The standard components of an effective marketing plan can vary depending on who you ask. Here is my recommended five-step process for developing a marketing plan that will help you achieve your goals for business growth.

Step One:

Look inward. Think of your company as if it were a person with its own unique personality and identity. With that in mind, create separate lists that identify your business's strengths, weaknesses and goals. Put everything down and create big lists. Don't edit or reject anything.

Then, find priorities among the bullet points. If you've done this right, you'll have more than you can use, and some more important than others. Kick some of the less important bullets off the list and move the ones that are important to the top.

This sometimes requires input from your managers as well. For example, your management team thinks being conservative on spending is a weakness but you don't. That might be something to drop off the list.

Step Two:

Look outward. The next list you'll need to make outlines your business's opportunities and threats. Think of both as external to your business -- factors that you can't control but can try to predict. Opportunities can include new markets, new products and trends that favor your business. Threats include competition and advances in technology that put you at a disadvantage.

Also make a list of invented people or organizations who serve as ideal buyers or your ideal target market. You can consider each one a persona, such as a grandmother discovering email or a college student getting his or her first credit card. These people are iconic and ideal, and stand for the best possible buyer.

Put yourself in the place of each of these ideal buyers and then think about what media he or she uses and what message would communicate your offering most effectively. Keep your identity in the back of your mind as you flesh out your target markets.

Step Three:

Focus on strategy. Now it's time to pull your lists together. Look for the intersection of your unique identity and your target market. In terms of your business offerings, what could you drop off the list because it's not strategic? Then think about dropping those who aren't in your target market. For example, a restaurant business focused on healthy, organic and fine dining would probably cater to people more in tune with green trends and with higher-than-average disposable income. So, it might rule out people who prefer eating fast-food like hamburgers and pizza, and who look for bargains.

The result of step three is strategy: Narrow your focus to what's most in alignment with your identity and most attractive to your target market. In other words, focus on the area that is shared by all three lines in the diagram here.

Step Four:

Set measurable steps. Get down to the details that are concrete and measurable. Your marketing strategy should become a plan that includes monthly review, tracking and measurement, sales forecasts, expense budgets and non-monetary metrics for tracking progress. These can include leads, presentations, phone calls, links, blog posts, page views, conversion rates, proposals and trips, among others. Match important tasks to people on your team and hold them accountable for their successes and failures.

Step Five:

Review often and revise. Just as with your business plan, your marketing plan should continue to evolve along with your business. Your assumptions will change, so adapt to the changing business landscape. Some parts of the plan also will work better than others, so review and revise to accommodate what you learn as you go.

Tapping the vast audience of the social Web is a low-cost way to catapult a small-business brand onto the global arena. Building your brand using social media allows you to develop new (and strengthen existing) relationships, which often leads to everything from brand awareness, loyalty and word-of-mouth marketing.

While perhaps initially daunting, the trick is to break the process into manageable pieces. From creating your online destinations to connecting with influencers, following these five steps will get you on your way to building your brand and boosting your business.

1. Create branded online destinations.

This is the first step to raising brand awareness and loyalty. Companies with the most successful social media branding surround consumers with online experiences that allow them to select how they interact with the brand.

Consider using popular, free options like blogs, Twitter, Facebook, LinkedIn, YouTube, and so on. Of course, for small-business owners without the manpower to effectively manage too many destinations, you should consider testing each of these to determine which social media service you're most likely to stick with over the long haul. This will become your core destination. All your other online destinations should link back to the core.

2. Establish entry points.

One of the most important aspects to accomplishing this with your branded online destinations is to continually publish meaningful content that adds value to the reader's experience. The goal is to publish useful information that people will want to talk about -- and then share with their own audiences. This creates additional ways for people to find your branded destinations and it can lead to higher rankings from search engines like Google.

Here's one way to think about it: If you have a website with 10 pages of content, there are 10 ways for search engines to find your site. If you attach a blog to that website and write a new post every day for a year, you will have 365 more ways for Google to find your site, and your brand.

I call this the compounding effect of blogging. You cannot buy that kind of access to a global audience.

3. Locate your target audience and bring them back with you.

Where does your target audience already spend time? You need to spend time in those places, too, and engage in the conversations happening there. Get started by conducting a Google search for keywords that consumers would be likely to use when searching for a business or products like yours. Follow the paths that those consumers would follow and you're likely to find them.

Join relevant online forums and/or blogs, and write posts, publish comments and answer questions. Once that audience understands that you're there to genuinely offer useful information and not to self-promote, you can start leading them to your own branded destinations -- particularly your core branded online destination.

