Chapter 11 marketing building profitable customer connections

BUSA 201

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Team Member Names

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Table of Contents

Table of Contents ............................................................................................................................ 1

Executive Summary ........................................................................................................................ 2

Components of Executive Summary ........................................................................................... 3

Business Description and Vision .................................................................................................... 4

Components of Business Description and Vision ....................................................................... 4

Answers the Following Questions: ............................................................................................. 4

Relevant Course Materials .......................................................................................................... 4

Definition of Market ....................................................................................................................... 5

Components of Definition of Market .......................................................................................... 5

Answers the Following Questions: ............................................................................................. 5

Relevant Course Materials .......................................................................................................... 5

Description of Products and Services ............................................................................................. 6

Components of Description of Products and Services ................................................................ 6

Answers the Following Questions: ............................................................................................. 6

Relevant Course Materials .......................................................................................................... 6

Organization and Management ....................................................................................................... 7

Components of Organization and Management .......................................................................... 7

Answers the Following Questions: ............................................................................................. 7

Relevant Course Materials .......................................................................................................... 7

Marketing and Sales Strategy ......................................................................................................... 8

Components of Marketing and Sales Strategy ............................................................................ 8

Answers the Following Questions: ............................................................................................. 8

Relevant Course Materials .......................................................................................................... 8

Financial Management .................................................................................................................... 9

Components of Description of Products and Services ................................................................ 9

Answers the Following Questions: ............................................................................................. 9

Relevant Course Materials .......................................................................................................... 9

Appendix ....................................................................................................................................... 10

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Business Plan Format

Please use Times New Roman 12-point type, or another easy to read font (e.g., Arial or

Calibri) and the 8 ½ X 11 page setting. The document should be double spaced throughout. Place

page numbers in the lower-right corner. Leave top and side margins of one inch.

Bullets and numbered lists can be used, but should be used sparingly. The majority of the

text should be in sentences and paragraphs.

Headers and Sections

Business plans can use up to three levels of headings. Use bold-faced for all three. Main

headings (all capital letters; centered) are first. Second-level headings (bolded and flush left) are

next. Third-level headings (first letter of first word capitalized; indented; italicized, and run into

paragraph) are next. Don’t skip sections: no second-level headings before you use a first-level

heading, for instance. Use second- and third-level headings in sets of two or more. Example:

DESCRIPTION OF MARKET

Business Outlook

Target Market

Primary market. Our primary market is …

Secondary market. Our secondary market is …

General Guidance

Your team should consult BUSN Chapter 5 – Business Communication for items such as

the avoidance of slang, bias; the use of active (rather than passive) voice; and writing high-

impact messages.

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EXECUTIVE SUMMARY

Components of Executive Summary

• This is the most important section of the business plan, and is quite frankly all a lot of people will read. If this section doesn’t grab the reader’s attention, they are not likely to

see all the hard work you put into the remainder of the document.

• I of course, will read everything! • This section should be written last. • It should provide an enthusiastic snapshot of your company, explaining who you are,

what you do, and why.

• Should be no more than two (2) pages

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BUSINESS DESCRIPTION AND VISION

Components of Business Description and Vision

• Mission statement. • Company vision or narrative about company growth and potential. • Business goals and objectives. • A brief history of the organization and an overview of the industry. • List of key company principles.

Answers the Following Questions:

• Who the business is and what does it stand for? • What benefits this business would provide to the community? • What is your perception of the company’s growth and potential? • What are the specific goals and objectives of the business? • What is the background of this company and the industry?

Relevant Course Materials

• BUSN – Chapter 14 – Planning: Figuring Out Where to Go and How to Get There (pp. 232 – 236)

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DEFINITION OF MARKET

Components of Definition of Market

• Describe your business industry and outlook. • Define the critical needs of your perceived or existing market. • Identify your target market and its market segmentation. • Provide a general profile of your targeted clients. • Describe what share of the market you anticipate.

Answers the Following Questions:

• What customer needs are you fulfilling? • What industry do you operate in? • What is the intended scope of your market? • Who are your targeted customers?

