Writing A Business Plan Series, Week 4: The Marketing

frozen water, a photo by arvindgrover on Flickr.

WIBO describes marketing as the "totality of all the activities involved in developing customers: researching, planning, promoting, prospecting and selling." Garrett Sutton says in his book its "the systematic process that inspires targeted customers to take action and buy your product and/or service." Your first page of this section should be an overview of your entire marketing plan.

Markets

"Start with a description of your overall potential (or real) market, then work your way into a more manageable discussion of your target markets. Include their demographics, psychographics - their needs, interests, attitudes, and lifestyles - and industrial demographics." 

Competition

I'm going to enjoy writing this section. Sutton's example is to "think of it as a novel or movie: both need conflict and dramatic tension to succeed. Challenge the hero/heroine to overcome... with knowledge and determination to prevail... Find stories on the internet about the entrepreneurs in your industry who became successful and study their strategies."

Distribution & Sales

WIBO states that "selling is helping people buy wisely what they need to satisfy their wants, overcome their problems and achieve their objectives." Sutton states "this is about understanding the purchasing patterns of target customers and setting your business up to make use of those patterns. Prepare month-by-month spreadsheets for each product/service you have with explanations. Describe any changes in pricing or volume and any strategies you have for physical locations and the web."

Marketing Design & Research 

The marketing campaign, essentially. Both WIBO and Sutton show how businesses exist in ever-expanding spheres of influence. Show how your business interacts within these spheres. Include information about your business, the competition, the market, the industry, the government, international affairs and other market factors; and consider which marketing vehicles will best suit your business.

Product Design & Packaging

WIBO stressed that everything with our business name on it needs to be of high quality and well thought out. Sutton states "to know the taste preferences of your target market and the psychology behind them." What he calls "positioning", WIBO calls "differential advantage". 

Pricing Strategy

You'll need to "create a pricing plan for every product/service you offer. Base it on careful analysis of product costs, overhead, competition, and target markets; include discounts, return policy, and warranties. Back this up with statistics and research."

I like Sutton's notes on how to enter the market: when ought "be more about your customers than you".