THE BUSINESS PLAN - APPENDIX 1

 MARKETING 

          1. THE MARKETING PLAN 
          2. PRICE/QUALITY MATRIX 
          3. MARKETING TIPS, TRICKS & TRAPS 

THE ENTREPRENEUR'S 

     MARKETING PLAN 

     This is the marketing plan of_________________ 

     I. MARKET ANALYSIS 

     A. Target Market - Who are the customers? 

          1. We will be selling primarily to (check all that apply): 

          Total Percent  of Business 

     a. Private sector _______ ______ 

     b. Wholesalers _______ ______ 

     c. Retailers _______ ______ 

     d. Government _______ ______ 

     e. Other _______ ______ 

          2. We will be targeting customers by: 

          a. Product line/services. 

     We will target specific lines ________________ 

     b. Geographic area? Which areas? ________________ 

     c. Sales? We will target sales of ________________ 

     d. Industry? Our target industry is ________________ 

     e. Other? ________________ 
          3. How much will our selected market spend on our type of product or service this coming  year? 

     $________________ 

     B. Competition 

          1. Who are our competitors? 

     NAME _____________

     ADDRESS ______________

     Years in Business ___________________ 

     Market Share ___________________ 

     Price/Strategy ___________________ 

     Product/Service 

     Features ___________________ 

     NAME ______________

     ADDRESS _________________

     Years in Business ____________________ 

     Market Share ____________________ 

     Price/Strategy ____________________ 

     Product/Service 

     Features ____________________ 
          2. How competitive is the market? 

     High ____________________ 

     Medium ____________________ 

     Low ____________________ 
          3. List below your strengths and weaknesses compared to your competition (consider such  areas as location, size of resources, reputation, services, personnel, etc.): 

     Strengths Weaknesses 

     1._______________________ 1._____________________ 

     2._______________________ 2._____________________ 

     3._______________________ 3._____________________ 

     4._______________________ 4._____________________ 

     C. Environment 

          1. The following are some important economic factors that will affect our product or service  (such as trade area growth, industry health, economic trends, taxes, rising energy prices, etc.): 

     ______________
          2. The following are some important legal factors that will affect our market: 

     _____________
          3. The following are some important government factors: 

     ________________
          4. The following are other environmental factors that will affect our market, but over which we  have no control: 

     _____________

     II. PRODUCT OR SERVICE ANALYSIS 

     A. Description 

          1. Describe here what the product/service is and what it does: 

     _______________

     B. Comparison 

          1. What advantages does our product/service have over those of the competition (consider  such things as unique features, patents, expertise, special training, etc.)? 

     _______________
          2. What disadvantages does it have? 

     _______________________

     C. Some Considerations 

          1. Where will you get your materials and supplies?   _____________
          2. List other considerations: ________

     III. MARKETING STRATEGIES - MARKET MIX 

          A. Image 

          1. First, what kind of image do we want to have (such as cheap but good, or exclusiveness, or  customer-oriented or highest quality, or convenience, or speed, or ...)? 

          B. Features 
               1. List the features we will emphasize: 
                    a. ______________
                    b. ______________
                    c. _______________

          C. Pricing 
               1. We will be using the following pricing strategy: 

     a. Markup on cost ____ What % markup? _____ 

     b. Suggested price ____ 

     c. Competitive ____ 

     d. Below competition ____ 

     e. Premium price ____ 

     f. Other ____ 
          2. Are our prices in line with our image? 
          YES___ NO___ 
          3. Do our prices cover costs and leave a margin of  profit? 
               YES___ NO___ 

          D. Customer Services 
               1. List the customer services we provide: 
                    a. _______________
                    b. ______________
                    c. ______________
               2. These are our sales/credit terms: 
                    a. ______________
                    b. ______________
                    c.__________
               3. The competition offers the following services: 
          a. _____________
          b. _________
          c. _____________

          E. Advertising/Promotion 
               1. These are the things we wish to say about the business:  ______________
          2. We will use the following advertising/promotion sources: 

     1. Television ________ 

     2. Radio ________ 

     3. Direct mail ________ 

     4. Personal contacts ________ 

     5. Trade associations ________ 

     6. Newspaper ________ 

     7. Magazines ________ 

     8. Yellow Pages ________ 

     9. Billboard ________ 

     10. Other___________ ________ 
          3. The following are the reasons why we consider the media we have chosen to be the most  effective:  ______________

