4. What pricing strategy will you choose for your product, and what are the reasons tor this strategy?

Hint: Refer to Chapter 14 for more information on pricing strategies and tactics. Since your business is new, so is the product. Therefore, you probably want to choose between price skimming and penetration pricing. Which will you choose, and why? So far, your business has an identity, you've described the factors that will affect your business, and you've examined your employees, the jobs they'll be performing, and the ways in which you can motivate them. Part 4 of the business plan project asks you to think about marketing's 4 Ps-product, price, place

(distribution), and promotion-and hem they apply to your business. You'll also examine how you might target your marketing toward a certain group of consumers.

Exercise Background:

Part 4 of the Business Plan In Part 1, you briefly described what your business will do. The first step in Part 4 of the plan is to more fully describe the product (good or service) you are planning to sell Once you have a clear picture of the product, you'll need to describe how this product will stand out in the marketplace-that is, how will it differentiate itself from other products?

In Part 1, you also briefly described who your customers would be. The first step in Part 4 of the plan is to describe your ideal buyer, or target market, In more detail, listing their income level, education level, lifestyle, age, and so forth. This part of the business plan project also asks you to discuss the price of your products, as well as where the buyer can find your product.

Finally, you'll examine how your business will get the attention and interest of the buyer through its promotional mix- advertising, personal selling, sales promotions, and publicity and public relations.

This part of the business plan encourages you to be creative. Have fun! Provide as many details as you possibly can, as this reflects an understanding of your product and your buyer. Marketing Is all about finding a need and filling it. Does your product fill a need in the marketplace?