Marketing plan step 1: Initial business idea, determining your value proposition

Before taking on step 1, please first read “Marketing plan: an introduction” to see how the different steps relate to one another. Image by Vectorportal.

Value proposition

As an entrepreneur you want to provide value in a particular market (e.g. laptop market), for a specific customer group (e.g. digital nomads).

Searching for a value proposition

It is not always immediately clear what market you should pick and whether you have the required skills to execute the idea. This means that the search for a suitable business idea can take a while and often includes minor and major failures (e.g. companies that go bankrupt) before you are set on the right track. Being willing to go through this trial and error process is likely what defines an entrepreneurial spirit. The difference between an entrepreneur and an employee is that the former is often more willing to challenge conventional wisdom and take risks.

Market insights

Being an entrepreneur is all about seeking out and capitalizing on market opportunities, meaning that you have to be both aware of trends in the market, as well as have a practical mindset as execution is more important than coming up with the idea itself. In life and business we often like to believe that success is based on clear rules and planning, but in reality luck is a major factor. So the controllable part of starting a successful business comes down to staying on top of trends and developing a clear value proposition.  

Designing the value proposition

When writing a business plan the first step includes the identification of (1) relevant trends, (2) challenges and (3) openings (i.e. a field with little competition) in the market and (4) combining those elements into a value proposition:

  • Identify trends in the market that your business idea capitalizes on.
  • Identify challenges or problems in the market that your business idea offers a solution to.
  • Identify an opening in the market where there is limited competition and a chance for your business to make a profit.
  • Transform the acquired information into a value proposition, encompassing an Unique Selling Point (USP): “__ [company name] ___ in the market of __[product category]_____ offers ___ [USP] ___ with the help of ___[product name] ___, unlike ____  [competing companies] ____.”

Go to step 2

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Marketing plan: An introduction

Writing a marketing plan involves five steps, roughly following the marketing strategy framework by Robert Dolan.

Marketing plan step 2: Market analysis, mapping the internal and external environment

Step 2 is about checking your assumptions with a more structured analysis of trends, competitors and your company's strengths and weaknesses.

Marketing plan step 3: Marketing strategy, determining the target market and positioning

On a strategic level you have to decide what specific target customer you want to “attack”  and what value you would like to offer them.

Marketing plan step 4: Marketing tactics

What you are going to offer in practical terms. How can you translate the value proposition in tangible actions with the help of the marketing mix?