SMALL BUSINESS MANAGEMENT

Chapter 8Marketing Management

Skeets and Skiles

How do we make a Buck?

Margin * Volume (Selling price – cost) * Volume

How could these companies increase their making a buck?

Breadman Java Nook Cottage Cheesecake Earth Buddy Bright Lights

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> Market research

The Consumer Market

Demographics Age, income, education, occupation, location

Lifestyle characteristics Activities, interests opinions

Purchase characteristics What when where how much of product

Purchase motivations Why ?

The Organization Market

Companies and government agencies that purchase from small businesses

Influences on industrial demand the economy, government legislation and regulations, potential competition agencies that exert influence on

purchasers The Bidding-Tendering Process

Ace clear defence

The Export Market

Government Assistance for Exporting

Unique Characteristics of the Foreign Market

Mechanisms of Exporting Documentation, credit offered,

distribution, Security

Influences External to the Market

The Economy Competition Legal Restrictions Social and Cultural 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 product life cycle

Wild West

Wild West - Vulcan

Describe the Influences External to the Market for this company and how it might affect the adoption of this product

Developing the Product or Service (cont)

Determine Factors that Accelerate Adoption relative advantage complexity divisibility communicability of results

Poop Smell NY

How the Consumer Classifies the Product and/or Service

convenience products Staple vs impulse

shopping products appliances, stereos, cameras

specialty products Mercedes

Unsought Funeral plots

Field of Seeds

Spitz

How would you classify this consumer product? Why?

Describe their distribution system? Is it effective? Why or why not?

Where would you describe this product in the PLC? How could they ( or have they) alter this position in the PLC?

Field of Seeds

Margin * Volume As managers at Spitz how do increase

making a buck? What might be the best strategy for

Spitz to move into the Quebec market?

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 length Channel Intensity

Breadman Java Nook Cottage Cheesecake Earth Buddy Bright Lights Spitz

Setting the Price for the Good and/or Service

Cost-Based Pricing Demand-Based Pricing

elasticity Competition-Based Pricing

Movement & Shift of demand curve

Promotion

Types of Promotion Advertising

types, advantages, disadvantages, suitability, costs

Sales Promotion Public Relations Personal Selling

Spin Master

Spin master

What inexpensive forms of promotion have been used by Spin Master?

What are the advantages and disadvantages of an Air Hog section in this industry?

What are the risks associated with operating a business in this industry?

marketing strategy to achieve a competitive advantage

find a niche and fill it $3,000,000

don’t just sell; entertain ( Cabellas)

strive to be unique $400,000

connect with the customer on an emotional level

focus on the customer devotion to quality attention to convenience concentration on innovation dedication to service emphasis on speed

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 NY Smell

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

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