Elements of Success

Your marketing plan should be a clear, concise, and well thought out document that guides you through your marketing program. It should focus on the objective of your marketing and how you intend to accomplish that objective. Whether your company provides products or services, your marketing plan is essential to your success

Create Your Marketing Plan

Your marketing plan should be a clear, concise, and well thought out document that guides you through your marketing program. It should focus on the objective of your marketing and how you intend to accomplish that objective. Whether your company provides products or services, your marketing plan is essential to your success.

The six major elements to creating a successful marketing plan are listed below. You may only need only a sentence or two per section... or you might want to break each down into a few succinct bullet points.

1. The Purpose
2. Your Target Customer
3. The Benefits of Your Product or Service
4. Your Positioning
5. Your Marketing Tactics
6. Your Marketing Budget

As you go through each section, keep the following tips and hints in mind:

Keep your marketing plan simple.

Many small business owners get so involved in details that they lose sight of their goals. By keeping your plan simple, you will create a clear roadmap that focuses on what you need to accomplish.

Write your marketing plan down (as opposed to thinking about it and keeping it in your head).

It is important to have a document that will remind you what you are trying to accomplish.

Be direct and be clear.

If you're not sure, ask a friend, relative, colleague or employee to read your plan. They should immediately grasp your goals.

Don't build in too much flexibility.

You may be tempted to plan for various market contingencies. If your market changes that quickly, then you should incorporate that into your plan. But create a strategy you can keep to - that's the purpose of having a plan in the first place.

Review your marketing plan often - quarterly or even monthly.

That doesn't mean you have to revise it every month. But take some time to evaluate it and make sure you're on track.

Finally....never stop marketing!

Once you have your plan in place, you need to take action. Commit yourself to your marketing program. Don't let yourself stagnate. Keep at it, and you'll be giving your business the opportunity to flourish.

he Purpose

The general purpose of any marketing plan is to maximize your business' profits. But what does that mean for your business? Spell it out here. If you're a children's clothing designer, your purpose might be "To sell the greatest number of infant dresses at the lowest cost per dress". If you're a self-employed computer consultant who helps companies utilize the Internet, your purpose might be "To book my time completely by getting the greatest number of clients at the lowest possible cost."

Some things to think about when you're writing this section:

• Your marketing plan's purpose may seem obvious to you. But by putting it up front and in writing, you will stay focused on your intent.
• Many businesses think their marketing plan is about increased exposure, getting press, writing cool ads, and the like. These are not purposes, they are tactics. The end result of any of these is to increase your profits.
• If you're having trouble answering "what is the purpose of your marketing plan," you might want to think "why are you marketing?" Your answers to these questions should be the same.

Your Target Customers

In order to reach your target customers, you've got to know who they are. Look for common identifiable characteristics. Are they companies or individuals? Do they fall into a certain age, geographic or income demographic? How do they buy your type of products or services? How often do they buy them? What features do they look for?

Don't use general terms - instead of "people who want to buy a dress for an infant" use something like "grandparents and other gift givers who are looking for a special outfit for a newborn."

Be careful not to spread yourself too thin. Not everyone is your target customer. Don't sell to everyone - segment your markets. If you are selling home heating oil in a specific region, you could target your marketing at every household in that region. But would that be an efficient use of your time and money? Probably not. You'd want to narrow your focus. Is your target customer existing users of home heating oil or is it people who use gas heat but are thinking of converting to oil? Or are you looking for people who've just bought a house and haven't decided who they will buy their oil from? Are you selling to residential customers or to local businesses?

Some other things to look out for:

• Be sure your target market is large enough to support your sales objectives.
• Don't guess who your target market is. When possible, quantify by numbers through research. Call trade associations; go to your research library and look up market data; use demographic information from the census; etc.
• The purchaser of your product or service may not necessarily be the user.
• If you're selling business-to-business, remember that your product or service is bought by a person, not by a company.

The Benefits of Your Product or Service

You don't market a product, and you don't market a service. You market benefits. Describe them here. Think in terms of the distinctive features of your product or service that set you apart from your competition. This is also known as your Unique Selling Proposition, or USP. It could be the design of your product, your knowledge of the market, a new technology, a special service, a singular talent, or something else. For example, the USP of a Sony television is the superior picture of the Trinitron tube. Burger King's USP is that its burgers are flame broiled.

Think about these points when you're developing your USP:

• You might want to consider your weaknesses as well as your strengths. Once you know what they are, you can use marketing to maximize your strengths and minimize your weaknesses.
• Also consider your competitors' strengths and weaknesses - so you can minimize their strengths and take advantage of their weaknesses.

Your Positioning

Position is your identity in the marketplace; how you want the market and your competitors to view your product or service. Your positioning will have an impact on every segment of your marketing.

Base your positioning on the benefits you offer, who your customers are, and how your competitors are positioned. Keep your positioning statement highly focused and succinct. For example, Acme Movers could be positioned as "the most dependable moving company in the Tri-City region." Two architects who specialize in kitchens could have totally different positions - one could be "the most innovative designer of modern kitchen environments," while the other could be "the most cost-effective designer of traditional kitchens." Whose kitchen do you think you'd see in Metropolitan Home and whose do you think is targeted at the average buyer?

Some positioning tips:

• When creating your positioning statement, think in terms of extremes - the "most," the "best," the "fastest," the "cheapest," the "only," etc.
• If there's not much difference between you and your competitors, look for a meaningful customer want or need that has not yet been filled.
• Don't position directly against a competitor, if possible. If you do, you may be caught without a position should your customer change its focus. Instead, focus more on your product's or service's strengths.
• Be very careful if you position solely on price, since that position can be very easily pre-empted.
• Don't position just on image. You need to back up your positioning with substance. If you can't, it's a recipe for disaster.

Your Marketing Tactics

Your Marketing Budget

Briefly discuss how much money you intend to invest in marketing as percentage of your projected gross sales. You can break it down on a monthly, quarterly or annual basis. Ideally, you will have already determined the amount of your marketing budget when you created your business' various financial statements. The figure you choose will depend greatly on your type of business and your goals. It can be anywhere from 5% to 50% or more. If you're a heavily marketing driven venture - a company selling products through direct mail and direct response advertising, for instance - then you will likely allocate more than a company that will build its client base through networking and relationship marketing.

Here are a couple of other things to consider when you're creating your budget:

• By putting down a figure, you are committing yourself to supporting your marketing program. You will know how much you can afford to spend on different forms of advertising, PR, and other tactics.
• Be sure to keep track of how effective each marketing tactic is. You want to get the maximum return on your marketing investments.

Effective Competitive Analysis

For your small business to succeed, you need to know almost as much about your competitors as you do about your own company and customers. Unfortunately, many small business owners make the mistake of waiting until a competitor has opened up shop across the street and is cutting into profits to find out who and what they're up against.

A competitive analysis allows you to identify your competitors and evaluate their respective strengths and weaknesses. By knowing the actions of your competitors, you will have a better understanding of what products or services you should offer; how you can market them effectively; and how you can position your business.

Competitive analysis is an ongoing process. You should always be gathering information about your competitors. Look at their Web sites. Read their product literature and brochures. Get your hands on their products. See how they present themselves at trade shows. Read about them in your industry's trade publications. Talk to your customers to see how they feel about competitive products or services.
Click on the steps below to learn more about how to analyze your competitors:

Step 1: Identify your competition
Step 2: Analyze strengths and weaknesses
Step 3: Look at opportunities and threats
Step 4: Determine your position.

Step 1: Identify your competition

Every business has competitors, and you need to take the time to discern who your customers can approach to get a product or service that fills the same need as yours does. Even if your product or service is truly innovative, you need to look at what else your customers would purchase to accomplish this task. For example, you may be opening a Website that offers online Bingo. Your competition would be other Bingo sites, other Web gaming sites, the Bingo hall down the street, and any other businesses that are competing for the same leisure-time dollars.

Begin by looking at your primary competitors. These are the market leaders, the companies who currently dominate your market. They are probably the ones who you find yourself bumping up against in your search for new customers. If you're a florist, it would be other florists in your neighborhood. If you're a computer consultant, it would be other consultants with the same specialty.

Next, look for your secondary and indirect competitors. These are the businesses who may not go head-to-head with you, but who are targeting the same general market. Sticking with the florist example, it might be a small local roses-only store, a national floral delivery service, or the flower/plant department of your local supermarket or discount store..

Finally, look at potential competitors. These are companies who might be moving into your market and who you need to prepare to compete against. For example, you might have an independent frozen yogurt stand; you will need to prepare to compete against national frozen yogurt franchises, even if they are not yet in your market.

Effective Trade Show Planning

Exhibiting at trade shows, expos, conventions, fairs and other exhibitions gives you a unique sales opportunity that can also help you generate new leads, find suppliers, check out the competition, do some networking, and get publicity. In short, you can achieve at one trade show what it would take you weeks or months to do if you stayed home. And it may even save you money -- according to the Center for Exhibit Industry Research, it costs 62% less to close a lead generated from a trade show than one originated in the field.

But to accomplish all of the above you must plan carefully. That means choosing the correct show, setting clear objectives, creating an effective exhibition, and promoting your presence. All this, before you even get to the show! Click on the subjects below to learn more about getting the most out of your trade show experience.

• Choosing the Correct Show
• Setting Clear Objectives
• Creating an Effective Exhibit
• Promoting Your Presence
• Planning Your Follow-up Strategy

Choosing the Correct Show

With thousands of trade shows held annually, picking the one that will net you the greatest benefit for your investment of time and money can be daunting.

Begin your search by looking for trade shows that fit your product or service. On the Web, you can try one of the trade show search sites, including

Trade Show News Network

Another resource for finding out about shows is your industry's trade association, since many shows and conventions are sponsored by industry groups.

Here are some additional tips to help you make the right choice:

Don't just choose by the numbers

Big trade show crowds can actually be a waste of time if they don't include people who are buyers or prospective customers for your product or service. Look closely at statistics of past years' shows to help you evaluate whether attendees fit your customer profile. The show manager should be able to provide you with this data.

Ask your customers for help

Talk to your customers to find out what trade shows they attend, since shows that meet their needs will likely be attended by other prospects. You can also speak with your competitors to find out what shows they've found most useful.

Check it out ahead of time

The best way to evaluate a show is to take a first-hand look. Before you sign up, go to the show as an attendee. Is the show active and exciting? Are the people walking the show floor potential customers? Who are the other exhibitors and where would your product/service fit in the mix? Talk to people and keep your eyes open.

