Suggestions

1. This is a strategy and tactics section. You need to detail your marketing strategy for each component and then offer how you will accomplish it.

Example of a price strategy "…to be the low cost provider to our customer market through discount pricing and incentive programs."

Example of a price-related action plan (to be detailed in a later section) "During our peak season we will under-price competitors by 10%. During the months of _____ to _____ our slow period, we will use a rebate incentive program directed to distributors to encourage their "pushing" of XYZ product line."

2. Remember, strategy is simply explaining your company's overall approach for achieving growth and profits.

3. Tailor this section to your business. Some sections are not relevant to a manufacturing business, others to a service business, etc.

4. Be sure to review what you have written so far so that your actions here match your earlier projections.

5. In this section, you need to deal with both marketing and selling.

Marketing is the identification of your customer.

Selling is convincing those customers to buy from you.

Resources Needed to Write

1. A copy of your mission statement, goals, and objectives.

2. A cost analysis for each product/product line.

3 . Your media budget and plan.

4. If you are a manufacturer, an outline of your production plan.

5. If you are a service business, a list of your suppliers with any special qualities.

Market Strategy

l. Briefly review your overall marketing strategy as stated in your Executive Summary.

Cost leadership.

Differentiation.

Focus.

2. What marketing tactics will you use?

For help in completing this section, check SBM:EB pp. 258-262.

Market penetration, market development, product development, market segmentation.

Product

1. Describe the level of product satisfaction for which you are striving.

Core benefit.

Generic product.

Expected product.

Augmented product.

Potential product.

2. What type of new products will you develop?

New to the world.

New product lines.

Additions to existing lines.

Improvements, revisions, or new uses of existing products.

Repositioning.

Cost reductions.

3. Packaging.

Is this an issue for your products?

How does it affect your cost structure?

Are there environmental issues to consider?

Pricing

1. What is your pricing strategy?

How price sensitive is the market?

Low cost, premium pricing, . . . .?

Why this strategy?

2. How is pricing determined?

Costs plus.

ROI.

Competitive parity.

3. What are your margins? How will you make a profit?

Promotion

1. How will you attract customers; what type of advertising promotion will you use?

National versus regional/local.

Print or electronic.

What promotions will be used?

Trade shows.

Direct marketing.

Public relations.

2. Advertising plan.

What media will you use? Why?

How will you use public relations in your promotion plan?

Scheduling plans.

3. Budget.

What percentage of sales will you spend on promotion?

What budgeting method will you use? Why?

Refer to detailed budget in your appendices.

4. Consider including samples in your appendices.

advertising copy

brochures

5. How will you assess the effectiveness of your promotional efforts?

Place

1. How will you distribute your products?

Your own sales force.

Independent sales representatives.

Agents or brokers.

2. How will you compensate the sales force?

3. How will you structure the sales force, their territories, the product lines, etc.?

4. Sales plan.

Sales budget--how did you determine your budget? Task and objective method,

parity, or . . . .?

Sales philosophy--how will your sales force approach the customer?

Refer to detailed budget in your appendices.

5. Transportation.

Types.

Costs.

Means--company vehicles, rail, truck, etc.

Service Policies

For help in completing this section, check SBM:EB p. 108.

1. What will be your customer service/product service policies?

Warranties.

Handling of customer problems.

2. How will you identify and track your most important service issues as they develop?

  | HOME | GETTING STARTED | FINANCE | COMMUNITY RESOURCES | REGULATION/TRAINING | LOAN CHECK-LIST | BUSINESS PLAN | BANKS | PROTECT YOURSELF |