business plans and marketing strategy

Sin-Zay Agricultural Village 07:41 1 Comment bussiness and marketing Edit

To explore personal direction and change (for example
Planning a new business or business project must at
However the techniques of how to write strategic business
Business planning and marketing strategy are mostly
Here are tips, examples, techniques, tools and a process Here's a free how to write strategic
business planning definitions
a plan - a a business - an activity or entity, irrespective of size and business plan - this is now rightly a very general and strategy - originally a military term, in a business planning marketing - believed by many to mean the same as advertising marketing plan - logically a plan which details what a sales - the transactions between the business and its sales plan - a plan describing, quantifying and phased over business strategy - see 'strategy' - it's the same.
marketing strategy - see 'strategy' - it's the same.
service contract - a formal document usually drawn up by the strategic business plan - see strategy and business plan - strategic business planning - developing and writing a philosophy, values, ethics, vision - these are the You can see that many of these terms are interchangeable, so it's Other useful and relevant business planning definitions are in the

when writing a business or operating plan, remember...
A An increasingly vital and perhaps second rule of business planning It is easy to address issues of ethics and corporate responsibility A third crucial requirement for business plans is return on For the vast majority of organisations, whether companies, public Ultimately - whatever the organisation and aims - financial While it's essential to manage ethical and socially responsible Remembering the need for financial viability is vital also Return on investment is however a variable feature of business In a conventional profit-driven corporation return on In a traditional profit-driven corporation, return on In traditional profit-driven corporations, when a new manager starts In businesses or 'non-profit' organisations where shareholder An example of 'some other purpose' might be the activities of a In such examples, return on investment in business planning Before planning, therefore, it is helpful to understand
What are we actually aiming to achieve?

What is our policy/position on corporate social responsibility
And what return on investment (or alternative financial
planning - cause and effect..
The basic methodology Here a cause is an input or action or resource; an We want to achieve xyz effect (for example a given return on Commonly big cause/effect elements are broken down into smaller Junior managers have responsibility for plans and activities which In many good businesses a substantial business planning "What you are going to sell to whom, when and how you are going to Where a department is a 'cost centre' not a 'profit-centre' - Also, these principles and methods apply to very large complex
carry out your market research, including understanding your Your market research should focus on the information you need, to
customer (and potential customer) numbers, profile
customer perceptions, needs, preferences, buying patterns, and
products and services, mix, values and trends

demographic issues and trends (especially if dependent on
future regulatory and legal effects

prices and values, and customer perceptions in these
distribution and routes to market

competitor activities, strengths, weaknesses, products, services,
Primary research is recommended for local and niche services. Keep
establish your corporate philosophy and the Refer to and consider issues of define your 'mission statement'
define your 'product offering(s)' or 'service offering(s)' - your Traditionally, in sales and marketing, this perspective is referred This principle, although a little old-fashioned today, still broadly The important thing is to understand your services and Most businesses have a very poor understanding of what their Customers invariably value these benefits higher than all
Making money

Saving money

Saving time

If your proposition(s) cannot be seen as leading to any of the A service-offer or proposition should be an encapsulation of what This is the first 'brick in the wall' in the process of business
write your business plan - include sales,
quantify the business you seek from each of your market sectors,
ansoff Fully titled the Ansoff Product-Market Growth Matrix, the tool was The Ansoff product-market matrix helps to understand and assess This is a fundamentally simple and effective way of looking at

existing markets
new markets
Each of these strategic options holds different Here are the Ansoff strategies in summary:
market penetration - Developing your sales of existing product development - Developing or finding new products to market development - Developing new markets for your existing diversification - taking new products into new markets. This Consider also your existing products and services themselves in
boston matrix model -

growing market
mature market
cash cow - The rather crude metaphor dog - This is any product or service of yours which has low problem child - These are products which have a big and rising star - Or 'star' products, are those which have good After considering your business in terms of the Ansoff matrix and
customer matrix
This customer matrix model is used

good customers
not so good customers
Assessing product type is helped by reference Consider also What are your competitor weaknesses in terms of Many organizations issue a marketing budget from the top down (a The best way to begin to model and plan your marketing is to have
simple business plan or sales plan tools examples
These

product 1 product 2 product 3 product 4 totals
Do the same for each important aspect of your business, for

sector 1
sector 2
sector 3
sector 4
totals

And, for example, split by distributor (or route to market):
distributor 1 distributor 2 distributor 3 distributor 4 totals These simple split analysis tools are an If you are a competent working with spreadsheets it is normally When you are happy with the overall totals for the year, convert Here's a free customer service charter
You should formulate a
How many days between receipt and response for written
Complaints procedure and timescales for each stage.

This charter sets customer expectations, so be sure you can meet Remember an important rule about customer service: It's not so much A special point of note for businesses that require a strong
establish systems to measure customer service and staff Measuring customer complaints is crucial because individual Moreover, time and again surveys suggest that anything up to nine
Put at ease and give explanation or reassurance to the person
Reduce the chances of them complaining to someone else.

