NUTS AND BOLTS OF GREAT BUSINESS PLANS-2016.pdf

Who are the major purchasers of the products or

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Who are the major purchasers of the products or services in each market segment? Where are they located? Indicate whether this is a high, medium or low involvement purchase and draw implications. Indicate whether customers are difficult to reach and how strong their loyalties and switching costs are likely to be toward existing solutions. Discuss interviews you have had with users of this product or service category. List any orders, contracts, or letters of commitment that you have in hand. These are far and away the most powerful data you can provide. List also any potential customers who have expressed an interest in the product(s) or service(s) and indicate why. Also explain what you will do to overcome negative customer reaction. Indicate how quickly you believe your product or service will be accepted in the market. Which are the twenty percent of customers likely to account for eighty percent of your revenue? List and describe your five potentially largest customers. What percentage of your sales do they represent? In what way are customers dissatisfied with current offerings in the market place or what emerging customer groups are being ignored? D. Market Segmentation and Targeting Discuss how your defined market can be broken down into specific market segments. Be creative and insightful in describing the existing segments. Note that potential customers need to be classified by relatively homogeneous groups having common identifiable characteristics (they must be homogeneous in terms of needs or buying behavior). What characteristics define your target customers (demographics, psychographics, benefits sought, information sources utilized, product usage rate, etc.). Include a table summarizing the various segments. Indicate which segments you will be prioritizing. Which segments represent the greatest sales potential?
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IMAGINE > BELIEVE > CREATE 12 E. Competition and Competitive Edges Identify direct and indirect (and potential) competitors. DO NOT INDICATE THAT THERE IS NO COMPETITION. Make a realistic assessment of their strengths and weaknesses. Discuss the 3 or 4 key competitors and why customers buy from them, and determine why customers might leave them. Discuss the current advantages and disadvantages of competitor products and the extent to which they are not meeting customer needs. Compare also important attributes such as quality, price, performance, delivery, timing, service, warranties, and pertinent features of your product/service with those of competitors. Indicate who are the service, pricing, performance, cost, and quality leaders. Are there any substitute and/or alternative products/ services that compete for the same share of the customer’s wallet? What are they and w hy will be customers buy from you instead?
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