Evaluate it carefully

Once you've got a list of show possibilities, ask these questions to determine if the show is the right one for your purposes:

• Is it big enough to draw a cross-section of prospects and vendors -- but not so large that you'll be competing against the giants in your industry?
• Is it in the right place, geographically, to attract your customers -- whether they are local, regional, national, or global?
• Is it scheduled at a time when you can service the new business you'll attract and follow up on leads?
• Are the show's promoters reliable and does the management have a proven track record of success?

Don't wait until the last minute

Some popular shows fill up fast. If you wait too long, you could find yourself on a waiting list. Plus, the earlier you sign up for a show, the more choices you'll have regarding finding a good location for your booth.

Setting Clear Objectives

To get the most out of the time, money and energy you invest in exhibiting at a trade show, it's vital that you decide what your purpose is for being there and set measurable goals. Everything you do before, during, and after the show should be evaluated in terms of whether it contributes toward reaching these goals.

Possible goals for trade shows

Here are some reasons businesses exhibit at trade shows. Your goals may include several of these, or others that are important to your small business: To get the most out of the time, money and energy you invest in exhibiting at a trade show, it's vital that you decide what your purpose is for being there and set measurable goals. Everything you do before, during, and after the show should be evaluated in terms of whether it contributes toward reaching these goals. Here are some reasons businesses exhibit at trade shows. Your goals may include several of these, or others that are important to your small business:

• write sales orders
• research the competition
• spot trends
• generate leads for future sales
• build your mailing list with quality names
• find better or cheaper suppliers
• build rapport with current customers
• get press
• generate excitement around a new product
• increase company's visibility within the industry

Be sure to staff your booth adequately and smartly

You can't do it alone. No matter what your goal, you will need at least one person to "spot" you when you leave the booth to take a break or to check out the competition. A good rule of thumb is to have two staffers for every 100 square feet of exhibit space. Your staff should be well-groomed, well-trained, friendly and knowledgeable. They should understand your goals and know their role in reaching them. If you don't have employees on the payroll, hire relatives, friends, or part-timers.

Focus your message

Pick just two or three key ideas that you want to get across at the show and train yourself and your staff to "stay on message". Design your graphics, pre-show promotion, literature and show directory advertising around your message.

Create a budget

Once you know which show you're going to and what your goals are, draw up a budget. Without a budget, costs can quickly spiral out of control (last minute impulse purchases to jazz up your booth, for example) and defeat your best laid plans. One rule of thumb is that your space costs should represent about a quarter of your total budget. So when you know what you'll be paying for space rental, multiply by four for a rough idea of your expenses, excluding personnel costs.

Creating an Effective Exhibit

Where your booth is located and how your booth looks will have an impact on your trade show success. Use these tips to help you along.

Shoot for a high-traffic location

Be sure to look at a floor plan before you choose your site. Foot traffic is heaviest in certain areas of a typical trade show floor. Look for locations near entrances, food concessions, rest rooms, seminar rooms, or close to major exhibitors. Try to avoid dead-end aisles, loading docks, obstructing columns, or other low-traffic regions.

Consider sharing a booth

New exhibitors often get the least desirable locations. One way around that is to share a well-located booth with a colleague in a related business. Talk to your sales rep, or try to hook up with an established exhibitor whose products or services complement yours.

Elate the senses

Make sure people coming to your booth can experience your product or service. Let them touch, see, feel, hear or taste it. Are you selling decorative pillows? Display them in an appropriate setting and have samples that buyers can touch. Have you developed a new software package? Be sure to have multiple computer terminals available for attendees to try the package.

Keep it simple

Don't go overboard with booth graphics. One large picture that can be seen from afar may have a greater impact than many small ones. A single catchy slogan that describes your business may say more than long blocks of text.

Gimmicks work

Gimmicks and give-aways can also drive traffic to your booth. Hold a contest; have a loud product demo; give away pieces of candy; hire a masseuse and offer free back rubs. Just make sure that the gimmick fits your company's image and the sensibilities of your clients.

Promoting Your Presence

Remember that the best trade show planning will fail if nobody knows you're there. The CEIR estimates that as many as three-quarters of show attendees know what exhibits they want to see before they get to the show. Strong pre-show promotion will let your customers and prospects know about your exhibit. These tips will help.

Work the phones

A month to 6 weeks before the show, start calling your top customers and prospects to set up meetings. Many people arrive at a show with a firm schedule and have little or no time for other booths, so it's important to get on that schedule as early as you can. Be sure to confirm all phone meetings a week or so before the show.

Send out mailings

The show's management will often let you purchase a mailing list of pre-registered attendees. Try a simple pre-show mailing focusing on one or two benefits of dropping by your booth. Be sure to it includes show contact information, including your booth number.

Use the press

Issue press releases to trade publications and local papers that will be covering the show. Your release should highlight something newsworthy about your exhibit -- a new product introduction or a special demonstration, for example. You'll also want to prepare plenty of press kits for the show, and be sure to drop it by the press room so reporters can find it.

Look out for show publications

Advertising in publications that are distributed only at the show can be expensive and ineffective. These publications often have a narrow focus, and they get lost in the blizzard of paper that rains upon trade show attendees.

Planning Your Follow-up Strategy

The time to plan your follow-up strategy is before the show begins. That way, you can reach prospects with your follow-up message while the show is still fresh in their minds. Here are some things you should know about follow-up.

Make follow-up a priority

According to the Center for Exhibition Industry Research, 80% of show leads aren't followed up. Make lead follow-up your number one priority after a show, taking precedence over just about everything else -- including catching up on what you missed while you were out of the office.

Write your follow-up mailer before the show

Your post-show mailing can be as simple as a thank-you note or a brochure with a cover note. Write it and have it printed out before you leave for the show, so you can send the mailing immediately upon your return.

Qualify leads during the show

Rank your leads by level of importance and interest, and base your post-show efforts on these priorities. Phone your hottest prospects within a week after the show ends -- the longer you let them sit, the staler they'll become. Send everyone else some kind of follow-up mailing.

Keep your promises

Be sure that you keep any promises you made at your booth. Have enough brochures and product sheets on hand before the show so you can send out requested information promptly.

Elements for a Successful Press Campaign

To conduct a successful public relations campaign, it helps to be familiar with some of the basic PR tools. Choose any of the following "elements" of a PR strategy to learn more about what they are, how they're used, and when you might want to use them.

• Press Kit
• Press Releases
• Media Alert
• Backgrounder/Fact Sheet
• Biographies
• Media Lists/Contacts
• News Conferences/Briefings

Press Kit

A press kit is essentially an "information kit" that will provide a journalist with background information about you and your company. Basically, it is a folder (preferably one with your company's name and logo on the outside) that contains many of the "informational" elements described below. Remember, it is not a sales brochure -- it should be a real help to reporters in writing their stories.

You will need to have press kits prepared when you are holding a press conference; when you go on a press interview; and whenever you are pitching a story to someone who does not know anything about your company. You also might want to send out an updated press kit once a year so that people following your company will have the most up-to-date information. The contents of your press kit should change depending on when you're using it. In general, it will include some or all of the following:

• Recent press releases
• Background material about your company
• A one-page fact sheet about your company
• Biographies of your top executives
• Photographs of products (be sure to include captions)
• Photographs of your executives (essential for an interview)
• Pertinent product sheets/brochures
• Contact names and numbers

Press Releases

A press release is the primary way you communicate news about your company to the media. Reporters, editors and producers are hungry for news, and they often depend on releases to tip them off to new and unusual products and companies, trends, tips and hints, and other developments.

Media Alert

As the name suggests, a media alert is used to inform the media about a press conference, special event, demonstration, or other newsworthy event. It is a one- or two-paragraph "release" that focuses on what will occur, and why the media would be interested in it. You might want to think of it as a way of inviting the press to attend your event. Here are some situations when a media alert would be effective:

• Your company is exhibiting at a trade show and will have a celebrity at your booth
• A busload of elementary school students are coming to your company for career day
• You're holding a press conference
• There's a special demonstration inside your store
• You're presenting a keynote address to a local organization
• You're having a groundbreaking ceremony
• Your company is sponsoring a charity event or making an important donation

Be sure your media alert includes:

• What is happening
• Why it is important
• Where it is happening
• When it will occur
• Who to contact for more information
• An invitation for the press to attend
• And don't forget to say that photo opportunities are available!

Backgrounder/Fact Sheet

A "backgrounder" tells your company's story. It should include all pertinent information --about your company--its products or services, its market/industry, and its management team. It should be written in such a way that it holds a reporter's interest. Keep it focused on benefits and information...once again, this is not a sales piece, so keep the hype to a minimum.

You can create a workable backgrounder by writing a paragraph or two about each of these elements:

• What your company does
• When and why your company was started
• A brief history of your company
• Your products or services
• Your key personnel

You might also want to create a one-page corporate fact sheet. It is briefer and more "bare bones" than a backgrounder. A fact sheet lists the basics about your company, including:

• Your company name
• Your address and phone number
• The focus of your business
• Your products or services
• Your management team
• Contact names and numbers

Biographies

It is important for you to have up-to-date biographies of all your top executives. These are particularly critical when you are planning press interviews and press conferences, since reporters will want to know about the person they are interviewing.

Focus a bio on the person's current responsibilities. What does he or she do for your company? That's the most important information you include, and should be at the beginning (i.e. John Smith oversees Anycompany's sales efforts). In other words, write it in reverse chronological order -- with the most recent information first, and the oldest last. You can also be creative -- talk about what sets a person apart from the crowd, what makes him/her different. When you're writing a bio, think in these terms:

• What does this person do for my company?
• Why does he/she do that job well?
• What other qualifications does he/she have?
• What did he/she do before? Is it pertinent to his/her current job?
• Is there anything else about this person that would make me stop and think "hey, that's really interesting?"

Media List/Contacts

Just as it is important to keep an accurate database of your customers and prospects, it is crucial to make sure you are targeting the right people with your media message. Many small businesses make the mistake of sending press releases to "Editor," assuming it will be forwarded to the right person. That rarely happens. You need the name of the right editor or reporter.

Getting the right name is as simple as calling and asking who the right editorial contact is. Then get to know that person. Editorial contacts can be the most important element of your PR campaign. Think about it this way: a reporter is more likely to write about a company or person he/she knows about...and is MOST likely to write about a company or person with whom he/she has a relationship.

