Marketing and Planning for an Online Business

Learning Objectives What is a business & marketing plan? How to start a plan? How to describe the business How to analyze the market

Major Information Product or Service Market Sales & Marketing Staff Needed Financial Considerations

Potential Readers Bankers Angels Venture capitalists conventional money lenders Angels wealthy individuals providing seed money Venture capitalists firms willing to assume higher risk for equity in stock

Potential Readers Strategic Partners Potential Employees Businesses you might want for alliances Potential Employees Talented people you wish to attract and hire Current Employees People working with you who will find motivation in plan

Business Plan Structure Executive summary Business description Marketplace Sales and marketing Management Financial information

Cover Page Name of business Report’s Name Owners Name When the plan is prepared

Table of Contents Tool – automated table of contents Update often as complete plan

Executive Summary

Executive Summary Summary of all important concepts from each section Should be written last

Business Description

Business Description Mission statement Product or service definition Emphasize why product/service is different Describe niche in market Research competition thoroughly for strengths and weaknesses Be enthusiastic, positive and REALISTIC!

Market Place

Potential Customers Location of potential customer Give information Sales Getting product or service to customers Marketing Educating consumer about product or service

Target Customers Determine demographics of customers age, income, ethnicity, education Customer location Marketing psychology humor, hard-sell, jokes Describe buying habits of customers Know what customers want

Competitors List and describe competitors identify the company’s strength and weakness in comparison to them

Sales & Marketing

Sales and Marketing Describe how to find potential customers and convert to actual customers Outline advertising and promotion campaign Estimate budget for each

Banner Ads Full banner Half banner Square button A banner ad is a small rectangular object on a Web page that displays a stationary or moving graphic and includes a hyperlink to the advertiser’s Web site. The most common sizes of banner ads are: Full banner Half banner Square button

Banner Ad Placement A banner exchange network coordinates ad-sharing so that other sites run your ad while your site runs other exchange members’ ads. The second way is to find Web sites that appeal to one of the company’s market segments and then pay them to carry the ads. A third way is to use a banner advertising network.

Pop-up Ad A pop-up ad is an ad that appears in its own window when the user opens or closes a Web page. Another type of pop-up ad is called the pop-behind ad. The window is parked behind the user browser waiting to appear when the browser is closed.

E-Mail Marketing send e-mail messages to their customers and potential customers about new or existing products. Unsolicited e-mail is often considered to be Spam - some companies have faced legal action after sending out mass e-mailings. Sending e-mail messages to Web site visitors who have expressly requested the e-mail messages

Marketing Mix Goods and services available to customers What customers are charged Messages sent to customers How products and services are distributed

Product Life Cycle Can product sustain growth and mature? Long enough to recoup investments?

Product Life Cycle Other products/services in pipeline to augment or replace current line? Pipeline metaphor for process to bring product from idea to reality

Pricing the Product/Service Consider all costs (marketing mix) Price guideline Low enough to entice Reasonable for quality Enable coverage of expenses Provide profit

Promoting the Business Direct effect on sales Levels of communication advertising, public relations, sales efforts and customer outreach Three basic objectives inform: what and why necessary persuade: entice and show what to gain remind: reinforce existence

Create a Business Website Enabling Software/Enabler Company that builds infrastructure for e-commerce Five primary types of enabling software Content management Product configuration Transaction platforms Supply-chain management Data mining tracks Content management assembles and categorizes, product information and is primarily used by catalog e-businesses. Product configuration software makes it possible to create build-to-order products within a website and is often used by computer hardware manufacturers. Transaction platforms are used to match buyers and sellers bids in Internet marketplaces and are used in online auctions. Supply-chain management allows inventories to be controlled, aids in monitoring fulfillment systems, and is utilized by large-scale manufacturers. Data mining tracks, collects and analyzes the results of consumer behavior, such as questionnaires and purchasing selections. This technique is often used on online consumer retailers.

Management

Management Outline who owns and controls company Detailed with names, responsibilities, and experience List personnel experiences in reverse chronological order Stress strengths and expertise Determine support services Professional advisors Include short description of expertise and benefits

Financial Information

Financial Information Assess potential risks Outline areas of risk and minimization methods Provide/analyze cash flow statement Provide/analyze balance sheet Provide/analyze income statement Estimate funding needs

Cash Flow Statement Details where money comes from and how used Spreadsheet form Realistic look at expenditures and revenues Take into account seasonal shifts Show monthly figures

Balance Sheet Calculates net worth of business Generally created annually Summarizes assets and liabilities Offers analysis of important events

Income Statement Details revenue, expenses, capital, and costs of goods Reflects amount of money business makes or loses Summarizes revenues and expenses Does NOT indicate when transactions occurred

Bottom Line: How much money? The estimate cost with a summary of potential profit Outline How much money business needs Type of funding you want and when Exit strategy Indicates how investors can recoup if business fails

Category Executive Summary Business Description Market Place Sales and Marketing Management Financial Information

Activities Decide on a type of business (product or service). Develop a working business & marketing plan (working plan means you will work on it and revise it throughout the course). Use Word and its functions to create and keep track of your business plan and any changes or additions you make during the course. This plan will become part of your project