A great product is nothing if the customer is unaware of its existence.
In order to portray your vision of building a great company, you need to show how you would get your product to the market. Who are your customers and how would you make them aware of your offerings, enticing them to buy.
In this section of the business plan, the entrepreneur should spell out a much more detailed marketing strategy that will the company reach out to its target audience. Failure to prepare a good marketing strategy will hinder the entrepreneur in pinpointing exactly how the customers can be won, particularly in a market already crowded with many players.
After identifying the target customers/market, it is crucial to show how you will be able to reach out to them(which medium). Unique tactics to capture market share through better valued propositions or greater differentiation, which will make the product or service being offered more attractive than those currently offered by competitors, should be outlined.
One of the weakest parts of most plans is the marketing strategy, due to the entrepreneur’s failure to fully understand the market and the industry dynamics.
The usual things covered in this section are:
a) The market segmentation, the total available market (TAM), and the market share the company intends to capture.
b) The plans and tactics to capture the market share or create new markets.
c) The value proposition and the differentiation.
d) The defensive strategies to keep competitors away.
e) The offensive strategies to win market share from competitors.
f) How customers will be won and kept – the important customer service factors once customers have been engaged.
g) The cost of customer acquisition – the advertising and promotion strategy, the structure of the marketing and sales organisation, etc .
In summary, the plan should show how the company intends to reach out to potential customers and convince them to enter a partnership with the company, or in the simplest outcome, to induce the customer to want to buy the products or services the company offers.