4. Connect with influencers.

As you search for your target audience, you should identify online influencers in those communities and get on their respective radars. To do so, leave comments on their blogs, follow them on Twitter and retweet their content. You can even email them to introduce yourself.

The key is to make sure they know your name and understand that you add value to the online conversation. This also exposes you to their audiences.

5. Give more than you receive.

Success in social media marketing depends on being useful and developing relationships. If you spend all of your time promoting then no one will want to listen to you. It's not a short-term tactic, rather a long-term strategy that can deliver sustainable, organic growth through ongoing, consistent participation.

A good rule of thumb is to apply the 80-20 rule to your social media marketing efforts. Spend no more than 20 percent of your time in self-promotional activities and conversations, and at least 80 percent on non-self-promotional activities. In time, you'll see your business grow from your efforts. And it starts with leveraging these fundamentals.

That doesn't mean sit and wait for things to improve. Rather, retool for the economy that exists today, and will be lingering for many tomorrows. Here are 10 places to start.

1. Overhaul your business plan. In a climate as unforgiving as this, stasis is death. So dust off your business plan and scrub it of any assumptions you may have made three years ago. Roll up your sleeves, do the math and zero in on the best strategy to grab market share and win new business. Then start treating your business plan as if it's a work in progress. Create hard benchmarks and measure results often. That's how you improve performance, says Tim Berry, president and founder of Palo Alto Software Inc., developer of Business Plan Pro, a small-business software tool that creates plans and financial projections.

"Planning means tracking how assumptions change and reviewing progress and plan versus actual results," he says. Rethinking your business plan also can help you spot new opportunities and point your company in the right direction. For step-by-step advice, check out the U.S. Small Business Administration's guide.

2. Double down on what works. Whatever paid off in 2010 is worth investing more time, money and resources next year. Ask yourself: What was your top-selling product or service, and how can you get your customers to buy more? What money-saving strategies went straight to the bottom line? What incentives or promotions got your customers' attention?

Elyissia Wassung, CEO of 2 Chicks With Chocolate, a South River, N.J., chocolate maker, is doubling down on in-store demos, which have boosted sales. When she learned a chain retailer was planning to order exclusively from 2 Chicks for Christmas, she says, "We decided to double our demos with them this holiday season and blitz all of their stores on the same day. We are also giving away prizes to the top performing stores."

3. Experiment. The best time to try something new? When the old isn't working. It may feel safer to stay in your comfort zone, but sticking with the same old product, service or marketing strategy might actually be riskier.

The best new ideas often come from conversations with your customers, suppliers and, most of all, employees. "The unexpected can often be the obvious," says New York business and personal coach Carol Vinelli. Talk less, listen more and really tune in to ideas that could lead to breakthrough products and services.

Need some inspiration? Check out Seth Godin's bestselling book Purple Cow about how to make your company remarkable.

4. Fire your D-grade customers. "High-maintenance, low-margin customers are an impediment to deploying time and resources more profitably," says Joseph Fulvio, a consultant in Doylestown, Penn., who specializes in growing small businesses. "Get rid of them."

Make a list of your customers and give each of them a grade. Then dump everyone below a C--or a B, if you can afford it. Once you've separated the winners from the losers, put a plan in place to turn those laggards into A-listers. Going forward, use those criteria to size up new business.

Though most businesses worry whether they'll meet clients' expectations, "it's actually a two-way street," Fulvio says. A better vendor-customer fit should produce a healthier bottom line.

5. Become an 'A' customer. When prices are low, as they are now, it's generally a good time to lock in long-term contracts with your regular vendors, contractors and suppliers. Indeed, you might be able to negotiate a lower price in return for the promise of your business. Small-business management expert Tim Sciarrillo of The New England Group in Milford, Conn., suggests asking your supplier for a volume discount and to hold the goods until you need them.

Instead of ordering 10,000 custom labels five times a year, for example, order 50,000 at once but have them delivered in batches. This lowers the supplier's manufacturing costs, reduces your unit price and speeds delivery on future orders because the labels are already printed.

Exclusivity is the key to a sweetheart deal like this. "At one client company, we reduced corrugated suppliers from five to one," Sciarrillo says. "The client received better service, reduced pricing and every time there was a price increase, the salesman usually kept our increase a percent or two below the standard."

Make sure your contract covers all the details, such as delivery cost, timing and quality guarantees.

6. Expand your network. Facebook and LinkedIn have their uses, but they'll never replace face-to-face meetings, especially to win new business and get referrals.

