Marketing Strategies Business Plan
It is important to understand that the total feasible market is the portion of the market that can be captured provided every condition within the environment is perfect and there is very little competition. There are other factors that will affect the share of the feasible market a business can reasonably obtain.These factors are usually tied to the structure of the industry, the impact of competition, strategies for market penetration and continued growth, and the amount of capital the business is willing to spend in order to increase its market share.Marketing strategies are the result of a meticulous market analysis.A market analysis forces the entrepreneur to become familiar with all aspects of the market so that the target market can be defined and the company can be positioned in order to garner its share of sales.For a business plan, you must be able to estimate market share for the time period the plan will cover.In order to project market share over the time frame of the business plan, you will need to consider two factors:1.Conversion of users from the total feasible market.This is based on a sales cycle similar to a product life cycle where you have five distinct stages: early pioneer users, early users, early majority users, late majority users, and late users.
The strategy used to position a product is usually a result of an analysis of your customers and competition. What specific attributes does your product have that your competitors' don't? A positioning statement for a business plan doesn't have to be long or elaborate.
Begin your market analysis by defining the market in terms of size, structure, growth prospects, trends, and sales potential.
The total aggregate sales of your competitors will provide you with a fairly accurate estimate of the total potential market.
Though pricing strategy and computations can be complex, the basic rules of pricing are straightforward:1. The best and most effective way of lowering your sales prices is to lower costs.3.
Your prices must reflect the dynamics of cost, demand, changes in the market, and response to your competition.4. Do not price against a competitive operation alone. Product utility, longevity, maintenance, and end use must be judged continually, and target prices adjusted accordingly.6.