     MARKETING TIPS, TRICKS & TRAPS 

     1. Marketing Steps 

          Classifying Your Customers' Needs 
          Targeting Your Customer(s) 
          Examining Your "Niche" 
          Identifying Your Competitors 
          Assessing and Managing Your Available Resources 
               Financial 
               Human 
               Material 
               Production 

     NOTES AND STRATEGIES FOR YOUR BUSINESS 

     MARKETING TIPS, TRICKS & TRAPS 

     2. Marketing Positioning 

          Follower versus Leader 
          Quality versus Price 
          Innovator versus Adaptor 
          Customer versus Product 
          International versus Domestic 
          Private Sector versus Government 

     NOTES AND STRATEGIES FOR YOUR BUSINESS 

     MARKETING TIPS, TRICKS & TRAPS 

     3. Sales Strategy 

          Use Customer-Oriented Selling Approach - By Constructing 
          Agreement 
               Phase One: Establish Rapport with Customer - by agreeing to discuss what the customer  wants to achieve. 
               Phase Two: Determine Customer Objective and Situational Factors - by agreeing on  what the customer wants to achieve and those factors in the environment that will 
               influence these results. 
               Phase Three: Recommend a Customer Action Plan - by agreeing that using your product/ service will indeed achieve what customer wants. 
               Phase Four: Obtaining Customer Commitment - By agreeing that the customer will  acquire your product/service. 
          Emphasize Customer Advantage 

          Must be Read: When a competitive advantage can not  be demonstrated, it will not  translate into a benefit. 

     Must be Important  to the Customer: When the perception of competitive  advantage varies between supplier and customer, the customer wins. 

     Must be Specific: When a competitive advantage lacks  specificity, it translates into mere puffery and is ignored. 

     Must be Promotable: When a competitive advantage is proven, it is essential that your customer know it, lest it not exist at all. 

     NOTES AND STRATEGIES FOR YOUR BUSINESS 

     MARKETING TIPS, TRICKS & TRAPS 

     4. Benefits vs. Features 

          The six "O's" of organizing Customer Buying Behavior 

     ORIGINS of purchase: Who buys it? 

     OBJECTIVES of purchase: What do they need/buy? 

     OCCASIONS of purchase: When do they buy it? 

     OUTLETS of purchase: Where do they buy it? 

     OBJECTIVES of purchase: Why do they buy it? 

     OPERATIONS of purchase: How do they buy it? 
          Convert features to benefits using the "...Which Means..." 
          Transition 
          Sales Maxim: "Unless the proposition appeals to their INTEREST, unless it satisfies their 
          DESIRES, and unless it shows them a GAIN-then they will not buy!" 
          Quality Customer Leads: 

     Level of need Ability to pay 

     Authority to pay Accessibility 

     Sympathetic attitude Business history 

     One-source buyer Reputation (price or 

     quality buyer) 

     ____________________

     NOTES AND STRATEGIES FOR YOUR BUSINESS 

     ______________________

     CONVERT FEATURES INTO BENEFITS- 

     THE "...WHICH MEANS..." TRANSITION 

     FEATURES "WHICH MEANS" BENEFITS 

     Performance Time Saved 

     Reputation Reduced Cost 

     Components Prestige 

     Colors Bigger Savings 

     Sizes Greater Profits 

     Exclusive Greater 

     Convenience 

     Uses Uniform Production 

     Applications Uniform Accuracy 

     Ruggedness Continuous Output 

     Delivery Leadership 

     Service Increased Sales 

     Price Economy of Use 

     Design Ease of Use 

     Availability Reduced Inventory 

     Installation Low Operating Cost 

     Promotion Simplicity 

     Lab Tests Reduced Upkeep 

     Terms Reduced Waste 

     Workmanship Long Life 

     BUYING MOTIVES 

     RATIONAL EMOTIONAL 

     Economy of Purchase Pride of 

     Appearance 

     Economy of Use Pride of Ownership 

     Efficient Profits Desire of Prestige 

     Increased Profits Desire for 

     Recognition 

     Durability Desire to Imitate 

     Accurate Performance Desire for Variety 

     Labor-Saving Safety