If someone asks you, “who is your customer?” how do you answer them? How much do you know about the people you want to sell to? Where can you find this information?
First, think about what need your product or service fills for your customers. Then think about how (or where) your customers find you, how they buy from you? As you answer these questions, you will start to see a similar need, location, price point, quality level, prestige, or other common reason they choose to do business with you. Do your products appeal to a certain age group? Do you sell more to men, or more to women? Why? Based on shared reasons or traits, you can divide them into groups and choose the best groups to market your products to.
You also want to show what’s going on with this market (growth, trends), and how your business fits into the larger industry that meets this market’s needs.
First, think about what need your product or service fills for your customers. Then think about how (or where) your customers find you, how they buy from you? As you answer these questions, you will start to see a similar need, location, price point, quality level, prestige, or other common reason they choose to do business with you. Do your products appeal to a certain age group? Do you sell more to men, or more to women? Why? Based on shared reasons or traits, you can divide them into groups and choose the best groups to market your products to.
You also want to show what’s going on with this market (growth, trends), and how your business fits into the larger industry that meets this market’s needs.
Industry Analysis
Here you want to talk about your industry, not just your company. What type of industry is it? What common traits best describe the industry? How do businesses in this industry make, buy, sell, and deliver their products or services? How do customers for this industry make their buying decisions? For example, is reputation more important than price?
Key Customers
Key Customers
Of all your possible customers, you will focus on only a few types; these are the ones most likely to value your offering at the price points you set. Write one paragraph describing who they are, and what they have in common. Then write a second paragraph explaining why you will focus on these customers, and not all the others.
Market Growth
Of all your possible customers, you will focus on only a few types; these are the ones most likely to value your offering at the price points you set. Write one paragraph describing who they are, and what they have in common. Then write a second paragraph explaining why you will focus on these customers, and not all the others.
Market Trends
“The only constant is change.” This is an old saying, and not just in business. But having a business is a perfect way to see change in action. Just when you think you have your market figured out, it changes. What you think your customers want or need changes. There’s a shift in direction.
Change can happen for many different reasons. No matter the reason, it is important to be able to recognize when a change can or will affect your business. If you’re just getting started, you might be planning your business around a current trend. Either way, you want to look for, and be aware of, market trends. Think of trends as a way to get ahead of the market by knowing where it is going before it gets there.
Change can happen for many different reasons. No matter the reason, it is important to be able to recognize when a change can or will affect your business. If you’re just getting started, you might be planning your business around a current trend. Either way, you want to look for, and be aware of, market trends. Think of trends as a way to get ahead of the market by knowing where it is going before it gets there.
Market Needs
This is where you want to step back and look at your business through your customers’ eyes. What problem does your business solve for them? What do you offer them that they can’t get anywhere else? Are your competitors failing them in some key way?
If you have more than one group of customers you will be marketing to, do this exercise for each group. You may find the needs of the groups are very different. You want your marketing message to match the solution your product gives to each customer group.
If you have more than one group of customers you will be marketing to, do this exercise for each group. You may find the needs of the groups are very different. You want your marketing message to match the solution your product gives to each customer group.
PART 2 – STRATEGY & IMPLEMENTATION
MARKETING OVERVIEW
Your marketing plan should broadly outline three things: how you differentiate your business from your competitors; how you will communicate that difference; and how you target your message to the right audience. The point of your marketing plan is to generate qualified leads. Your sales plan, which comes later, will address how to close the sales.
POSITIONING
POSITIONING
In plain, no-frills language, what is your business purpose? This is what you say to yourself and to your employees, not to your customers. It’s your rallying cry.
PRICING
PRICING
An important part of how you market to your customers will be the pricing of your products or services. What will your customers pay? How did you come up with that price? Here are some things to think about:
• What does it cost you to create the product or offer the service? Will your price cover those costs?
• Will you offer free or low-cost pricing as a promotion? Will you offer discounts to your loyal customers? What will these promotions or discounts cost you?
• Is pricing part of how you will position your company to the market? Does your pricing list support that positioning message?
• How does your pricing relate to your competitors’ price lists, and pricing in the industry in general?
PROMOTION
• What does it cost you to create the product or offer the service? Will your price cover those costs?
• Will you offer free or low-cost pricing as a promotion? Will you offer discounts to your loyal customers? What will these promotions or discounts cost you?
• Is pricing part of how you will position your company to the market? Does your pricing list support that positioning message?
• How does your pricing relate to your competitors’ price lists, and pricing in the industry in general?
PROMOTION
Each topic is like a building block. In this group (Marketing Plan), you first talked about your business positioning, and how you compare to the competition. Then you decided on your product pricing, and how that pricing will support your position in the market. Now, it’s time to decide how to get your message in front of the group (or groups) of customers you want to reach.
• If you think about the common traits of each customer group, which type of advertising is more likely to find them and speak to them?