Editorial staffs change on a regular basis, and reporters often shift "beats" (what they cover). Be sure to review your media list every 4-6 months to keep it up to date.

To qualify your media contacts, ask yourself these questions:

• Is this a publication I want publicity in?
• Do my customers/prospects read this publication (or watch this TV show)?
• Does this person write about companies such as mine?
• Does this person assign articles that would include a news event like mine?
• Is there another writer or editor at this publication who would also be interested in my company?

News Conferences/Briefings

A news conference (or press conference) is a formal event to which you invite the press to learn more about an important, newsworthy announcement. For the most part, unless you have something truly momentous to announce, news conferences should not be used by small businesses. You probably won't have the drawing power to justify putting together this kind of event, and other PR methods will be more effective.

The operative word in news conference is "news." You will attract the press to a news conference by promising to deliver a real news story to them. It is important to keep that promise. If you don't, you will be like the boy who cried "wolf." Waste a journalist's time once, and you will not get that time again. And you won't be doing any good to your company's reputation.

A news briefing is a less formal get together -- you might bring together four or five reporters to give them an update on your company or fill them in on some new product information. You can also use the time to answer questions and let the press learn more about what you and your company do. You can hold a briefing in your company's conference room, over lunch at a restaurant, or another comfortable location.

Here are some situations where a news conference or briefing might be appropriate:

• Your company is announcing the launch of a new product or service
• Your company is acquiring a strong competitor (or is being acquired)
• Your company strikes a major joint venture deal with a large corporation
• To announce the findings of an important poll or survey

Find Your Highest Potential Customers

The 80/20 rule - that 80 percent of your sales come from the top 20 percent of your customers - applies to most small businesses. Nurturing that precious 20 percent means focusing your marketing programs on the customers who drive your company's profitability. A laser-like focus on these high-profit buyers also prevents you from expending too much effort on lower profit customers.

Remember that profitability does not necessarily correlate with the amount of money a customer gives to your business. In many businesses, smaller sales can be highly profitable, while larger sales can cost the company a lot to administer or deliver, and therefore have a smaller profit margin.

Use the tips here to unearth your most profitable customers.

Calculate acquisition costs

To assess customer profitability, you need to determine how much it costs your business to attract each customer. Many small businesses will be able to get away with a cost of sales analysis that is much simpler than what larger companies use. Keep in mind that the cost of sales numbers produced through these calculations are averages, to be used for rough evaluations of your customer base.

To conduct a simple analysis, first review the effort involved in closing a typical sale. Be sure to include expenses like a salesperson, direct mail, Web site development or other advertising costs. Estimate the total cost of your outreach and divide it by the number of sales you close annually to do a "quick and dirty" analysis.

Calculate cost of customer service

It is important to track your customer service expenses to measure how profitable your current customers are. The equation is similar to the cost of sales analysis. Apply costs for service-related items such as order taking personnel, project manager salaries and delivery of your product or service to each customer. Estimate the average cost of servicing each customer by dividing by the number of customers you serviced during the year. If you need help determining key service expenses in your industry, ask your accountant for industry standards. Keep in mind that the cost of service numbers produced through these calculations are averages, to be used for very rough evaluations of your customer base.

Create a high-potential profile

With the two figures above and the revenue that each of your customer provides, you can determine a rough sense of individual customer profitability. You can use this information to develop a profile of your high-potential customer. Look for common characteristics and behaviors. Do they fit into specific demographic or geographic categories? Do they have certain shared attitudes or values? Do they make their buying decisions in a similar way? This profile will help you develop the most effective marketing programs to reach these targets, extend their value to your company, and attract more high-profit customers.

Some businesses might want to go a step further and develop a customer potential pyramid - a three-segment hierarchy that breaks out the company's high-potential, medium-potential, and low-potential customers. The purpose of this profile is to look for marketing tactics to migrate customers into the high-profit categories.

Reallocate efforts around least profitable customers

In support of your focus on the top 20 percent of your customer pool, you should make an effort to not attract unprofitable customers. Review your records for those customers who cost you valuable time and money and create a profile of them in the same way you built a high potential profile. To the degree that you can, be sure that your marketing programs exclude these customers, to keep you efficient and profitable.

Since every relationship is an important link to other customers, try to avoid alienating anyone by telling them you don't want their business. Instead, just avoid focusing resources on reaching them.

Get Better Customer Input

Surveys are an excellent way to find out how your customers feel about a new product, service, location, store policy or virtually anything that's important to your business. A survey will tell you what your customers expect of you and your company, and clarify how well you are performing in their eyes.

If executed properly, you can achieve impressive results without spending a lot of money. Customer service experts estimate it can cost between $3,000 - $5,000 to sample a representative segment of your customers.

The tips below can help you create an effective survey:

Start with clear objectives

A strong survey has a clear goal or focus. (i.e. to find out how customers feel about a proposed new location or store layout; get response to a new product or service; learn why once loyal customers are now shopping elsewhere). Take time up front to know why you're surveying your customers, and you will get results that will help you make your business more effective.

Give customers a compelling incentive for responding

Ron Zemke, author of "Coaching Knock Your Socks Off Service" (Amacom) suggests including discount coupons for certain products or services with the survey. Or, if customers return the survey in person by a certain date, they're entitled to a 10 percent discount. This can be particularly useful if you're using your survey to prospect for new customers. It might also be as simple as a sentence at the top of the survey indicating that you are using the input to evaluate current policies/products and create new ones -- customers like to feel like they can have an impact on your company.

Ask questions that are important to customers

Customers aren't concerned with issues that do not pertain to them (i.e. hiring, promotion or store policies, outreach programs, etc.). Make sure that each question is important to your customers' needs, not your internal management. Plus, remember that a successful survey arouses excitement and is fun to fill out. Don't put yourself in a position of wasting your customers' time.

Keep the survey brief

Ideally, it should contain 10-12 questions neatly spaced on one page.

Use a confidential self-mailer to generate higher response rates

The easier it is for people to respond, the higher the response rate will be. Self-mailers are highly recommended because they require less paper and postage. Next best is including an addressed pre-stamped envelope. ( It's presumptuous to expect respondents to use their own postage.) Also, stressing the survey's confidentiality increases your chances of getting honest answers.

Ask compelling easy-to-answer questions

Keep questions direct, simple and brief. Scaled questions (strongly agree, moderately agree, disagree, don't care) and yes/no questions are the easiest to answer. Long, wordy multi-part questions should be avoided. An example of a good question: How well do you feel your accountant meets your tax needs? The answer would be on a scale of 1 (poor) to 5 (excellent).

Encourage customers to give their opinions

With every question, enclose a "Comments" line, encouraging respondents to express opinions -- both positive and negative. Many service businesses, for example, have been successful with questions such as, "If this were your business, what would you do differently?" If respondents feel strongly about the issue, pro or con, there's an excellent chance they'll answer it.

Test survey before mailing it

Andy Mosko, managing principal of Organizational Research Forum, Inc., Vernon Hills, IL, a company that specializes in designing customer surveys, advises testing a survey before mailing it. "Try it out on a few good customers," he says. "You'll be pleasantly surprised to discover it can be improved."

Focus your surveys on your best customers

These are the people whose opinions you value most. You don't have to mail a lot of surveys to get valuable information. If you have 2,000 valuable customers, for example, consider sampling 500. A 50 percent return (250 respondents) is considered excellent; 30 percent (150 respondents) is considered good and 10 percent (50) is dismal. If the lion's share of your business comes from only 8 or 10 customers (as may be the case with a small service business), design your survey with their needs in mind.

Preview survey with postcard arousing curiosity

A brief attention-commanding announcement should be delivered a week before the survey is officially sent. It's an opportunity to highlight the benefits (premium, discount or special money-saving coupon) of filling out the survey and sending it back promptly.

Hone Your Sales Presentation Skills

When you deliver an in-person sales presentation, you have a unique opportunity to appeal to your prospect on a number of levels at once. Your physical appearance, your choice of words, your general demeanor and your level of enthusiasm all play a part in whether you come across as powerful and persuasive or weak and ineffective. No two sales presentations will be (or should be) alike, but there are some elements common to all successful presentations. Follow these pointers to make the most of your next presentation:

Be enthusiastic

You can't persuade anyone if you aren't persuaded yourself. Believe in what you are offering and communicate that confidence with your enthusiasm. This doesn't necessarily mean talking fast or loudly. It means being lively and punchy as you make your points and ask your questions.

Keep it simple

Don't try to dazzle your audience with jargon or fancy words. People are rarely impressed by language that they don't readily understand. More often they'll be confused, irritated, or bored. Say what you mean as clearly and concisely as possible. Be yourself and speak with the vocabulary you normally use.

Keep checking in

Remember that a powerful and successful presentation will be interactive. As you work your way through your presentation, constantly monitor the communication process, "Is this clear, so far?" "These are the items most important to you, is that right?"

Make eye contact

When you meet someone's eye, you are much more likely to win his or her confidence and trust. Remember that a presentation is like a conversation. Keep eye contact with everyone in the room and don't focus on only one or two people you think may be key. You don't necessarily know who the major player will be or how much input others will have in the decision-making process. And it never pays to alienate anyone in your audience.

Put yourself in your listener's shoes

Make your presentation interesting and informative, and be sensitive to the amount of time you are taking. Picture yourself on the other side of the table and ask, "what would I want to be hearing and seeing right about now?" Remember that for your customer, there is nothing inherently interesting about you or what you are selling. You have got to make him care by answering the questions he'll be asking himself: "So what?" "What's in it for me?" and "How do I benefit?"

Be well rehearsed

Don't think you can create a successful presentation on the fly. Plan your presentations carefully and run through them several times in advance to polish your techniques and build your confidence. Check your timing. If you're using slides and charts, make sure they're in the right order. Try and anticipate questions or issues that your prospect might raise, and prepare answers to them in advance.

Dress for success

In this day and age of the casual office, it's sometimes hard to figure out what's appropriate to wear. You should be dressed at least as formally as the people you will be meeting with. It's always better to err on the side of being overdressed. When in doubt, dress conservatively in traditional business attire.

Exit gracefully

Whether or not you think you've been successful, be gracious and leave the door open for further communication. Always conclude by thanking your prospects for their time.

