Expanded Outline Continued

Note for Users: This project and its content were completed in 1997. At this time, there are no existing plans to update the materials.

11. Marketing Strategy:

A. Pricing Strategy

- How do you calculate the price of each product?
- What factors were considered in setting prices?
- Which product sales are very sensitive to price changes?
- Which products will attract customers at sale prices?
- How important is pricing in the overall marketing strategy?
- What are the discount policies?
- What pricing policy or advertising will be used for slow-moving inventory?

B. Promotional Strategy

- What advertising media will be used?
- What days of the week will you use various media?
- What media will be used during various seasons of the year?
- How will the merchandise be displayed?

C. Customer Service

- What special customer services will you offer?
- What types of payment options will you offer? How will you handle credit sales?

* Extend your own credit?
* Accept major credit cards?

- What will be your return policy? (VEM, pg. 41)

12. The Market: Explain, in general terms, who needs your product or service, and how you plan to reach them.

A. Who exactly is your market?

- Describe age, gender, lifestyles, income level, etc. (SBA)
- What distance are customers willing to travel to buy from you?
- What distance are you willing to travel to sell to your customers?
- How many of the customers you described reside within the geographical limits you have determined? Pick a    mile radius for the area served.
- Determine the number of potential customers who will purchase from your business by multiplying the number    of potential customers that will purchase the products or services you offer (either from you or a competitor)    by, the percentage of those who do make a purchase that will choose your business. (VEM, pg. 35)

B. What is the present size and growth potential of the market? (SBA)

- What industry trade associations exist?
- What has been the industry's growth?
- How well do small businesses compete in the industry?
- How does your business fit into the industry? (VEM, pg. 21)

C. What percentage of the market will you have now and in the future?

D. How will you attract and keep your segment of the market?

- Product quality
- Price
- Public relations
- Personal selling

E. What features or services will you offer that will justify your price?

13. Competition: Briefly describe your competition and tell how their operations are similar and dissimilar to yours. What is your unique selling proposition and how will you use it to control your market share? (SBA)

A. Identify your three major competitors.

B. Compare your business with the competition.

C. List the changes that will improve your competitive position. (VEM, pg. 39)

Two forms for assessing competition can be found in Appendix B.

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