4. Marketing plan
A. Market and industry analysis
This summarizes the characteristics and activities of all the industries in which you operate. You might wish to use graphics to illustrate the trends and growth in the market. Describe the forces that create demand in the industry, as well as current trends, with emphasis on how that affects your business.
B. Market segments
This section describes the groups of customers that you serve that are similar in their buying or usage behavior of your products or services. Also identify the relative importance of each segment.
C. Competitive environment
Describe, in detail, the competitive environment in which you operate. Remember to determine this: Why do people go to them (your competitors) instead of to you? It’s probably some variation of price, quality, and service. Describe the strengths and weaknesses of each competitor and how they behave in the marketplace (for example, highly aggressive on price). Remember, too, that competition can come in various forms, including substitute products as well as new companies.
D. Positioning
This describes how customers view your company. They’re the experts. You need to talk to customers, and your competitors’ customers, to find out. It’s not difficult, it just takes some time. The key here is that the customers’ perceptions determine this, not you; customers’ perceptions about your company create your positioning. So, you need to ask them.
E. Key customers
Your attention here should be to characterize your customers and determine how to serve them efficiently and effectively. This is important in understanding the influence your customers have, individually and as a group, on your success. You’ll be surprised at what you can learn. Or to paraphrase Yogi Berra: “It’s amazing what you see, if you just look.”
F. Market opportunities
This describes the possible market opportunities open to the company. These are areas that the company could pursue given its core capabilities, its ability to acquire the required resources, and the availability of willing-to-buy customers.
G. Target markets
This describes the opportunities that you’re actively going to pursue. It also describes why these make sense (for example, highest profit, least training required). Take the previous list of opportunities from above and then carefully consider which of those opportunities you should target for your attention.
H. Marketing strategies and goals
This is the key section of the Business Plan. It describes how you’ll be successful by describing the specific actions you’ll employ to achieve your Vision and Goals. These actions, of course, are influenced by the industry environment, your capabilities, the competitive environment, and the opportunities. So, all the previous analyses will direct you toward your strategies and your ability to set and achieve goals. Use the Spider Diagram to help you.
You should first establish the company’s strategies in light of all the other information up to this point—what you will do to make the company a success? Then describe the goals, which might include profit and customer-satisfaction measures, to move the company toward your vision. Be crystal clear about all of this and remember that goals have a time or date for completion.
I. Resources needed and milestones
This section describes the resources you’ll need to accomplish the marketing strategies and attain the goals you established. It includes people and equipment as well as dollars.
J. Sales forecast
This section forecasts sales, often for the next one to three years. It should be realistic and attainable, not just “pie in the sky.” These sales figures are also in the financial statements, but many people, especially prospective investors, like to see these in a prominent spot.
K. Customer service
This section describes the methods you’ll use to provide good customer service. This is a separate section because in today’s marketplace it’s very important.