Presentation is loading. Please wait.

Presentation is loading. Please wait.

11| 1 © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in.

Similar presentations


Presentation on theme: "11| 1 © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in."— Presentation transcript:

1 11| 1 © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. CHAPTER 11 Small Business Marketing: Strategy and Research

2 11| 2 © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. After reading this chapter, you should be able to: Explain the importance of marketing to small businesses. Describe the process of developing a small business marketing strategy. Discuss the purpose of the market research process and the steps involved in putting it into practice.

3 11| 3 © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Small Business Marketing It is much more than just selling and advertising. It involves all the activities needed to get a product from the producer to the ultimate consumer. What Is Marketing? Businesses have two—and only two— basic functions: marketing and innovation. These are the only things a business does that produce results; everything else is really a “cost.” Drucker on Marketing

4 11| 4 © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Small Business Marketing (cont’d) Production Concept Selling Concept Marketing Concept The Evolution of Marketing Relationship Marketing

5 11| 5 © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Small Business Marketing (cont’d) Concentrating more on the product the business makes than on customer needs Production Concept Making products and then convincing people to buy the products Selling Concept Determining the wants and needs of customers before goods and services are produced Marketing Concept Concentrating on establishing a long-term buyer- seller relationship for the benefit of both parties Relationship Marketing

6 11| 6 © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Small Business Marketing (cont’d) Of Purple Cows Consumers see so many products that seem to be alike, which makes them boring. But a purple cow? Doing and creating things that are counterintuitive, phenomenal, and exciting are important ingredients to marketing. Do you have a competitive advantage or a unique selling point (USP)?

7 11| 7 © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Marketing Strategies for Small Business Marketing Strategy States what marketing efforts are intended to accomplish and how they are intended to accomplish it Is identified in the marketing section of the business plan Will help management to be proactive, not reactive, in running the business Includes a description of marketing objectives, sales forecast, target markets, and marketing mix

8 11| 8 © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Marketing Strategies for Small Business Marketing Objectives Define the goals of marketing plans Must be measurable Must be action oriented Must be time specific Types of Marketing Objectives Marketing performance objectives Marketing support objectives Digital Vision at Getty Images®

9 11| 9 © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Developing a Sales Forecast Sales Forecast The quantity of products (dollars and units) a business plans to sell during a future time period The “top line” figure for projected revenues Areas Impacted by Sales Forecasts Channels of distribution Sales force requirements Advertising and sales promotion budgets The effects of price changes

10 11| 10 © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Developing a Sales Forecast Build-Up Method Break-Down Method Types of Sales Forecasts Identify as many target markets as possible and predict the sales to each group. Combine the predictions for a total sales forecast. Estimate total market potential for a specific product or an entire industry. Break the estimate down into forecasts of smaller units until an estimate is reached of how large a market will be reached and how many sales will be made.

11 11| 11 © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Developing a Sales Forecast Time Series Analysis Regression Analysis Historical Data Sales Forecasts Uses historical sales data to identify patterns over a period of time. Predicts future sales by finding a relationship between sales and one or more variables.

12 11| 12 © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Creating a Defensive Marketing Strategy Leverage Strengths Keep Rivals Guessing Know When to Retreat Make Customer Satisfaction a Priority Defensive Marketing Tactics

13 11| 13 © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Marketing in a Weak Economy 1. Rethink your marketing strategy. 2. Evaluate your brand. 3. Target your marketing efforts. 4. Message strategically. 5. Update your core marketing materials. 6. Integrate traditional methods with online tools. 7. Generate media buzz. 8. Increase your network. 9. Forge partnerships. 10. Optimize your existing customers. Source:

14 11| 14 © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Identifying Target Markets Market Segmentation Dividing the total market for a product into identifiable groups (target markets) Segmentation Variables Geographic Demographic Psychographic Received benefits Digital Vision at Getty Images®

15 11| 15 © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Identifying Target Markets Target Market: People with a common want or need that a business can satisfy People who are able to purchase your product People who are more likely to buy from your business Market that a Business Needs: People with a need that your products can satisfy Enough people in the target market to generate profit for your business People who are in possession of, and have the willingness to spend, enough money to generate profit for your business Market Matchup

16 11| 16 © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Small Business Marketing (cont’d) The Evolution of Market Strategy Mass Marketing (1960s) Market Segmentation (1970s) Niche Marketing (1980s) Individualized Marketing (1990s)

17 11| 17 © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Individualized Marketing Clutter Technology Factors Leading to Individualized Marketing Traditional media channels have reached a point where “shotgun” marketing approaches do not stand out. Technology allows firms to conduct more individualized marketing in tracking customers with more precision.

