The business plan section on marketing contains information on the company’s marketing strategy and the prospects and capacity of the intended market. If we consider it in more detail, it is desirable that it contain the following sections.
Six Sections to Create a Professional Business Plan
- Goals for sales. This section contains information on the planned sales volume, which is likely to be achieved.
- Pricing strategies reflect price changes over time. In this part of the business plan, you need to show how prices will change, how they relate to the prices of competitors’ products, as well as information about what consumers expect and want.
- Sales volumes. In this part, you must specify how much of the goods can be sold. It is also necessary here to dwell in detail on what market share an enterprise can occupy, as well as analyze possible growth trends of this market. For greater accuracy, it is better to give three scenarios: optimistic (the best sales result), pessimistic (the worst sales result) and realistic (the neutral and most realistic result). Such a statement is necessary so that a potential investor can weigh the pros and cons and make an informed decision.
- Organization of trade. This part describes the product sales system, it is necessary to indicate here what the company plans to do to make its product better distributed, will it create a distribution network or will it resort to the help of intermediaries, how will it strive to achieve superiority over its competitors?
- Analysis of buyers. In this part, you should analyze the motives that you think are the main ones from the point of view of buyers when purchasing goods. This may be the price, quality, appearance of goods, quality of service, availability of warranty service, etc. It is desirable that this part is confirmed by the results of marketing research.
- Methods of product promotion on the market. In this part describes the methods that the company will use to promote its product on the market, given the rationale that these methods will bring the desired effect. When describing advertising, you should specify how the product information will be presented, how much funds the company is willing to spend on advertising.
A marketing plan, or a plan for the promotion of goods (services) should give a description of the program of your actions to bring goods (services) to buyers and calculate how much money is needed for this.
In this section you should define:
- How do buyers find out about your products?
- How much money do you intend to allocate for advertising
- How will you sell your product?
- The price of goods can be determined based on the following conditions:
- Competitor prices for a similar product or goods – substitutes
- Prices determined by the demand for this product
- Production cost + target profit
- Unique product quality
Pricing method “cost + target profit” is based on the definition of all business costs and, accordingly, the very minimum price level to cover them, taking into account the profit rate that the entrepreneur wants to receive with the money invested.
Based on a competitor’s price analysis, the average price level for a product is determined. The maximum possible price is set for goods of high quality and unique advantages. Prices determined by demand can vary in the whole range – from minimum to maximum values. In any case, it is necessary to establish such prices on your goods and so change them depending on the situation in the market in order to capture a certain market share and get the target profit.
In this section, you need to describe how you intend to sell products and services (what methods of their implementation you will use): independently or through intermediaries, wholesale or retail, by pre-orders by phone or by other means.
Your task is to make it easier for the client to make purchases from you, to make your product available to him.
In this section, you need to describe how you are going to communicate information about your products (services) to customers.
- You should decide on the following questions:
- Will you advertise your product or service?
- What information should be reported about your products and services?
- Where are you going to place your ad?
- How much money are you going to spend on advertising?
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