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Congratulations on making it through a very important part of a business plan – The Marketing Plan. When I began this series I didn’t expect The Marketing Plan section to exceed two parts. Thanks to my long-windedness, and the importance of this part of a business, I have succeeded in requiring three sections to adequately cover this very strategic part of a business.

This last section of The Marketing Plan will focus on considerations involving the sales aspect of business – where the exchange of value for money occurs.

Location, Location, Location

Is location a factor in attracting customers to your business? If so, define the strategy for choosing a location. This is especially important if you anticipate numerous locations. Consider such factors as: convenience, parking, interior space, accessibility, image, expectations of your target market, and location of competition (sometimes it is better to be near competition, like retail stores, or far from them, like a golf course).

Receiving money for value

Finally describe how you plan to distribute and sell your product or service:

· Retail

· Direct (mail order)

· Web site

· Catalog

· Wholesale

· Captive sales force

· Agents

· Independent reps

· Bidding on contracts

Be sure to describe the sales force and the sales process. Not much detail is needed here for an external funding targeted business plan. However, for your own planning sake, the more detailed the better. Include the following:

· Sales compensation strategy

· Training

· Inside vs. outside sales activities and support

· Sales supervision model.

Outline the sales process

Although not essential details for a fundraising business plan, outlining the sales process will aid in your forecasting, sales force planning, and tracking the sales funnel. Include every possible interactive step a sales person might have with a prospect as they work to make a customer.

Create a sales forecast

Now it is time to create a sales forecast that quantifies all of the research, strategizing, and assumptions. This is best accomplished by using Excel Spreadsheet. You can insert formulas that quickly do the calculations for you. This enables you to ask “What if” questions without having to rerun numerous calculations by hand.

Document all assumptions!

When creating your sales forecast it is vital to document your assumptions on the spreadsheet. Those assumptions define your plan and will contribute to your success or failure. Having your assumptions documented enables you to continuously test them as you proceed into the future and gain new information. Adapting to an erroneous assumption as soon as possible can mean the difference between the success and failure of your business.

The sales forecast is usually inserted into the appendices with the rest of the financial projections. Referencing them with a table showing the annual highlights is sufficient for the marketing plan section.

Congratulations, your marketing plan is finished!

In summary, you and your investors want to see that you have a realistic, cost-effective approach to positioning your value proposition to your target market and motivating them to purchase. Additionally, you and they want to see that your sales methods are appropriate for your business and that your sales force is both large enough and trained well enough to be able to secure the amount of revenue necessary to sustain and grow your business.

Now that we have completed the section of a business plan involving getting the business, join me next week when we will discuss doing the business – The Operations Plan.

Rob Garibay is a local business owner and business coach with 30+ years of business experience. Forward your business questions to: 405 573-6537 or robgaribay@actioncoach.com

We are immersed in a very important part of writing a business plan – The Marketing Plan. Last week (Part 5 in the series) we examined defining your target market, understanding your market niche, and communicating your USP (Unique Selling Proposition). This article will focus on the various strategies essential to a well-crafted marketing plan.

Niches Change!

Your future prospects are usually brighter if you serve a broad niche and/or numerous niches. This will also make you more attractive to investors. The more profitable your niche, the faster it will disappear unless it is protected by some barrier to entry. When you find your niche becoming less attractive due to competition, you should shift your value proposition and marketing strategy to a new segment of the market without leaving your core values behind. Many businesses have to re-invent themselves as a result of niche change.

Each marketing strategy should focus on one niche, as the needs and communication methodologies might be different. As you grow and establish yourself, your reputation will also broaden your market, making you less dependent upon one niche.

Your marketing strategy should answer the following questions:

· How will you get the word out to customers?

· Advertising: What media, why, and how often? Why this mix and not some other?

· Have you identified low-cost methods to get the most out of your promotional budget?

· Will you use methods other than paid advertising, such as trade shows, catalogs, dealer incentives, word of mouth (how will you stimulate it?), and network of friends or professionals?

· What image do you want to project? How do you want customers to see you?

· In addition to advertising, what plans do you have for graphic image support? This includes things like logo design, cards and letterhead, brochures, signage, and interior design (if customers come to your business).

· Should you have a system to identify repeat customers and then systematically contact them?

· Additionally, what will be your promotional budget?

· How much will you spend on the items listed above?

· How much will you spend before startup? (These numbers will go into your startup budget.)

· How much will you spend ongoing? (These numbers will go into your operating plan budget.)

Be sure to consider these factors from “The Successful Business Plan: Secrets and Strategies”:

· Fit: Your marketing vehicles must reach your target market and be appropriate to your desired image

· Mix: Use more than one method to expose prospects to a variety communication

· Repetition: It takes many exposures before a prospect becomes aware of your message

· Affordability: Don’t just throw money at marketing. Use the test & measure techniques described in my articles: “Improving Advertising ROI” printed in the August 08 Norman Transcript

Pricing Strategy

Don’t forget to describe your pricing strategy. How will you position your pricing relative to the competition? Don’t make the mistake of assuming you have no competition. Every business has competition, primary or secondary (you are competing with other options for your target market’s funds).

For instance, you might be the only golf course within a 100 mile radius! You have no golf course competition; but you are competing with other options for your target market’s entertainment or discretionary funds. Or you might be the first to market with software that solves a need in your target market. Your pricing can be higher than if you are second or third to market. However, you are still competing for funds that have other problem solving investment options.

Here are some questions to consider when devising your pricing strategy:

· Is lowest price your strategy (not recommended)? Or are you going to compete with superior quality and/or service? Usually, with direct competition, you want to be priced in the middle to upper range, which will provide you with more sustainable and attractive margins. Exceptions like Wal-Mart exist. However, Wal-Mart achieved this low price position by becoming the best at goods distribution and friendly service in the retail industry, which was their primary strategy. Low prices were the result.

· When compared to your competitive analysis, how does your pricing strategy mesh? Answer the question why?

· Do your expect customers to make their purchase decisions mostly on price?

· What are your customer service strategies? – And credit?

Join me next week as we wrap up the section on The Marketing Plan.

Rob Garibay is a local business owner and business coach with 30+ years of business experience. Forward your business questions to: 405 573-6537 or robgaribay@actioncoach.com