Monitor exactly how many dissatisfied customers you have and what
Take appropriate corrective action to prevent a
If appropriate (ie for large customers) review SLA's and take the
implications for IT, premises, and reporting systems
Also Information Technology - are your computers and communications Premises - Review your premises and sites in light of your customer Reporting systems - If you can't measure it you can't manage it, and How do you report on sales, marketing and business performance and
communications and ongoing customer feedback are essential
Having
You nip problems in the bud and stay aware of how you're
Your customers feel better about the service you provide as a
Try to devise a standard feedback form. It can double as a Consider carrying out a customer satisfaction and perceptions

VAK Understanding personality is also useful since personality-type Many people are conditioned by schools and over-cautious parents to There are many ways to be successful and independent in life aside The basic economics of becoming successfully independent in any sort 1. What's your product or service? (What's good/special/different 2. What does it cost to make/buy in/provide the product or 3. What price will the product/service sell for? (Ideally 4. Who will buy the product/service? (Identify your customers 5. How much/many do you need to sell in a year? And how many 6. How will people know about the service/product? (You need 7. Does all this add up, and better still provide a cash surplus These basic questions represent the typical 'table napkin' business If this is you, you are not alone: many visionary entrepreneurs can Incidentally the above factors are the essential components which

The Small (UK) businesses are most commonly one of the following:
sole-trader - essentially a self-employed owner - no limited
partnership - essentially a group of self-employed
limited liability partnership (LLP) - as above, except that
limited company (abbreviated to Ltd after the company name) - There are less common variations of limited companies, and other
social enterprise - various structures including , trusts,
public limited company (plc) - not appropriate for small
Sole-trader and partnership companies are very easy to set up and A limited liability partnership offers protection to partners in A limited company exists in its own right - a tricky concept to Whatever, consider carefully what type of company framework will A good accountant will help you decide what is best for your You'll need a business bank account. In fact it is a legal You must also understand and organize the tax implications for your Before starting any business ensure also that you have the Helpfully to learn more about this in the UK, most tax affairs are VAT (Value Added Tax or your national equivalent) is an issue Being VAT registered means you must charge VAT on all VAT-rated Being VAT registered also enables you to reclaim VAT that you pay on Retail and consumer businesses are especially affected by VAT. Up to a certain level of turnover (in the UK) becoming registered
your business will be perceived by certain people - especially
you will be able to reclaim VAT that you are charged on
The main disadvantages of being VAT registered are:

