The marketing and sales section of your business plan is where you explain your strategy for bringing in sales. It is critical because making sales is paramount for business success.
The following example draws heavily from the previous two posts on the subject.
- What Is a Sales Strategy Example for a Business Plan? 6 Tips
- How Do You Set Smart Sales Goals for a New Business? 7 Types
In this example, I’m using a fictional startup auto repair and maintenance shop we’ll call Auto Repair, Inc.
Feel free to copy this example and tweak it for your needs.
Marketing strategy
Auto Repair, Inc.’s (ARI) marketing strategy aims to earn a high return on investment (ROI) on marketing efforts. The marketing strategy is rooted in the marketing theme.
The goal is to carefully consider and continuously review the marketing strategy – making adjustments where necessary. Whatever strategies are implemented, adherence will be enforced.
Target market
As described in more detail in the market analysis section, ARI’s target market can be summarized as follows:
- Households in the same or bordering ZIP Codes as the service facility
- Male
- Age 21 years and over
- At least 1 vehicle available to the household
- Household income ranging from $40,000 to $199,999 per year
Marketing theme
ARI’s marketing will adhere to a consistent message highlighting the benefits of using their auto repair services and their unique selling proposition (USP).
ARI will hold itself to the highest standards of honesty and integrity. The benefit to the customer will be knowing that they aren’t being deceived and not being charged for unnecessary repairs. The intent is to make ARI the first choice for automobile maintenance and repairs in the local market.
Furthermore, by paying for the expedited shipping of parts that aren’t in inventory, ARI will be able to offer its customers timely service. The benefit of expedited shipping is that customers won’t be inconvenienced for any longer than necessary.
It is these two things – honesty, and timeliness, that comprise ARI’s USP. This is what ARI will strive to be known for. It is what will make them unique among their competitors.
Promotional strategy
It is ARI’s intent to focus on three promotional strategies at any given time. The ROI for these promotional strategies will be measured to the extent possible.
Flexibility will be a priority. The promotional strategy that is performing worst will be replaced or adjusted upon quarterly review. This strategy should result in a continually increasing marketing ROI.
All promotional efforts will emphasize the previously mentioned marketing theme.
The following are the initial strategies ARI intends to employ:
Sponsoring local community events
ARI will focus on community events in the local metropolitan area that pertain to automobiles. These events will be sponsored, if possible. A presence will also be maintained at these events where coupons and promotional materials will be handed out.
Social media
ARI will maintain a strong social media presence. In order to increase the likelihood of effectiveness, ARI will outsource this activity to a local marketing firm. Additionally, ARI will employ the use of exclusive codes in social media promotions which will aid in tracking the scope and scale of social media efforts.
Referral program
ARI will implement a referral program that will strongly incentivize current customers to refer new customers. Under this referral program, if new customers state that they were referred by an existing customer, the existing customer will receive a 50% discount on their next oil change.
Technology
ARI will rely heavily on technology in order to leverage and measure the effectiveness of their promotional strategies.
Social media, as mentioned previously, will play an important part of ARI’s marketing strategy. Initially, social media will serve as one of the primary means of promotion.
Additionally, analytical tools will be relied upon to gauge the effectiveness of ARI’s marketing and sales strategies.
Finally, customer relationship management (CRM) software will be critical to maintaining a reliable database of prospects and existing customers. Plus, it will facilitate the collection of relevant information and aid in the overall marketing and sale strategy.
Pricing strategies
Carefully considered pricing is critically important to ARI’s success. Automobile service and repair is, unfortunately, viewed as a commodity. It is ARI’s intent, through an effective marketing strategy, to differentiate themselves from the competition and lessen the commoditization of their services.
ARI’s initial pricing strategies will be as follows:
Bundle pricing
A detailed analysis will be conducted to determine attractive, yet profitable, discounts that can be provided to customers who purchase two or more services concurrently. These dynamic pricing models will be programmed into the CRM software and applied automatically.
Psychological
Psychological pricing will also be used in promotional materials. Where practical, prices will be adjusted to the nearest $.99.
Sales strategy
ARI’s sales strategy revolves around a flexible, practical, and transparent process that makes all employees continuously aware of the company’s progress towards its sales goals.
Process
All of ARI’s employees will be coached on the sales process which revolves around its marketing theme. The marketing theme emphasizes customer service, honesty, and timely service.
This theme will be highlighted in all customer interactions. Particularly through the use of transparency in discussing repairs. Also, through emphasizing the expected time of maintenance and repairs.
Continuous learning
Training will be conducted quarterly for all employees and on an as-needed basis individually.
During training, the tenants of the marketing and sales strategy will be highlighted. Employees will be given the opportunity to ask questions and discuss scenarios. At this time, there will be an opportunity to address any necessary issues, shortcomings, or changes. All of this is done in an effort to reinforce the strategy, and to be flexible as needed.
Sales goals
At ARI’s quarterly sales training, sales goals for the company as a whole will be stated.
Additionally, the sales goals, and progress towards them, will be made clearly visible to all employees throughout the quarter. Every employee will understand the part they play in contributing to those goals.
Sales goals will be tied to the annual strategic plan, and, more specifically, the operating budget.
Sales goals will revolve around total revenue, and be broken down into monthly, weekly, and daily milestones.
Sales forecasts
Sales forecasts are covered in detail in the financial projections section of the business plan.