This workbook is provided by the Kutztown University Small Business Development Center.

Transcription

1

2 This workbook is provided by the Kutztown University Small Business Development Center. Last update: October 2, 2014 For comments and inquiries, please contact: Main center Kutztown University Small Business Development Center Kutztown Road Kutztown, PA Outreach offices Exton outreach office 737 Constitution Drive Exton, PA Harrisburg outreach office 3211 North Front Street Harrisburg, PA Lancaster outreach office 100 South Queen Street Lancaster, PA Reading outreach office 237 Court Street, 2nd Floor Reading, PA York outreach office 600 North Hartley Street York, PA An accredited affiliate of the national network of Small Business Development Centers. Copyright 2014 Kutztown University Small Business Development Center. All Rights Reserved.

3 The contents of these pages are provided as an information guide only. No legal liability or other responsibility is accepted by or on behalf of the Kutztown University Small Business Development Center for any errors, omissions, or statements on these pages, or any site to which these pages connect. The Kutztown University Small Business Development Center accepts no responsibility for any loss, damage or inconvenience caused as a result of reliance on such information. This guide is provided by the KU SBDC and all sample business stories within are fictional. Any similarity to real businesses is coincidental. Funding support and resources are provided by the Commonwealth of Pennsylvania through the Department of Community and Economic Development; through a cooperative agreement with the U.S. Small Business Administration, and through support from Kutztown University. All services are extended to the public on a nondiscriminatory basis. Special arrangements for persons with disabilities can be made by calling (TDD number: ) or accommodation@kutztown.edu two weeks in advance of the event. All opinions, conclusions or recommendations expressed are those of the author(s) and do not necessarily reflect the views of the SBA. SBDC services are not available to individuals or entities that have been debarred or suspended by the federal government. By agreeing to receive assistance from the SBDC you are self-certifying that you are not currently federally debarred or suspended and also agree to cease using SBDC services if you become federally debarred or suspended in the future.

4 Use this workbook as a guide to help organize your information to develop or refine your marketing plan. The workbook is broken into sections to help you collect the essential information you need and to walk you through the process of building your marketing plan.

5 Marketing and subsequent sales are the core of business functions. A marketing plan should help focus the time, talent and energy of a business for efficient results. It is important to remember that the marketing plan is a representation of reality and will have limitations. As first-hand information is gathered from ongoing marketing activities, the plan should be updated and refined with more accurate ideas based on real world interactions. While there is no right way to do a marketing plan, the plan should reflect the values, resources, and culture of the organization. A marketing plan should be part of an ongoing self-evaluation process and it should be unique to your business. To develop an adequate marketing plan, a business should be ready to: Honestly evaluate the strengths and weaknesses of themselves and key competitors See the world, their business and their products/services from the perspective of the customer Segment customers into relevant and meaningful groups whenever there are significant differences in their needs, values, points of access, buying habits, etc. Make decisions, apply sufficient resources and designate accountability to execute the elements of the plan when completed Clearly define goals and develop meaningful measures to evaluate progress and completion of those goals Implement the plan and revise on an ongoing and as needed basis

6 Prior to setting a course to reach newly determined goals, it is important that your current position is understood. Similar to planning a vacation to Florida, your current position will determine your potential modes of transportation, departure points and travel time. Begin the process of planning by noting the current situation of the business and its marketing efforts along with several other key items in the spaces below.

7 (even if there is nothing in writing, there may be ongoing marketing activities)

8 Do those with responsibility have appropriate resources, time and skills to meet expectations?

9 Once you complete the sections in the workbook, keep your responses accessible because they will act as a reference when you are preparing for a sales call, working with your colleagues, or meeting with your SBDC consultant. After the elements of the workbook are compiled for each target market segment, the results can be summarized into tables for convenient organization and reference. Examples of target market tables are included on the following page.

10 From Pitch Then Plan by Small Biz U

11 This section describes the customers you are targeting. It defines the problems they are experiencing that translates into their wants and needs as they relate to the products and/or services you offer. By clearly defining your target market, you will be able to customize your marketing message to speak directly to the customer s needs and perceptions of your product/service offering. You may have several customer segments. You should consider completing the sections of the workbook for each segment you identify. Even though the customers may be buying the same product or service, the segments should have enough differences to require different marketing strategies and tactics to effectively reach the segment. To begin, define groups of customers that may have similar traits. Some examples may be: Male, female or another business Age, income, education, location Past client history Industry, sales volume, number of employees, prime/sub-contractor Factors influencing the purchasing decisions (timing, price, expertise needed) Other people or processes influencing the purchasing decision (spouse, friend, purchasing manager) It is recommended that you give names to the target market segments you identify. This will assist in differentiating the different needs of the segments you identify. Go to Page 21 to complete the Target Market Section.

12 While you likely understand the product/service that you sell better than anyone, customers have a different perspective of the offerings. Take time to consider the product/service offerings from the perspective of the organization as well as the customer. Perception is reality. It is the responsibility of the marketing team to create a perception in the mind of the customer that the product/service offering is the best value among other options. It is important for a business to have credibility within its industry, but the products and services offered are the main reasons customers need you. Try to organize your product or service offerings into logical and meaningful groups that connect with the problems and needs of the chosen customer segment. There should be enough distinction so it is clear what category products or services will belong in, but not so detailed that you have countless categories. Go to Page 22 to complete the Product/Service Overview Section.

