See how one small business owner used a well-thought out business proposal to attract a prospect. This case study is a composite sketch based on many small businesses today who are working to gain a competitive advantage in tough markets.

Dimension Marketing is a marketing company, run by Johnny Marketer in Higher Ground, Massachusetts. His prospect, The Place, was a small, local bistro-style restaurant in the same town. The challenge facing Johnny was to increase The Place's overall market share.

The Place Sales Proposal

Introduction

In this section of Dimension Marketing's business proposal, Johnny stated that his company had conducted a significant amount of research concerning The Place's market status and business objectives. By doing this, Johnny immediately placed his firm in a position of power as an expert on the prospect's particular market and status within that market.

Challenge

Here, Johnny Marketer discussed The Place's challenge in greater detail. In this case, The Place only absorbed 5% of the total restaurant-going clientele in Higher Ground. Johnny reasoned that the prospect needed to create a mass media campaign to appeal to the remaining 95% of their potential audience. Citing his research, Johnny then introduced his solution--reorganizing The Place's advertising strategy.

Solution

Johnny's team conducted a demographic outline of The Place's clientele to determine who their customers were. From this data, Johnny was able to determine which advertising mediums would best reach this target audience (television, the Internet, radio and local print). He clearly outlined the benefits of each medium, along with all potential costs involved in placing ads.

Benefits

This was where Johnny's selling skills really came into play. In addition to citing excerpts from their resume (long-term member of the Higher Ground Advertising Association, over 150 years' combined team experience), Johnny made sure to reiterate how these credentials would play a pivotal role in the prospect's solution. In this case, Johnny stated that Dimension Marketing's numerous, established contacts within the broadcast, Internet and print communities would enable them to negotiate the most cost effective advertising rates for The Place.

Costs

Johnny clearly and concisely outlined all potential costs related to reorganizing The Place's advertising strategy.

Television: A locally produced, 30 second commercial could cost as low as $1,000. The cost of airtime is dependent upon programming choice and frequency.

Internet: Web site production costs are as low as $2,000-$5,000. The starting production price of most Banner Ads is $1,000-$1,500. Placement costs vary.

Radio: A locally produced, 30 second commercial could cost as low as $2,500. The cost of airtime is dependent upon programming choice and frequency.

Local Print: A full-page, 4-color ad--including photography, copy and layout--could cost as low as $1,000.

Pop Quiz: Are Your Proposals Effective?