How to Write a Marketing Strategy for a Business Plan

A business idea can look great on paper, but a business plan reader will still ask one hard question: How will customers actually find you and buy from you?

That is where your marketing strategy comes in.

This section is not about listing every channel you might use. A strong marketing strategy shows who your target customers are, why they will care about your offer, where you will reach them, and how those efforts will turn into sales.

For many founders, this is where the business plan starts to feel difficult. You may know your product, your pricing, and your goals, but explaining how you will attract real customers can feel less clear.

In this guide. I’ll show you what the marketing strategy is, the difference between marketing strategy and marketing plan, walk you through six steps to build it, and finish with a complete coffee shop example you can adapt to your own business.

It covers:

• Who your target customers are
• What makes your business different
• The channels you’ll use to reach them
• How much you’ll spend on marketing
• How you’ll track results

This section comes after your market analysis and before your financial projections.

Your market analysis shows there is demand for your product or service. Your financial projections forecast future sales. Your marketing strategy explains how you’ll reach those customers and turn that demand into revenue.

Marketing strategy vs marketing plan

As mentioned in the section above, a marketing strategy explains who you’re trying to reach, what makes your business different, and how you’ll attract customers.

A marketing plan is the action schedule that puts that strategy into practice. It outlines what you’ll do, when you’ll do it, how much it will cost, and who will handle it.

In simple terms, the “strategy” is the thinking. The “plan” is the action.

Here’s an example:

Marketing strategy:

Marketing plan:

Notice how the strategy explains your reasons while the plan lists dates and actions. For your business plan, you only need the strategy. The plan comes later, once you have funding to spend.

How to write your marketing strategy in 6 steps

The next six steps cover the key decisions you need to make. Follow them in order, since each step builds on the one before it. Lenders and investors will usually expect to see this information presented in a similar sequence.

1. Define your marketing objectives

Before you choose marketing channels or plan campaigns, decide what your marketing needs to achieve.

Your marketing objectives should be specific to the target customer from your customer analysis and tied to the sales target in your business plan.

For example, if you’re targeting remote workers and your plan says you’ll make $500,000 in Year 1 and each customer spends about $250, you need 2,000 paying customers to reach that number. That is your starting point.

Set goals in three areas:

1. Acquisition: How many new customers do you need, and by when?
2. Retention: How many customers will come back?
3. Expansion: How will you get customers to spend more, buy more often, or add extra items?

If your business is new, getting customers will matter most. But lenders also want to see that you have thought beyond the first sale. A business that keeps customers or gets them to spend more is easier to grow than one that must keep finding new buyers.

Keep this section short. One or two goals for each area is enough. If you add too many, the section becomes hard to follow.

Make every goal measurable.

Weak goal:

Better goal:

The second goal works better because the reader can compare it with your financial projections.

2. Define your positioning and messaging

You do not need to repeat your customer analysis or competitive analysis here. This step simply turns that research into clear words your customers can understand.

Start by pulling three points from earlier sections of your business plan:

• Your target customer (one sentence from your customer analysis)
• Your competitive position (one sentence from your competitive analysis or SWOT)
• Your differentiator (one sentence from your unique value proposition)

Then combine those points into a simple positioning statement:

For [target customer] who [problem or need], [your business] is the [type of business] that [main benefit]. Unlike [competitor type], we [main difference].

Here is an example for a coffee shop:

Once your positioning is clear, turn it into messaging. Messaging is the wording customers actually see, such as your tagline, website headline, social media bio, or ad copy.

A lender will check whether your difference is believable. Phrases like “best customer service” or “high quality” are too vague because any business can say them. Strong positioning is specific. It gives the reader a clear reason why customers would choose your business over another option.

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3. Choose your marketing channels

Pick three marketing channels. That is enough for most business plans.

If you list too many channels, it can look like you are guessing. Lenders want to see that you know where your customers spend time and which channel is most likely to bring sales.

Ask two simple questions:

• Will this channel reach my target customer?
• Which channel will bring most of my customers?

Here is what each channel is best for:

Social media:

Use it if your customers are there. Instagram and TikTok are good for visual or local businesses. LinkedIn is good for B2B. Facebook can work for older customers.

Content and SEO:

Use it if customers search before buying. This works well for B2B, software, consultants, and services. It can take 6 to 12 months to bring steady leads.