Relevant Course Materials

• BUSN – Chapter 11 – Marketing Strategy: Where Are You Going, and How will You Get There (pp. 174 – 180)

• BUSN – Chapter 14 – Planning: Figuring Out Where to Go and How to Get There (pp. 232 – 236). In particular a SWOT analysis would be useful here.

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DESCRIPTION OF PRODUCTS AND SERVICES

Components of Description of Products and Services

• Identify and describe all products and services that your business will provide. • Identify and explain the pricing strategy. • Describe how your products and services are competitive. • Reference applicable graphics and brochures (which will most likely be presented in full

in the appendix).

Answers the Following Questions:

• Why are you in business? • What are your products and services? • How much will they sell for? • How and why are your products and / or services unique from the competition? • Why will your business be competitive?

Relevant Course Materials

• BUSN – Chapter 11 – Building Profitable Customer Connections (whole chapter) • BUSN – Chapter 12 – Product and Promotion. In particular the sections of Product: It’s

Probably More Than You Thought (pp. 186 – 199)

• BUSN – Chapter 13 – Distribution and Pricing. In particular the sections on Pricing: pp. 220 – 225).

• BUSN – Chapter 17 – Operations Management. In particular the sections on Process Selection and Facility Layout (pp. 279 – 280); Inventory Control (p. 280); and Quality

(pp. 286 – 289).

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ORGANIZATION AND MANAGEMENT

Components of Organization and Management

• Description of how the company is organized. • Legal form of ownership. • Explanation of how things get done. • Required licenses and permits. • Biography description of key company managers.

Answers the Following Questions:

• What is the legal form for your business? • Who are the leaders of your business and what are their roles? • How do operations flow within the firm?

Relevant Course Materials

• BUSN – Chapter 6 – Business Formation: Choosing the Form the Fits (whole chapter) • BUSN – Chapter 14 – Management, Motivation, and Leadership. In particular the

sections of Organizing: Fitting Together the Puzzle Pieces (pp. 236 – 240)

• BUSN – Chapter 15 – Human Resource Management (whole chapter). But particular attentions to sections on Human Resource Planning (pp. 245 – 254).

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MARKETING AND SALES STRATEGY

Components of Marketing and Sales Strategy

• Product(s) – specify the actual products and how they relate to the end-user’s needs and wants.

• Promotion – Specify how you will advertise, promote, and publicize your product, brand, company.

• Pricing – Setting the price for your products including promotional sales, discounts, bulk sales, etc…

• Placement (Distribution) – Addresses how you will get your product to the end-user. How will it be sold or distributed.

* Note: In the previous section you should be talking in more strategic terms or big picture

terms (i.e., what is the pricing strategy). In this section you should actually be discussing the

details. What are your products, how much will they sell for, how will you promote them,

and how will you distribute them.

Answers the Following Questions:

• Who is your market and how you will reach it? • How will your company apply the 4Ps to sell your products competitively?

Relevant Course Materials

• BUSN – Chapter 11 – Building Profitable Customer Connections (whole chapter) • BUSN – Chapter 12 – Product and Promotion (whole chapter). • BUSN – Chapter 13 – Distribution and Pricing (whole chapter).

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FINANCIAL MANAGEMENT

Components of Description of Products and Services

• Estimates of start-up costs. • Planned or anticipated source(s) of funding. • Projected balance sheet, income statement, cash flows for first 2 years of operation. • Financial ratios (e.g., current, ROE, debt-to-equity, etc…). • Breakeven analysis.

Answers the Following Questions:

• What is your expected financial capacity? • What are your expenses, revenues, and profits? • How much money can you expect to make?

Relevant Course Materials

• BUSN – Chapter 7 – Small Business and Entrepreneurship (pp. 106 – 108) • BUSN – Chapter 8 – Accounting: Decision Making by the Numbers (whole chapter) • BUSN – Chapter 9 – Finance: Acquiring and Using Funds to Maximize Value (whole

chapter).

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APPENDIX