Internet Marketing Success Requires a Business Plan (Part II)
Formal business planning is a process that takes that "great idea" and subjects it to rigorous scrutiny. It either validates your premise or else shows you where the idea falls apart. Business planning forces you to identify costs and develop a sensible marketing strategy before you start spending money. Having a solid business plan will also help you to acquire funding, if necessary.
So what should an Internet marketing business plan address? At minimum, it should be a written document that covers:
Product/Service
A precise description of the product or service you wish to market on the Internet. What is it, and what are its ingredients? What (if anything) makes it unique? Are you sure you can actually provide this?
Marketplace
A clear definition of the target market(s) in terms of characteristics and numbers. That is, what need are you going to fulfill and who are your prospective customers? Is the market big enough to justify your investment? Is the market wide open or is it already saturated? Are there any entry barriers to prevent competitors from easily imitating your success? What industry associations, directories, agencies, clubs or events can be leveraged to reach your target market(s)?Are there any distinct prerequisites to participating in the target market(s), such as industry certifications or association memberships?Who are your competitors, and how are they addressing the market? What do their Websites offer and how are they constructed? How successful are they (check SEC filings if they are a public company)?Strategy
Given what you have learned about the market and the competition, how are you going to differentiate yourself? Is it through better service, lower pricing, more features, by offering different models for each market segment, improved convenience