Town B Although Town B looks more competitive 10 competitors vs. The definition of a potential customer will depend on your type of business. For example if you are opening a small shop selling office furniture then your market will be all the companies within your delivery range. You would however factor it when assessing the value of the market.
As you might suspect, the structure of the marketing section varies from business to business and from entrepreneur to entrepreneur. In our discussion, however, we will introduce you to a format that is most often used by business plan writers.
This is not to say that you can not deviate away from the suggested structure, because you can. Below separately discusses each component; beginning with The Market Description.
If there are any major barriers or obstacles that will effect your entry in to the industry, they too should be discussed. If you have not yet identified, in your business plan, the industry's Key Success Factor's or Driving Forces, be sure to address them under your Market Description.
Many business owners and aspiring entrepreneurs experience difficulty when searching for Industry information. Much of the industry information can be found in trade publications, business magazines, from marketing firms, through the chamber of commerce, from the Small Business Administration, through Business Service Centers, over the Internet, from suppliers, and so on Knowing the characteristics, attributes, behaviors, and traits of your customers is extremely important to the success of your business.
Experts suggest that three segmentation variables may be used to help entrepreneurs define or predict who their customers will be, namely; Demographics, Geographics, and Phychographics.
Determine which variables relate to your business and potential customers. Geographic Segmentation is used to identify specific regions, city sizes, and densities.
What regions will your customer live in? What is the City Size of these regions and how many people are in your target market? Will you focus your marketing efforts only in urban areas, suburban areas or rural areas?
Below depicts examples of Geographic Segmentation Variables? Demographic Segmentation Variables are most often used to develop a customer profile. Demographic Segmentation divides the market into groups based upon variables such as age, sex, family size, income, education and so on.
Below depicts examples of Demographic Segmentation Variables. What groups are most likely to buy your product? What sex will more readily purchase your product?
If sex a major issue? Is family size a major issue in the purchase of your product? If so, what is the ideal family size? Does the family structure have an effect on whether your product is purchased? What Income level will most of your customers fall into?
Is income a major issue? What occupation will most of your customers hold? Is their occupation a major issue?
What education level will most of your customers have? Is education an important factor? Does the religion of a customer determine whether or not they purchase your product?
Does the race of a customer determine whether or not they purchase your product? Does the nationality of a customer determine whether or not they purchase your product?
In Psychographic Segmentation, customers are divided into groups based on their social class, life style and personality.
Below depicts examples of Psychographic Segmentation Variables. Does the social class of a customer determine whether or not they buy your product? If so, What social class will most likely purchase your product?
Does the life style of a consumer determine whether or not they purchase your product? Does the personality of a consumer determine whether or not they purchase your product? It is imperative for you to identify and discuss each major player currently operating within the industry.
What products do your competitors sell? How do competitor products compare to yours?In writing up your market analysis, you’ll get to demonstrate the knowledge you’ve gained about the industry, the target market you’re planning to sell to, your competition, and how you plan to make yourself stand out.
A market analysis is just that: a look at what the relevant business environment is .
The market analysis section of your business plan comes after the products and services section and should provide a detailed overview of the industry you intend to sell your product or service in, including statistics to support your claims. Oct 02, · The sales and marketing section of the standard business plan includes three parts—the market analysis, the marketing plan, and the sales plan.
Keep it short and simple—just big enough to cover your actual business need/5(12). Before you start to market your business, think about how you want your marketing to reflect on your business and your products and services. Marketing is the face of your to potential customers.
The purpose of the marketing section of the business plan is to convince readers that your business or planned venture provides a great opportunity.
As you might suspect, the structure of the marketing section varies from business to business and from entrepreneur to entrepreneur. Writing a Business Plan Georgia State SBDC 2 Business Plan Outline Cover Sheet: Business Name, Address, Phone Number, Principals B.
Products/Services C. Market Analysis D. Marketing Plan E. Location F. Competition G. Management and Operations H. Personnel I. Application and Effect of Loan or Investment Section Two: Financial Data.