mt209 small business management unit 4 – marketing the business

MT209 Small Business ManagementUnit 4 – Marketing the Business

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Agenda Introduction – Seminar Ground Rules

Unit 4 – Outcome

Unit 4 - Assignments

Unit 4 – Marketing Plan

Unit 4 – Marketing Products or Services

Conclusion

Seminar Ground Rules

Write screen name of person you are chatting to

For whole class – To all

For instructor – Mark

Write responses in full, complete sentences

After seminar starts – do not announce your arrival or departure

No side conversations while I’m speaking

Seminars designed for interaction NOT completing PowerPoint Slides

Seminar debrief – how valuable was the seminar to you in terms of information and interaction with instructor and other students

Scale 5 (best) – 1 (not worth my time)

Explain why you gave the rating you did

Unit 4 OutcomesAs a result of your work in this unit, you should be

able to:

Identify the components of a formal marketing plan.

Explain the different methods of forecasting sales.

Define customer relationship management (CRM) and explain its importance to a small business.

Understand psychological and sociological influences on the consumer.

Identify advertising options for a small business.

Unit 4 – To Dos Start the Unit

Review the key terms

Read

Chapters 7, 14, and 17 in your text

Graded Assignments

Unit 4 Discussion

Unit 4 Assignment

Unit 4 Quiz

Seminar or alternative assignment

Unit 4 - Discussion Read the article on entrepreneur.com describing each

of the following five consumer groups: Gen I, Gen Y, Gen X, Boomers, and The Greatest Generation at:

http://www.entrepreneur.com/marketing/article202334.html#

Then respond to the following:

Describe your particular business plan concept.

What would form your target market and why?

How would this particular choice impact your promotional considerations? Be sure to give some specific examples.

Unit 4 - AssignmentUsing the MT209 Project Template and the MT209 Project Instructions; complete the Marketing Plan section of your Descriptive Business Plan in the MT209 Project Template. How your proposed product or service fills a gap in the marketplace, or how your product or service will be “better” than those already existing in the marketplace.

Market analysis – Develop a customer profile for each identified potential target market customer. 1. What is the purchasing power of this group (how much disposable income)? 2. What is their dominant family status (families, singles)? 3. What are their age ranges? 4. What are their leisure habits?

Competitors – Outline and describe principal rivals for each target market customer group. Be sure to also include indirect competitors as well as direct competitors.

Marketing strategy – Describe how you propose to reach the target customer. Will you use a single segmented, multi-segmented, or un-segmented strategy?

Questions

Unit 4 - Marketing Marketing: The process of planning and

executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create and maintain relationships that satisfy individual and organizational objectives.

Unit 4 – Goals of Marketing

Goals of the marketing plan should be to:

Name and describe each market

Explain specific methods you plan to use to reach these markets

Establish the costs in both time and money to market your products

Integrate the marketing plan with all other sections of the business plan

Unit 4 – Key Questions

Is there a consistent demand for my product or service?

Who will I be competing against for the same customers?

Can I realistically compete on price?

Can I realistically compete on quality?

Can I realistically compete on distribution?

Can I do all the above and still reach my projected profit?

Unit 4 – Marketing Research

Shows other possible approaches to your markets

Gives meaningful basis for making assumptions about profits

Helps in development of goals

Helps in organizing the marketing plan

Helps in identifying the limits of profitability in markets

Unit 4 – Types of Market Research

Secondary Research:

Consists of already reported research. Statistics, and projections done by others

Often provided by governmental agencies, state agencies, business trade organizations, universities

Often available as references in public library

Some available on the Internet

Competitors

Unit 4 – Types of Market Research

Primary Research:

Specific research conducted by the entrepreneur or by those engaged by the entrepreneur

Is costly and time consuming

Fills in the gaps not addressed by secondary research

Unit 4 – Qualitative vs Quantitative

For this course, the quantitative data provided by market research is beyond the time constraints allowed

Instead we will focus on understanding the process and the elements that must be addressed in good marketing research within a business plan

Market research will be addressed in depth in a marketing course

Questions

Unit 4 – The Customer

Your market research goal is learning about your customers: Who are you customers? Where are they located? What do they need or want? What resources do your customers have? Is your product or service something they need in

their everyday life? Can your customers afford your products at your

proposed pricing levels Where can you create demand for your product?

Unit 4 – Bundle of Satisfaction

Core product or service – fundamental benefit sought

Actual product or service – the actual product or service that fulfills the fundamental benefits sought

Augmented product or service – the basic product or service plus any additional perceived benefits that prompt a customer to purchase the product or service

Unit 4 – Market Analysis

Customer Profile – Created by secondary and primary research carefully describes how your product or service will specifically create perceived value for your target customer

Analysis of Competition – Also created by research seeks to thoroughly identify the strengths and weaknesses of rivals in your potential market

Marketing Strategy – Specific strategies must be created to address each target market segment or group of customers. These will outline how the business will create its marketing mix

Unit 4 – Marketing Mix

The 4 P’s:

Product – How to transform the product or service into bundles of customer satisfaction?

Place – How to deliver the product or service to the customer?

Price – How to set the appropriate pricing levels for the product or service?

Promotion – How to communicate the necessary information to the potential customers?

Questions

Thank You!