Marketing Plan and Strategy

How we will reach the market.

Benefits vs. Features<Your Company Name>’s marketing strategy is to enhance, promote and support the fact that our products

.

The overall marketing plan for our product(s) is based on the following fundamentals:

• To prove the value of [product] we can [x].
• The lack of [product features / benefits] in everyday [specific business / professional / manufacturing / shipping / living / household situations] is demonstrated by [x].

Sales Strategy

[Product type] products should be treated as products with a [long-term / short-term] life expectancy. As such, the target market segments for [enter-your-company-name-here]’s primary focus are [specific customers or market segment].

Because of [product name]’s special market characteristics, [seasonal / geographic / etc., as mentioned in your Market Analysis] our sales strategy [includes / incorporates]:

• Positioning our [product name] product is seen by the consumer as [customer’s perception of your product].
• Its unique [technical / quality / performance] advantages can be exploited to arrive at a winning position in the consumer’s mind.
• In terms of market segmentation advantages, we can use [emotional / ethnic / need-based] appeal to arrive at a winning position relative to each targeted segment.
• Repositioning [product name] as [an investment instead of a cost / an “escape from civilization,” rather than a (boring) vacation, etc.] is expected to generate interest and response among prospective customers we have not reached before.
• To be effective, our product must be positioned as relating to or necessary with

  . We can reposition our competitors by capitalizing on our own singular [first-to-market / ease-of-use / flexibility / availability / simplicity] position that only we can claim.

• The Selling Basis for our product, then, is [state your unique position in the marketplace].  Branding our marketing will be centred around [our expertise / our value to the customer / the longevity of our products(s) / our established brand and market position / the position we intend to establish in the minds of customers].

Convert Features Into Benefits – The “feature…Which Means…benefits” Transition

Examples

Performance                Time Saved

Reputation                Reduced Cost

Components                Prestige

Colours                Bigger Savings

Sizes                        Greater Profits

Exclusive                Greater Convenience 

Ruggedness                Continuous Output

Delivery                Leadership

Service                Increased Sales

[enter-your-company-name-here] customers are typically looking for

in [product type]s. [Product name] meets their requirements through [note the product features that provide the benefits you just listed].

BUYING MOTIVES

What buying motives are our products appealing to

Examples

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

Time-Saving                        Fear

Simple Construction                Desire to Create

[enter-your-company-name-here] customers tend to make buying decisions for [product type]s from the [rational / emotional] perspective of [note the most significant influence in this decision].

[Product name] appeals to their sense of [genuine need  for xxx / deserving xxx / business reasons for the purchase, etc.]. IN most instances, the buying decision is based on [having shopped the market / an immediate impulse / authorization from a particular influencer / waiting until the purchase is unavoidable].

Pricing Is your pricing competitive

Is there perceived value (it costs more therefore it must be better) inherent to the product or a higher price

Are prices based on costs – standard markup

Why are your prices higher or lower than those of competing products

• competitive position
• pricing below competition
• pricing above competition 
• service costs and pricing (for service businesses only)
• material costs
• labour costs
• overhead costs

Franchise operators also need to stay current with changes in their local marketplace, even if certain policies are set by the franchise corporate office.

You will be able to respond quickly to local shifts in the market and adjust accordingly. Such changes can affect your competitiveness and your profit margins if you wait until you receive a directive from the home office.

You may also need to alert corporate if you need to respond quickly to local circumstances. Franchise operators in other areas may never encounter a similar situation, and corporate would not make a global change.

How elastic (the effect of pricing on demand for product) is the market for your products (“Elasticity” refers to the way demand for a product is influenced by a price change. Demand is elastic when a small price change significantly changes demand for the product.

Computers are considered to be elastic items – when prices drop, the number of people buying computers rises. Liquor and tobacco products are considered inelastic. The number of customers buying these items does not change significantly, regardless or price changes (Changes in the economy influence these sales… more alcohol consumption during an economic downturn, for example.)