"Some folks aren't ready to go out there and mingle, but in today's economy, it is imperative," says Bryan R. Adams, owner of FAB Communications in Teaneck, N.J.

Think about it: A single coffee, meeting or lunch with a lawyer, financial planner or supplier could bring in dozens of new customers next year. If you're afraid to jump in right away, Adams suggests starting by searching Meetup.com for a group that matches your interests and attending local chamber of commerce events.

Once you find your groove (and refine your elevator pitch), consider joining a dedicated networking group such as BNI International, LeTip International or National Association of Women Business Owners. "Getting out there keeps you sane and you get to hear what's working and not working for other businesses," Adams says.

7. Leverage your brand. In this economy, it's more important than ever to avoid becoming a "me, too" brand. Low prices and quality service are no longer enough. Whether it's a YouTube video, an iPad app or a free tasting event, offer something to make customers take notice.

"What do you bring to the table that no one else is serving up to clients and potential clients?" asks Debra Condren, a New York business psychologist. "You must first understand what sets you apart and then become completely fluent in communicating to your target audience what separates you from the herd."

For more tips and tools on leveraging your brand, check out Entrepreneur's free online marketing guides at entrepreneur.com/marketing.

8. Get some credit. The mortgage market is starting to thaw, and that's good news for small-business owners who can tap their home equity for working capital. If you have good credit and some equity in your house, now may be the time to refinance before interest rates rise.

Be sure your credit score is solid and that your business shows positive cash flow before you start shopping for deals. You won't get the loan unless your bank is convinced you can cover the monthly payments.

"Banks are willing to provide credit but are still very selective," says Case Western's Shane. "Financials help a lot right now."

9. Fire up your employees. Think about creating a bonus plan to motivate employees to hit your 2011 goals. Bonuses, while not always successful, says Rich Armstrong, president of The Great Game of Business Inc., can help focus your staff's attention on key metrics such as sales, profits, productivity and customer satisfaction.

Armstrong's Springfield, Mo., firm provides training in the open-book management philosophy, which advocates sharing financial and operational information with employees so that they can make better decisions, and it gives them a stake in the company's success.

"Your people must clearly understand the goal, the improvements that are needed, how they can make a difference and what they stand to gain," he says. "Bonus-plan success will have everything to do with how well you communicate, educate and encourage your people to stay in the game and reach for the goal."

A bonus plan can work in all types of businesses, including manufacturing, sales, even restaurants. Goals can be tied to easy-to-measure numbers such as revenues, new business volume or gross margin. There's more about open-book management practices on The Great Game of Business website, greatgame.com.

10. Team up. Working with "channel partners"--companies that target the same market but with products or services different from yours--can be an ultra-efficient marketing strategy. They've already spent the time and money to attract the customers you want, and you can piggyback on those efforts. Naturally, your partners are going to want reciprocal benefits. Vinelli, the business coach, says, "Set aside time each week to brainstorm new ways to create added value to your relationships, fostering more referrals and new partnerships."

Anne Maxfield, chief visionary officer and founder of Accidental Locavore, a new-media venture in New York that demystifies farmers markets for shoppers, is partnering with companies that appeal to food- and health-conscious consumers. She's pitching a show to the Food Network and forging alliances with NYCH2O, a New York bottled-water company, and EcoPlum, a website selling green products.

"Our success in 2011 will come from partnerships [with companies] that consumers believe in and trust," she says.

SOURCE: ENTREPRENEUR MAGAZINE ONLINE]]>http://mainlinemediaonline.com/blog/2010/7/8/brace-for-the-end-of-the-made-in-china-era.htmlBrandon Roberts2010-07-08T21:26:30Z2010-07-08T21:26:30ZSHANGHAI – Factory workers demanding better wages and working conditions are hastening the eventual end of an era of cheap costs that helped make southern coastal China the world's factory floor.

A series of strikes over the past two months have been a rude wakeup call for the many foreign companies that depend on China's low costs to compete overseas, from makers of Christmas trees to manufacturers of gadgets like the iPad.

Where once low-tech factories and scant wages were welcomed in a China eager to escape isolation and poverty, workers are now demanding a bigger share of the profits. The government, meanwhile, is pushing foreign companies to make investments in areas it believes will create greater wealth for China, like high technology.

Many companies are striving to stay profitable by shifting factories to cheaper areas farther inland or to other developing countries, and a few are even resuming production in the West.

"China is going to go through a very dramatic period. The big companies are starting to exit. We all see the writing on the wall," said Rick Goodwin, a China trade veteran of 22 years, whose company links foreign buyers with Chinese suppliers.

