Access to Appropriate Technology Technology often plays a critical role in the design and delivery of new products and services. If an organization has ample access to whatever technology is required for successful entry, it will be easier to enter the sector or market.

Access to Distribution Channels This is important if the organization is planning on entering a new sector or market that requires the distribution of new products and services. If the distribution channels are in place for the delivery of current products and services, it will be easier to introduce the new product or service into the new sector or market.

Accounting Principles Accounting systems collect and record an organization's business transactions and produce thorough, accurate financial statements, which are essential for making sound financial management decisions. Accounting documents the organization's income, expenditures, assets, debt (how much and to whom) and what it is owed, by whom. Accounting rules and standards ensure the ethical and appropriate use of resources. The Generally Accepted Accounting Principles (GAAP) are widely applied standards that provide guidelines on how to measure, organize, record and report key financial information.

Action Goals Action goals identify the specific, measurable results that you want. Stating these goals clearly will allow you to measure progress toward achieving them within a given time period. Action goals for marketing new products and/or services usually concentrate on creating demand for:

• The new product or service by a current group of clients

• The new product or service by a new group of clients

• An existing product or service by a new group of clients

Assets Assets are the property and resources an organization owns, with a value that can be quantified. A fundamental principle of accounting is expressed in the formula: Assets = liabilities + equity

Availability of Substitutes When an organization introduces a new product or service, it is more likely to create client demand when there is a limited number of products and/or services that serve the same purpose.


Balance Sheet A balance sheet displays the assets, liabilities and equity of an organization. The balance sheet reflects a fundamental principle of accounting, expressed in the formula: Assets = liabilities + equity.

Best Product or Service An organization using this strategy seeks to increase its own value, either through volume of sales, priced affordably for a large market; or through the sale of high priced products and services that offer distinct features demanded by certain market segments. The success of such an organization is based on its market share; that is, on capturing an increasing portion of the market. Therefore, it must bring its product or service to market first and have the best packaging and delivery.

Brand Identification or Identity Brand identification or identity is the client's ability to associate the organization's name with quality products and services. When an organization has "brand identity," the client will often seek out that organization first. It is also easier for that organization to introduce a new product or service into the new sector or market.

Budgets A budget projects the costs, and, in many cases, the revenues of an activity, program or organization. It quantifies the organization's programmatic goals and objectives by guiding the allocation of financial and human resources. A budget can be used with periodic expenditure reports to review expected costs against actual spending, identify which programs are cost-effective, predict cash needs, determine where costs must be cut and provide input into difficult decisions such as which programs to discontinue.

Business Planning This is short- to mid-term planning. As stated above, it is used to secure funding and make projections of the estimated financial and social return for the start-up of an organization, or for the development and introduction of a new product or service being offered by an established organization. A good business plan enables an organization to assess the viability of all its products and services.


Capability Statement This reflects the organization’s experience and capacity to perform the technical, managerial and administrative functions required in the procurement.

Capital Requirements The financial investments an organization must make in order to offer new products and services in a new sector or to a new market. If capital requirements are low, it is easier to enter the sector or market.

Clients' Ability to Pay When an organization introduces a new product or service for which a fee will be charged, it is more likely to create client demand when its price will not strain the budgets of most potential clients.

Client Demand This criterion looks at the power of the buyers (clients), in terms of their potential number and their ability to pay for your organization's new product or service. It also assesses the availability of substitutes offered by competing organizations. Ideally, you should introduce your new product or service to a large and growing market that has access to few substitutes and has an ability to pay for any product or service for which you charge a fee.

Cost Analysis Cost analysis is a study of the costs of the resources (such as personnel, supplies and equipment) associated with delivering a product or service, or implementing a project or program. This analysis helps you estimate the cost of providing a single service, such as an initial health center visit, a reproductive health counseling session, a well-baby visit, a day of hospital care or a follow-up visit. Knowing the cost of providing a single service allows you to consider different ways of organizing or paying for your resources in order to reduce excessive costs.

Cost of Failure This criterion looks at the barriers you may need to overcome to phase out a new product or service, or to exit from a new sector, if you do not succeed in attracting clients. Ideally, the cost of exit should not outweigh the possible social or financial gains to be made from the organization's investment in developing and introducing the new product and/or service.

Cost of Exit It is important for an organization to calculate the cost of discontinuing a new product or service or of leaving a new sector. If this cost is high, the cost of failure will be significant.

Cost Proposal This is also referred to as the budget. It describes in detail the estimated cost of implementing the project. It is critical that an organization base the budget on what has been written in the technical proposal. The figures in the Cost Proposal must align with the activities described in the technical approach and workplan. That is to say, every item in the budget should be accounted for in the technical proposal.

