The reason for developing a marketing plan is to develop a road map for your business to generate sufficient revenue to justify its existence. If you are not able to sell enough products or services at prices that will generate net profits and positive cash flow, you really do not have a feasible business. Marketing includes many different issues that must be addressed before you can be reasonably certain that your business will be sustainable in the long run. These issues include:
Describing your business:
* What you are selling? (products or services)
* Where you will do business? (geographic marketing area—neighborhood, regional, or national)
* Who is your competition, and how will you differentiate yourself from them?
* What are the pricing strategies you will use, and why are they appropriate?
* How will you promote your business, and how do your methods differ from those of your competition?
* Once you have identified your markets, how will you distribute to them?
Describing your customers:
* What are the characteristics of your current customer base—age, sex, income, and neighborhood?
* How will your customers learn about your product or service—advertising, direct mail, word of mouth, Yellow Pages?
* Characterize your customers' and potential customers' shopping and decision-making patterns: Where do they shop, and what do they read, watch, and listen to?
* What are the real values your products or services bring to your customers? What qualities do your customers value most that will inspire them to purchase from you?
* What are some potential weaknesses of your products or services, and how will you deal with these issues in the marketplace?
Describing your plan and budget:
* What marketing methods do you think will be most effective, and how do you expect to use them?
* What are your estimated marketing costs compared to sales?
* What are your estimated marketing costs per customer?
* What are some marketing methods you plan to use to attract new customers and capture market share?
* How will you test the effectiveness of your marketing activities?
These lists are by no means exhaustive. Additional marketing plan resources are located at:
The SBA Small Business Resource Site
Iowa State's Agricultural Marketing Resource Center
The Texas Center for Rural Entrepreneurship
Purdue's Agricultural Innovation and Commercialization Center
