SMALL BUSINESS MANAGEMENT

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SMALL BUSINESS MANAGEMENT

• Chapter 8
• Marketing Management

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How do we make a Buck?
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The Role of Marketing Management in the Small
Business

• Defining the target customer, characteristics and
  wants and needs
• Understanding the environmentals that affect
  operations
• Developing the product and/or service
• Developing the channels of distribution
• Setting price levels of the product and/service
• Promoting the product and/or service to those
  influential in its purchase

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Target Customer

• Consumer Market
• Organization market
• Export market
• How do find out info about the target customergt
  ________

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The Consumer Market

• Demographics
• ________
• Lifestyle characteristics
• Activities, interests opinions
• Purchase characteristics
• What when _________ much of product
• Purchase motivations
• Why ?

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The Organization Market

• Companies and government agencies that purchase
  from small businesses
• Influences on industrial demand
• the _________ ,
• government legislation and regulations,
• potential competition
• agencies that exert _________ on purchasers
• The Bidding-Tendering Process

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The Export Market

• Government Assistance for Exporting
• Unique _________ of the Foreign Market
• Mechanisms of Exporting
• Documentation, credit offered, distribution,
  Security

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Influences External to the Market

• The Economy
• Competition
• Legal _________
• Social and _________ Environment
• Technology

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Influences External to the Market (Fig 8-6)

• Management of External Influences
• The Influences
• Economy, competition, legal, socio/cultural,
  technology
• The Possible Characteristics
• System to Monitor
• Possible Internal Adjustments

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Developing the Product or Service

• Develop Product and/or Service Policies
• Decide how the product will be manufactured
• Understand the _________ life cycle

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Developing the Product or Service (cont)

• Determine Factors that Accelerate Adoption
• relative _________
• complexity
• divisibility
• communicability of results

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How the Consumer Classifies the Product and/or
Service

• convenience products
• _________
• shopping products
• appliances, stereos, cameras
• specialty products
• Mercedes
• Unsought
• Funeral plots

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How the Organizations Classifies the Product
and/or Service

• Production Goods
• Raw Materials
• Component parts becomes part of the physical
  product
• Process materials not readily identifiable part
  of the production of other products
• Support Goods
• Major Equipment
• Accessory Equipment Type writers and tools
• Consumable Supplies IE Paper, pencils or oils
• Business to Business services Financial, legal
  marketing research etc.

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Developing the Distribution System (Fig 8-9)

• Channel Options
• Manufacturer to Consumer (Short-Direct)
• Manufacturer to Wholesaler to retailer to
  consumer (Long-Indirect)
• Channel _________
• Channel _________

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Setting the Price for the Good and/or Service

• Cost- _________ Pricing
• Demand- _________ Pricing
• elasticity
• Competition- _________ Pricing

Movement Shift of demand curve
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Promotion

• Types of Promotion
• Advertising
• types, advantages, disadvantages, suitability,
  costs
• Sales Promotion
• Public Relations
• Personal Selling

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Steps in a Promotional Campaign

• 1. Set Promotional Objectives (NUMBERS)
• 2. Determine the Promotional Target
• 3. Understand the Targets Needs and Perceptions
  of the Product/Service
• 4. Develop the Relevant Theme
• 5. Determine the Method or Media to Use

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Steps in a Promotional Campaign (cont)

• 6. Develop a Specific Promotional Message
• 7. Set the Promotional Budget
• 8. Implement the Program
• 9. Evaluate the Effectiveness of the Promotion

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Concept Checks

• 1. What is marketing ?
• 2. What are the three target markets in which a
  small business can segment ?
• 3. What three areas should be investigated before
  developing an export market ?
• 4. What are the most common external influences
  that can affect a small business ?

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Concept Checks

• 5. What steps should an owner-manager follow in
  working with external influences ?
• 6. Explain the significance of the Product Life
  Cycle.
• 7. When would a small business have another
  company manufacture its product ?
• 8. What factors can assist speeding up the
  adoption rate of new products ?

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Concept Checks

• 9. What are the consumer goods classifications ?
• 10. What are the three main decisions in
  developing the distribution system ?
• 11. What characteristics help determine the
  length of the distribution channel ?
• 12. What characteristics require a more intensive
  channel ?

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Concept Checks

• 13. What are the three methods of price setting ?
• 14. Define price elasticity.
• 15. What are the four methods of promoting a
  product or service ?
• 16. Identify the steps in developing a
  promotional campaign.

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Appendices

• A. Agencies Providing Export Assistance
• B. Advertising as Practised by Small Business
• C. Directories of Trade Shows and Exhibitions
• D. Checklist for a Marketing Plan