone brainstorm about product development.

Time savings. Your colleague comes to you with a great conference at Cold Spring Harbor which he says is PERFECT for your company to attend. Your answer? Thank him, but point to the marketing plan and indicate that your target market won’t be in attendance, so it doesn’t make sense. Quick decision, no feelings hurt (hopefully), and you’ve pointed him in the right direction as to what conferences he should be looking for.

More bang for your buck. The strength of a good marketing plan is in the power to see how tactics can work together to be more powerful than they are individually. The tactical plan normally takes the form of a spreadsheet or table which list the months of the year and every major planned event, such as product launches and conferences. These can also be cross-referenced with editorial calendars (see our 2010 planning guide). Example? Let’s say your big product is launching in August, but you see that a relevant conference and editorial piece are available in July. By planning ahead, you may be able to work with R&D for an earlier launch, and come out with a bang in month of July with news about your product at the conference and in the editorial.

A marketing plan is a journey in which you step back and look at things more broadly, and spend the year prepared, making smarter decisions and being less reactionary. Of course, a marketing plan can be written any part of the year–there’s no time like the present. Next in our series will be The Elements of a Life Science Marketing Plan. Sign up for updates so you won’t miss anything, and see the whole series here.

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