Hone Your Sales Presentation Skills

When you deliver an in-person sales presentation, you have a unique opportunity to appeal to your prospect on a number of levels at once. Your physical appearance, your choice of words, your general demeanor and your level of enthusiasm all play a part in whether you come across as powerful and persuasive or weak and ineffective. No two sales presentations will be (or should be) alike, but there are some elements common to all successful presentations. Follow these pointers to make the most of your next presentation:

Be enthusiastic

You can't persuade anyone if you aren't persuaded yourself. Believe in what you are offering and communicate that confidence with your enthusiasm. This doesn't necessarily mean talking fast or loudly. It means being lively and punchy as you make your points and ask your questions.

Keep it simple

Don't try to dazzle your audience with jargon or fancy words. People are rarely impressed by language that they don't readily understand. More often they'll be confused, irritated, or bored. Say what you mean as clearly and concisely as possible. Be yourself and speak with the vocabulary you normally use.

Keep checking in

Remember that a powerful and successful presentation will be interactive. As you work your way through your presentation, constantly monitor the communication process, "Is this clear, so far?" "These are the items most important to you, is that right?"

Make eye contact

When you meet someone's eye, you are much more likely to win his or her confidence and trust. Remember that a presentation is like a conversation. Keep eye contact with everyone in the room and don't focus on only one or two people you think may be key. You don't necessarily know who the major player will be or how much input others will have in the decision-making process. And it never pays to alienate anyone in your audience.

Put yourself in your listener's shoes

Make your presentation interesting and informative, and be sensitive to the amount of time you are taking. Picture yourself on the other side of the table and ask, "what would I want to be hearing and seeing right about now?" Remember that for your customer, there is nothing inherently interesting about you or what you are selling. You have got to make him care by answering the questions he'll be asking himself: "So what?" "What's in it for me?" and "How do I benefit?"

Be well rehearsed

Don't think you can create a successful presentation on the fly. Plan your presentations carefully and run through them several times in advance to polish your techniques and build your confidence. Check your timing. If you're using slides and charts, make sure they're in the right order. Try and anticipate questions or issues that your prospect might raise, and prepare answers to them in advance.

Dress for success

In this day and age of the casual office, it's sometimes hard to figure out what's appropriate to wear. You should be dressed at least as formally as the people you will be meeting with. It's always better to err on the side of being overdressed. When in doubt, dress conservatively in traditional business attire.

Exit gracefully

Whether or not you think you've been successful, be gracious and leave the door open for further communication. Always conclude by thanking your prospects for their time.

How to Follow Up with Customers

Following up after you've made a sale will enable you to capture repeat business, the cornerstone of most successful small businesses. You can follow up by phone, in-person, or through the mail. Here are some specific methods you can try:

Call Customers a Few Weeks After a Sale

If you run an autobody shop call all customers two weeks after they pick up their car to find out how the car is and make sure they are happy with the job your business performed. This will enable you to address customer discontent, if any exists. This is also a good time to thank them for their patronage.

Write a Note

A handwritten note thanking a customer for buying from you is a simple step that lots of business owners overlook. This type of personal approach is almost always appreciated and remembered. Form letter follow-ups are not recommended, since they lose their personal touch.

Keep in Touch

Call your customers periodically to find out if their business has changed in any way, and if you can help them with anything. Customers will also appreciate being kept apprised of any new developments, upgrades, or additional products.

Seek Customer Input

A survey such as the one below can be printed on the back of a business reply card and sent out to all of your customers. It is excerpted from Superstar Sales Secrets by Barry J. Farber (Career Press). Farber recommends using this survey to determine where you need to improve your follow-up and customer service:

Dear Valued Customer,

To assist us in determining how we may better serve you, please complete and return this survey.

Your name ___________________________________________
Company name ________________________________________
Phone ____________________________ Date _____________

Please respond to the following by checking the appropriate response.

How to Handle a Potential Client with Bad Credit

You've looked at a potential client's credit report and recognize the warning signs - late payments, pending lawsuits, heavy debt load. This customer could be a credit risk. Does this mean you have to turn the business down? Maybe not. Take these steps to minimize risk when working with companies with questionable credit.

Dig deeper

Each potential customer's credit will be affected by different circumstances, so it pays to look closely at the source of bad credit marks. For instance, if a new client sells holiday ornaments, there's a good chance cash flow will be tighter for this business in the summer than in the winter. If you decide to accept its business, you can use this insight to design credit terms that increase the likelihood that you'll be paid. You may require C.O.D. payments in the off-season and down payments when sales are high.

Check references

If a potential customer offers solid justification for poor credit marks, consider speaking with other credit references before making a final decision. You may discover that an outstanding dispute is unfairly labeling the prospect as a credit risk. You might also want to ask for a complete list of suppliers so you can choose which vendors to call, rather than contacting references supplied by the potential customer.

Outline payment terms

Don't give risky customers an opportunity to claim that they didn't understand your payment terms. Protect yourself by requiring that they review payment policies and sign a statement agreeing to them. Be sure to put your terms conspicuously on all purchase orders and invoices. Include details such as payment methods, grace periods, discounts for early payment, penalties for late payments, and the process your business uses to follow up on late bills.

Ask for advance payment

If a company is particularly high risk, don't be afraid to ask for full or partial prepayment. Most businesses that suffer from bad credit know it, and expect that you might be cautious about working with them. Since companies with poor credit are usually interested in improving their rating, you can encourage them to accept prepay terms by letting them know that you're willing to serve as a credit reference in the future if the relationship works out.

Consider personal credit histories

If you're faced with a company that is too young to have a credit history, take a look at the owner's personal credit report to assess how he or she handles bills. There's a good chance that someone who has strong personal financial habits will bring healthy money management practices to a business.

Ask about upcoming receivables

Some companies may be able to provide signed contracts or other proof of upcoming revenue streams. While these documents do not guarantee that you will be paid, they can support a potential client's claim that it has financial resources to pay for the orders it places. Again, be sure to verify all contracts with reliable references.

Start the relationship slowly

If you're nervous about a new client, limit the amount of business you accept from it until you establish a relationship. Another option is to require payment up front initially, and slowly build to better credit terms.

Just say no

While the majority of companies are not high credit risks, there are businesses that you should think twice about before adding to your client roster. If you do your homework and still don't feel comfortable with a potential customer, politely refuse its business. The collection hassle you avoid by saying 'no' up front will save you time and money in the long run.

How to Learn Your Prospect's Needs

Before you can sell anything to anyone, you must first understand what it is they need. Here are some ways to do that:

Do your homework

Prior to your meeting with the customer, do your homework to find out as much as you can about his business. Read relevant trade journals, do a periodicals search for articles about his product or industry at the library, read the Wall Street Journal. Find out who your customer's competitors are, what changes are coming in his business and what his chief concerns are likely to be. But always keep in mind that you will gain the most valuable information and insight into your customer's business concerns by talking directly with him.

Open your mind, not your sample case

Don't walk into a customer meeting with a pre-conceived idea of what you're going to sell them and how you will sell it. You'll sell more in the long run by finding out what aspect of the transaction matters most to your customer. For example, even if you and your competitors are each selling the same widget at the same price, your customer may be most concerned about payment terms, another might be focused on the reliability of shipments, while yet another may care most about product warranties. If you walk in and flip open your widget case before you find any of this out, you'll have missed an opportunity to distinguish yourself from your competitors.

Listen closely

When you're on a sales call, you're there to gather at least as much information as you communicate. This means asking questions and then keeping quiet until your customer has finished with his answers. Don't start answering objections before your prospect has finished talking. The more you can get your customers to talk, the better you will understand what matters to them. Once you know that, you can make sure your presentation addresses their concerns -- and eventually get their business.

Ask questions that provoke dialogue

Avoid asking closed ended questions that will get you "yes" or "no" answers. Such questions typically start with words like "Is," "Do," "Are". Instead, try to ask questions that begin "what" "when" "where" "how" "tell me" and "why," because they almost force the person to elaborate. You will get replies that start conversations. For example, "Do you have problems with vendors?" won't get you as far as "Tell me what you would like your vendors to do better." Your goal is to get your prospect talking about his problems and concerns so that you can determine ways your business can solve them.

Beware of questions that will slam the door shut

Instead, ask questions that will solicit key information. If you ask a customer "Can I give you a proposal on that project?" you'll get a "yes" or "no" answer and that's that. But if you start the process by saying "Tell me the criteria you look for in a proposal..." you are learning critical information instead of ending the discussion.

Survey your customers and prospects

Use written questionnaires or telephone surveys to learn more about your customers and prospects. Solicit comments from current customers about their level of satisfaction with your product or service. Or you might design a survey that will educate you about your prospects' business needs. When a customer or a prospect takes the trouble to complete a questionnaire, you've achieved something more than just learning from the responses. The fact that he's made even the minimal effort tells you something about his level of interest in your product or service. You now have a qualified lead to follow up.

How to Learn Your Prospect's Needs

Before you can sell anything to anyone, you must first understand what it is they need. Here are some ways to do that:

Do your homework

Prior to your meeting with the customer, do your homework to find out as much as you can about his business. Read relevant trade journals, do a periodicals search for articles about his product or industry at the library, read the Wall Street Journal. Find out who your customer's competitors are, what changes are coming in his business and what his chief concerns are likely to be. But always keep in mind that you will gain the most valuable information and insight into your customer's business concerns by talking directly with him.

Open your mind, not your sample case

Don't walk into a customer meeting with a pre-conceived idea of what you're going to sell them and how you will sell it. You'll sell more in the long run by finding out what aspect of the transaction matters most to your customer. For example, even if you and your competitors are each selling the same widget at the same price, your customer may be most concerned about payment terms, another might be focused on the reliability of shipments, while yet another may care most about product warranties. If you walk in and flip open your widget case before you find any of this out, you'll have missed an opportunity to distinguish yourself from your competitors.

Listen closely

When you're on a sales call, you're there to gather at least as much information as you communicate. This means asking questions and then keeping quiet until your customer has finished with his answers. Don't start answering objections before your prospect has finished talking. The more you can get your customers to talk, the better you will understand what matters to them. Once you know that, you can make sure your presentation addresses their concerns -- and eventually get their business.