"I have 15 major clients. My job is to give the best advice I can give. I tell it like it is. I tell them, put your helmet on, it's going to get ugly," said Goodwin, who says dissatisfied workers and hard-to-predict exchange rates are his top worries.

Beijing's decision to stop tethering the Chinese currency to the U.S. dollar, allowing it to appreciate and thus boosting costs in yuan, has multiplied the uncertainty for companies already struggling with meager profit margins.

In an about-face mocked on "The Daily Show with Jon Stewart," Wham-O, the company that created the Hula-Hoop and Slip 'n Slide, decided to bring half of its Frisbee production and some production of its other products back to the U.S.

At the other end of the scale, some in research-intensive sectors such as pharmaceutical, biotech and other life sciences companies are also reconsidering China for a range of reasons, including costs and incentives being offered in other countries.

"Life sciences companies have shifted some production back to the U.S. from China. In some cases, the U.S. was becoming cheaper," said Sean Correll, director of consulting services for Burlington, Mass.-based Emptoris.

That may soon become true for publishers, too. Printing a 9-by-9-inch, 334-page hardcover book in China costs about 44 to 45 cents now, with another 3 cents for shipping, says Goodwin. The same book costs 65 to 68 cents to make in the U.S.

"If costs go up by half, it's about the same price as in the U.S. And you don't have 30 days on the water in shipping," he says.

Even with recent increases, wages for Chinese workers are still a fraction of those for Americans. But studies do show China's overall cost advantage is shrinking.

Labor costs have been climbing about 15 percent a year since a 2008 labor contract law that made workers more aware of their rights. Tax preferences for foreign companies ended in 2007. Land, water, energy and shipping costs are on the rise.

In its most recent survey, issued in February, restructuring firm Alix Partners found that overall China was more expensive than Mexico, India, Vietnam, Russia and Romania.

Mexico, in particular, has gained an edge thanks to the North American Free Trade Agreement and fast, inexpensive trucking, says Mike Romeri, an executive with Emptoris, the consulting firm.

Makers of toys and trinkets, Christmas trees and cheap shoes already have folded by the thousands or moved away, some to Vietnam, Indonesia or Cambodia. But those countries lack the huge work force, infrastructure and markets China can offer, and most face the same labor issues as China.

So far, the biggest impact appears to be in and around Shenzhen, a former fishing village in Guangdong province, bordering Hong Kong, that is home to thousands of export manufacturers.

That includes Taiwan-based Foxconn Technology, a supplier of iPhones and iPads to Apple Inc. Foxconn responded to a spate of suicides at its 400,000-worker Shenzhen complex with pay hikes that more than doubled basic monthly worker salaries to $290. Strike-stricken suppliers to Honda Motor Co. and Toyota Motor Corp., among many others, also have hiked wages.

Foxconn refused repeated requests for comment on plans to move much of its manufacturing capacity to central China's impoverished Henan province, where a local government website has advertised for tens of thousands of workers on its behalf.

But among other projects farther inland, Foxconn is teaming up with some of the biggest global computer makers to build what may be the world's largest laptop production hub in Chongqing, a western China city of 32 million where labor costs are estimated to be 20 to 40 percent lower than in coastal cities.

Given the intricate supply chains and logistics systems that have helped make southern China an export manufacturing powerhouse, such changes won't be easy.

But for manufacturers looking to boost sales inside fast-growing China, shifting production to the inland areas where many migrant workers come from, and costs are lower, offers the most realistic alternative. "The new game is to find a way to do the domestic market," says Goodwin.

Many factories in Foshan, another city in Guangdong that saw strikes at auto parts plants supplying Japan's Honda, have left in the past few months, mostly moving inland to Henan, Hunan and Jiangxi, said Lin Liyuan, dean at the privately run Institute of Territorial Economics in Guangzhou.

Massive investments in roads, railways and other infrastructure are reducing the isolation of the inland cities, part of a decade-old "Develop the West" strategy aimed at shrinking the huge, politically volatile gap in wealth between city dwellers and the country's 600 million farmers.

Gambling that the unrest will not spill over from foreign-owned factories, China's leaders are using the chance to push investment in regions that have lagged the country's industrial boom.

They have little choice. Many of today's factory workers have higher ambitions than their parents, who generally saved their earnings from assembling toys and television sets for retirement in their rural hometowns. They are also choosier about wages and working conditions. "The conflicts are challenging the current set-up of low-wage, low-tech manufacturing, and may catalyze the transformation of China's industrial sector," said Yu Hai, a sociology professor at Shanghai's Fudan University.

Associated Press researcher Ji Chen contributed to this report. [STORY]