13 Each value proposition you identify should cater to a specific customer segment. It represents the reason why that particular customer turns to one company over another. Having a strong and unique value proposition is critical as it distinguishes your company from competitors and illustrates a deep understanding of the problems and needs of the customer. To begin developing your value proposition, give your customers reasons why they should do business with your company. Show the reasons that you are a better choice over your competition. Take time to consider the different needs of a customer that is already purchasing a competing product or service from another business. They likely believe the value proposition of another company. For your marketing and sales pitch to be effective, not only does the customer need to believe your value proposition is right but also that their past beliefs were incorrect. Tell a different story and persuade those listening that your story is more important than the story they currently believe. If your competition is faster, you must be cheaper. If they sell the story of health, you must sell the story of convenience. Go to Page 24 to complete the Value Proposition Section.

14 Your distribution plan details the ways you will connect your customer with your product or service. For example, will customers make purchases through an e-commerce website? Will they buy from distributors or other retailers? Will you provide a bid or estimate for the work that the client will approve? Consider the different ways in which your target market segment will connect with your product or service. Document the process in this section of your marketing plan and include intermediary people or processes between distribution points (examples would include purchasing agents, customs procedures, etc.). Go to Page 25 to complete the Distribution Plan Section.

15 There are many types of marketing practices that can be used to reach customers. The marketing strategy focuses less on the individual marketing functions, instead, it focuses on how the different tactics used work together as a whole. This section of your marketing plan should illustrate how the selected target market will be effectively reached through your overall marketing strategy. Consider components of marketing that include traditional marketing activities like workshops, networking events, marketing materials, and advertising campaigns. You can also consider other marketing components like your online marketing strategy, social media strategy, referral programs, and cooperative marketing agreements. For cooperative marketing agreements, think about other businesses connected to the value stream associated to your product or service. For a photography business, a cooperative marketing agreement may be used to connect with a business that bakes wedding cakes. If a bride-to-be chooses her photographer first, a referral to a baker could be made and vice versa. These non-competing businesses work together in the same value stream. Go to Page 26 to complete the Marketing Strategy Section.

16 Your marketing materials are the collateral you use to promote your business to current and prospective customers. Among others, they include your website, print brochures, business cards and catalogs. Identify which marketing materials you have completed and which you need created or re-done in this section of your plan. As the various marketing materials and promotions are chosen for the target market segment, develop a marketing schedule which includes the estimated costs associated with the marketing efforts. The costs should fall in line with the expected revenues from the target market segment. From Pitch Then Plan by Small Biz U Go to Page 27 to complete the Marketing Materials Section.

17 Often times it is costly and difficult for businesses to grow by adding new customers. Sometimes, it makes sense for companies to spend considerable time marketing to retain their existing customer base. Some common methods used to retain customers are monthly newsletters, social media, and loyalty programs. Other concepts to consider in your retention strategy are how to make existing customers aware of additional products or services that you provide. Identify tactics to convince customers to purchase from you more frequently. Go to Page 28 to complete the Retention Strategy Section.

18 All plans are meaningless unless action takes place as a result of that plan. This is often where plans fall apart. Plans and intentions are meaningless unless someone is willing and able to implement and execute those plans. This section of the plan should outline the actions that are needed to begin and maintain the plan as it was designed. People need to be assigned to projects and held accountable for the responsibilities assigned. It is also important that people are given responsibilities that they have time, energy, skill, talent, training, and resources to meet the expectations. The action plan can also be helpful to separate job functions and create clear spaces where employees are not responsible. Often times, employees are not sure where their job function ends and another s begins. The associated ambiguity of the job function can cause stress and low productivity. Take time to consider that while it is important to create clear and distinct responsibilities in the action plan, back-up and contingency plans should be made. Consider creating back-up responsibilities for essential marketing functions so important tasks can be completed in case of employee absence. For instance, if social media marketing is core to your marketing plan, designate a back-up person who has the required passwords and training to complete the job for short periods of time if needed. Go to Page 29 to complete the Action Plan Section.

19

20

21 Target Market Name:

22

23

24

25 (phone calls, website, conferences, etc.)

26 (phone calls, website, conferences, etc.)

27 (website, brochure, business cards, etc.)

28 (website, brochure, business cards, etc.)

29 Based upon your responses to the previous sections, begin to develop objectives, plans, and actions to address the marketing needs. Assign responsibilities and address any training or resource issues associated with the assignments. You can print and use as many of the Action Plan charts as needed for each customer segment identified.

30 Action Step Responsible Party Deadline Costs Needs (training, resources, etc.) Back-up Person

31 Action Step Responsible Party Deadline Costs Needs (training, resources, etc.) Back-up Person

32 Date Author Modification 9/25/2014 DS Updated formatting and finished reorganization of content 10/2/2014 PH General edits and marketing standards updates 10/2/2014 DS Updated formatting, credits page, and added back cover

33