How do consumer preferences affect elasticity for your product(s)

• The prices for our products are determined first and foremost by [competition / costs / suppliers / manufacturers / package deals].
• It is important to know that [sliding scales / volume / regulated / competitive / perceived value], pricing is essential to our market profile.
• Compared to the competition, our prices are [xxx].
• Put copies of price comparisons and reports in the Supporting Documents.
• Different seasonal aspects of our market affect our pricing because [example: selling seasons].

We feel that our customers will pay $[xxx] because [explain purchasing rationale]

• Margin Structure
• Retail

When selling to directly to retailers, “Keystone” means that the wholesale cost is 50% off SRP.  In other words, the retailer will sell your product for twice what they pay you for it.

Our retailers typically expect 50% off of SRP. Their mark-up is usually 50%-100%.

Distributor

Our distributors typically expect [60% off of SRP]. Their mark-up is usually [5%-10%].

Manufacturer’s Representative

We are using 5 regional rep firms (listed below) who earn an average commission of 5%-15% on net sales (gross sales less returns and adjustments). Our agreement stipulates that they are paid 30 days after the end of the month. Any returns and adjustments reduce commissions on a pro rata basis.

Direct Sales

The majority of [enter-your-company-name-here] direct sales will be handled internally by our staff. Most of our [market segment] customers tend to be [day care operators / general contractors / retail shop owners / new business owners / homeowners, etc.], it is important that [female sales staff / sales staff with construction experience / retail specialists / staff with strong business Backgrounds / etc.] present our [product(s) / service(s)] to our prospective customers in this market segment.

[enter-your-company-name-here] anticipates hiring [x] additional sales representatives to [cover additional territories / manage retailers and distributors / manage specific markets / sell specific products].

We have chosen to use a direct sales force because our products require considerable customer education and post-sales support – directly from the company. Our price point, pricing structure and profits are such that our cost of sales warrants a “person-to-person” selling strategy.

Discounts

We can take advantage of volume purchases by [xxx]. We then have some room in our margins to support discounted pricing for customers who [purchase in volume / are exploring competitive options where the buying decision is coming down to price / are buying multiple products at once / whose average purchase exceeds $[xx] / other].

Are there discounts options for paying cash or within [x] days

[enter-your-company-name-here] has several cooperative advertising arrangements in place, where other manufacturers pay 2-10% of purchases toward our advertising of their product.

We plan to review our pricing and margins every [x] [months / years] to ensure that we remain competitive while protecting profit margins.

Current Selling Methods Sample brochure, advertisements, announcements, or promotional literature. If you are using this sort of collateral, be sure to include samples in the Supporting Documents section  of your plan.

Allow for a margin of safety in your sales forecasts.

Recommended Reading: How to Master the Art of Selling, by Tom Hopkins, International Market Press.

Distribution Channels

[enter-your-company-name-here]’s marketing and sales department leads have collaborated on a plan to sell our product(s) through several channels.

The determining factors in choosing these channels are [x].

Geographic factors

Seasonal sales fluctuations

Channel track record with similar products already on the market.

The nature of [supplier / distributor] relationships in this industry is [note how suppliers and/or distributors effect sales of your product].

Our key competition uses [the same distribution channels / a different channel / no distribution mechanism at this time]. Our mix of distribution channels will give us the advantages of

over our competition.

[enter-your-company-name-here]’s current distributors includes:Our distribution channels include:

• [xxx] Wholesale Distributors
• [xxx] Authorized Resellers
• [xxx] General Resellers who purchase [enter-your-company-name-here] products through distribution.

Executive Sales

Because our customers tend to be [top corporate managers / IT leads, etc.], it is important that [our company president and senior managers / executive sales, etc.] present our [product(s) / service(s)] to our prospective customers in this market segment.

Manufacturer Representatives

Because manufacturers’ representatives carry several product lines that are compatible with ours, we feel that it is appropriate to select manufacturers’ representatives carrying [x], and [complementary and compatible products – automotive products to parts stores, marine supplies to boat dealerships, etc.].