Cost and Revenue Analyses Cost and revenue analyses at their most sophisticated level analyze the demand for and the supply of products and services in a given geographic area. These types of analyses do not assume a static system, but rather consider a dynamic system in which many variables (such as population size, distance from the facility, income and level of fees) may influence each other simultaneously.

Costs or Expenses Costs or expenses are the financial outlays or resources used to deliver a product or service, or to implement a project or program. Such charges may be related to employing personnel, procuring supplies and maintaining equipment.

Crowdfunding Crowdfunding is when an organization raises funds for a cause, program or venture from a large number individuals, donor organizations or funders and investors. This is typically done through online platforms.


Degree of Product or Service Specialization If the organization has invested many resources in developing a highly specialized product or service, the cost of failure will be significant.


Ease of Entry This criterion looks at the barriers you need to overcome to gain entry into the sector in which you do not already have an established market. If your new product or service will require you to enter into a new sector, such as micro finance, environmental health or agriculture, you need to examine the potential barriers you may confront. This will help you determine the level of attractiveness of the new products and/or services.

Emotional Barriers If the users of an organization's new product(s) or service(s) have to overcome emotional barriers in order to comfortably and continuously use the product or service, and if you then have to discontinue the product or service, the users may no longer trust you and may not accept your products or services in the future. Examples might be adolescent reproductive health services or male sterilization services.

Equity Equity is the value of an organization at any given moment, expressed as the difference between assets and liabilities. It is expressed in the formula: Equity = assets - liabilities.

Executive Summary This is often considered one of the most important components of a proposal. Some funders do not read the entire proposal. Thus, the executive summary serves as an opportunity to hook the reader so they are interested in reading the rest of the document in more detail. The executive summary should sell the organization and demonstrate why the funder should pick your organizations over a competitor. It should be clear and concise (no more than two pages) and must summarize the content of the whole proposal. Most importantly, the executive summary should be written last once the entire proposal has been completed.


Financial Management Financial management is a necessary tool for supporting the organization's goals and objectives. Its purpose is to provide information that assists managers to make the organization's short- and long-term plans a reality. Financial management is about analyzing financial performance, identifying ways to use resources efficiently and finding creative ways to use existing resources to generate additional resources.


Geographic Scope The geographic scope of an organization describes the geographic area within which the organization's clients or consumers-those who use the products and/or services offered by the organization-live or work.

Growth of Target Market When an organization introduces a new product or service, its chances for successfully competing in the marketplace are increased when the market is growing at a fast pace or has been identified as underserved.


Image Goals Image goals identify how you want your organization to be seen as a result of the new product or service. You can measure progress in achieving these goals through focus groups or market surveys. Image goals often concentrate on:

• Helping your organization become more widely known

• Improving your organization’s reputation

• Gaining public recognition of a change in your products and/or services

Impact Impact indicators measure changes in the health or socioeconomic condition of the target population that generally occur after several years. Examples include changes in fertility, morbidity or mortality among certain segments of the population. You will not be measuring the impact of your intervention (product or service) at this point. Impact on health or socioeconomic status cannot be attributed to any single intervention. These long-term changes are the result of many factors, some intentional (products, services or programs designed to produce social change) and some beyond the control of any organization or agency (natural disasters, political shifts or global circumstances). Although an intervention may make a significant contribution, it can never be given full credit for these changes.

Improvement An improvement in an incremental change to an innovation that retains the integrity of the product, but improves its features or functionality. Examples include cell phones, stereos, flat screen TVs - all improvements to mass produced innovations, such as the telephone, the hi-fi, and the television.

Income Statement An income statement reports on revenue and costs or expenses resulting from the organization's operations during a specific period. The standard format lists all sources of income, subtracts itemized expenses, and shows the net result ("bottom line"). When the bottom line shows a positive result, there is a net profit from operations; a negative result indicates a net loss.

Innovation An innovation is when an invention moves from the hands of an inventor to the production line of a manufacturing plant, so that the masses can have access to the good. Examples include the manufacturing of hair conditioners, the mass production of skate boards and mountain bikes - all of which had their roots in garages, basements and workshops.

Input Input indicators describe the financial, technological and human resources invested in a product, service or program. Examples might include staff time, supplies and equipment, funds or in-kind contributions to an intervention.

Intelligence Gathering This is the ongoing collection of information about funders/investors, funding opportunities, other organizations and the political environment.

Invention An invention is something that has never been seen before; it is an attempt by the inventor to meet an immediate need not yet met in the marketplace. Examples include persons who used a mix of lemon juice and mayonnaise to give their hair more luster and sheen before there were commercial products to do this; or youth who cemented roller skates to wooden boards as a precursor to skate boards.


Legal and Social Restrictions If the new product(s) or service(s) introduced by an organization has to comply with government and social restrictions to be successfully introduced, the cost of failure may be significant due to the up- front investment the organization may have made to comply with these restrictions.

