Writing a Business Plan

5. Marketing and Sales

In this section of the plan, you usually address these five questions.

5.1 Where do you position your product or service in the market place?

• Is it high quality and high price?
• Is it marketed as a specialist product due to a particular feature?
• What unique selling features does it have?
• Which of these features are you going to concentrate on?

5.2 What is your pricing policy?

• Explain how price-sensitive your products are.
• Look at each product or market segment in turn.Identify where you make your profits and where there is scope to increase margins or sales. Set your pricing accordingly.

5.3 How do you promote your product or service?

Each market segment will have one or two optimum methods. For example, direct marketing, advertising or PR.

• If you are considering using a new method, start on a small scale. A failed investment in marketing can be costly.

5.4 Through what channels do you reach your end user?

• Compare your current channels with the alternatives.
• Note the distribution channels used by your competitors.
• Look at the positive and negative trends in your chosen distribution channel.

5.5 How do you do your selling?

Analyse the cost efficiency of each of your selling methods. For example, telesales, a direct sales force, through an agent or over the Internet.

• Include all the hidden costs of the direct sales force, such as management time.