Distributors

One of the key elements designed into the [enter-your-company-name-here] marketing plan is the targeting of our distributors. We will select distribution channels already in existence and staffed with professionals possessing appropriate Backgrounds and clientele.

[enter-your-company-name-here] products are highly consistent with the nature of [distributor name]’s business and the well-being of their customer base. Also, it is significantly less difficult for us to reach these people and educate them about the benefits in using [product name(s)].

This strategic marketing approach takes full advantage of the fact that these professionals are already involved with parallel products and services. They already have a track record of experience.  By operating within these distribution channels in this manner, we can maintain control of our market. In addition, we can generate growth at a reasonable pace and obtain excellent sales results.

Retailers- Our Dealers look for these attributes to effectively sell [enter-your-company-name-here] products:

Price Point                                – attractive and reasonable

Profit Margin                                – worthy of sales emphasis

Technical Support                        – accurate and immediate response

Quality                                        – design, construction and packaging

Advertising and Public Relations        – customer awareness and demand

Effective Sales Materials                – ease and expedite sales process

Competitive Advantages                – features and benefits

Stocking and Delivery                        – available when needed

Market Stability                        – maintain profit margins and market position

[Possible / Current] Retail and Wholesale Outlets include:

Look in your Telephone Directory’s Classified Advertising under Mailing Lists.

Complete the chart above – the list may prove to be a valuable resource for resellers.

List any national or regional chains or independent stores that currently carry or could carry your product..

OEMs – Original Equipment Manufacturers

With Original Equipment Manufacturers (OEMs) we can incorporate our [product name or type] into their product line by [explain how your product can be included within theirs – they sell your outboards with their boats, your windshield wipers with their cars, etc.].

For manufacturers of [OEM biggest system / product] we can sell [product name or type] as part of their [xxx].  We can also provide a private-label line as an additional product for [xxx] distributors.

Email

As we build our customer database, we will gather email addresses with opt-in permission to contact our customers and prospective customers via email and other electronic means, extending our reach and visibility with minimal resource allocation. Our email campaigns will include:

Offers to existing customers for additional [purchase opportunities].

Add-on services promotion.

e-Newsletter offering advice relevant to our [customers / clients / prospective customers / partners / affiliates].

Offer [product enhancements / after-market products / latest models or releases / services scheduling / extended warranties / related products or services from our partners, etc.] directly from the website.  Emphasis will be on customer convenience, ready access, and quick response times.

Direct Response Mail

We will be exploring the benefits of incremental, coordinated direct mail programs in the [1st / 2nd / 3rd / 4th /  last two, 3] [quarters / months] of 20[xx]. We anticipate a strong profit potential as we strengthen our direct response capabilities. We will be approaching this scientifically, as we improve our customer targeting ability. We propose [two 50,000-piece campaigns / four 10,000-piece mailings, etc.], each preceded by a [1,000 / 2,500 / 5,000]-piece test.

All direct mail activities this year will be directed to [our existing customer base / tightly targeted mailing lists / mailing lists acquired from [xxx] that have proven profitable in the past]. In addition, we will [test external lists / test marketing partner lists / test bingo card lists, etc.].

Infomercials

[enter-your-company-name-here] plans to produce a [single / series of] infomercials intended to air in the [which time slot – prime time, late night, morning] time slot on a [major network channel / minor network channel / premium channel / local channel / specialty channel] channel. Our research indicates that the [which segment] of our target market is [extremely / reasonably / somewhat] receptive to the infomercial delivery style, and we anticipate response rates to [more than cover our costs / put us at break-even / create lift in other channels]. Our primary reason(s) for this approach, include [anticipated increase in direct sales / greater visibility / publicity generated as a result of the infomercial promotion / driving a significant increase in channel sales].

Telemarketing

We will use [in-house / contract] telemarketing to perform the following functions:

Outside sales support

[enter-your-company-name-here] provides support for outside sales with:

Literature mailing

• Follow-up calls
• Order entry
• Respond to inquiries
• Order entry
• Literature mailing
• 800# Order / Support Hotline
• Marketing research

New Business

We have [xx] dedicated account managers who pro actively pursue new business. Their activities include contacting [distributors / retailers / customers], scheduling appointments for field rep’s and processing new orders.