the administrative burden in keeping VAT records and submitting
risks of getting onto cashflow difficulties if you fail to set
Information about VAT (and all other tax issues) is at the UK VAT is not the only tax. Taxes are also due on company profits Failing to retain funds in a company to pay taxes is a serious Ideally find a decent accountant too. Preferably one who comes For many entrepreneurs, the ideal scenario is to grow your business See the tax tips - N.B. These tips are not meant to be a detailed comprehensive guide In general these issues would normally be managed via a cashflow These notes in no way suggest that this is the normal fully While your type of company and business determines precisely which Whatever, you must understand the tax liabilities applicable to your Indeed understanding tax basics also helps you decide what type of The potential for nasty financial surprises - notably tax bills that The risks of getting into difficulties can be greater for the Start-ups are especially prone to tax surprises because the first Risks are increased further if you are new to self-employment, Additionally, if you are a person who is in the habit of spending Failing to get on top of the reality of taxes from the very So you must anticipate and set aside funds necessary to meet your If when starting your business you do not have information and
You must estimate your tax liabilities and ensure that you
Always over-estimate your tax liabilities so as to set aside more
Here's an example to show how quickly and easily you can plan and
example of estimating and setting aside money to pay 2. In the UK personal income tax and national insurance N.B. Income tax and national insurance are calculated on taxable These figures in the above example are approximate I emphasise Back to the percentages.. Knowing the income tax percentages Given this example, if in your first year your gross revenues 17.5% VAT liabilities equates to 15% of gross sales href="" name="Marketing overview">
free business planning and marketing tips, samples, examples and tools - how to write a business plan, techniques for writing a marketing strategy, strategic business plans and sales plans
Writing business plans and marketing strategy can be simple.
nsandmarketingtemplates.htm#free%20business%20plan%20marketing%20plan%20sample%20template">free business plan and marketing plan sample/template.
w.businessballs.com/freenewbusinessplanstemplates.htm">quick business/operational plan page. Business planning might appear very complex but in essence it's common sense, and begins with some very simple business start-up principles.
for early planning of self-employment or new business start-up) see the passion-to-profit exercise and template on the teambuilding exercises page.
some stage address a few financial details, and challenges and opportunities relating to modern technology, the internet, websites, etc.
plans (or a strategic marketing plan) remain basically straight-forward.
common-sense and logic, based on cause and effect.
for writing a marketing strategy, business and sales plans, to produce effective results. This free online guide explains how to put together a marketing strategy, basic business plan, and a sales plan, including free templates and examples, such as the Ansoff and Boston matrix tools. New pages are being added soon on advertising, sales promotion, PR (public relations) and press releases, sales enquiry lead generation, advertising copy-writing, internet and website marketing, in the meanwhile see the marketing tips page for free marketing and advertising techniques and advice. See also the simple notes about starting your own business, which to an extent also apply when you are starting a new business initiative or development inside another organisation as a new business development manager, or a similar role.
ialsinexcel/trading_summary_template.xls" target="_blank">profit and loss account spreadsheet template tool (xls) for incorporating these factors and financials into a more formal phased business trading plan, which also serves as a business forecasting and reporting tool too.
as a PDF, see the Profit and Loss Account (P&L) Small Enterprise Business Plan Example (PDF). The numbers could be anything: ten times less, ten times more, a hundred times more - the principle is the same.
template/framework for a feasibility study or justification report, such as might be required to win funding, authorisation or approval for starting a project, or the continuation of a project or group, in a commercial or voluntary situation.
tips and information about buying a franchise business to be helpful, since they cover many basic points about choice of business activity and early planning.
organisation/organization, colour/color. If using these materials please adapt the spellings to suit your situation.)
marketing plans, business plans and sales plans
People use various terms referring to the business planning process - business plans, business strategy, marketing strategy, strategic business planning, sales planning - they all cover the same basic principles. When faced with business planning or strategy development task it's important to clarify exactly what is required: clarify what needs to be done rather than assume the aim from the description given to it - terms are confused and mean different things to different people. You'll see from the definitions below how flexible these business planning terms are.
statement of intent - a calculated intention to organize effort and resource to achieve an outcome - in this context a plan is in written form, comprising explanation, justification and relevant numerical and financial statistical data. In a business context a plan's numerical data - costs and revenues - are normally scheduled over at least one trading year, broken down weekly, monthly quarterly and cumulatively.
autonomy, which is engaged in an activity, normally the provision of products and/or services, to produce commercial gain, extending to non-commercial organizations whose aim may or may not be profit (hence why public service sector schools and hospitals are in this context referred to as 'businesses').
flexible term, applicable to the planned activities and aims of any entity, individual group or organization where effort is being converted into results, for example: a small company; a large company; a corner shop; a local window-cleaning business; a regional business; a multi-million pound multi-national corporation; a charity; a school; a hospital; a local council; a government agency or department; a joint-venture; a project within a business or department; a business unit, division, or department within another organization or company, a profit centre or cost centre within an an organization or business; the responsibility of a team or group or an individual. The business entity could also be a proposed start-up, a new business development within an existing organization, a new joint-venture, or any new organizational or business project which aims to convert action into results. The extent to which a business plan includes costs and overheads activities and resources (eg., production, research and development, warehouse, storage, transport, distribution, wastage, shrinkage, head office, training, bad debts, etc) depends on the needs of the business and the purpose of the plan. Large 'executive-level' business plans therefore look rather like a 'predictive profit and loss account', fully itemised down to the 'bottom line'. Business plans written at business unit or departmental level do not generally include financial data outside the department concerned. Most business plans are in effect sales plans or marketing plans or departmental plans, which form the main bias of this guide.
context strategy/strategic means/pertains to why and how the plan will work, in relation to all factors of influence upon the business entity and activity, particularly including competitors (thus the use of a military combative term), customers and demographics, technology and communications.
