How to Develop a Marketing Plan

Any potential lender or investor will want to see a marketing plan for your new product before making a commitment. Developing a marketing plan also gives you the opportunity to organize your thoughts and discover any trouble spots in your strategy.

Instructions

Difficulty: Moderately challenging

Things You’ll Need:

• Marketing Book
• Plan-idea Books
• Computers
• Business Plan Software
• Database Software
• Spreadsheet Softwares

1. Describe your product in detail. What are its most significant features? Is the product still in development, or is it ready to roll?
2. Identify your target market. Who will this product appeal to most? Include all market research, including historical figures for sales of your type of product.
3. Size up the competition. Who are your major competitors? How does your product compare to theirs? How strong of a foothold do they have in the market? Look at the methods they use to market their products.
4. Detail your marketing strategy. How will you advertise and market your product? Which features of the product will you focus on? What will be the product's price and why?
5. Describe your operations. Include your plan for customer service, proposed credit and sales terms, qualifications and achievements of your management team, and the physical location of your business.
6. Prepare financial statements based on projections of sales, operating costs and expenses. Include cash flow projections, profit and loss reports and income statements for at least three years.

Tips & Warnings

• Divide the plan into sections based on the above topics. Begin with a summary that gives an overall picture of your product and its winning features.
• In each section of the plan, always try to show how your product and strategy beats the competition.
• Marketing plans can be just a few pages or as lengthy as novels. But keep in mind that the more thorough you are in supporting your plan with research, detailed information and financial projections, the more likely you will be to gain support from investors or lenders.
• Have an accountant review your financial projections for accuracy.
• Have the plan copy edited and proofread by a reliable source. Sometimes, too much "jargon" can turn off prospective lenders.