Chapter 10:Marketing the Small Business

By:

Franklin K. Go

Mary Mae F. Bagac

Small Business and Marketing Concept

The marketing concept serves as a guide for small businesses in order for them to be able to match the target market and the products and services offered.

Small Business and Marketing Concept

The following questions must be answered to achieve the desired match:

1. Who are my customers?

2. What are the products and services needed by my customers?

3. What should the price of the products and services be?

Small Business and Marketing Concept

The following questions must be answered to achieve the desired match:

Where should the products and services be sold?

When should the products and services be sold?

How should the products and services be delivered?

Small Business and Marketing Concept

The following must be undertaken to provide the answers to the questions cited:

1. Devise a marketing strategy.

2. Engage in marketing research.

3. Develop a marketing mix.

4. Identify the size of the target market.

Devising a Marketing strategy

A marketing strategy serves as a guide to the small business organization (SBO) for it to be able to achieve its goal. It is necessary so that the organization will be able to deliver the products to the customers in a cost effective, timely and appropriate manner.

Market Strategy Planning

A method used by the organization to be able to determine the strengths and weaknesses of the company and find attractive opportunities and develop profitable marketing strategies followed by an analysis of the external environment.

Market Strategy Planning

The output of the market strategy plan contains the following:

1. The target market

2. The applicable marketing mix

3. The size of the market area

Target Marketing

Refers to the process of selecting the target market and choosing a marketing mix to satisfy their needs and preferences.

The following steps are undertaken in target marketing:

1. Identifying the target market.2. Identifying their wants and needs.3. Measuring the size of the target market area.

Identify the strengths and weaknesses of the firm.

Analyze the external environment.

Identify the attractive market opportunities.

Identify the target market.

Determine the applicable marketing mix.

Determine the size of the market area.

Market Strategy Planning Process

Identification of the Target Market

It is the specific market segment the business organization wishes to serve.

Before deciding on which among the specific market segment the firm will wish to serve, the small business organization (SBO), the firm must first decide on the number of markets they wish to serve.

Identification of the Target Market

The firm may be one of the following:

1. Mass market company

2. Market segment company

3. Multi segment company

Choosing the Target Market

The following should be considered when deciding on which of the market segment the firm intends to reach:

1. The goods and services category of the firm

2. The firm’s goals3. What the competitors are

doing4. The size of the various

segments

Choosing the Target Market

The following should be considered when deciding on which of the market segment the firm intends to reach:

5. The relative efficiency of each segment of the firm

6. The resource required

7. Other factors

Identifying the Characteristics of the Target Market

The important characteristics of the target market should be identified to effectively serve the target market.

1. Age2. Sex3. Family Size4. Family Life Cycle5. Income

Identifying the Characteristics of the Target Market

The important characteristics of the target market should be identified to effectively serve the target market.

6. Occupation

7. Religion

8. Race

9. Nationality

Measuring the Size of the Target Market

The following information must be provided in order for the SBO to make a match between itself and the target market:

1. The number of potential consumers

2. The population growth trend of the target market area

The Target Market

Preschool

Elementary

High School

College

Vocational

Identified with highly desirable characteristic

Identified with moderately desirable characteristic

Identified with less desirable characteristic

Identified with less desirable characteristic

Identified with least desirable characteristic

The Marketing Mix

Marketing mix is a set of tools the company uses to achieve its goals.

Target marketing is used to be able to identify the appropriate marketing mix for the business.

The marketing tools are controllable variables used to make a marketing mix.

The Marketing Mix

The controllable variables are the following:

1. Product offering

2. Price

3. Promotion

4. Place

Product Offering

The products sold could be offered so that the customers will prefer them over the competition.

Price

The amount charged in exchange for the products and services sold.

Promotion

Disseminating the information to potential buyers in attractive ways to entice them to avail.

1. Personal selling

2. Advertising

3. Sales promotion

Place

The place of the product should be near the target market in order to make it available whenever the customers want them.

Sources (Images)

http://4.bp.blogspot.com/_Arh3Sh-_Zkg/StLUe4nQYrI/AAAAAAAAACw/XikhI9decSs/S1600-R/Picture2.JPGhttp://www.1000ventures.com/design_elements/selfmade/marketing_strategy_devt_6x4.pnghttp://www.davechaffey.com/Internet-Marketing/C4-Strategy/Internet-

strategy-processhttp://t1.gstatic.com/images?

q=tbn:ANd9GcQRUFea1deEadljb5NAybUlm0-zGQShUIbqgn6vh-nw0dXzhKTY_lXsKts1

http://marketintellisense.web.officelive.com/images/sample_size.pnghttp://images.appleinsider.com/product-red-ipod-mock2.gifhttp://www.szdpe.com/uploadfile/2011/0519/20110519022532168.jpghttp://english.peopledaily.com.cn/200512/28/images/1227_B23.jpghttp://www.trabel.com/brussel/images/grotemarkt-2.jpg