or sales promotion, marketing actually means and covers everything from company culture and positioning, through market research, new business/product development, advertising and promotion, PR (public/press relations), and arguably all of the sales functions as well. Marketing is the process by which a business decides what it will sell, to whom, when and how, and then does it.
business will sell, to whom, when and how, implicitly including the business/marketing strategy. The extent to which financial and commercial numerical data is included depends on the needs of the business. The extent to which this details the sales plan also depends on the needs of the business.
customers whereby services and/or products are provided in return for payment. Sales (sales department/sales team) also describes the activities and resources that enable this process, and sales also describes the revenues that the business derives from the sales activities.
time, how the the sales will be made and to whom. Some organizations interpret this to be the same as a business plan or a marketing plan.
supplier by which the trading arrangement is agreed with the customer. See the section on service contracts and trading agreements.
it's a business plan with strategic drivers (which actually all business plans should be).
strategic business plan.
fundamentals of business planning, and determine the spirit and integrity of the business or organisation - see the guide to how philosophical and ethical factors fit into the planning process, and also the principles and materials relating to corporate responsibility and ethical leadership.
important to clarify what needs to be planned for rather than assuming or inferring a meaning from the name given to the task. That said, the principles explained here can be applied to business plans of all sorts. Business plans are often called different names - especially by senior managers and directors delegating a planning exercise that they do not understand well enough to explain. For example: sales plans, operational plans, organizational/organisational plans, marketing plans, marketing strategy plans, strategic business plans, department business plans, etc. Typically these names reflect the department doing the planning, despite which, the planning process and content required in the document is broadly similar.
business dictionary; the sales and selling glossary; some are also in the financial terms glossary, and more - especially for training - are in the business and training acronyms listing, which also provides amusing light relief if this business planning gets a little dry (be warned, the acronyms listings contain some adult content).
useful first rule of business planning is to decide what you are actually trying to achieve and always keep this in mind. Write your aim large as a constant reminder to yourself, and to anyone else involved. Keeping your central aim visible will help you minimise the distractions and distortions which frequently arise during the planning process.
is to establish a strong ethical philosophy at the outset of your planning. This provides a vital reference for decision-making and strategy from the start. A strong clear ethical code communicates your values to staff, customers, suppliers, and creates a simple consistent basis for operations which conventional financials, processes, systems and even people, do not address. It is very difficult to introduce ethical principles later into an enterprise, especially when planning shifts into implementation, and more so if problems arise relating to integrity, honesty, corporate responsibility, trust, governance, etc., any of which can have massive impact on relationships and reputation. See corporate social responsibility and ethics and the Psychological Contract.
when you are the owner of a new enterprise. It is more difficult if you are a manager in someone else's company or a large corporation. Nevertheless ethics and corporate responsibility are highly significant in planning, and strong justification for their proper consideration can now be made. There are now plenty of recent examples of corporations - indeed entire national economies and governments - which have failed because of poor regard to ethical considerations. The world is changing and learning, slowly, but it is, and anyone ignoring ethics in planning today does so at their own peril.
investment, or for public services and non-profit organisations: effective use of investment and resources, which is beyond simple 'cost control'.
services, not-for-profit trusts and charities, all organisations need to be financially effective in what they do, otherwise they will cease to function.
viability is necessary to sustain any organised activity.
aspects of organisational aims, these must allow for adequate return on investment (or in less traditional and 'non-profit' enterprises, must allow for the effective use of investment and resources, according to the financial requirements of the particular organisation).
because business planning is often done - rightly - to achieve something new and special. This tends to focus thinking on creativity, innovation, ambition, quality, excellence, perhaps even social good, etc., which can easily distract planning away from the basic need to be financially viable - and crucially not to make a loss. By treating return on investment as a vital requirement of planning we increase the likelihood that plans will be viable and therefore sustainable.
planning. It is flexible according to the type of enterprise, its main purpose and philosophy.
investment (at an optimal rate) is typically a strong strategic driver for local planning and decisions, and by implication also a basic requirement of the enterprise as a whole. On the other hand, in a business or organization less focused on shareholder reward, such as a public services trust or charity, or a social enterprise or cooperative, return on investment (at a relatively lower rate), may be a requirement simply to sustain viable operations, according to the aims of the enterprise. In the first example, return on investment is the aim; in the second example, return on investment enables some other higher aim to be achieved. In more detail:
investment tends to be the main requirement of any business plan and also the main aim or purpose or driver of the plan. In most traditional corporations return on investment tends to be at the heart of all activities, since typically the corporation exists to maximize the yield (profit and growth effectively) of shareholder funds invested in the business. Planning in traditional corporations at times forgets this basic obligation, especially when a junior manager is asked to 'write a business plan' for the first time.
to write a business plan or operational plan for the first time (and for some experienced managers also, for the umpteenth time), the manager wonders: What is the aim? What am I trying to achieve? Often when they ask their own manager, the manager has the same doubts. The central aim is usually return on investment.
enrichment is not the main purpose, return on investment is less of a driver in business planning, but is nevertheless a crucial requirement. Such enterprises are becoming more popular, and will continue to become so, since the collapse of the western economies in 2008, and increasing disillusionment with old-style business thinking. Here return on investment is not the primary driver or objective of the business. Instead the main driver of enterprise may be some other purpose.
social enterprise or cooperative, or maybe an employee ownership company, or perhaps a trust or charity, whose main aim is (rather than the traditional profit generation for external/institutional shareholders) perhaps to benefit its members/staff, and/or to sustain local jobs, and/or to benefit the local community, or maybe to advance science or learning or health, etc. Here, while return on investment may seem less crucial or appropriate to planning and operations, the enterprise must nevertheless remain financially viable, or it ceases to be able to operate at all.