Liabilities Liabilities are what an organization owes: the obligation to pay some amount of money or render a service.


Management and Staffing Plan This plan describes the key staff that will be responsible for implementing the program. It will highlight each individual’s experience and qualifications (in short biographies) related to the work they will be carrying out for the project. It often includes an organizational chart that demonstrates the lines of authority and responsibilities across the different staff members.

The Marketplace The marketplace is where exchanges take place. It is where an organization exchanges something of value (a product or a service) for something that it needs (monetary or in-kind contributions, or coverage or other indications of impact).

The Market The market represents all of the possible consumers of an organization's products and/or services.

The Target Market/Population The target market is the group or groups to whom organizations market their products and/or services. It includes current and potential users of the products and/or services. It also may include consumers of services who may be different from users, such as employers and donors, and the supporting community.

Market Scope The market scope of an organization represents those segments of the market to which the organization targets its products and/or services, (e.g., people of a specified age, gender, socioeconomic status and health status).

Marketing Marketing is the practice of learning about the target market/population, adjusting products and/or services to better satisfy their needs and preferences, and persuading these populations to continue their use or support of a specific organization. Marketing practices can influence the level, timing and composition of demand for an organization's products and/or services.

Market Mix Market mix is the combination of efforts an organization makes to increase knowledge of and demand for its products and/or services. These efforts fall into the categories of: targeted population, price, place, production and promotion.

Market Niche Market niche is an organization's unique role and image ("brand") within the greater marketplace. An organization's niche should be large enough to provide it with the funds and other resources it needs, fit the skills and resources it has or can easily obtain, offer potential to grow and be of little interest to major competitors.

Market Segmentation Market segmentation is the process of breaking down a large market into smaller groups that share common needs or interests. Markets can be divided by income levels, geography, health status, age range, gender, etc.

Mission A Mission Statement describes purpose for which the entity exists, the scope of its offering and the target population to which its services are aimed (clients).

Monitoring and Evaluation Narrative The Monitoring and Evaluation Narrative should describe how the organization will assess whether or not the project has met its objectives within the given timeframe and budget. The M&E Plan describes what indicators the organization will use to measure the project’s success against its objectives, and is generally placed as an annex in the proposal.


Number of Competitors When an organization introduces a new product or service, its competitive positioning is best when there are only a small number of competitors, who offer similar products or services. Otherwise, your organization may contribute to the saturation of the market.


Operational Planning This has a short-term scope, usually one year. Its focus is achieving objectives and carrying out short-term activities. Operational planning corresponds to the annual work plan.

Organizational Self-Sufficiency This refers to the ability of an organization to fund the future of its activities and endeavors through earned income alone – without having to depend in whole or in part on charitable contributions or public sector subsidies.

Organizational Sustainability This refers to the ability of an organization to fund future activities and endeavors through a combination of earned income, fundraising activities, and financial support from the public sector.

Outcome Outcome indicators describe changes in behavior among members of the target population as a result of introducing an intervention. These changes are generally observed at least a few months after the intervention. Examples could include the percentage of sexually active adolescents using contraceptives, the number of households using treated bed nets to prevent malaria, or the number of clients requesting voluntary counseling and testing for HIV/AIDS.

Output Output indicators describe the results achieved at the program level in which the intervention was delivered, usually observable immediately after the intervention. Such indicators might include the number of people who completed a training course or attended an educational session.


Potential Size of Market When an organization introduces a new product or service, it is more likely to create client demand when the segment of the market to whom the new product or service is targeted is large and growing.

Process Process indicators describe activities carried out to achieve the desired results or objectives of an intervention; they show what is done and how well it is done. Examples of process indicators include training sessions or educational programs prepared and presented to transfer knowledge or skills.

Product A product is something that can be packaged, priced and delivered in a number of different ways. It is something that has a defined purpose and use. Using a product does not require interface with another individual. Examples of products include drugs or contraceptives, a training curriculum and beauty aids.

Product Features When an organization introduces a new product, its chances for successfully competing in the marketplace are higher when the product has features that are geared specifically to client needs.

Proposal/Grant Development This is generally done in response to a procurement or solicitation released by a funder or investor. An organization can use this method of resource mobilization to obtain funds for one- to six-year projects as opposed to business planning which secures funding for the development and launch of a single product and/or service. Proposal development can yield considerable revenue for an organization.

Proposal Development Calendar This should demonstrate key deadlines for each component of a proposal, such as the technical drafts, workplan and timeline, M&E plan, budget etc.

Proposal Development Team The team should be made up of at least two people: One person responsible for the technical proposal (which would include the workplan, timeline, M&E plan etc.) and another in charge of creating the budget.


