This section tells your potential investors exactly how you make your product or service available to customers and how you plan to get the word out about your product or service.  Here, you should discuss your marketing channels and provide sales targets.  It’s best to give a number of different marketing strategies, possibly beginning with the least expensive and then progressing to the most costly.  Be sure to include the cost and other details of your overall marketing plan.

1. Marketing Channels

Where are your products distributed?  How do potential customers learn about your product or service?  Through word of mouth?  Through internet advertising?  Direct marketing?  Print, TV or radio advertisements?  Be specific about your current and future plans for marketing channels.

Example:

iWidget markets its products through a number of online distributors, with plans to increase those channels in the near term.   The company uses viral marketing strategy and has received significant business through word-of-mouth referrals from satisfied customers.

iWidget plans to roll out a more aggressive online advertising campaign next year.  Long-range plans include the use of television and radio advertising.

2. Sales Target

Your business plan should include achievable sales targets for the next three to five years to give investors a realistic picture of how your venture will progress in the near and medium term.

Example:

iWidget Pro was introduced to the market in June 2004 and produced first year sales of $19.7 million.  Sales rose 32% in 2005 to $26 million, and are projected to grow to $38 million in 2006 and $52 million in 2007.

iWidget Next and iWidget World followed in December 2004 and March 2005, respectively.  iWidget Next first year sales were $12.8 million and are projected to rise to$18 million in 2006.  iWidget World first year sales are projected at $13 million and are also expected to rise to $18 million in the second year.

iWidget Sales Projections: