Identify Your Market
You must determine who you're trying to sell your product or service to. Analyze the gender and age group of your target demographic, and which region has people who are more likely to purchase your product or service. For example, if you're selling purses, your primary demographic will be women ages 16 and up.
Marketing and Advertising Strategy
You must have a plan for introducing the product or service to consumers. You may decide print advertising is a good way to sell your product. You can also choose TV commercials, online advertising and social media to market your products. Your marketing strategy should include an analysis of which advertising media provide the greatest return on your advertising dollars.
Your pricing strategy defines how much you plan to charge for your product or service. It comes down to knowing how much your target market is willing to pay. The pricing strategy is further dependent on the quality of your product or service and on your market share.
Know Your Competition
You must be aware of your competition. You should know competitors' prices, policies and market share. This knowledge provides an understanding of where your competition stands in your target market, and most important, how your business is viewed by consumers. Knowing your competition can provide your business with innovative ways to increase sales and market share.
This section of the business plan helps you ensure that your advertising dollars are spent wisely. You should be able to measure the effectiveness of your advertising investment. You'll need to create a marketing budget. Your marketing budget must clearly indicate how much you plan to spend and how you're going to market your product or service.