CHAPTER 10
Plan Section 5: Marketing A
MAN SELLING A BLIND HORSE ALWAYS PRAISES ITS
FEET.
– GERMAN
PROVERB
by many to be the most important part of a business plan. Experience has demonstrated that numerous businesses with great products have failed because marketing and distribution were inadequate. Marketing strategy is integrally connected with topics already covered in other chapters, notably production, environmental analysis and entry strategies. In fact, the threshold issue is to identify markets that are best suited for adaptation of existing products. The relevant factors include demographic indicators, income and education levels, technical capabilities of the marketplace and logistical problems associated with getting the product to the end-users. These factors can be discussed in the marketing section of the business plan or as part of the general analysis of global business opportunities that are available to the company. After selection of the geographic markets and determination of the appropriate product strategy for those markets, the plan should deal with other marketing issues on a country-by-country or market-by-market basis. Don’t make the mistake of assuming that the same strategies will work in different countries. This holds true even when countries are in close proximity and share similar demographic characteristics (e.g., Switzerland, Austria, Germany). Analyze each market separately, even if a decision is ultimately made to combine marketing efforts for several markets (e.g., one distributor for two or more countries in the same region and/or a promotional campaign covering several linguistically comparable countries). When the business plan is prepared in connection with obtaining financing for the entire business, and not merely for expansion into foreign markets, the marketing section should analyze all existing markets. This would include the primary domestic market for the company.
MARKETING IS CONSIDERED
Customer Analysis Even if the company’s major customer relationships have already been described early in the business plan, the marketing section should contain more detailed information and analysis specifically related to the following: ■ ■ ■ ■
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The requirements and needs of the customers The impact that selection and use of the company’s products will have on the customer’s business or personal activities The company’s strategy for customer relationship management The methods that the company has used, and proposes to use, for market research and to continuously monitor customer needs
