ENT3315 Ch7

Small business marketing
consists of those business activities that direct the creation, development and delivery of a bundle of satisfaction from the creator to the target user
(for long term success, always keep the customer happy)
core product/service
The fundamental benefit or solution sought by customers
ie: protect the foot
Actual product/service
The basic physical product/service that delivers those benefits
ie: the shoe itself
Augmented product service
The basic product/service plus any extra or unsolicited benefits to the consumer that may prompt a purchase
ie: increased running speed, greater comfort, less wear and tear on feet & legs
The three marketing philosophies
product oriented philosophy, sales oriented philosophy, customer oriented philosophy
production oriented marketing philosophy
the product and the production of it are the focal points… if you build it, they will come
-promotion, distribution an
-in monopolies, production is the focus…ie: oil companies
-short term success, but not long term
sales oriented marketing philosophy
focused on the sale (now)/achieving sales goals are the highest priority and not the customers desires or the products effectiveness
-short term ok, but not long term
-ie: car dealership,
Consumer orientated marketing philosophy
What are their needs & and what can be delivered (? does their need to be a change and adapt)
-long term success
-everything centers around the customer; begins and ends with the customer
All new business should begin with what orientation and why
consumer oriented, bc most consistent with long term sales
What goes into the Formal Marketing Plan
marketing research, Marekting analysis,
Marketing analysis
Who is your target market population
-?who is going to want this… this to customer profile…size of target market…forecast sales
-?who is the competition (ie pizza, not just pizza, but also other eating establishments)
Marketing mix
What is important to the formal marketing plan
a well prepared market analysis and a discussion of the competition are important
What are the marketing mix “4 P’s”
`product decision- transforms the basic product/service into a bundle of satisfaction (how will you be different)
`place (distribution)- activities providing regarding the delivery of the products to the customer (store)
`pricing- an acceptable exchange value on the total product/service (what prices and how do you come up with them)
`promotions- communicating the necessary information to target markets (advertising, trade shows, sales) (using this media in this way and why)
Steps in marketing research process
1-ID what you need to know
2-Searching of secondary data (market information previously complied) can go to city and state for state traffic on location***
3-Collecting primary data , searching for new information, most expensive (observational data, questioning data)*** Colleges are a big source of info.
4- Interpreting the data gathered
Potential target costumer
-have to have money
AND
-have to have need or desire
ie: wanting to buy a get
Market segmentation
LOL: bic razors
Sales forcast
The first part of a financial plan; a prediction of how much a product/service will be purchased within a given market during a specified time period
Large firms use forecasting more than small firms because the Limitations of Forecasting are ….
1-for NB forecasting circumstances are unique and hard to do with entrepreneurial inexperience and new product vs ongoing business that only requires updates for existing products
2-SB manager may be unfamiliar with quantitative methods; qualitative are ok to use, but quantitative methods have proven their value in forecasting
3-SM know little about the forecasting process; to combat they try to keep in touch with industry trends through contacts with appropriate trade associations
To overcome limitations of forecasting
try to keep in touch with with industry trends through contacts with appropriate trade associations.
Forecasting starting point
1-breakdown process AKA chain-ratio method : the forecaster
2-buildup
What marketing philosophy orientation is recommended for all new businesses and why
The Customer orientation marketing philosophy bc its is most consistant with long term success
What is important to the marketing plan
A well prepared market analysis and a discussion of the competition
What section forms the most detailed section of the marketing plan?
The information on marketing strategy and is subject to the closest scrutiny from potential investors
In collecting primary data what achieves higher response rates? And what are some exceptions
telephone surveys and personal interviews, BUT Personal interviews are expensive and individuals are reluctant to grant such interviews if they think a sales pitch is coming
In market forecasting the starting point is ?
The break down process AKA chain ratio method that begins with a large scope variable and works down to the sales forecast
One source of data for the break down process AKA chain ratio process is …?
US Census Bureau
Survey of Buying Power (a sales & marketing management magazine)
What is the build up process and where does it lie
-ID’s all potential buyers in submarkets and adds them up
** especially helps with industrial goods forecasting
-is in the starting point of market forecasting