Paid ads:

Use them if you want quicker results. Google Ads work when people already search for what you sell. Meta Ads work when people may buy after seeing your offer online.

Referrals:

Use them when happy customers can bring more customers. This works well for services, B2B, and high-value customers.

Local marketing:

Use it for cafes, gyms, salons, restaurants, and local businesses. This includes Google Business Profile, flyers, local events, and nearby partnerships.

If your business has not launched yet, start with channels that do not need existing customers: social media, paid ads, content and SEO, or local marketing. Email and referrals work better once you have customers, an audience, or a network.

Use this table as a starting point:

Your business may not fit this table exactly. Use it as a guide, not a rule.

4. Set your marketing budget

Your marketing budget should match what your business can afford.

For most new businesses, this is usually 7% to 12% of projected Year 1 revenue. Businesses with steady sales and repeat customers may spend closer to 5% to 7% of actual revenue.

If your business has not launched yet, start with a fixed monthly budget from your startup funds. Once you start making sales, you can set the budget as a percentage of revenue.

If money is tight, put it into one strong channel. Do not spread a small budget across too many places. Spending $300 on your best channel is better than splitting $300 across three channels.

Once you have your total budget, divide it across the three channels you chose in Step 3. A simple split is:

• 50% for your main channel
• 30% for your second channel
• 20% for your third channel

The exact split depends on what each channel costs.

If possible, split 90% across the three channels and hold about 10% in reserve. You can use it to test a new channel or spend more on something that is already working.

5. Define your KPIs (key performance indicators)

Pick a small set of KPIs you will actually track. If you track too many, you won’t know which ones to act on.

Each KPI should connect to one of the goals you set in Step 1.

Skip metrics like follower counts, page views, and email open rates. They feel good to track, but don’t prove customers are coming in.

Here are the five most useful KPIs:

1. Customer acquisition cost (CAC): What you spend to get one paying customer. Take your marketing spend for a month, then divide it by the new customers you got that month.
2. Cost per lead (CPL): What you spend to get one lead, before they buy anything. Useful for paid ads and other channels that bring in leads.
3. Conversion rate: The percentage of leads or visitors who become paying customers. The clearest sign that your message and channels are working.
4. Customer lifetime value (CLV): How much total revenue one customer brings in over time. Helps you decide whether a high acquisition cost is worth it.
5. Average order value (AOV): How much revenue you make per sale. Useful for tracking whether upsells or price changes are working.

If your business has not launched yet, set each KPI as a target. Once you start getting real data, compare it to your targets.

The KPIs you list should be easy to explain to a lender. They should show why your marketing is bringing in customers, not just activity.

6. Check the 4 Ps

After Steps 1 to 5, you have already covered most of the 4 Ps. Use this step as a final check.

The 4 Ps are a common marketing framework that lenders and investors know. Your marketing strategy should give a clear answer for each one.

1. Product: What do you sell, and what makes it different? Use details from your company description or products section, and mention them briefly here too.
2. Price: What do you charge? Use details from your financial projections. Make sure your message matches your pricing.
3. Place: Where do customers buy from you? Use details from Step 3 (your marketing channels) and your sales and distribution plan.
4. Promotion: How will you reach customers, and what will you say to them? Use details from Step 2 (positioning and messaging) and Step 3 (channels).

If each P has a clear answer, you’ve completed your marketing strategy.

Now let’s look at a sample marketing strategy to see how it works in a business plan.

Marketing strategy example in a business plan: East Austin Coffee Shop

Espresso & Co. is a planned coffee shop in East Austin. It is set to open in Q4 2026. The founder is applying for an SBA loan. Her financial projections show $400,000 in Year 1 revenue, with an average order value of $9.

Each of the 4 Ps is clearly answered. This marketing strategy would take about 1.5 pages in the actual business plan.

Conclusion

You do not need to be a marketer to write a strong marketing strategy section. You just need to answer the six steps clearly.

Once your draft is ready, check it one more time. Your marketing goals should connect to the numbers in your financial projections. You should also be able to name your main marketing channel and explain why it will bring in most of your customers.

Your KPIs should measure customers and revenue, not followers or page views. And all four of the Ps should have a clear answer.

If any part feels unclear, go back to that step and make it more specific.

For help writing this section, Upmetrics’ marketing plan template walks you through each step with AI guidance. For the full business plan, the AI business plan builder covers every section with guided prompts and examples.

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