• A formal persuasive request for action that results

from a perceived problem or opportunity.

• It is an offer or bid to do a certain project for
someone.
• It is a marketing tool that sells your idea to others.
• It is a persuasive document that:
1. Communicate what you plan to do of offer.
2. Explain how you will implement what you propose.
3. Convinces the potential customers that your
organization can better meet their needs than the
competition.
▪A proposal must be logical and persuasive to
appeal to audience’s sense of reason.

▪Proposals may contain other elements like

technical background, recommendations,
results of survey, information about feasibility.

▪But what makes a proposal a proposal is that it

asks the audience to approve, fund, or grant
permission to do the proposed project.
 Two Major Purposes of Proposals

❖While all proposals are selling documents, what

they sell varies.

❖The purpose of a commercial proposals is to sell a

specific product or solution to meet a particular
need.

❖Qualification proposals, in which you seek to sell

yourself or your organization as the best qualified
to solve a potential client’s problem.
Classification of Proposals

Internal Versus External

•Proposals can be aimed at audiences inside or
outside your organization.
•Internal proposals usually are directed at a specific
level of management within your organization.
•On the other hand, external proposals are a
marketing tool aimed at current or prospective
customers.
•One company or organization proposes to satisfy
another organization’s need.
Solicited Versus Unsolicited

Proposals either identify a need and propose to

meet it (unsolicited) or respond to a request
(solicited).
The proposal writer initiates the unsolicited
proposal; its is usually the more difficult to
write because the target audience must first be
convinced that a need exists.
Preparing and presenting unsolicited proposals
generally requires exceptional persuasive skills.
✔ When a company requests a proposal to supply
specific goods, to solve a problem, or to exploit some
situation, the proposal is solicited.
✔ There are two types of solicited proposals.
1. Advertised Proposals are requested when the desired
product or service can be defined concisely and
quantitatively.
✔ Potential suppliers learn of the requirements in a
detailed Invitation for Bids(IFB).
✔ These proposals favor the lowest bidder.
2. Another type of solicited proposal is the Negotiated
proposals.
✔ The negotiated proposal originates with a Request for
Proposals (RFP) from the potential customer.
•Negotiated Proposals usually are not awarded on the
basis of price, but on the quality of the solution and the
ability to implement that solution.

Forms of Proposals
oProposals are delivered orally, in writing, or both.
oA written proposals minimizes misunderstandings or
disagreements about the type, quality, cost of goods
and services provided.
oThere are different forms of proposals
oCover letter with separate proposals.
oCover memo with separate proposals.
•Letter proposals are brief proposals written for
projects that are not complex.

•Preliminary proposals, also called short proposals,

they may be either qualification or commercial
proposals.

•Detailed proposals, also called long, formal

proposals, they are usually commercial proposals
and contain precise implementation plans and cost
estimates.
 The Proposal Planning Process
❑Planning is the most crucial stage in preparing a
proposal and, if done properly, will greatly increase
your company’s chances of producing a successful
proposal.
❑There are four major steps to the planning process.

Screening: the Bid/No Bid Decision

❑Screening involves asking yourself whether your
company should consider competing for the job.
❑You should read the RFP or IFB thoroughly to
determine if your firm qualifies.
•You must also determine if your company is
capable of doing the job, and have enough
resources and expertise necessary.
•A final and essential step in screening is to
determine the total value of the project or sale
to your company.
Creating a Capture Plan
•A capture plan is an analytical planning
document prepared for the internal use to
ensure the creation of a winning proposal.
•The capture plan entails conducting a customer
analysis and situational analysis.
Conduct a Customer Analysis
•It involves researching the entity that is
requesting the proposal to discover facts.
•Customer analysis consists of four parts:
•Problem Identification: that is the problem stated
in RFP may be a symptom of a greater but
unstated problem.
•Needs Analysis: if a formal RFP is issued, be sure
that you understand what the potential customer is
asking for, examine the entire document.
•Customer’s Previous Procurement Background:
know the buying behavior of the potential
customer.
•Proposal Evaluator: find out who in the requesting
company will evaluate the proposal.
•Knowledge of evaluation criteria for previous projects
may prove useful as well.

Conduct a Situational Analysis

•It scrutinizes the internal and external environment to
make the proposal more persuasive.
•There are three components to the situational analysis
Competitor Analysis: know your competition, their
strengths and weaknesses and what they are likely to
propose or offer.
Internal Analysis: conduct an internal analysis of
your firm’s strengths, uniquely suited to do the job.
Theme Development: these are major selling points
that run through your proposal, develop a few major
themes that communicate your ideas are better than
everyone’s else.

Formulating a Solution and Strategies

•An effective proposal contains these three kinds of
strategies.
Technical Strategy:that is being proposed how the
solution will be implemented. The goal is to
convince the reader that your solution best serve their
needs.
Management Strategy: it establishes your
company’s ability to carry out the solution proposed
or to deliver the goods promised.

Cost Strategy: your reader needs information to

assess if his or her company can afford your
products and services and if your offering is
reasonably or competitively priced.

Budgeting and Scheduling the Proposal Effort

•The final step in the planning is budgeting and
scheduling the proposals.
•A proposal manager monitors and controls proposal
costs.