is not usually maximized, but must still be treated as an underpinning requirement to planning, and flexed according to the fundamental aims and financial requirements of the enterprise.
clearly:
and ethics, etc - our philosophy? performance) does our activity/enterprise require - is this a strategic driver in itself, or simply the means by which we maintain our activities in support of our (point 1) aims? of business planning is identifying causes and effects, according to your relevant business requirements (financials and ethics) and strategic drivers (what we are actually aiming to achieve).
effect is an outcome or result or consequence of some sort.
investment, or a certain sales level or market share, whatever) - so what should we plan to cause this to happen?
activities, which also comprise a cause and effect. (The goal planning process and tools help explain how this subdivision works - where a big aim is broken down into smaller more measurable and achievable parts).
feed into larger departmental plans and activities of senior managers. The plans and activities of senior managers feed into the divisional plans of executives and directors. There is a hierarchy or tree structure of cause and effects, all hopefully contributing to the overall organizational aim.
responsibility extends now to front line customer-facing staff, and the trend is increasing. In this context, the business plan could be called also be called a marketing plan, or a sales plan - all departmental plans are basically types of business planning:
sell it, how much contribution (gross profit) the sales will produce, what the marketing and/or selling cost will be, and what will be the return on investment."
providing products or services internally to other departments rather than externally to customers - then the language and planning elements may alter, but the principles remain the same.
multinational organizations, which tend to entail more and different costs, fixed overheads, revenues, and consequently larger planning formats; more and bigger spreadsheets, more lines and columns on each, more attention and people working on the numbers, more accountants, and typically - especially at middle-management level and above - more emphasis on cashflow and the balance sheet, alongside basic 'profit and loss' planning.
competitor activity
'The market' varies according to the business or organisation concerned, but every organised activity has a market. Knowing the market enables you to assess and value and plan how to engage with it. A common failing of business planning or operational planning outside of the 'business' world, is to plan in isolation, looking inward, when ideas can seem very positive and reliable because there's no context and nothing to compare. Hence research is critical. And this applies to any type of organisation - not just to businesses. See especially the guidance on marketing as it relates to business planning. Planning very much concerns processes. The principles of marketing will explain additionally how to put meaning and values into what you plan.
help you to formulate strategy and make business decisions. Market research should be pragmatic and purposeful - a means to an end, and not a means in itself. Market information potentially covers a vast range of data, from global macro-trends and statistics, to very specific and detailed local or technical information, so it's important to decide what is actually relevant and necessary to know. Market information about market and industry trends, values, main corporations, market structure, etc, is important to know for large corporations operating on a national or international basis. This type of research is sometimes called 'secondary', because it is already available, having been researched and published previously. This sort of information is available from the internet, libraries, research companies, trade and national press and publications, professional associations and institutes. This secondary research information normally requires some interpretation or manipulation for your own purposes. However there's no point spending days researching global statistical economic and demographic data if you are developing a strategy for a relatively small or local business. Far more useful would be to carry out your own 'primary' research (i.e. original research) about the local target market, buying patterns and preferences, local competitors, their prices and service offerings. A lot of useful primary market research can be performed using customer feed-back, surveys, questionnaires and focus groups (obtaining indicators and views through discussion among a few representative people in a controlled discussion situation). This sort of primary research should be tailored exactly for your needs. Primary research requires less manipulation than secondary research, but all types of research need a certain amount of analysis. Be careful when extrapolating or projecting figures to avoid magnifying initial mistakes or wrong assumptions. If the starting point is inaccurate the resulting analysis will not be reliable. For businesses of any size; small, local, global and everything in between, the main elements you need to understand and quantify are:
and mix trends, by sub-sector if necessary consumer markets) areas prices, sales methods, etc the subjects simple and the range narrow. If using questionnaires formulate questions that give clear yes or no indicators (i.e. avoid three and five options in multi-choices which produce lots of uncertain answers) always understand how you will analyse and measure the data produced. Try to convert data to numerical format and manipulate on a spreadsheet. Use focus groups for more detailed work. For large research projects consider using a market research organization because they'll probably do it better than you, even though this is likely to be more costly. If you use any sort of marketing agency ensure you issue a clear brief, and that your aims are clearly understood. Useful frameworks for research are PEST analysis and SWOT analysis.
aims of your business or operation
First establish or confirm the aims of the business, and if you are concerned with a part of a business, establish and validate the aims of your part of the business. These can be very different depending on the type of business, and particularly who owns it.
alls.com/ethical_management_leadership.htm">ethics and philosophy, corporate social responsibility, sustainability, etc - these are the foundations on which values and missions are built.
ket.htm#corporate%20integrity%20ethics%20and%20philosophy">ethics and corporate responsibility are so important. And see also the fundamental organisational planning stages.
contracts-theory.htm">Psychological Contract and the benefits of establishing a natural balance and fairness between all interests (notably staff, customers, the organization).
world is constantly changing, and establishing a new business is a good time to challenge preconceptions of fundamental business structure and purpose. A business based on a narrow aim of enriching a few investors while relegating the needs and involvement of everyone else may contain conflicts and tensions at a deep level. There are other innovative business structures which can inherently provide a more natural, cooperative and self-fuelling relationship - especially between employees and the organization, and potentially between customers and the organization too.
ethical position, state the objectives of the business unit you are planning to develop - your short, medium and long term aims - (typically 'short, medium and long' equate to 1 year, 2-3 years and 3 years plus). In other words, what is the business aiming to do over the next one, three and five years?
of the business in the short term or the long term is merely an academic issue. Grand visions need solid foundations. All objectives and aims must be prioritised and as far as possible quantified. If you can't measure it, you can't manage it.