Our marketing team [has provided / is preparing and directing] the following sales support activities:Responses for frequently asked questions for our website

• Role plays with selling staff
• Distribution opportunities.
• Preparing a chart of CDI / BDI (Category Development Indices / Brand Development Index) performance.
• Tracking our ACV (All Commodity Volume) distribution, and that of the competition
• Exploring worldwide opportunities and preparing a list of target countries in order of priority

Method

Our primary means of distribution will be [xxx].Make a chart to show how they get to the end-user consumer.

Additional planned channels include [xxx]. An important advantage to these alternate channels is flexibility.  By using more than one distribution method, [enter-your-company-name-here] will have more control and also greater ability to respond to special [distributor / reseller / customer] needs and circumstances.

Other features of our secondary channels are low cost, quick start-up, and increased capacity.

Coverage

Regional target areas are defined as [identify each region]. Reports indicate that these areas generate the highest level of consumer interest. Because our distribution network is [already set up or in use / easy to implement / cost-effective, etc.] we can enjoy [national / international] delivery immediately. This, in turn, will reduce shipping time and increase customer satisfaction. To date, [many of, [x] of, none of] our competitors are able to achieve this.

Product Roll-out Program

We have selected from [xxx] key market areas.

Manufacturers’ Representatives we have chosen:

Distributors we have chosen are:

Retailers we have chosen are:

There are [xxx] dealers in each region.

List regions in order of roll-out sequence.

• []

List key distributors, retailers, etc. in each as top priority.

• []

Advertising & Promotion

Take advantage of networking opportunities as a means to promote your business.

Develop short, concise, descriptive copy (text material) that clearly identifies what you sell, where to buy it, and what it costs. Capture the attention of prospective customers with catchy phrases and a message that appeals to a specific need or desire in those customers. Make sure the ads you create are consistent with the image you are trying to project for both your product and your company. Care and attention to, and tracking of your marketing program will increase the likelihood of success for your business.

Develop tools and methods to increase your customers’ awareness of your product(s) / service(s).

The Purpose of your marketing activities is to enhance, promote, and support the idea (in the minds of prospective customers) that your product meets their specific needs better than competing products or other alternatives.

Remember: advertising and promotion are an investment, not a cost.

Recommended Reading: Ogilvy On Advertising, by David Ogilvy.

[enter-your-company-name-here] recognizes that the key to success at this time is aggressive, widespread promotion. To accomplish our sales goals, we require an extremely capable advertising agency and public relations firm. [enter-your-company-name-here] [plans to advertise / advertises] in [major trade magazines / consumer media / entertainment media / local or special-interest-group publications] such as [xxx]. Upon funding, an agency will be selected and, with their assistance, a comprehensive advertising and promotion plan will be drafted. Advertising will be done independently and cooperatively with Distributors, OEM’s, retailers and companies with whom [enter-your-company-name-here] [has / plans to establish] joint marketing / sales relationships.

Objectives

• Position [enter-your-company-name-here] as the leading [producer / service provider] in the market.
• Position [product / service / brand] as the [first / best / only] [product type / service type] in the minds of prospective customers and the world at large.
• Create high levels of visibility in each of our target markets, the

  markets.

• Increase company awareness and brand name recognition among business managers and [x] retailers, buyers, customers.
• Generate qualified sales leads and potential new distributors for field sales organization.
• Through market research, develop significant, relevant data resources to create immediate and long-term marketing plans.
• Create product advertising programs supporting the [better taste / lower fat / more fun] position.
• Coordinate sales literature, demonstration materials, telemarketing programs, and direct response promotions in order to [xxx].

[enter-your-company-name-here] will [initiate measured / continue its time-tested] marketing programs (email, direct mail, etc.). At the same time, we will test then introduce new marketing campaigns:

Drive web traffic with high-appeal offers, free [xxx] and other innovative incentives that allow us to capture contact information and tailor individualized promotions based on what the customer or prospective customer has responded to previously.

