SMALL BUSINESS MANAGEMENT

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					SMALL BUSINESS
MANAGEMENT


Chapter 8
Marketing Management
How do we make a Buck?
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
Target Customer

   Consumer Market
   Organization market
   Export market

   How do find out info about the
    target customer> ________
The Consumer Market


     Demographics
            ________
     Lifestyle characteristics
            Activities, interests opinions
     Purchase characteristics
            What when _________ much of product
     Purchase motivations
            Why ?
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
The Export Market


     Government Assistance for Exporting

     Unique _________ of the Foreign
      Market

     Mechanisms of Exporting
          Documentation, credit offered,
           distribution, Security
Influences External to the Market


   The Economy
   Competition
   Legal _________
   Social and _________ Environment
   Technology
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
Developing the Product or Service

   Develop Product and/or Service
    Policies
   Decide how the product will be
    manufactured
   Understand the _________ life
    cycle
Developing the Product or Service (cont)

   Determine Factors that Accelerate
    Adoption
       relative _________
       complexity
       divisibility
       communicability of results
How the Consumer Classifies the
Product and/or Service

     convenience products
          _________
     shopping products
          appliances, stereos, cameras
     specialty products
          Mercedes
     Unsought
          Funeral plots
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.
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 _________
Setting the Price for the Good and/or Service

   Cost- _________ Pricing
   Demand- _________ Pricing
       elasticity
   Competition- _________ Pricing

                     Movement & Shift of demand curve
Promotion

   Types of Promotion
       Advertising
            types, advantages, disadvantages,
             suitability, costs
       Sales Promotion
       Public Relations
       Personal Selling
Steps in a Promotional Campaign

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

				
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