Step 3: Marketing Plan

1. Step 3:Marketing Plan Business Plan Preparation Business Practice Firm Schulien

2. Company Overview • Introduction (1 paragraph) • Name, location, organization • Slogan • Mission Statement • Markets and Products • Objectives

3. Slogan • Pithy 4 to 10 word statement of company purpose • Use in business plan, advertising, descriptions of business, business cards, …

4. Mission Statements • What is a mission statement? • What makes a good mission statement?

5. Mission Statements What makes a good mission statement? • Compelling • Inspiring • Clear, measurable objectives • Concise

6. Marketing Plan

7. Marketing Plan Objectives • Most important piece of your plan • Build on industry and marketplace analysis – define your niche • Identify your customers • Demonstrate how you will solve problems for customers • Describe how you will reach customers – advertising sales • Convince reader that there is an eager market for your product or service

8. Marketing Plan Outline • Introduction • Target Market • Product/Service Strategy • Pricing Strategy • Distribution Strategy • Advertising and Promotion • Sales Strategy • Sales and Marketing Forecasts

9. Introduction • Seven sentence introduction • The first sentence tells the purpose of the marketing strategy. • The second tells how you’ll achieve this purpose, focusing upon your benefits. • The third tells your target market – or markets. • The fourth, the longest sentence, tells the marketing weapons you’ll employ. • The fifth tells your niche. • The sixth tells your identity. • The seventh tells your budget, expressed as a percentage of your projected gross revenues.

10. Introduction – Example The purpose of Prosper Press is to sell the maximum number of books at the lowest possible selling cost per book. This will be accomplished by positioning the books as being so valuable to free-lancers that they are guaranteed to be worth more to the reader than their selling price. The target market will be people who can or do engage in free-lance earning activities. Marketing tools to be utilized will be a combination of classified advertising in magazines and newspapers, direct mail, sales at seminars, publicity in newspapers and on radio and television, direct sales calls to bookstores, and mail-order display ads in magazines. The niche to be occupied is one that stands valuable information that helps free-lancers succeed, the ultimate authority for free-lancers. Our identity will be one of expertise, readability, and quick response to customer requests.

11. Target Market Strategy • Identify the market niche you will serve • Be as specific as possible • Better to be toospecific • Benefits to target market • What problems do you solve? • What needs do you fulfill?

12. Two Types of Benefits • Emotional • Hope, fear, love guilt, greed, convenience • Financial • Increased profit, value pricing, save money, payback period

13. Talk to Your Customers • Imperative that you talk with customers! • Casual conversations • Interviews • Surveys • Focus groups • Identify needs • Listen!

14. Target Market Questions • What buy now? How get service? • Would you be interested in …? • Demographics • Newspapers, magazines, TV • Would you buy? • Where would you expect us to advertise? • Who do you consider our competition? • Other comments? Levinson, “Guerrilla Marketing” 3rd edition

15. Reduce What factors might be reduced well below industry standards? Eliminate Create What factors might beeliminated that the industry has taken forgranted? What factors might becreated that the industry has never offered? What factors might be raised well beyond industry standards? Raise Creating New Market SpaceHBR, Kim & Mauborgne New MarketSpace

16. Product/Service Strategy • Describe how the design of your product/service fulfills unmet marketplace needs • Differentiate your product/service from the competition • Explain why and how customers will switch to your product or service • Describe how you will defend your product or service from competition

17. Pricing Strategy • Describe and justify your pricing strategy • Provide evidence that your target market will accept your price • Position your strategy relative to current and potential competition • NOTE: Low price often (usually) is NOT a good strategy for a startup!

18. Advertising/Promotion • Describe how you will communicate with current and potential customers • Advertising • Public relations • Personal selling • Printed materials • Other means of promotion • Explain why this be strategy is most effective in reaching your target market • Note: See Guerrilla Marketing

19. Distribution Strategy • Explain how you will deliver your product or service to your customers • How will your customers acquire your product or service • Describe and justify the distribution channels you will use • Describe how you will gain access to your planned distribution channels

20. Sales Strategy • Describe to whom you must sell your product or service (not always obvious) • Explain how you will “sell” • An internal sales force • Manufacturer's representatives • Telephone solicitors • Describe how you will support your sales effort • internal staff • service operations

21. Goals for Marketing Plan • Compelling “story” that there is a need in the market • Need flows logically from industry analysis • Product/service designed to fulfill market needs • Advertising, price, distribution, and sales all flow logically, convincingly from characteristics of the market • “WOW! What a great idea! I wish I had thought of that…”