small business management chapter 7 & 8 marketing management skeets and skiles wild west poop...

SMALL BUSINESS MANAGEMENT

Chapter 7 & 8Marketing Management

Skeets and Skiles

Wild West

Poop Smell

QVCBrand Man

GOPRO Handbag

Blendtec

Idea Paint

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

Skeets and Skiles

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

Market Segmentation and Target Marketing: Beyond the Basics Market segmentation is simply defined as

breaking a marketplace down into categories of buyers who share similar characteristics

Target marketing is the process of looking at what segment your company can most profitably serve and then modifying your product, price, placement and promotion to deliver value versus your competition to your chosen targets

Steps in Preparing the Marketing Plan

Keys to Successful Market Segmentation 1. Meaningful 2. Mutually exclusive 3. Measurable 4. Substantial 5. Actionable

Copyright © 2014 McGraw-Hill Ryerson. All rights reserved.

Steps in Moving Your Segmentation Beyond the Basics

1. Decide what general market or industry you wish to pursue

2. Divide the market into smaller groups based on the characteristics of the customer and buying situation. These may include the following:

Demographic Geographic

Target Customer

Consumer Market Organization market Export market

How do find out info about the target customer> Market research

Brand Man

Steps in Moving Your Segmentation Beyond the Basics (cont.)

Psychographic (e.g., personality and lifestyle)

Motivation (e.g., rational, emotional) Influencers (e.g., anyone else influencing

decision, importance or opinion leaders) Price sensitivity Desired benefit (e.g., product features) Usage (e.g., rate of use)


Steps in Moving Your Segmentation Beyond the Basics (cont.)

Buying conditions (e.g., familiarity of product and willingness to buy)

Awareness of buying intentions (e.g., familiarity of product and willingness to buy)

3. Make sure the segments are meaningful, mutually exclusive, measurable, substantial, and actionable



Steps in Moving Your Segmentation Beyond the Basics (cont.) 4. Select a segment(s) to target 5. Develop a marketing plan that integrates

product, price, placement, and promotion



Customer Relationship Marketing

Database Information System

Database Marketing For The Small Business



Applications of Customer Relationship Management And Databases Nurture The Customer Grow The Customer Retain The Customer Win Customers Back


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

The Marketing Plan The Marketing Mix

The actual short-term marketing decisions in the marketing plan will consist of four important marketing variables: Product or service, pricing, distribution or place, and promotion


GOPRO

Developing the Product or Service

Develop Product or Service Policies Decide How the Product Will Be

Manufactured Understand the Product Life Cycle Determine Factors That May Accelerate

Product or Service Adoption

Developing the Product or Service (cont)

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

Vulcan Alberta -- Wild West

Wild West

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

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

Idea Paint

Setting the Price for the Good and/or Service

Cost-Based Pricing Demand-Based Pricing

elasticity Competition-Based Pricing

Movement & Shift of demand curve

QVC

Promotion

Types of Promotion Advertising

types, advantages, disadvantages, suitability, costs

Sales Promotion Public Relations Personal Selling

Handbag

Poop Smell

Types of Promotion Non-traditional Promotional Methods

Non-traditional promotional methods can be defined as pursuing traditional business goals of sales and profits through non-conventional means

Guerrilla Marketing Public Relations

Public relations is defined as generating positive awareness of your company

Internet Marketing Company Web Pages Search Engine Optimization (SEO)


Types of Promotion

Internet Marketing (cont.) Pay-Per Click Advertising (PPC) Online Newsletter Direct Email to Customers Banner Advertisements Affiliate Programs Online Classified Advertising Sites Online Auction Sites Gamification Online Games


Types of Promotion Internet Marketing (cont.)

Podcasts Webinars Social Networking

Social networking sites are online communities where people can meet new people, talk to current friends, and build their networks

Facebook Linkedin Foursquare Twitter/Tumblr/Online Blogs


Types of Promotion

Internet Marketing (cont.) Photo Sharing Sites (Pinterest, Instagram,

and Flickr) Video Sharing Sites (YouTube, Vine) Mobile Marketing

Apps or Application Text/SMS Messages QR Codes Proximity/Location-Based Marketing


Blendtec

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

small business management chapter 7 & 8 marketing management skeets and skiles wild west poop...

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