Ask questions that provoke dialogue

Avoid asking closed ended questions that will get you "yes" or "no" answers. Such questions typically start with words like "Is," "Do," "Are". Instead, try to ask questions that begin "what" "when" "where" "how" "tell me" and "why," because they almost force the person to elaborate. You will get replies that start conversations. For example, "Do you have problems with vendors?" won't get you as far as "Tell me what you would like your vendors to do better." Your goal is to get your prospect talking about his problems and concerns so that you can determine ways your business can solve them.

Beware of questions that will slam the door shut

Instead, ask questions that will solicit key information. If you ask a customer "Can I give you a proposal on that project?" you'll get a "yes" or "no" answer and that's that. But if you start the process by saying "Tell me the criteria you look for in a proposal..." you are learning critical information instead of ending the discussion.

Survey your customers and prospects

Use written questionnaires or telephone surveys to learn more about your customers and prospects. Solicit comments from current customers about their level of satisfaction with your product or service. Or you might design a survey that will educate you about your prospects' business needs. When a customer or a prospect takes the trouble to complete a questionnaire, you've achieved something more than just learning from the responses. The fact that he's made even the minimal effort tells you something about his level of interest in your product or service. You now have a qualified lead to follow up.

How to Network Effectively

Networking is the art of making and utilizing contacts. The goal of networking is to create a pool of people and information that can directly increase the quality of your product or service, decrease customer attrition, and, most importantly, leave your competition wondering how you won a job they never knew was available.

Many small business owners don't want to network because they think its about shoving your business card in someone's hand and boasting about what you do. In fact, networking is actually about getting to know people whom you can help and who can help you.

Networking expert Steven M. Krauser, President of Network Associates, Hicksville, N.Y., contends that most business people don't know how to make networking an effective business tool. "If the result of your networking is a stack of business cards in your top right hand desk drawer and not a lot of additional business, then it may be time for you to re-evaluate your methods", he notes.

Krauser says small business owners should approach meeting people using two goals: get to know as many people as possible, and get them to know you. He then recommends the following four steps to make your networking work:

Give and get information

Networking is a two-way street. When you meet someone, you want to ask them about their business and tell them about yours. Start with the basics - name, company, affiliation, position, nature of business, etc. You next want to find out if you can benefit each other. Try covering these topics:

• What does your company do?
• What types of clients do you serve?
• Who makes the buying decision within a firm for each of your services and/or products?
• What sets you apart from your competition?

Evaluate the value of the contact

You can't network thoroughly with everyone. Once you have the preliminary information, you need to decide if this person is worth meeting again and creating a relationship with. Can you help them and can they help you? The answer should be "yes" to both.

Another criterion is to look for people who are truly interested in helping others solve a problem, no strings attached. In other words, don't think of yourself as a networker but as a problem solver, and look for those same characteristics in someone you will consider adding to your personal network.

Form a strategic alliance

A network is not a collection of business cards, but of people. Take the time to understand the business of those in your network. If you've chosen members wisely, this should be a pleasure. And make sure that you educate them completely about what you do and whom you do it with. Give each other updates and encouragement. In effect, you become each others' sales people.

Remember that the purpose of networking is not to get your contact's business; instead, you're trying to get business from everyone this person knows.

You should also be able to turn to those in your network for management ideas, advice, leads, even vendor recommendations. You will learn from each other and contribute to each other's growth, both in terms of profit and performance.

Maintenance

As your contact base grows, you have to re-evaluate the people in your information loop. Practice effective time management skills and prioritize your contacts. You will want to get in touch most often with those that can be most useful to you. They will become your inner circle.

Be careful never to burn bridges; you never know when someone will be able to help you, or when you will be able to help them. If you feel as though someone is not useful to you right now, you still will want to check in with them now and again, because they may become important down the road. In other words, be nice to everybody because you never know where they'll show up.

How to Sell at Trade Shows

According to the Center for Exhibit Industry Research, the majority of trade show attendees are decision makers or influencers that plan to make a purchase within the next 12 months. Don't waste an opportunity like that -- follow these guidelines to help make sure your staff is ready to sell effectively.

Avoid soft sells

Trade shows require a hard-sell approach. When attendees show interest in your booth, approach them immediately and invite them to learn more about your products or services. Don't leave people waiting -- trade show attention spans are short, and people will leave your booth if they can't get help in 60 seconds or less.

Be engaging

The way you greet a visitor to your booth shows your professionalism and willingness to help. Avoid innocuous greetings like "Can I help you", "Hi, how are you?", or "How's the show going?". Instead, ask a direct question that engages the visitor and helps you gauge their interest in your company's products or services -- "What information can I tell you about our new heating system?" or "Hello, what are you looking for in a patio door?".

Watch your manners

Certain booth behavior looks sloppy and conveys that you're not interested in your customers. Don't sit down. Don't eat, drink, or smoke at the booth. Never leave your booth unattended. Don't spend time chatting with colleagues instead of focusing on customers.

Qualify prospects quickly

The first thing you should do once you meet someone new is establish who they are (buyer, decision maker, supplier, competitor, etc.) and where they're located. This way you won't end up spending important time with a person who isn't responsible for buying your product/service, or who is located in a region your company doesn't serve. You can find this information out by asking some key questions, looking at their badge, or requesting a business card which will have the person's title and address.

Ask lots of questions

Engage a prospect by asking open-ended questions -- ones that require more than a yes/no answer. This will help you determine their needs and interests. Focus your responses on how your product or service can meet these needs. Be sure to observe the 80/20 rule -- listen 80% of the time and talk 20% of the time. Try to avoid any kind of prepared sales pitch, which can begin to sound robotic after you've said it for the 50th time.

Keep good records

Write down all the relevant information about a prospect on a "lead card" which contains: the person's name, title, address, phone/fax number, e-mail address (all these can come from a business card), needs/interests, budget and timing. Use this card for your post-show follow-up when you return to the office.

Low Cost Market Research

To run a successful business, you must know your market thoroughly. Strong market research can provide you with a range of information about your customers, your industry, and your competitors. In your start-up phase, it will help you determine how feasible a business idea is. As your business expands, you can use research to hone your marketing program, target and differentiate your product or service, look for new growth opportunities, etc.

The challenge for many small business owners is to do your research on a tight budget. Here are five cost-effective methods you can try:

Speak directly to customers and prospects

While direct mail questionnaires, in-depth telemarketing campaigns, focus groups, and other techniques are effective methods of surveying your customers and prospects, they can also be quite costly. Instead, you might want to try some informal versions of these methods.

For example, instead of holding a formal focus group to evaluate how your customers might respond to a new product or service, you can hold an informal meeting to gather data. Invite 5-10 of your customers to lunch, and tell them that you're looking for an off-the-record, informal appraisal of a new product or service. Then give them a presentation and ask for their input. Similarly, you can have someone in your office phone 15 or 20 customers and ask them the same survey questions. While you won't get scientific results, you will get some input on general trends and may even get some new customer-driven ideas

Use students

Get in touch with the marketing department of your local college or university and ask if there are marketing classes or individual students who might be interested in working on a market research project. These projects are often welcomed by students as a way of gaining experience or special course credits. In addition to saving you money, working with students could also net you fresh ideas about ways to design and conduct your market research. When contacting the college or university, direct your request to the university administration or the marketing/management studies department.

Take advantage of your library

Reference librarians are one of the great untapped resources for small business owners. Your public library has a wealth of facts and figures available through various industry directories, government abstracts, and other reference guides. Visit the reference section and speak with the librarian. Explain as precisely as possible what you're looking for, and this person will be able to direct you to the appropriate resources.

Some local public libraries will not have the depth and breadth of business information you're looking for. If that's the case in your area, try the library of your local college or university, which tend to have this type of data.

Finally, Small Business Development Centers also tend to have research libraries focused specifically on the needs of small businesses.

Call your trade association

Trade associations regularly gather information about their respective industries and make it available to association members. These surveys often cover issues like typical company operating costs, industry growth trends, new market opportunities, etc.

These research reports are often available only to association members, so you may have to join to get access. To locate the trade association for your industry, look in the "Gale Encyclopedia of Business and Professional Associations" (Gale Research), available at your library reference desk.

Read trade publications

Reading trade journals, magazines, newspapers, and industry newsletters is an excellent way to learn about trends in your industry and keep ahead of the curve. They often report on industry trends and other key issues before they're picked up by the general press. You also will find a wide array of information about your competitors. In addition, trade publications also commonly write articles about recent research data (for getting trend figures) or may even conduct proprietary market research.

You can look up the names of relevant trade and business publications in directories such as "Bacon's Guide to Periodicals" or "Standard Rate & Data" (available at most libraries). Call the publication and ask for a subscription form -- many are free to qualified companies in the industry. You can also often find subscription forms and recent articles at these publications' Web sites.

Making Cold Calls

Cold calls are phone calls or visits to sale's prospects who don't know you. The objective of a cold call is to gather information about the prospect's potential, educate the prospect on the benefits of your product or service, and in many cases, to get an appointment. There are several challenges to cold calls and they include: fear; getting past assistants, secretaries, and other gate keepers; finding the right contact; and finding a way to make a pitch quickly that will move the sales process forward.

The tips below will help you overcome these challenges:

Avoid Completely "Cold" Cold Calls

Ask your current clients for referrals and then use their names to break the ice during your call. To get referrals, engage your clients and customers in conversations that will unearth the referrals instead of simply asking them for names and numbers. For example, if you ask someone if they know anyone interested in buying insurance, they'll probably say no because they can't think of anyone on the spot. But if you talk to that person about having kids and whether his friends are having kids too, he'll realize he knows a bunch of people concerned about planning for the future...who might want insurance.

Plunge Right In

You're never going to be ready to make sales calls, so don't wait for the perfect moment. Your fear will never dissipate completely because putting yourself on the line and inviting rejection is never going to be appealing. So instead of coming up with reasons to procrastinate, plunge right in.

Be Forthright

Whether you encounter a secretary, an assistant, or the prospect on the phone, be upfront about why you are calling. Introduce yourself and state the purpose of your call. Be honest and succinct. People are annoyed and suspicious if you are cagey about why you are calling. Find out if it is a good time to talk - if it is, give more information; if not, ask when it would be convenient for you to call back.

Call Early and Late

If someone is difficult to reach, either because an assistant or secretary answers the phone or voice-mail picks up whenever you call, try calling at unusual times. A prospect is more likely to pick up his or her own phone at 8:00 a.m. or 6:30 p.m. Plus, they are more likely to be relaxed and have time to speak, since they won't be facing the 9-to-5 pressures. If you are making sales calls in person, evening is probably better than morning for making odd-hours calls.

