GRAND RAPIDS – Your Marketing and Sales Plan needs to focus on the key characteristics of your target customers, their demographics and buying behavior, and their attitudes about your product.

Why will a customer buy from you and not a competitor? Set realistic sales goals that recognize the size of your industry, the size of your target market, how strong your competitors may be, and your ability to produce the product.

Understanding your customers will also help you determine your sales force and distribution plans. Does your product require a direct sales approach? Will customers feel comfortable ordering online? Do customers need to see the product before purchasing? How many contacts will they need before agreeing to purchase?

Once you know your sales targets, you can plan your communications strategy around how many prospects you need to reach. Customers need to be aware of your company, and they have to want your product, have the ability to purchase it, and be satisfied with their purchase so that they will purchase again and also spread your name to others.

Your advertising needs to include the media (such as online media like MItechnews.Com, print ads, radio, direct mail, billboards, events, publicity) that best reach your target market. And you will need to get the word out on a regular basis, so draft your communications plan onto a calendar, with regular communications activities throughout the year.

Often, partnering with a company that provides a complementary product can open the door to a broad base of potential customers. (For example, a Subway Shop may open next to a gas station.)

Pricing is an important part of your marketing mix. Estimate sales at various price levels. Investigate your target customers? expectations about price, in addition to what your costs are.

You may want to highlight the following elements within this section:

Current customer profile (if applicable) Potential customers feature/benefit analysis (what are customers looking for?)

Potential teaming partners – who are they, why selected (if appropriate)

Pricing – price points, margins and levels of profitability at various levels of sales

Sales plan – sales force analysis, sales expectations for sale people, distribution channels, margins for intermediaries, customer service and warranties

Advertising – year 1 detailed marketing communications plan including implementation plan

Year 2-5 general plan, marketing budget/costs, and assumptions

The Michigan Small Business Development Center provides counsel, training, research, and advocacy for Michigan?s new business ventures, existing small businesses, expanding new businesses, new technology companies, and innovators. The MI-SBDC is housed at the Grand Valley State University Seidman School of Business in Grand Rapids, Michigan. As host of the MI-SBDC State Headquarters, the Seidman School of Business oversees the 12 region MI-SBDC network and over 60 satellite and affiliate offices. Entrepreneurs and small business owners may access the services of their nearest MI-SBDC by calling (616) 336.7480 or clicking on MI-SBDC.Org

This columns was written by Jill Wallace, Marketing & Training Manager ? Michigan Small Business Development Center State Headquarters