All businesses need a ‘mission statement'. It announces clearly and succinctly to your staff, shareholders and customers what you are in business to do. Your mission statement may build upon a general ‘service charter' relevant to your industry. You can involve staff in defining and refining the business's mission statement, which helps develop a sense of ownership and responsibility. Producing and announcing the mission statement is also an excellent process for focusing attention on the business's priorities, and particularly the emphasis on customer service. Whole businesses need a mission statement - departments and smaller business units within a bigger business need them too.
sales proposition(s)
You must understand and define clearly what you are providing to your customers. This description should normally go beyond your products or services, and critically must include the way you do business, and what business benefits your customers derive from your products and services, and from doing business with you. Develop offerings or propositions for each main area of your business activity - sometimes referred to as 'revenue streams', or 'business streams' - and/or for the sector(s) that you serve. Under normal circumstances competitive advantage is increased the more you can offer things that your competitors cannot. Good research will tell you where the opportunities are to increase your competitive advantage in areas that are of prime interest to your target markets. Develop your service offering to emphasise your strengths, which should normally relate to your business objectives, in turn being influenced by corporate aims and market research. The important process in developing a proposition is translating your view of these services into an offer that means something to your customer. The definition of your service offer must make sense to your customer in terms that are advantageous and beneficial to the customer, not what is technically good, or scientifically sound to you. Think about what your service, and the manner by which you deliver it, means to your customer.
to as translating features into benefits. The easiest way to translate a feature into a benefit is to add the prompt ‘which means that...'. For example, if a strong feature of a business is that it has 24-hour opening, this feature would translate into something like: "We're open 24 hours (the feature) which means that you can get what you need when you need it - day or night." (the benefit). Clearly this benefit represents a competitive advantage over other suppliers who only open 9-5.
applies.
proposition in terms that your customer will recognise as being relevant and beneficial to them.
customers value most in the relationship, so ensure you discover this in the research stage, and reflect it in your stated product or service proposition(s).
others:
above then customers will not be very interested in you.
you do best, that you do better than your competitors (or that they don't do at all); something that fits with your business objectives, stated in terms that will make your customers think ‘Yes, that means something to me and I think it could be good for my business (and therefore good for me also as a buyer or sponsor).'
planning, sales planning, marketing planning, and thereafter, direct marketing, and particularly sales lead generation.
costs of sales, gross margins, and if necessary your business overheads

