Question

Mark has a brilliant business idea that he intends to explain to a venture capitalist. However, the venture capitalist agrees to invest in Mark's idea provided he prepares a report that explains the product, price, distribution, and promotion strategy. The venture capitalist also wants Mark to include an analysis of the existing competition and to clearly indicate his target customers in the report. Mark has been typically asked to prepare a _____ by the venture capitalist.

A. Letter of credit.
B. Balance sheet.
C. Documentary draft.
D. Marketing plan.

Answer 1

Mark has been requested to create a marketing plan by the venture capitalist. This document will outline various components of his business strategy, including product information, pricing, distribution, promotion, competition analysis, and target market. The involvement of venture capitalists in early-stage companies helps to navigate financial and strategic challenges.

Step-by-step explanation:

Mark has been asked by the venture capitalist to prepare a marketing plan. A marketing plan is a comprehensive document that outlines a company's advertising and marketing efforts for the coming year. It describes business activities involved in accomplishing specific marketing objectives within a set time frame. This report will detail the product description, pricing strategy, distribution channels, promotional activities, an analysis of the competition, and a definition of the target market.

For a company at an early stage without profits, like Mark's, venture capitalists provide much-needed financial capital to support growth and development of the new business idea. The involvement of venture capitalists often goes beyond just providing funds; since they typically own a significant portion of the company, they can also contribute to the management and strategy, leveraging their experience and knowledge to help the business succeed.