SMALL BUSINESS
MANAGEMENT
Chapter 8
Marketing Management
How do we make a Buck?
The Role of Marketing Management in the
Small Business
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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
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Consumer Market
Organization market
Export market
How do find out info about the
target customer> ________
The Consumer Market
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Demographics
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Lifestyle characteristics
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Activities, interests opinions
Purchase characteristics
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________
What when _________ much of product
Purchase motivations
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Why ?
The Organization Market
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Companies and government agencies
that purchase from small businesses
Influences on industrial demand
the _________ ,
 government legislation and regulations,
 potential competition
 agencies that exert _________ on
purchasers
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The Bidding-Tendering Process
The Export Market
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Government Assistance for Exporting
Unique _________ of the Foreign
Market
Mechanisms of Exporting
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Documentation, credit offered,
distribution, Security
Influences External to the Market
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The Economy
Competition
Legal _________
Social and _________ Environment
Technology
Influences External to the Market (Fig 8-6)
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Management of External Influences
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The Influences
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Economy, competition, legal,
socio/cultural, technology
The Possible Characteristics
System to Monitor
Possible Internal Adjustments
Developing the Product or Service
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Develop Product and/or Service
Policies
Decide how the product will be
manufactured
Understand the _________ life
cycle
Developing the Product or Service (cont)
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Determine Factors that Accelerate
Adoption
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relative _________
complexity
divisibility
communicability of results
How the Consumer Classifies the
Product and/or Service
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convenience products
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shopping products
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appliances, stereos, cameras
specialty products
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_________
Mercedes
Unsought
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Funeral plots
How the Organizations Classifies the
Product and/or Service
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Production Goods
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Raw Materials:
Component parts: becomes part of the
physical product
Process materials: not readily identifiable part
of the production of other products
Support Goods
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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)
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Channel Options
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Manufacturer to Consumer (ShortDirect)
Manufacturer to Wholesaler to retailer
to consumer (Long-Indirect)
Channel _________
Channel _________
Setting the Price for the Good and/or Service
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Cost- _________ Pricing
Demand- _________ Pricing
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elasticity
Competition- _________ Pricing
Movement & Shift of demand curve
Promotion
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Types of Promotion
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Advertising
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types, advantages, disadvantages,
suitability, costs
Sales Promotion
Public Relations
Personal Selling
Steps in a Promotional Campaign
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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)
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6. Develop a Specific Promotional
Message
7. Set the Promotional Budget
8. Implement the Program
9. Evaluate the Effectiveness of the
Promotion
Concept Checks
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1. What is marketing ?
2. What are the three target
markets in which a small business
can segment ?
3. What three areas should be
investigated before developing an
export market ?
4. What are the most common
external influences that can affect a
small business ?
Concept Checks
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5. What steps should an ownermanager follow in working with
external influences ?
6. Explain the significance of the
Product Life Cycle.
7. When would a small business
have another company manufacture
its product ?
8. What factors can assist speeding
up the adoption rate of new
products ?
Concept Checks
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9. What are the consumer goods
classifications ?
10. What are the three main
decisions in developing the
distribution system ?
11. What characteristics help
determine the length of the
distribution channel ?
12. What characteristics require a
more intensive channel ?
Concept Checks
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13. What are the three methods of
price setting ?
14. Define price elasticity.
15. What are the four methods of
promoting a product or service ?
16. Identify the steps in developing
a promotional campaign.
Appendices
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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