Business plans come in all shapes and sizes. Pragmatism is essential. Ensure your plan shows what your business needs it to show. Essentially your plan is a spreadsheet of numbers with supporting narrative, explaining how the numbers are to be achieved. A plan should show all the activities and resources in terms of revenues and costs, which together hopefully produce a profit at the end of the trading year. The level of detail and complexity depends on the size and part of the business that the plan concerns. Your business plan, which deals with all aspects of the resource and management of the business (or your part of the business), will include many decisions and factors fed in from the marketing process. It will state sales and profitability targets by activity. In a marketing plan there may also be references to image and reputation, and to public relations. All of these issues require thought and planning if they are to result in improvement, and particularly increasing numbers of customers and revenue growth. You would normally describe and provide financial justification for the means of achieving these things, together with customer satisfaction improvement. Above all a plan needs to be based on actions - cost-effective and profitable cause and effect; inputs required to achieved required outputs, analysed, identified and quantified separately wherever necessary to be able to manage and measure the relevant activities and resources.
segments, products and customer groupings, and allocate investment, resources and activities accordinglyThese principles apply to a small local business, a department within a business, or a vast whole business. Before attending to the detail of how to achieve your marketing aims you need to quantify clearly what they are. What growth targets does the business have? What customer losses are you projecting? How many new customers do you need, by size and type, by product and service? What sales volumes, revenues and contributions values do you need for each business or revenue stream from each sector? What is your product mix, in terms of customer type, size, sector, volumes, values, contribution, and distribution channel or route to market? What are your projected selling costs and net contributions per service, product, sector? What trends and percentage increase in revenues and contributions, and volumes compared to last year are you projecting? How is your market share per business stream and sector changing, and how does this compare with your overall business aims? What are your fast-growth high-margin opportunities, and what are your mature and low-margin services; how are you treating these different opportunities, and anything else in between? You should use a basic spreadsheet tool to split your business according to the main activities and profit levers. See the simple sales/business planning tool example below.
product-market growth matrix - strategic toolA useful planning tool in respect of markets and products is the matrix developed by Igor Ansoff (H Igor Ansoff, 1918-2002), who is regarded by some as the 'Father of Strategic Management'.
first published in Harvard Business Review, 1957, in Ansoff's paper Strategies for Diversification.
marketing or business development strategy. Any business, or part of a business can choose which strategy to employ, or which mix of strategic options to use.
strategic development options.
width="348">existing products new products market penetration product development align="CENTER" width="348">market development diversification opportunities and downsides for different organizations, so what is right for one business won't necessarily be right for another. Think about what option offers the best potential for your own business and market. Think about the strengths of your business and what type of growth strategy your strengths will enable most naturally. Generally beware of diversification - this is, by its nature, unknown territory, and carries the highest risk of failure.
products to your existing market(s). This is fine if there is plenty of market share to be had at the expense of your competitors, or if the market is growing fast and large enough for the growth you need. If you already have large market share you need to consider whether investing for further growth in this area would produce diminishing returns from your development activity. It could be that you will increase the profit from this activity more by reducing costs than by actively seeking more market share. Strong market share suggests there are likely to be better returns from extending the range of products/services that you can offer to the market, as in the next option.
take to your existing market(s). This is an attractive strategy if you have strong market share in a particular market. Such a strategy can be a suitable reason for acquiring another company or product/service capability provided it is relevant to your market and your distribution route. Developing new products does not mean that you have to do this yourself (which is normally very expensive and frequently results in simply re-inventing someone else's wheel) - often there are potential manufacturing partners out there who are looking for their own distribution partner with the sort of market presence that you already have. However if you already have good market share across a wide range of products for your market, this option may be one that produces diminishing returns on your growth investment and activities, and instead you may do better to seek to develop new markets, as in the next strategic option.
products. New markets can also mean new sub-sectors within your market - it helps to stay reasonably close to the markets you know and which know you. Moving into completely different markets, even if the product/service fit looks good, holds risks because this will be unknown territory for you, and almost certainly will involve working through new distribution channels, routes or partners. If you have good market share and good product/service range then moving into associated markets or segments is likely to be an attractive strategy.
is high risk - not only do you not know the products, but neither do you know the new market(s), and again this strategic option is likely to entail working through new distribution channels and routes to market. This sort of activity should generally be regarded as additional and supplementary to the core business activity, and should be rolled out carefully through rigorous testing and piloting.
terms of their market development opportunity and profit potential. Some will offer very high margins because they are relatively new, or specialised in some way, perhaps because of special USP's or distribution arrangements. Other products and services may be more mature, with little or no competitive advantage, in which case they will produce lower margins. The Boston Matrix is a useful way to understand and assess your different existing product and service opportunities:
product/service develeopmentThe Boston Matrix model is a tool for assessing existing and development products in terms of their market potential, and thereby implying strategic action for products and services in each category.
width="348">low market share high market share problem child (rising) star dog cash cow is based on the idea of 'milking' the returns from previous investments which established good distribution and market share for the product. Products in this quadrant need maintenance and protection activity, together with good cost management, not growth effort, because there is little or no additional growth available.
market presence in a mature or stagnant market. There is no point in developing products or services in this quadrant. Many organizations discontinue products/services that they consider fall into this category, in which case consider potential impact on overhead cost recovery. Businesses that have been starved or denied development find themselves with a high or entire proportion of their products or services in this quadrant, which is obviously not very funny at all, except to the competitors.
growing market potential, but existing low market share, normally because they are new products, or the application has not been spotted and acted upon yet. New business development and project management principles are required here to ensure that these products' potential can be realised and disasters avoided. This is likely to be an area of business that is quite competitive, where the pioneers take the risks in the hope of securing good early distribution arrangements, image, reputation and market share. Gross profit margins are likely to be high, but overheads, in the form of costs of research, development, advertising, market education, and low economies of scale, are normally high, and can cause initial business development in this area to be loss-making until the product moves into the rising star category, which is by no means assured - many problem children products remain as such.
market share in a strong and growing market. As a product moves into this category it is commonly known as a 'rising star'. When a market is strong and still growing, competition is not yet fully established. Demand is strong; saturation or over-supply do not exists, and so pricing is relatively unhindered. This all means that these products produce very good returns and profitability. The market is receptive and educated, which optimises selling efficiencies and margins. Production and manufacturing overheads are established and costs minimised due to high volumes and good economies of scale. These are great products and worthy of continuing investment provided good growth potential continues to exist. When it does not these products are likely to move down to cash cow status, and the company needs to have the next rising stars developing from its problem children.