Don't Expect People to Get Back to You

You shouldn't wait for your prospects to get back to you. They may not, even if they are interested. Don't presume that when prospects say they'll call you back they actually will. Put your ego aside and call them. And when you do, be nice, no matter how annoyed you are that they never called you back.

Be a Human Being

We all know sales people who don't stop for a breath while they steamroll us with a pitch. Don't do this. It's unnatural, and it doesn't work. People buy from people they like, who they feel understand them and their business. Engage your prospects by asking a lot of questions and being genuinely interested in them.

Talk a Little, Not Too Much

Use cold calls to gather information about your prospect's needs. You will, of course, need to provide enough information about the benefits of your product or service to make the person want to speak to you. But don't talk too much. If you launch into a long sales pitch without finding out what your prospect is thinking, you will turn them off. Ask a prospect questions about their problems and needs (you can even write down these questions in advance) and listen closely to their answers. Then target your benefit information to solving those problems and meeting those needs. Try to Get a Face-to-Face Meeting

When someone asks you to send literature, ask if you can come in and present to them for 15 minutes. It might actually be more efficient for them to learn about your business this way because you can encapsulate information and answer their questions. In addition, meeting someone face-to-face humanizes the relationship and will make it easier for them to remember who you are and why they may need your products or services

Market Research Worksheet

This worksheet can help you come up with a business idea by figuring out what the market needs. Don't be afraid to be outlandish; sometimes the best ideas sound crazy at first. And if they have some flaws, just put them aside and keep searching.

When you are contemplating business possibilities, keep in mind that you don't have to stay in the business you start forever. You can run a business for a few years until you come up with an off-shoot idea or are in a position to start a more capital-intensive business.

1. Keep your business antenna up, with an eye out for unfilled opportunities Research the market by:
   • Reading the newspaper and magazines
   • Watching television
   • Talking to people
   • Going to the mall
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2. What products or services would you want that you haven't been able to find?
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3. Is there something that everybody hates to do that you can do for them?
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4. Is there a product or service that would make life easier for people you know?
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5. What business trends are happening that you want to participate in...that really light your fire?
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6. Are there gaps in the market that you can fill with your talents? What are they? (For example, corporate downsizing has opened up the market for services like consulting, desktop publishing, graphic design, staffing services, and computer maintenance).
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Now...
Write down some potential business ideas. Be specific.... don't list something like 'import/export'; instead try something like 'Import gourmet tortilla chips and salsas'.

Marketing Plan Samples

As you know, there's not just one formula for what makes a good marketing plan; marketing plans can be modified according to the needs of specific businesses. To see how several businesses wrote their marketing plans or components of them, link to the examples below.

Examples of Marketing Plans
(and Marketing Plan Components)

Mosaic Buttons  (Store)

 (Store) (Store) (Store) (Store)

Creative Cuisine  (Personal Chef Service)

Competitive Analysis Chart

Example Marketing Plan - Mosaic Buttons
Example Marketing Plan - Mosaic Buttons
Content provided by the U.S. Small Business Administration, Online Women's Business Center. SBA's programs and services are provided to the public on a non-discriminatory basis.

The following market plan is an actual plan written by a woman-owned business. Names of some businesses and cities have been fictionalized at the owner's request.

MISSION STATEMENT

Technically, the mission statement is in the opening of the entire Business Plan, of which the Marketing Plan is a part. It's included here for the reader's information...

Mosaic intends to supply Michigan with the most visually interesting buttons available today. They will delight their users and provide a springboard for creative activity. Mosaic believes artistic expression enhances life. It appreciates the skill of human hands and the sensitivity of human hearts. It regards buttons as small works of art in which we are able to see ourselves.

Mosaic's Marketing Plan

HISTORY & DESCRIPTION

Mosaic is a specialty retail store offering a collection of antique, contemporary and hand-crafted buttons from around the world. These buttons are distinguished from those available in the marketplace by the quality of materials, workmanship and design.

A very simple need which Mosaic addresses is the need to have fun! Buttons are wonderfully expressive objects that add unexpected vitality to clothing. Apparel manufacturers are witnessing a competitive advantage to using fun and distinctive buttons. Mosaic makes such buttons available to home sewers and others involved in the needle arts. Providers of interior design services are also served by Mosaic in their efforts to create custom bedding, slip covers and window treatments.

With growth, Mosaic will also establish a working studio for the surface design of fabric. Workshops for the painting, dyeing and printing of fabric will be offered throughout the year. These will be conducted by the sole proprietor of Mosaic and by guest artists with particular expertise.

Mosaic opened for business on August 5, 1996, with an inventory valued at $1,050. In the first eight months of operation another $1,290 of inventory was added. Sales totaled $1,376 for the same period with the average monthly total being $172. Sales have increased steadily over this eight month period.

Organizations and businesses served include:

• Machine Knitters Guild of Michigan
• Michigan Embroiderers Guild
• Sew for Profit of Michigan
• The National Button Society
• Home Fabrics
• Smith-Wesson Designers
• The Workroom

Funding for the company has come from the personal income of the sole proprietor and from the income generated by sales. Additional funding is sought for the expansion of inventory and for advertising.

PRODUCT OR SERVICE DESCRIPTION

Mosaic offers hand-crafted and manufactured apparel buttons in a range of materials and finishes. A high percentage of these buttons are made of natural materials such as horn, bone, wood, glass and clay. These buttons are hand-crafted by artisans throughout the world and are of original design. Manufactured metal and synthetic buttons are also offered, together with a collection of vintage and antique buttons.

All garments benefit from buttons that contribute to their character. Mosaic offers an opportunity to reinvent ready-made clothing and engages people in a creative process. Buttons are a form of ornament. They allow people to express their personal style in a novel manner.

"Makers" of garments who have invested a great deal of time and energy are unwilling to use buttons with nothing to offer but an attractive price. These people are looking for the perfect button for their creation. Mosaic helps people accomplish this and brings the entire process to a satisfying conclusion.

The charm of buttons is increasingly evidenced in the home, where they are used as a design element on pillows, bedding and window treatments.

Buttons are often purchased not for reasons of utility, but simply for their beauty. Collections of antique buttons represent a significant investment and historically rise in value.

LOCATION DESCRIPTION

Mosaic is located in the Tower Building, 706 Main NW, Suite 200, Altamount, Michigan. This building, a historic landmark from the town's lumbering days, houses two design businesses and a dozen creative studios for book illustration, photography, painting and surface design, and furniture making. Its neighbor, the former Gay-Tonekey Building, at 710 Main NW, also supports numerous design studios. Most notable are the Artists' Studio, a custom frame and gift gallery, and LaFontaine Gallery, a premier fine art gallery. These two buildings have supported the artistic community in the area for over a dozen years by offering architecturally interesting spaces and low rent. They are a signpost of creative thought and activity in the community and attract customers who are interested in artistic expression. This area is also about to receive renewed attention as renovations begin on the city's former water purification plant, soon to become a nationally franchised restaurant.

Mosaic is currently located in a second floor suite in the Tower Building. With growth, it would like to relocate to the building's south end. The benefits of this location are first floor access, room for expansion, higher visibility from large arched windows, more convenient parking, closer proximity to area retailers and reasonable cost.

MARKET ANALYSIS

The Industry

According to the American Home Sewing and Craft Association, the home sewing industry contributes $3.5 billion in retail sales to the national economy. In the five years from 1987-1992, first-time buyers of sewing machines increased from 30 percent to 50 percent. In the last five years (1991-1996), membership in the American Sewing Guild has doubled in size with a 55 percent increase in the number of local chapters. Thirty million people in this country are serious sewing hobbyists.

The availability of the serger may account for these increases. This machine seams, overcasts and trims all in one motion, cutting sewing time in half. Also, today's sewing is technologically advanced, eliminating the need to thread needles and trim excess thread. Computer memories have also enhanced the creative potential of the sewing machine.

Sewing is one of several creative industries served by Mosaic. As this country reassesses its priorities, home oriented leisure activities enjoy increased levels of interest. Gallop Organization's 1990 report on leisure trends indicated that sewing/knitting ranks fourth in activities pursued by the general public.

Throughout Michigan, there are guild chapters for sewing, weaving, knitting (machine and hand), embroidery and quilting. Michigan also hosts a chapter of the National Button Society, an association of button collectors.

The Target Market

The home sewer's profile, as reported by the American Home Sewing and Craft Association, looks like:

• 75 percent female
• 25 to 54 years of age
• college educated
• household income of $35,000 and up
• artistic, values originality
• sewers of varying ability

This profile is supported by direct observation of Mosaic's customers.

People who pursue the creative industries value objects made by hand and purchase them for themselves, their friends and their families. They are deeply involved in home-based leisure activities such as reading, gardening and exploring the culinary arts.

Within the Altamount-Fairhills-Levine DMA, 23 percent of households sew and 20 percent practice a form of needlework. This is slightly above the national average and compares favorably to the City of Indianapolis, which supports Buttons Galore, a similar enterprise with an annual trade of $500,000.

A larger percentage of people from the Altamount-Fairhills-Levine DMA attend cultural events and patronize fine art and antique galleries than from Indianapolis. The median income for this area is also slightly higher than that of Indianapolis.

Mosaic also serves design businesses that focus on residential interiors. Buttons are used increasingly in the home as an element of interest and design.

The Competition

Direct competitors exist in three nearby cities. They are The Threadminder, a supplier of designer knitting and weaving yarns in Levine, Michigan; The Fabric Alley, a high-end fabric shop located in Cashill; and two button shops in Chicago-Twelve Buttons and Renewal Buttons. The strength of these competitors lies in the length of time they have been in business. Awareness of their product is well established.

The Threadminder offers a limited selection of unusual buttons purchased from the same suppliers as Mosaic for the same price. They offer one-stop shopping for the knitting and weaving community, but buttons are not their focus. Unless shoppers were looking for yarn, they would not know that buttons were available at the Threadbender. Mosaic will compete by focusing on buttons and by offering a broader and more exciting selection.

The Threadminder develops their market by offering classes in knitting and weaving. Participants who love fiber and the textile arts will be open to exploring other avenues of expression. Mosaic will offer instruction in those areas.

Mosaic will also compete on the basis of location. It is centrally located with easy access from all parts of the city.

