Your Marketing Plan

An important part of a formal business plan is the section that describes how you plan to market your business. All of your promotion, advertising, and marketing plans are contained in this section. This section also describes your USP (unique selling position) and how you plan to position your company in the marketplace.

The business of business is selling something. That something is the product or service that you plan to offer to the marketplace. This is the prime objective of your plan. You might say that this is where the rubber meets the road in your business plan.

Product or Service Description

In your plan, you will want to state not only what you plan to sell, but also why consumers will buy it. Look at this section as your chance to clearly explain what you sell, along with its features and benefits, and discuss what needs or problems they address in the marketplace.

One important thing to remember is that your reader might not be nearly as versed in your product or service or the industry you are in. That means you have to describe your product simply and in detail. That includes not only a description of the product or service, but what industry you will sell within and the average cost of the product. It also includes the sourcing of your product. Who will you buy it from? If you are writing an internal plan, this is an opportunity to review your sourcing strategy and whether you can get earn a better profit by improving the sourcing of your product. Also, detail in your plan whether the product you sell requires any additional support and how you will provide it. (All products do.)

Tip: Product or Service Fundamentals

Consider these fundamental characteristics of your product or service when creating your unique selling position. How many of them does your product or service meet?

• Does it save time or money?

• Does it offer large savings?

• Is it exclusive?

• Does it provide convenience?

• Can you deliver it faster?

• Will you provide better service?

• Is it easier, economical, or simpler to use?

• Does it reduce upkeep, or is it easy to keep up?

• Will it have long life?

On the other hand, if you're providing a service, tell the reader what the service is and why you can provide it. Professional service companies, such as law or medical offices, consulting firms, accountants, and design companies, provide services by employing people. A computer-networking company that offers access to the Internet or a telephone company provides a service by owning and maintaining a network infrastructure.

Don't omit the specific problem your product or service addresses and how that problem is solved. Keep your answers specific and measurable, and show a benefit to the buyer. Here's the hard part: Answer these questions in just one sentence that anyone can understand it. Test it on your spouse, family, friends, and neighbors; ask them what they think it means.

Tip: Buying Motivations

Consider these buying motivations of your product or service when creating your unique selling position. How many of them does your product or service meet?

• Pride of appearance

• Pride of ownership

• Desire for prestige

• Desire for recognition

• Desire to imitate

• Desire for variety

• Desire for safety

• Desire to create

• Desire for security

• Desire for convenience

• Desire to be unique

Above all else, remember that your unique selling position is not about you or about your businessit's about your customers' problems and how you solve them. You need to speak to the needs of the consumer you are targeting.