Boston matrix (which are thinking aids as much as anything else, not a magic solution in themselves), on a more detailed level, and for many businesses just as significant as the Ansoff-type-options, what is the significance of your major accounts - do they offer better opportunity for growth and development than your ordinary business? Do you have a high quality, specialised offering that delivers better business benefit on a large scale as opposed to small scale? Are your selling costs and investment similar for large and small contracts? If so you might do better concentrating on developing large major accounts business, rather than taking a sophisticated product or service solution to smaller companies which do not appreciate or require it, and cost you just as much to sell to as a large organization.
by many companies to understand and determine strategies according to customer types.
width="348">good products not so good products develop and find more customers like these - allocate your best resources to these existing customers and to prospective customers matching this profile educate and convert these customers to good products if beneficial to them, failing which, maintain customers via account management invest cautiously to develop and improve relationship, failing which, maintain customers via account management assess feasibility of moving these customers left or up, failing which, withdraw from supplying sensitively to the Boston matrix model. There is a lot of flexibility as to what constitutes 'good' and 'not so good customers' - use your own criteria. A good way to do this is to devise your own grading system using criteria that mean something to your own situation. Typical criteria are: size, location, relationship, credit-rating and payment terms, is the customer growing (or not), the security of the supply contract, the service and support overhead required, etc. This kind of customer profiling tool and exercise is often overlooked, but it is a critical aspect of marketing and sales development, and of optimising sales effectiveness and business development performance and profitability. Each quadrant requires a different sales approach. The type of customer also implies the type of sales person who should be responsible for managing the relationship. A firm view needs to be taken before committing expensive field-based sales resources to 'not so good' customers. Focus prospect development (identifying and contacting new prospective customers) on the profile which appears in the top left quadrant. Identify prospective new customers who fit this profile, and allocate your business development resources (people and advertising) to this audience.
sectors, geographical territory and products or services, and how might these factors affect your options? Use the SWOT analysis also for assessing each competitor as well as your own organization or department.
budget issued by the Centre/HQ/Finance Director), so to speak, in which case, what is your marketing budget and how can you use it to produce the best return on investment, and to help the company best to meet its overall business aims? Use the models described here to assess your best likely returns on marketing investment.
a record of your historical (say last year's) sales results (including selling and advertising costs if appropriate and available) on a spreadsheet. The level of detail is up to you; modern spreadsheets can organize massive amounts of data and make very complex analysis quick easy. Data is vital and will enable you to do most of the analysis you need for marketing planning. In simple terms you can use last year's results as a basis for planning and modelling the next year's sales, and the marketing expenditure and activities required to achieve them.
templates examples help the planning process. Split and analyse your business or sales according to your main products/services (or revenue streams) according to the profit drivers or 'levers' (variables that you can change which affect profit), eg., quantity or volume, average sales value or price, % gross margin or profit. Add different columns which reflect your own business profit drivers or levers, and to provide the most relevant measures.
width="85">quantity total sales value average value % gross margin total sales or gross margin width="85"> width="85"> width="85"> width="85"> example, split by market sector (or segment):
width="85">quantity total sales value average value % gross margin total sales or gross margin /> width="60">quantity total sales value average value % gross margin total sales or gross margin extremely effective way to plan your sales and business. Construct a working spreadsheet so that the bottom-right cell shows the total sales or gross margin, or profit, whatever you need to measure, and by changing the figures within the split (altering the mix, average prices, quantities, etc) you can carry out 'what if?' analysis to develop the best plans.
possible to assemble all of this data onto a single spreadsheet and then show different analyses by sorting and graphing according to different fields.
this into a phased monthly plan, with as many lines and columns as you need and are appropriate for the business. Develop this spreadsheet by showing inputs as well as sales outputs - the quantifiable activity (for example, the numbers of enquiries necessary to produce the planned sales levels) required to produce the planned performance. Large businesses need extensive and multiple page spreadsheets. A business plan needs costs as well as sales, and will show profit as well as revenue and gross margin, but the principle is the same: plan the detailed numbers and values of what the business performance will be, and what inputs are required to achieve it.
ialsinexcel/trading_summary_template.xls" target="_blank">MSExcel profit and loss account template tool for incorporating these factors and financials into a more formal phased business trading plan, which also serves as a business forecasting and reporting tool too. Adapt it to suit your purposes. This plan example is also available as a PDF, see the Profit and Loss Account (P&L) Small Enterprise Business Plan Example (PDF). The numbers could be anything: ten times less, ten times more, a hundred times more - the principle is the same.
levels, such as customer service. Identify key performance indicators here too, such as customer complaints response and resolution levels and timescales. Internal lead referral schemes, strategic partnership activity; the performance of other direct sales activities such as sales agencies, distributorships, export activities, licensing, etc. These performance factors won't normally appear on a business plan spreadsheet, but a separate plan should be made for them, otherwise they won't happen.
marketing plan is actually a statement, supported by relevant financial data, of how you are going to develop your business. Plans should be based on actions, not masses of historical data. The historical and market information should be sufficient just to explain and justify the opportunities, direction, strategy, and most importantly, the marketing actions, methods and measures - not to tell the story of the past 20 years of your particular industry.
sell it, how much contribution (gross profit) the sales produce, what the marketing cost will be, and what will be the return on investment."
onto a spreadsheet, which then allows data to be manipulated through the planning process, and then changed and re-projected when the trading year is under way. The spreadsheet then becomes the basis of your sales and marketing forecasting and results reporting tool.
is also useful to include measurable aims concerning customer service and satisfaction.
in the overall business plan. The marketing plan will also have revenue and gross margin/profitability targets that relate to the turnover and profitability in the overall business plan. This data is essentially numerical, and so needs also some supporting narrative as to how the numbers will be achieved - the actions - but keep the narrative concise; if it extends to more than a half-dozen sheets make sure you put a succinct executive summary on the front.
indirect activities such as product development, customer service, quality assurance, training etc., if significantly relevant to achieving the marketing plan aims.
type, size and maturity of business. Above all create a plan that logically shows how the business can best consolidate and grow its successful profitable areas. The marketing plan should be a working and truly useful tool - if it is, then it's probably a good one.
plan marketing plan sample template">sample business plan, marketing plan or sales plan sample structure and example format/templateKeep the written part of the business plan as concise and brief as possible - most situations and high-ranking executives do not need to see plans that are an inch thick. If you can make your case on a half dozen pages then do so. Particularly if your plan is more than 5-6 pages long, produce an executive summary (easiest to do when you have completed the plan) and insert it at the beginning of the document. If you need to include lots of reference material, examples, charts, evidence, etc, show these as appendices at the back of the document and make sure they are numbered and referenced during the main body of the plan. Each new section should start at the top of a new page. Number the pages. Important plans should be suitably bound. All business plans should be professionally and neatly presented, with no grammar and spelling errors, clearly laid out in an easy to read format (avoid lots of upper-case or fancy fonts or italics as these are all difficult to read). Your business plan contents and structure should be as follows:
plan structure template">business plans structure

Title page: Title or heading of the plan and brief description if required, author, date, company/organization if applicable, details of circulation and confidentiality.

corporate ethics and social responsibility

Psychological Contract

PEST

and especially your strategic propositions

sales training section

acronyms

SWOT

This should be on a spreadsheet