1. Marketing and Planning for an Online Business

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

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

4. 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

5. 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

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

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

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

9. Executive Summary

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

11. Business Description

12. 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!

13. Market Place

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

15. 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

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

17. Sales & Marketing

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

19. 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

20. 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.

21. 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.

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

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

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

25. 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

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

27. 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

28. 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.

29. Management

30. 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

31. Financial Information

32. 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

33. 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

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

35. 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

36. 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

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

43. 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