1. Are there segments in my market that are being underserved?
2. Are the segments of my market for my product or service big enough to make money?
3. How much share of that market do I need to capture, to just break even?
4. Is there too much competition in the segment of my market to be competitive?
5. What are the weaknesses in my competition's offering that I can capitalize on?
6. Does my market want or value my unique competitive offering?

Step 2 - Understand Your Customer

If you know (1) who your customers are, (2) what they want, and (3) what motivates them to buy, you can prepare an effective marketing plan.
 
Don't confuse "wants" with "needs." People don't necessarily buy what they need, buy they'll most always buy what they want. For instance, have you ever known someone that went to the store to buy a pair of pants that they needed and came back with a new shirt, sweater, and shoes? Or how about the everyday shopper who goes into the supermarket to buy some milk and eggs and comes out with a frozen pizza, cheese cake, and other goodies.
 
People will buy what they want (even if they don't have the money!), not what they need.
 
To really get to know your customers you'll need to ask yourself questions such as:

1. How does my potential customer normally buy similar products (i.e. in a store, on the web, door-to-door)?
2. Who is the primary buyer and the primary buying influencer in the purchasing process (i.e. husband or wife, purchasing agent, project leader, secretary)?
3. What kind of habits does my customer have? For instance, where do they get their information (i.e. television, newspapers, magazines)?
4. What are my target customer's primary motivations for buying (i.e. look good, avoid pain, get rich, be healthy, be popular etc.)

Step 3 - Pick a Niche
 
If you say that your target customer is "everybody" then nobody will be your customer. The marketplace is jam packed with competition. You'll have more success jumping up and down in a small puddle than a big ocean. Carve out a specific niche and dominate that niche.

Step 4 - Develop Your Marketing Message
 
One of the most profound statements made on the subject of positioning comes from Louis Carroll's Alice In Wonderland. When Alice asks the Cheshire Cat which path to take, he responds, "if you don't care where you're going, it doesn't make a difference which path you take."
 
Your marketing message not only tells your prospect what you do, but persuades them to become your customer. You should develop two types of marketing messages. Your first marketing message should be short and to the point. Some may call this your elevator speech or your audio logo. It's your response to someone who asks you, "So, what do you do?"
 
The second type is your complete marketing message that will be included in all your marketing materials and promotions. To make your marketing message compelling and persuasive it should include the following elements: 

1. Who you are
2. What business you're in
3. For whom (what people do you serve)
4. What's needed by the market you serve
5. Against whom do you compete
6. What's different about your business
7. What unique benefit is derived from your product or services?
8. Examples and testimonials from customers you have helped with similar problems.
9. An explanation about prices, fees, and payment terms.
10. Your unconditional guarantee.

1. Newspaper ads
2. Posters
3. Contests
4. Card decks
5. Seminars
6. Television ads
7. Signs
8. Sweepstakes
9. Door-to-door
10. Teleclasses
11. Radio ads
12. Banners
13. Trade shows
14. Yellow pages
15. Articles
16. Classified ads
17. Newsletter
18. Charity events
19. Networking
20. Infomercials
21. Billboards
22. Take-one box
23. Telemarketing
24. Magazine ads
25. Special events
26. Sales letters
27. Flyers
28. Email
29. Movie ads
30. Ezine ads
31. Postcards
32. Doorhangers
33. Agents
34. Media releases
35. Fax broadcasts
36. Brochures
37. Gift Certificates
38. Word-of-mouth
39. Website
40. Sign picketing
41. Business cards
42. Catalogs
43. Air Blimps
44. Public speaking
45. Window display

The trick is to match your message to your market using the right medium.
 
Success will come when there is a good match of these three elements
 
Step 6 - Set Sales and Marketing Goals
 
Goals are critical to your success. A "wish" is a goal that hasn't been written down. If you haven't written your goals, you're still just wishing for success. When creating your goals use the SMART formula. Ensure that your goals are, (1) Sensible, (2) Measurable, (3) Achievable, (4) Realistic, and (5) Time specific.
 
Your goals should include financial elements such as annual sales revenue, gross profit, sales per sales person etc. However, they should also include non-financial elements such as units sold, contracts signed, clients acquired, articles published etc. Once you've set your goals, implement processes to internalize them with all team members such as reviewing them in sales meetings, displaying thermometer posters, awarding achievement prizes etc. 

Step 7 - Develop Your Marketing Budget
 
Your marketing budget can be developed several ways depending on whether you want to be more exact or develop just a quick-and-dirty number. It's good to start out with a quick-and-dirty calculation and then to support it with further details.
 
First, if you have been in business for over a year and tracked your marketing-related expenditures you could easily calculate your "cost to acquire one customer" or "cost to sell one product" by dividing your annual sales and marketing costs by the number of units (or customers acquired) sold.
 
The next step is to take your cost to sell one unit or acquire one customer and simply multiply it by your unit sales or customer acquisition goal. The result of this simple computation will give you a rough estimate of what you need to invest to meet your sales goals for the next year.