Create the case for why your product deserves to have a sustainable business built around it. The key word here is “reasonable.” You can charge any price you want to, but for every product or service, there’s a limit to how much the consumer is willing to pay.Remember, even if you’re trying to be the lowest-cost provider, give a higher perceived value to your ideal customer to stand apart from the competition.For example, once you figure out where you’ll be selling your product – online, at a retail outlet, door-to-door – determine the type of sales team you’ll need and how you’ll compensate them.
Your unique value proposition is what market need you’re planning to solve.
Think of it as your secret ingredient – your “special sauce.” This may be a combination of factors including customer service, technology, a twist on a product or service, etc. This should give you an indication of what customers are willing to spend. Until you get your product out there, it’s hard to know for sure how much your added benefit is worth in the customer’s mind.
After you document the marketing plan activities, calculate the costs that you expect to incur.
For example, if referrals are part of the strategy, then calculate how much you’re willing to pay a referral partner for each new customer they bring your way. Let’s say, for example, you expect a referral partner to refer 100 clients to you, and each of those referred clients spends $10, giving you a total of $1,000.
You’re going to need customers to buy your product. There are many free or low-cost strategies such as referrals, word-of-mouth, public relations, and marketing partners to help cross-promote or sell your product, so I would avoid any expensive print, TV or radio advertising campaigns at these early stages. Before you start actually executing on your marketing strategy, however, think about “branding.” This is the look and feel of your business, what customers experience when interacting with it, from the fonts, colors and text of the website and your business cards to the overall image you portray in the product itself.
This branding will be reflected in the execution of your marketing strategy.
You’ll need to know this number, especially when you draft your financial plan.
You need to make sure that you keep existing customers happy.
This guide outlines the key areas to look at and what to include in an effective marketing plan.
Your marketing plan should start with an executive summary.