Relationship to Existing Products or Services The relationship of an organization's new product(s) or service(s) to those the organization already has on the market. If they are complementary or interdependent, it will be easier to introduce the new product or service into the new sector or market.

Resource Mobilization Resource mobilization refers to all activities undertaken by an organization to secure new and additional financial, human and material resources to advance its mission. Inherent in efforts to mobilize resources is the drive for organizational sustainability.

Revenue Revenue is the money an organization receives in the form of fees, donations or grants. Revenue may come from clients, an organization's headquarters or external sources, normally in exchange for a product or service (including such products as proposals, workplans, or reports).

Revenue Analysis Revenue analysis is the study of the revenues (fees, donations and grants) received from clients, external sources or an organization's headquarters. Analyzing revenues is useful for examining the relationship between the fee you charge (if any) and the cost of providing a service. For some services, your facility may receive more revenue per service than it spends providing that service. For other services, you may receive less revenue than it costs your organization to provide them. Analyzing revenues also involves assessing how client demand for products or services will increase or decrease with changes in fees. If demand is sensitive to price changes, an increase in fees will lower demand, eventually leading to a decrease in revenues. If client demand for products or services is not sensitive to price changes--that is, if you observe that the willingness of clients to pay for the new product or service is not affected by small price increases--the total revenue will increase. The Willingness to Pay Methodology, which can be found as a learning aid in Module III, offers an simple way to calculate the rate at which fee levels will impact demand.


Service A service is also something that can be packaged, priced and delivered in a number of different ways; however, it is delivered in response to a need and usually requires at least some interaction with another individual (even if virtually). Examples of services include immunizations, surgery, and counseling.

Service Features When an organization introduces a new service, its chances for successfully competing in the marketplace are higher when the service has features that are geared specifically to client needs.

Sector Lock-in (SLI) An organization with this strategy seeks to monopolize its sector. This is done by locking in, mostly through out-sourcing, high-quality partners who complement its products and services, allowing an organization to extend its own line of products and services, without having to invest in the development or maintenance costs. This strategy provides an organization with a competitive advantage, since complementors will adapt their products and services to those of your organization if they feel they will benefit. This type of organization measures its success by its share of complementary partners. It is critical for this type of an organization to develop proprietary standards (set the standard) and to keep out competitors.

Statement of Cash Flows A statement of cash flows shows the inflow and outflow of cash within an organization. It covers cash flow in three categories: operating activities, investing activities and financing activities. It is a critical report, helping managers assess whether there will be sufficient cash on hand to cover expenditures, or if additional cash is needed to support operations.

Strategic Planning This is long-term planning that involves all of the organization's management areas. Its content is relatively general. It focuses on broad and long-lasting issues that ensure the organization's long-term effectiveness and survival. Strategic planning is the responsibility of the organization's director and executive levels.

Strategic Relationships with other Organizations Sometimes the introduction of a new product or service is done through the establishment of strategic relationships with other organizations that can assist with design, delivery, marketing, distribution, etc. If by discontinuing these strategic relationships, the organization will lose potential future partners or have to pay costs for unfulfilled contracts, the cost of failure is significant.


Technical Approach This provides a broad description of how the organization will achieve the program’s goals. It should also go into detail as to what core activities the program will implement, who the program will collaborate with, when each core activity will occur, where the program will work and what populations the core activities will target.

Technical Strategy This should describe what the organization will do to reach the program’s goal, strategic objective and results. The strategy can be stated in one to four sentences and should take into consideration the country and/or regional context.

Total Client Solutions (TCS) With this strategy, an organization seeks to increase the client's value. This is done in two ways: reducing the clients' costs and increasing the number of related products and services that are offered to the client. By offering a range of services and products (solutions) at a single point of delivery, a client is able to reduce the time and money spent seeking certain products or services. Likewise, by bundling or combining its products and services with support and follow-up, a client will experience both convenience and savings. This type of organization's success is based on client share; that is, on attracting and retaining clients throughout their consumer life cycle. Therefore, it needs to secure its clients, learn from them, and customize its services and products around their feedback.

Threat of Competition This criterion looks at the relationship of your competitors to your organization in terms of the number of competing organizations, the degree to which their products and services are specialized, the growth of the target market and the diversity of the competition. Ideally, your new product or service will have the best chance of competing in the marketplace if 1) there is a small number of competitors of similar size, scope and philosophy; 2) the target market is growing rapidly; 3) the features of the new products and/or services are specialized; and 4) the competitors' products and services are not very diverse.


Vision Vision statements describe what the management of the organization would wish the future to look like in the next 5 years. A Vision is not a panacea for organizational problems, but gives a sense of direction.


Workplan The workplan and timeline should describe what activities will be implemented, when they will be implemented and who will be responsible each activity. If written properly, the workplan and timeline should link the activities with key program outputs/outcomes and should be organized based on the results framework.