Promote high-visibility, high-demand partner products with [enter-your-company-name-here] [product / service] as the secondary (and complementary) purchase-of-choice.

Develop a compelling referral incentive program.

Internet

[enter-your-company-name-here]’s primary strategy, while profitably selling tools to business owners, is to build a viable database and destination website for business managers everywhere.

Historically, [enter-your-company-name-here] has a [xx]% follow-on buy rate of customers returning to purchase additional [enter-your-company-name-here] products. This rate is currently increasing with email campaigns and website-based sales.

[enter-your-company-name-here] will build the dominant solutions-oriented business website for [your target customer], where customers can find answers and access information for [xxx]. [enter-your-company-name-here] will build traffic and collect customer demographic, psycho graphic, and techno graphic information, in support of selling ads as well as selling 3rd party products and services to [customers].

See also the entire section devoted to our Internet Strategy.

Media Objectives

Create and promote awareness of [enter-your-company-name-here] among editors, industry analysts and groups, engineers, buyers, customers and owners.

Establish an image of [enter-your-company-name-here] as a professional, completely reliable organization that is highly positioned in the market.

Maximize efficiency in selection and scheduling of published ads in publications to cover [xxx] and [xxx] markets.

We consider the media we have chosen to be the most effective because it:

• consistently reaches [xx]% of our target market
• has proven highly effective and profitable in the past
• has been effective for our business partners
• is where [all / none] of our competitors advertise
• []

We will develop an advertising campaign built around [product innovation / high-performance /  competitive advantages], beginning with a “who we are” statement and supporting it with ads that reinforce our [xxx] message. Additionally, we will develop consistent reach and frequency in our advertising throughout the [month / quarter / season / year].

Due to the nature of our product, it is necessary to run [full-page 4-color ads / 1/4 page B&W ads / classified ads in xx publications /  30-second radio spots, etc.].

The best way to reach our potential customers is to develop a focused advertising campaign promoting our basic premise“[your selling basis / theme / position in market]”.

To maintain / establish our [x] company image, the delivery and tone of our statements will be [understated elegance / hard-driving excitement / excellence / glamour / reality / slice-of-life].

Ads will convey the look and feel of a [describe your image] company.

Research indicates that [direct mail / direct response / TV / radio] advertising has not yet been used by any of our competitors.

The consumer mindset, as described in Marketing Strategies is [x].

Ideally, after becoming familiar with our product(s), the consumer will [state the action you want the customer to take].

Being specific here will set the stage for developing appropriate ads.

To eliminate the biggest objections to immediate action, our advertisements must address [known / anticipated] [objections / difficulties] with [product acceptance / how to own or use] [product  name] immediately.

Because [product name] is so [innovative / unique / etc.], it is important to develop a promotional campaign that is consistent and easy to understand.

Accordingly, [enter-your-company-name-here] has created a system of research and response to ensure maximum return from on our advertising dollars.

Media Strategy

Our plan is to maximize ad life with monthly and weekly publications.

To get the most out of our promotional Budgets, our media coverage will focus on the [type of audience your media coverage targets] audience.

Select a specific group that buys your product or service.

We will use the following advertising / promotion sources:

• Proven in-flight media
• Mass-mailed catalogs
• Selected business publications
• Selected publications read by (influencers): Business Experts, CPAs, Bankers, Attorneys
• Selected publications read by (influencers): Technical Consultants, ship builders, and architects.
• Business-talk radio in select markets; PBS in select markets.
• Strategic and contextual banner advertisements.
• Search engine search-results banner ads for keywords: “business,” “capital,” “manage,” etc.
• Select primary business publications with high specific-market penetration.
• Schedule adequate frequency of ads to create recognition and impact market with corporate image and product messages.
• Where possible, position advertising in or near [articles on industry / product reviews / front cover / centre spread] and appropriate editorials.
• Utilise  editions of [consumer / trade / specialty publications].
• Take advantage of special high-interest issues of major publications when possible.
• Billboard