Marketing Plan
[Company]'s marketing strategy is to enhance, promote and support the fact that our products [list your unique features, benefits, established market position/presence].
The overall marketing plan for our product is based on the following fundamentals:
[] Type of business you want to be in.
[] Segment of the market[s] you plan to reach.
[] Distribution channel to be used to reach market segment: retail, jobbers, wholesalers, brokers, door to door, mail order, party plan, etc.
[] Share of the market we expect to capture versus time.
To prove the value of [product] we can [x].
[] Show each application.
[] Demonstrate effects.
[] Add credibility with scientific reports and studies.
Sales Strategy
The target market segments to focus on are [specific customers]. Because of [product]'s special market characteristics, [seasonal/geographic/etc., as mentioned in your Market Analysis] our sales strategy [includes/incorporates]:
[] Briefly discuss how your sales strategy will address specific market/environmental conditions].
Positioning
[] How customers perceive your company and product, relative to competition.
[] Product/Business/Industry leadership.
[] Recommended reading: Positioning by Al Ries and Jack Trout.
[] A User Focus Group may provide product information needed to position your product.
Our [product, or similar/competition's product] is seen by the consumer as [customer's perception of your product].
Its unique advantages [technical, quality, performance] can be exploited to arrive at a winning position in the consumer's mind.
In terms of market segmentation advantages, we can use [upscale consumers, ethnic appeal, etc.] to arrive at a winning position here.
Pricing
[] How do we set prices? Is there a policy?
[] Is our pricing competitive?
[] Is there perceived value (it costs more therefore it must be better) inherent in higher prices?
[] Are prices based on costs—standard markup?
[] Why are they higher or lower than competing prices?
[] How elastic (the effect of pricing on demand for product) is the market for these products? How does consumer preferences affect elasticity?
[] See also Break-Even Analysis under Financial Projections in Chapter 9 of the BizPlanBuilder Reference Guide.
The prices for our products are determined first and foremost by [competition, costs, suppliers, manufacturers, package deals].
It is important to know that [sliding scales, volume, regulated, competitive, perceived value], pricing is essential to our market profile.
Compared to the competition, our prices are [x].
[] List examples of competitive pricing.
[] Put copies of price comparisons and reports in the Supporting Documents.
Different seasonal aspects of our market affect our pricing because [example: selling seasons].
We feel that our customers will pay $[x] because [purchasing rationale].
Margin Structure
Retail
[] Ask friends/customers in retail management about quantities they are likely to buy. What discounts would entice them to order more?
Distributor
[] Ask about quantities their customers are likely to order and their Gross Profit Margins/Percentages.
Manufacturer's Representative
[] What percentage commissions do they make? Usually between 5 and 20%.
Direct Sales
[] Determine cost of each sale—time and expense involved, package deals.
Discounts
We can take advantage of volume purchases by [x].
[] Volume discount is applicable if scheduled order is placed (For example; 1,200 units ordered for a year=100 units per month.)
[] Are there discounts for paying cash or within [x] days?
[] Cooperative advertising—manufacturer pays 2-10% of purchases toward your advertising of their product.
We plan to review our pricing and product/service margin every [x] [months].
[] Should a new pricing policy be investigated? Are potential profits being lost?
Current Selling Methods
[] Activities used in selling your product or service
[] Methods to promote product or service: direct calling, telephone, advertising, mail, radio, television, or other
[] Sample brochure or dummy, advertisements, announcements, or other promotional literature should be placed in the Supporting Documents.
[] Margins of safety allowed in sales forecasts.
[] Recommended Reading: How to Master the Art of Selling, by Tom Hopkins, International Market Press.
[] See Advertising and Promotion, Selling Tactics, and Distribution sections for detailed action plans.
Marketing Responsibilities
Responsibility for marketing and sales decisions lies with the following people in the company [list name and title and area of responsibility]:
[x]
[x]
[x]
Distribution Channels
[Company]'s marketing department plans to sell our [product].
The determining factors in choosing these channels are [x].
[] Customer profile
[] Geography
[] Seasonal variations
[] Efficient use of funds
[] Feasibility of using channels of similar products already on the market
Key competition uses the same [x] distribution channels. Our mix of distribution channels will give us the advantages of [list advantages] over our competition.
A partial list of [Company]'s major current customer include:
[] List the top 5 to 10 customers.
International Market
[] It is important to consider your worldwide opportunities from the start.
[] List target countries in order of priority
Rationale
Language
Usage of product
[] See Advertising and Promotion, Selling Tactics, and Distribution sections for detailed plans of action.
Method of Distribution
The primary means of distribution will be [x] [direct, executive sales, manufacturers’ reps, distributors, retailers, OEMs, direct-response mail, telemarketing, and so on].
[] How your products are (can be) distributed.
[] Make a chart to show how they get to the end-user consumer.
Additional channels planned are [x].
Product Roll-out Program
We have selected from [x] key market areas.
[] List key roll-out market areas and activities.
[] Areas based on proximity—easy to sell into, contact, deliver to, have customers come to.
After initial roll-out and evaluation of the results, we will expand our marketing to additional market areas in this order of priority: [x] [list additional market areas for intended penetration].
Customer Service
Our customers emphasize that service and support is one of their major concerns.
