This section of a business plan describes both the strategy and tactics one will use to get customers to buy the venture's products or services. |
Sales And Marketing Strategy |
The key element of your marketing strategy is your "Market Position". Position is your place in the marketplace - how the customers and your
competitors perceive your company's product/service refers to its position. Positioning defines how you are going to portray your product to your targeted marketplace. For example :
This understanding of positioning aids in the promoting of the company. Your market position is determined by the : |
Image Of Your Company And Products
This is the picture which your customers will have of you when they think of your company or products. Typically, the starting point of cultivating this image is the definition of the set of values which your customers or your
target market hold dear. Your services and products, your company image and the service that you provide to your customers will depend on these values. For example, if your target market is high net-worth individuals your products
may have to be positioned as exclusive ,while if the target segment is the college student segment then value-for-money and durability will need to be emphasized to make your products appealing to the specific market
segment. Some examples of what image you might want your customers to have of your business :
Price Of Your Goods And Services Describe what the charge for the product or service is, and how price has been calculated. In
setting prices for your service, there are four main elements you must consider:
Once the pricing and rationale have been determined, discuss this pricing strategy in relation to the pricing of the competing products. Also, explain how the price will affect the acceptance of the products by the customers and
the penetration and increase in the market share of the company. Remember, lower pricing does not necessarily increase market share. Sometimes higher prices, as in the case of "prestige items", may have the effect of
increasing the product's market share. Also keep in mind that lower prices require higher volume to achieve the same sales in monetary terms. A slightly higher price may not effect the total number of sales but may greatly
influence gross profits. Use these questions to help develop your pricing strategy :
Top Customers expect certain services in the price that they pay. Look around and note what services your competitors are offering; these become the minimum services that you will have to provide,
if you are charging same and similar prices. If you are charging higher prices or targeting the segment which has more ability to pay, then you will have to provide them with more services - perhaps, those which convey
to them that they are exclusive and important people. Since these services will entail a cost, you will have to plan for them while determining the prices.
The questions below will help you to develop this segment of your plan :
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