The Fabric Alley in Cashill, Michigan, appeals to serious sewers who are given to spending considerable sums on fine fabric. They offer a very broad selection of buttons in the same price range as Mosaic. Sewers can locate buttons and fabric in one location. However, access to the buttons is difficult. They are poorly displayed and shoppers must be very determined to locate buttons they find attractive. Once spotted, the clerk must retrieve the buttons from stock before the customer can fully assess them. This is both frustrating and time consuming.

Buttons are displayed prominently at Mosaic in a manner consistent with their quality and character. Again, Mosaic will compete by focusing on buttons. The company will also compete on the basis of location. Those whose needs are met by the local fabric stores and who may be unwilling or unable to travel across the state will depend on Mosaic for distinctive buttons.

Twelve Buttons and Renewal Buttons offer a product impressive in its range of quality, price and character. They are both centrally located in the metropolitan Chicago area. They are the model upon which Mosaic patterns itself.

Mosaic will entice fans away from the Chicago shops by diligently procuring buttons of high originality. Independent buttonsmiths will be showcased whenever possible. Mosaic will also maintain a large collection of vintage and antique buttons. Relationships with the local interior design trade are also vital to success.

Indirect competition comes from the local chain stores: Northeast Fabrics, Wisconsin Fabrics, Joan's Fabrics and Fieger's Fabrics. Mosaic offers buttons which cannot be found in these stores and which are priced generally higher. Mosaic will attract customers who may be willing to spend more on buttons than on fabric to achieve a higher level of style and expression.

PROMOTIONAL OBJECTIVES AND STRATEGIES

One of the greatest challenges facing Mosaic in its first year of operation is lack of community awareness. At this time, the customer base is 90 people. The company's goal is to double this number over the months of June through October for an overall goal of 180 customers.

Strategies for achieving this goal include:

• Establishing an auxiliary sales display at the local farmer's market on Saturdays throughout the summer. This can be done at a cost of $210.
• Distributing business cards and reprints of the "Grandstand" article about Mosaic which appeared in Lifelike Magazine in January of 1997. Distribution points will be the farmer's market, the Arts Alive Gallery Hop, the Underground Studio, and area dry cleaners.
• Mounting additional signage to the exterior of the Tower Building by June 1, 1997, at a cost of $75.
• Publishing a quarterly newsletter to existing customers and selected businesses. The newsletter will solicit referrals, advertise additions to inventory and notify readers of current sales promotions.
• Establishing quarterly sales promotions in May, August, November and February.
  The May sales promotion will be in honor of Mother's Day. Customers will be treated to an afternoon tea; discounted gift certificates for mothers will be offered.
  During August, Collage will celebrate its anniversary. A fashion show/competition or other activity will be planned.
  November will focus on year-end festivities.
  February will highlight Valentine's Day.
• Advertising in the newsletters of the Woodbrook Weavers, the Michigan Quilter's Guild and the Greater Levine Embroiderers Guild. Costs range in the area of $10 per issue.
• Continuing to advertise in the Greater Levine Yellow Pages at a cost of $10.75 per month.
• Participating in the fundraising activities of public radio, such as the WYRU Auction, by making a donation in the form of a gift certificate. (Retail value of $30; actual cost $15)
• Supplying area interior designers with button samples mounted on fabric for them to use with their clients.

Another goal which Mosaic needs to address is that of building inventory. Summer months will allow a greater portion of the company's resources to be directed toward augmenting inventory.

• Mosaic will advertise in the area weeklies, such as Retreat, as wanting to buy old buttons.
• Mosaic will solicit handmade buttons by advertising in the "Opportunities" section of The Art Calendar as a consignor.

PRICING POLICY

Three categories of buttons are purchased by Mosaic for resale. They are hand-crafted buttons, manufactured buttons and vintage buttons. The standard industry mark-up is 100 percent.

The average retail price of hand-crafted and vintage buttons is $4.25. Manufactured buttons range in price from $1.45 to $2.00, depending on what material is used. Buttons of natural materials are more expensive.

In the eight months Mosaic has been in business, the best selling button has been a natural corozzo nut button that sells for $1.20.

TERMS OF SALE

Mosaic currently accepts cash and personal checks in the amount of the purchase. With growth, the company will establish credit card acceptance.

Example Marketing Plan - Creative Cuisine
Example Marketing Plan - Creative Cuisine
Content provided by the U.S. Small Business Administration, Online Women's Business Center. SBA's programs and services are provided to the public on a non-discriminatory basis.

CREATIVECUISINE
Personal Chef Service

Market Study

Introduction

Creative Cuisine, to be located in Somerville, Massachusetts, will provide personal chef services to busy working professionals in the West Suburban Boston area. This service will include personalized menu planning, grocery shopping and preparation of dinner entrees and side dishes on a regular basis. The service will be available as a monthly, bi-weekly or occasional service. Price will vary according to level of service selected. The meals will be prepared in the client's home during a weekday while the client is at work. All meals will be packaged, labeled and refrigerated or frozen with complete instructions for final preparation. Creative Cuisine will use all its own utensils and will do complete clean-up.

Creative Cuisine's target market will be affluent working couples with children who want to enjoy healthy dinners at home with minimum preparation. The average clients will be homeowners age 35 to 55, with incomes over $100,000. Creative Cuisine's marketing focus is to provide them with a convenient, unique and high-quality alternative to cooking, dining out, or take-out meals.

Creative Cuisine's targeted high-end consumers continue to demand more convenience and quality in their dinner meal. Nearly half of America's dinner meals are currently prepared outside the home by full-service restaurants, grocery store prepared food sections, and take-out food retailers. Two of Creative Cuisine's advantages over such competitors are: 1) its ability to completely customize meals to the client's tastes, preferences and dietary requirements; and 2) its ability to deliver these meals directly to the client's home refrigerator/freezer, thus saving clients valuable free time that would otherwise be spent shopping, driving, and cooking. The customized meals personally prepared by Creative Cuisine will be significantly higher in quality, taste and nutrition than the mass-produced food offered by its competitors.

What follows is a detailed analysis of the current market for a personal chef service.

Current Market Size

Economists at the National Restaurant Association estimated total foodservice sales for 1996 at $313 billion, representing a 5 percent increase over 1995. That means consumers spent an average of $855 million per day on food away from home.

According to the National Restaurant Association's1996 Foodservice Industry Forecast, fast food comprised the largest segment of this market, capturing 47.8 percent of the dollars spent. The report attributes this success to "fast food's ability to meet consumers' desire for value and convenience." It was further estimated that at least 64 percent of all fast food purchases were consumed off-premises.

According to Technomic, Inc., a food industry consulting firm in Chicago, almost half of consumer food dollars are spent on meals prepared away from home. In addition, food expenditures rise significantly as income increases according to the Bureau of Labor Statistics' Consumer Expenditure Survey Data.

Industry Trends

This significant trend of consumers purchasing prepared meals is so pervasive that the foodservice industry has coined a new term to describe it: "home-meal replacement." Many businesses are shifting their focus to meet the growing demands of consumers:

• Most supermarkets now include a deli, bakery, and a prepared-foods section. Also, many offer fast-food service.
• Boston Market has continued to expand its product lines and market share.
• Famous chefs, such as Wolfgang Puck, are offering high-end prepared meals in upscale supermarkets.
• Fast-food chains such as KFC, Pizza Hut and Taco Bell have formed alliances to offer multiple product lines under one roof.

There are also several economic and cultural trends that have contributed to this growing demand:

• Increasing number of women in the workforce
• Increasing number of woman-owned businesses
• Growing number of higher-income households
• Americans working longer hours
• Decreasing amount of leisure time
• Premium placed on convenience
• Trend toward purchasing personal services (i.e., personal-trainers, house-cleaning services, home shopping services)

According to Foodservice Solutions, a Tacoma, Washington hospitality consulting firm:

Entrepreneur Magazine's February 1997 article selected "Personal Chef Services" as one of the top service businesses to start today:

Growth Potential of the Market

Based on the National Restaurant Association's 1996 Foodservice Industry Forecast, the percentage of food dollars spent away from home has grown from 25 percent in 1955 to 50 percent in 1996.

More importantly, the proportion of the food budget spent on meals away from home increases significantly as income increases. Households with incomes of $70,000 spent 81 percent more per capita ($1,278 per person) on food away from home than the average income-reporting household ($705 per person) according to the Consumer Expenditure Survey conducted by the Bureau of Labor Statistics.

Also contributing to the potential growth in the market is the rise in affluent households documented by the Current Population Survey from the Bureau of the Census. From 1990 to 1994 the number of households earning $50,000 to $74,999 increased by 16.4 percent; households earning $75,000 to $99,999 increased 36.1 percent; and households earning $100,000 or more increased by 61.1 percent in the same period.

Affluent Households Gaining Ground
Change in Number of Households from 1990 to 1994

Household Income

Increase (Decrease) in
Number of Households

Percent
Change

Source: Bureau of the Census

A personal chef service is uniquely positioned to take advantage of the increasing demand for fast food, growing health concerns, and the rise in high-income households. Affluent working couples want "fast food," but they want it upscale, healthy, and convenient. The founders of Truly Unique Personal Chef Service in Newport Beach, California, report that their business has grown 10 to 15 percent every year since opening in 1992. Many of their clients said they were getting bored with going out to restaurants and wanted something different.

Customer Profile

Creative Cuisine's' target customer will be families with two working, professional parents who are too busy to cook every night but are fed up with takeout and restaurant food. Their specific demographics are as follows:

Household Income: Over $100,000
Age: 35 to 55
Education: College degree and/or advanced degree
Marital Status: Married couples or high income single
Job: Professional status (one or both partners)
Children: Preferably ages 7 to 18
Homeowners: Preferably
Location: Live in neighborhoods with high concentration of affluent families

Customer Benefits

Here are just a few of the benefits to customers if they hire Creative Cuisine:

• 6 hours per week more free time (1 hour per day cooking/acquiring meal plus 1 hour per week grocery shopping)
• Very convenient
• Meals customized to personal tastes
• More variety
• Health and nutrition benefits
• Less stress
• Client feels pampered
• It makes life easier
• Don't have to cook
• Less grocery shopping
• Minimal kitchen clean-up
• Peace of mind

The Competition

There are a handful of other personal chef services in the Boston metropolitan area; however, since this is still a new business concept, there remains a large untapped market.