Returns and Adjustments Policy
At this time, general trade customs for handling returns are [describe how returns are generally handled].
We will use the following policies:
[x]
[x]
[x]
Advertising and Promotion
[] Tools and methods to increase our customers' awareness of our product(s).
[] Your purpose: Enhance, promote, and support the fact that your products perform better
[] Remember: Advertising and promotion is an investment, not a cost.
[] Recommended reading: Ogilvy On Advertising, by David Ogilvy.
[Company] recognizes the key to success at this time requires extensive promotion. This must be done aggressively on a wide scale. To accomplish our sales goals, we require an extremely capable advertising agency and public relations firm. [Company] [plans to advertise/advertises in major trade magazines] such as [x]. Upon funding, an agency shall be selected and, with their assistance, a comprehensive advertising and promotion plan will be drafted. Advertising will be done independently and cooperatively with Distributors, OEM's, retailers and companies with whom [Company] has joint marketing/sales relationships.
Objectives
Position [Company] as the leading [maker, servicer] in the market.
Increase company awareness and brand name recognition among business managers and [x] retailers, buyers, customers.
Generate qualified sales leads and potential new distributors for field sales organization.
Develop, through market research, significant information to create immediate and long-term marketing plans.
Create product advertising programs supporting the [better taste, lower fat, more fun] position.
Coordinate sales literature, demonstration materials, telemarketing programs, and direct response promotions in order to [x].
[] Describe how your advertising/promotion objectives fit together to maximize the impact of your overall promotional campaign.
Advertising Campaign
The best way to reach our potential customers is to develop an intense advertising campaign promoting our basic premise—"[your selling basis, theme, position in market]".
To maintain/establish [x] our [x] company image, the delivery and tone of our statements will be [understated elegance, hard-driving excitement, excellence, glamour, reality, slice-of-life].
Ads will convey the look and feel of a [describe your image] company.
To eliminate the biggest objections to immediate action, our advertisements must address [known/anticipated objections, difficulties with product acceptance, how to own/use product immediately].
Preliminary Media Schedule
[] Develop an ad history: One way to measure publication effectiveness is to count the number of responses/inquiries and/or purchases per 1,000 readers [paid circulation]--given a particular ad. Vary your ads (size, message, etc.) and measure the differences. Now you can calculate the number of responses per your investment in advertising.
Circulation Budget Ad Size
[Magazine, TV, Radio] 50,000 $1,500 1/4 Page
[x] 450,000 $4,400 1/2 Page
Total 500,000 $5,900 3/4 page
Anticipated Response [ex: 1/1,000] 500 responses at $11.80 each.
[] List publications.
[] Editorial dates--when they will run special issues. (Special Issue: Office Automation, etc.) that will enhance your ads.
[] Obtain a copy of Standard Rate and Data Sheet.
We expect to achieve a reach of [total circulation/audience], and to maintain that for a period of at least [months].
Due to the [seasonal, geographical, etc.] nature of our audience, we plan to [how you will counter these issues].
In regard to competitors’ advertising, it is necessary to [x].
[] Explain how your message will contrast with theirs.
[] What if they run similar ads?
Promotion
In addition to standard advertising practices, we will gain considerable recognition through [x].
[] Trade programs (trade advertising for product)
[] Press releases (if product is justifiably new and innovative).
[] Include budget and rationale.
[] See also Public Relations section.
Advertising Budget
For the next [months/years] advertising and promotion will require $[figure about 10 to 20% of sales the first year]. On an ongoing basis we will budget our advertising investment as [x]% of total sales.
This figure is necessary because of [the specific goals you must meet].
[] What is the optimum spending level for advertising and promotion?
[] How does this compare with industry averages?
Public Relations
[] This section can assist tremendously as you prepare to introduce your venture to its various public segments.
[] See also PublicityBuilder described in the back of the BizPlanBuilder manual.
Our publicity efforts are intended to accomplish the following:
Position [Company] at the leading edge in providing [product for industry or market segment].
Increase [Company] reputation and name/brand recognition among managers/buyers/customers in [prospective companies/industries/markets].
Communicate on a regular basis with three target publics:
[] Editors of major trade, business and local publications
[] Key management personnel in the existing customer companies
[] Organization of employees and sales representatives
Publicity Strategy
During 19[xx] [Company] will focus on the following publicity strategies:
Develop a sustained public relations effort, with ongoing contact between key editors and top-level personnel (including plan/facility visitations).
Develop a regular and consistent product update program for the major target media, keeping key editors abreast of [x] enhancements and [x] new product introductions.
Develop an internal newsletter that can cover key sales successes, significant marketing and manufacturing events, technical support and product development stories. Internally, the newsletter would be targeted at all company personnel and sales representatives; externally the piece would be targeted at key customers and prospects.
Develop a minimum of [x] technical articles written by key executives or engineers to be placed in [list publications] within the next [x] months.
Establish contact with editorial staff for the purpose of being included in product "round-ups"—product comparisons in [publications such as Consumer Reports], where competing products are compared. This exposure builds credibility and market acceptance.
[] See Bacon's Publicity Checker at your local library for a directory of publications and editors who cover your industry.
Produce a complete company backgrounder on [Company] to be used as the primary public relations tool for all target media editorial contact. This will also be effective for inclusion in press kits, dealer kits and sales packages.