• Does that type of advertising match up to your offering and your pricing? Does it fit your image of your business?
• Can you afford it?
• If you think about the common traits of each customer group, which type of advertising is more likely to find them and speak to them?
• Does that type of advertising match up to your offering and your pricing? Does it fit your image of your business?
• Can you afford it?
DISTRIBUTION
Will you sell direct to your customers? Do you sell online and then have your orders shipped direct from a storage location to the customer? Will your products be delivered to a store (or more than one store) who will sell to your customers? These are examples of distribution = getting your products to your customers for sale.
The simplest is to sell direct to your customers; no shipping or handling. If you have inventory of products which you store in a warehouse, you may have a distribution agreement with that company to process and ship orders for you. Depending on how many levels of distribution you have before your product reaches your customer, there will likely be an increase in pricing to cover those extra costs.
What type of distribution do you need? What will it cost?
The simplest is to sell direct to your customers; no shipping or handling. If you have inventory of products which you store in a warehouse, you may have a distribution agreement with that company to process and ship orders for you. Depending on how many levels of distribution you have before your product reaches your customer, there will likely be an increase in pricing to cover those extra costs.
What type of distribution do you need? What will it cost?
SWOT ANALYSIS
STRENGTHS
Start your SWOT analysis by describing the strongest aspects of your business. What do you do best? What unique or enviable resources do you have that give you a competitive advantage? Have you invented a better mousetrap? Do you have a great location in a high-traffic area? Do all the kids in town wear your T-shirts because your branding is so hip? Do you make the best pizza in all of Brooklyn? Understanding your strengths will enable you to focus on them so you can maximize your advantages over your competitors.
Remember, strengths aren’t always tangible things like equipment or seed money. Less concrete assets are often just as valuable, things like existing customer relationships, a reputation for quality and timeliness, or a strong knowledge of the market.
WEAKENESSES
Start your SWOT analysis by describing the strongest aspects of your business. What do you do best? What unique or enviable resources do you have that give you a competitive advantage? Have you invented a better mousetrap? Do you have a great location in a high-traffic area? Do all the kids in town wear your T-shirts because your branding is so hip? Do you make the best pizza in all of Brooklyn? Understanding your strengths will enable you to focus on them so you can maximize your advantages over your competitors.
Remember, strengths aren’t always tangible things like equipment or seed money. Less concrete assets are often just as valuable, things like existing customer relationships, a reputation for quality and timeliness, or a strong knowledge of the market.
WEAKENESSES
Describe your company’s shortcomings as clearly and honestly as you can. Don’t be embarrassed about this. Every business has weak points, and acknowledging yours is not a sign of weakness itself but a signal that you are committed to improvement. Think about the missing ingredients that threaten to keep your business from reaching its full potential. Do you have a sales staff but no prospect lists yet for them to call and sell to? Are you just starting to build connections in the local market? Do you have slower equipment or less advanced technology than others? Is your business outgrowing its current space? Do you still really need a finance person? Weak areas like this need to be identified and shored up, not glossed over.
Weaknesses, like strengths, should be internal factors that are under your control. (External market factors will come next in opportunities and threats.) Also, it sounds counterintuitive, but you may find that your weaknesses are closely related to your strengths. That is common. Say you have highly developed expertise in a certain technology. That is a strength. But it may also make your company less motivated than less entrenched competitors in experimenting with new and different technologies — a potential weakness. Thinking about the downside of your strengths may help you see weaknesses that you haven’t recognized before.
Weaknesses, like strengths, should be internal factors that are under your control. (External market factors will come next in opportunities and threats.) Also, it sounds counterintuitive, but you may find that your weaknesses are closely related to your strengths. That is common. Say you have highly developed expertise in a certain technology. That is a strength. But it may also make your company less motivated than less entrenched competitors in experimenting with new and different technologies — a potential weakness. Thinking about the downside of your strengths may help you see weaknesses that you haven’t recognized before.
OPPOURTUNITIES
Now shift your focus outward from your company to the market and customer base that you serve. What opportunities do you see just waiting for the right company to come along? Maybe it’s an unmet need or a new problem that would be valuable to solve. Maybe it’s a shortcoming in current solutions, a chance to innovate and outcompete. Maybe it’s a demographic shift or a lifestyle change — suddenly everyone in town wants a new boutique dog breed or a programmable tattoo. Maybe it’s just pure market growth: more interest in Salvadoran food means better fortunes for Salvadoran restaurants.
Be sure to think about the timing for each opportunity. Is there an ongoing need or just a short window of opportunity? How critical is your timing? Also, make sure that the opportunities you identify here are indeed opportunities are not strengths. Remember, an opportunity is an external factor in the market that anyone could potentially exploit. Strengths are internal factors for your specific company. If you find internal factors mixed in with your opportunities, go ahead and move them into the strengths area above.