Most competition for home-meal replacement exists from neighborhood restaurants, upscale fast-food outlets (e.g., Boston Market) and supermarket prepared meals. Following is a competitive analysis of the various meal replacement alternatives:

(Website visitor, the size of most monitors prevents us from placing the competitive analysis chart on this spot. Please link to the Competitive Analysis. After you've read the chart, click the link at the bottom, Return to Creative Cuisine's Market Study, to return to this page.)

Creative Cuisine's competitive advantage is its ability to deliver consistently high quality, personalized meals, custom menu planning, grocery shopping, and preparation of meals right in the client's home for consumption at the client's convenience.

This is an opportune time for beginning a personal chef service. According to Entrepreneur Magazine, some of the fastest growing trends in service businesses today include:

• Servicing smaller, upscale markets
• Products and services for children and their parents

Creative Cuisine is better positioned to service small, upscale markets in a personal way than are the other competitors. Creative Cuisine's personal chef services are specifically geared toward affluent couples with children. Busy working parents have more quality time to spend with their children when they aren't rushing to get dinner on the table, and their children get a more nutritious dinner. Creative Cuisine also has the advantage of being a home-based business which requires lower overhead and start-up costs than a traditional foodservice business.

Target Markets

The following cities in the West Suburban Boston area have been targeted by Creative Cuisine. All have high average household incomes and large populations of educated, married couples with families who own their own homes:

Demographic Summary
West Suburban Boston Communities

Community

Ave.
Household
Income

1996
Households

1996
Pop.

Owner
Occupied

Married
Couple/
FamilyAve.
Age

College Degree

Source: Equifax National Decision Systems, 1996, Courtesy of Community Newspaper Company

Market Penetration

Research indicates the most effective advertising tool for a personal chef service is placing a small display ad in a weekly community newspaper with a paid subscription base of 5,000 to 40,000 readers. All of the above communities have a weekly community newspaper, although some offer free subscriptions and some have a paying subscriber base.

In addition, the following marketing tools will be used:

• Offering $100 discount on initial service for first-time customers
• Developing contact list for referrals through friends, family, co-workers and networking
• Fliers and business cards placed at strategic locations
• Occasional advertising in other publications (e.g., Boston Symphony program)
• Press releases to community newspapers and radio stations

During the initial inquiry by the prospective client, an appointment will be scheduled in the client's home to discuss the service. At the first meeting, the Creative Cuisine chef will present sample menus and sample meal options. A questionnaire on food choices and preferences will be completed. After presenting the pricing structure, a plan will be chosen, a check will be collected, and a date will be set for the first service. An interim phone call will be made to present the personalized menu and obtain menu approval. A small gift will be left at the first service appointment with a thank you card. A follow-up call a few days after service begins will inquire into the client's satisfaction with the meals. If this is a trial customer, an additional call will be made one week later to see if their is interest in becoming a regular client; if so, a regular service date will be set. For all future service, a check made out to Creative Cuisine will be left at the client's home on the service date.

Creative Cuisine has the potential to create a very profitable business by capitalizing on several major trends of the 1990s. With the increasing numbers of affluent families comes their increasing demands. Creative Cuisine can help solve some of their problems while meeting these demands.

Problem

Creative Cuisine Solution

The above marketing plan was written by a student in Boston's Center for Women & Enterprise's 9-week business feasibility course-Fast Trac 1. The author can be reached by email at ChefLinda@aol.com.

(Center for Women & Enterprise, Boston, MA, 12/97)

Competitive Analysis - For Creative Cuisine
Competitive Analysis - For Creative Cuisine
Content provided by the U.S. Small Business Administration, Online Women's Business Center. SBA's programs and services are provided to the public on a non-discriminatory basis.

Factors:

Priority (*)

  Creative  Cuisine

Boston
Market

Bertucci's

Peking
Garden

Super-
market

(*) Priority: Level of importance to target customer - affluent, busy professionals.

Legend:

 Segment Your Audience

Customer segmentation is understanding your customers' unique characteristics and behaviors so you can come up with a marketing message that communicates with them effectively. It also helps you to spend your marketing dollars wisely, using only those vehicles that can reach your identified segments.

Evaluate your customers against these five criteria to ensure that you have clearly segmented your audience.

1. Type of customer

Perhaps the most basic way to segment your audience is to decide whether you plan to target consumers or other businesses. Few small companies can successfully target both, and while there may be some overlap, you will more than likely need to create a firm distinction to hone your marketing message.

2. Geography

The geographic location of your customer base is crucial to determining the marketing methods your business will employ. Customers can be local, regional, national, or international. For some businesses, the target will be obvious - a dry cleaning store's target audience may only be within a few miles of its location. In cases such as these, it may be a good idea to break down geographic location even further - by postal code or neighborhood, for example. Similarly, national or international sellers might want to track the cities or countries where the majority of their customers are located to help them sharpen their focus.

3. Demographics

Demographics are the basic "vital statistics" of your customer base. By segmenting on demographics, you can determine the specific statistical characteristics that set your customers apart.

If your business is targeting consumers, demographic segmentation might cover characteristics such as age, gender, level of education, job classification (blue vs. white collar), income, marital status, and ethnic or religious background. It may not be necessary to use all of these criteria; rather, you want to focus your research on those that are most appropriate to your product or service.

Business demographics, on the other hand, break down differently. Start by looking at what industry your target customers are in. You can also segment your targets by size of business based on number of employees or total sales. Finally, consider who makes the buying decision for a product or service such as yours - what is this person's job title and what department does this person work in?

4. Psychographics

Psychographics refer to personality and emotional behavior that influences purchasing. In other words, what are the buying habits of your customers? For example, is the customer impulsive or risk averse? There are a broad range of variables you can consider and they often play against each other, but some of the most common psychographic components include:
The customer's predisposition to purchasing a new product or service vs. another

• Influences on the customers' purchasing habits (such as peer pressure or education)
• Attributes of a product or service that may be important to the customer
• Brand loyalty or reputation
• Buying decision criteria, such as whether the purchase will be based on price or value

5. Beliefs and lifestyle

These areas generally refer to ways that consumers look at themselves. Beliefs may include religious, political, nationalistic, or cultural values and attitudes. Lifestyle segments may relate to ways customers use their non-work time for things such as hobbies, recreation, entertainment and other pursuits. These segments may be important, since these variables can often be used to predict future purchasing behavior.

Successful Sales Letters

While the telephone is still the primary tool for reaching your prospective customers, there are many times when you will have to write a sales letter. A strong sales letter can reinforce your sales message, significantly enhance the image of your company in the mind of your prospect, and get your foot in the door. An ineffective letter will cause your prospect to lose interest in your product or service, and can easily cost you an account.

Sales letters tend to fall into one of three categories -- letters of introduction; follow-up letters; and cover letters for presentation packages. As the name suggests, letters of introduction are used to introduce yourself to a prospect and let them know you are going to call them on a specific day and time. Follow-up letters serve to reinforce a point made during previous contact; it could be a phone conversation or a face-to-face meeting. Cover letters are sent as part of a larger package, and alert the reader about what to look for in that package.

Click on the following tips to help you create successful sales letters:

• Talk About Your Customer, Not Yourself
• Acquaint or Reacquaint the Reader With Who You Are
• Use Bullets
• End With An Action
• Keep Your Letter Brief
• Show That You "Get" Their Company
• Use Statistics
• Give Away Ideas
• Have Someone Read It Over

Talk About Your Customer, Not Yourself

The most off-putting word in a sales letter is "I" and the most effective word is "you". Never begin a letter with "I" because chances are the reader won't get to the second word. It all comes down to selling benefits -- your prospects are not interested in the features of your products services, but in what how your products or services can benefit them. Change "I can train your service reps in the latest satisfaction techniques" to "Your customer complaint ratio will drop by training your reps in the latest customer satisfaction techniques".

Acquaint or Reacquaint the Reader With Who You Are

In many cases, it is necessary to begin your letter with a brief introduction to who you are and what you do. This is basic for a letter of introduction, but if you've already spoken with this person, saying who you are will re-establish a sense of contact. For example: "It was great speaking with you last Thursday. Acme Partners is an advertising agency that can help you boost your Web site traffic with a focused banner ad campaign".

Use Bullets

The body of your letter should contain three or so key points, set apart by bullets. Readers like bullets because it makes the letter easy to read. As the writer/seller, you benefit by immediately pointing your reader in the direction of the important points you want to make.

End With An Action

What result do you want from your letter? Are you looking to get a face-to-face appointment? Are you answering questions raised at a previous meeting? Do you want to make your prospect better informed? Do you need to get a signed contract? You need to close your letter by requesting a specific, quantifiable action. For example: "I will call you on Tuesday, November 18 at 10 a.m. to schedule meeting" or "Please return the enclosed contract Friday, December 12, or call me if you have any other questions".

Keep Your Letter Brief

It's rare that someone is going to read anything past the first page, so keep your letter to one page. Many readers look immediately to the bottom of the page to see if the signature is there, so they know who the letter has come from. Staying at one page will also force you to be succinct, since a rambling letter is an ineffective letter.

Show That You "Get" Their Company

You will immediately gain their confidence if you show that you understand what your customer's company is all about. This is especially important when you're trying to reach a large corporate customer. Briefly talk about their brand, their image, and their needs. For example: "Acme has a reputation for providing superior service and keeping its customer's needs first" or "There is enormous cachet to owning an Ajax Widget".

Use Statistics

Back up your claims with statistics. This shows that you understand the issues of their business, while demonstrating that your product or service can solve a problem. It also gives your prospect a reason to support your product or service within the company. For example, a software training company pitching a corporate client might cite: "According to Acme Research Associates, the average computer user wastes over 100 hours a year trying to figure out how certain tasks are done".

Give Away Ideas

Your sales letter is, in essence, a very brief sales proposal, so you need to show that you are thinking about your prospect's needs. You might be hesitant to put your best ideas in your letter, fearing that your prospect will use them but not hire your company. That's a mistake. By putting your ideas in your letter, you will make your prospects feel like they're getting something already, and that they'll benefit from your products or services. More importantly, you'll be demonstrating that you're creative, on the ball, and have your client's best interests in mind.

Have Someone Read It Over

Get another pair of eyes to look at any letter before you send it out. This will help you determine if your letter is clear and if you're getting your point across. Also, ask the person to look it over for typos; you don't want to lose out on an account due to a misspelled word or other careless mistake.