Be sure to think about the timing for each opportunity. Is there an ongoing need or just a short window of opportunity? How critical is your timing? Also, make sure that the opportunities you identify here are indeed opportunities are not strengths. Remember, an opportunity is an external factor in the market that anyone could potentially exploit. Strengths are internal factors for your specific company. If you find internal factors mixed in with your opportunities, go ahead and move them into the strengths area above.
THREATS
Finish your SWOT analysis by identifying the major outside threats to your business. What challenges do you face? What potential threats are keeping you up at night? Maybe it’s the former employee who left your firm and started a competitor to woo away your customers. Maybe it’s the looming possibility of a major price hike from your suppliers. Maybe it’s the potential introduction of a “leap-frog” technology that could make your products or equipment obsolete. The better you are at identifying threats, the better positioned you will be to respond to them.
The world is full of threats, of course, especially potential ones. You can’t prepare for them all. Focus on those that are both realistic and proximate to your business — a setback in clinical trials, negative press coverage, changing consumer tastes, the loss of a major contract. Also, remember that threats, like opportunities, should be external factors beyond your direct control. Any issues related to your company’s own capabilities should go in weaknesses above.
The world is full of threats, of course, especially potential ones. You can’t prepare for them all. Focus on those that are both realistic and proximate to your business — a setback in clinical trials, negative press coverage, changing consumer tastes, the loss of a major contract. Also, remember that threats, like opportunities, should be external factors beyond your direct control. Any issues related to your company’s own capabilities should go in weaknesses above.
COMPETITIVE EGDE
Being in business means competing to get a customer to choose your product or service. Who are you competing against? What do they do well? What do they do poorly? Is there a reason why a customer will choose to buy from you instead? Is your product or service simpler, faster, better for the customer? If so, talk about it here.
Did you include this as a “Strength” in the previous section on SWOT analysis?
MARKETING ACTIVITIES
Being in business means competing to get a customer to choose your product or service. Who are you competing against? What do they do well? What do they do poorly? Is there a reason why a customer will choose to buy from you instead? Is your product or service simpler, faster, better for the customer? If so, talk about it here.
Did you include this as a “Strength” in the previous section on SWOT analysis?
MARKETING ACTIVITIES
In your Target Market chapter, you decided on the group (or groups) of customers to focus your message to. With what you know about the group, how will you get your message in front of them? Newspaper ads? Mailing lists? Radio commercials? Special signs outside your storefront? What will you say in your message to make a new customer want to get in touch with you? Will you offer them something in exchange for the right to contact them?
How often will you use that type of advertising? Daily? Weekly? Monthly? What will it cost? Find a way to track what you spend on advertising with the results it gives you. How many new leads did it produce? Is it paying for itself by producing new leads?
STRATEGY PYRAMIDS
How often will you use that type of advertising? Daily? Weekly? Monthly? What will it cost? Find a way to track what you spend on advertising with the results it gives you. How many new leads did it produce? Is it paying for itself by producing new leads?
STRATEGY PYRAMIDS
Create a list of your main goals and the timeframe to reach those goals. The purpose of the strategy pyramid is to give you a visual image of what it takes to reach the goal. This is where you can create a more detailed list of activities behind the goals you have set. Place the goal at the top of the pyramid, then list the methods you will use and the steps you will take to complete the process.
STRATEGIC ALLIANCES
Describe any valuable partnerships you have with other notable organizations. (If this doesn’t apply to you, just remove this item.) Maybe you have a licensing agreement to bring to market a technology that another company or a university group developed. Maybe you have an opportunity to cooperate on marketing activities with a company who offers a complementary product or customer base. Maybe you have a relationship with a service organization that provides training or support to your customers. Make sure your reader is aware of these valuable connections.
SALES ACTIVITIES
Before you reach out to customers to buy from you, be sure you have a process in place for how you complete the sale. What are the steps you take, from beginning to end? Do you have information you give the customer at the time of the sale? Do you explain in person or in writing what will happen next? Do you follow up, in person or in writing, with update information about the progress, or the date of completion?
Making the entire experience simple for them can go a long way in keeping them as your customer.
SALES PLAN
Making the entire experience simple for them can go a long way in keeping them as your customer.
SALES PLAN
You create a marketing plan to reach new customers. Your sales plan is the process to close the deals that your marketing plan opens. You want your sales plan to explain:
• The steps you follow to close a sale.
• How you reward your salespeople; do they receive a commission for each sale?
• How you process and track the order once it’s received.
• How you keep in contact with your customers throughout the sales process. Do you store customer information by hand, or on a computer?
• What is the final step in your sales plan?
• The steps you follow to close a sale.
• How you reward your salespeople; do they receive a commission for each sale?
• How you process and track the order once it’s received.
• How you keep in contact with your customers throughout the sales process. Do you store customer information by hand, or on a computer?
• What is the final step in your sales plan?
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