18 11| 18 © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Get Found Online Search Engine Optimization (SEO) Strategies Find the hottest keywords for your market. Plug keywords into the right locations in your copy and code. Use keywords that relate directly to your content. Keep the spiders coming back with frequent new content. Collect links from other sites that are considered reputable and relevant. Use a site map to boost your rankings in Google, Yahoo! and Windows Live Search.

19 11| 19 © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Understanding Consumer Behavior Consumer Behavior Why people purchase products Kurt Lewin’s “black box model” of personal influences: Inner needs Thoughts Beliefs Attitudes Values Motives Perceptions External environmental forces

20 11| 20 © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Understanding Consumer Behavior (cont’d) Evoked Set The group of brands or businesses that come to a customer’s mind when he or she thinks of a type of product Cognitive Dissonance The conflict (i.e. remorse) that buyers feel after making a major purchase

21 11| 21 © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. The Consumer Decision-Making Process Problem Recognition Information Search Evaluation of Alternatives Purchase Decision Post-Purchase Evaluation

22 11| 22 © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Figure 11.1: The Black Box Model of Consumer Behavior SOURCE: “The Black Box Model of Consumer Behavior,” from Warren Keegan, et al., Marketing (Englewood Cliffs, NJ: Prentice Hall, 1992), 193. Reprinted by permission of Sandra Moriarty.

23 11| 23 © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Market Research The process of gathering information that will link consumers to marketers to improve marketing efforts The function that links the consumer, customer, and public to the marketer through information Market Research Identify and define marketing opportunities and problems Generate, refine, and evaluate marketing actions Monitor marketing performance Improve understanding of marketing as a process Uses of Market Research Information

24 11| 24 © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Figure 11.2: The Market Research Process

25 11| 25 © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Market Research Process Is the most difficult and most important part of the market research process Requires a clearly stated, concisely worded problem in order to generate usable information Identifying the Problem Identify the types of information that you need. Identify primary and secondary sources of data. Select a representative sample. Select a research method and measurement technique. Planning Market Research

26 11| 26 © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Market Research Process (cont’d) Secondary Data Primary Data Types of Marketing Data Marketing data that already exist, having been gathered for some other purpose. Marketing data that a business collects for its own specific purposes.

27 11| 27 © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Market Research Process (cont’d) Qualitative Data Refer to research findings that cannot be analyzed statistically Are useful if looking for open-minded responses to probing questions, rather than yes-or-no answers Can be obtained through personal interviews or focus groups Help identify trends in answers or obtain specific detailed responses to your questions

28 11| 28 © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Market Research Process (cont’d) Quantitative Data Are structured to analyze and report numbers Help illustrate relationships between variables and frequencies of occurrences Are useful in providing information on large groups of people Can be analyzed statistically to show causation Can be obtained through telephone interviews, personal interviews, and mail surveys

29 11| 29 © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Market Research Process (cont’d) The process of determining what the responses to your research mean Data Analysis Clean the data to remove forms that are incomplete or unreadable. Code and examine the data to identify trends and develop insight. Processing Data into Information

30 11| 30 © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Market Research Process (cont’d) Presenting the Data and Making Decisions Conclusions based on data analysis may be obvious. Data may show exactly what to do next to answer the research problem. Market research provides you with information that will allow you to be proactive.

31 11| 31 © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Market Research Process (cont’d) Limits of Market Research Research can provide a picture of what people currently know and expect from products or services, but it has limited ability to indicate what people will want in the future. Innovation does not come from market research. The ideal is to concentrate on defining markets rather than on reacting to them.

32 11| 32 © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Figure 11.3: Matrix of Customer Needs and Types SOURCE: Adapted and reprinted by permission of Harvard Business School Press from “Seeing the Future First,” by Gary Hamel and C. K. Prahalad. Competing for the Future. Boston, MA, 1994, p Copyright © 1994 by Harvard Business School Corporation. All rights reserved.

33 11| 33 © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Inexpensive Market Research 1) Research the same way you sell. Interview customers in the same way you sell to them. 2) Mine public data. Take advantage of info from the U.S. Census Bureau. 3) Recruit students. Contact a local business school. 4) Survey online. Use free online polls. 5) Create an online community. Utilize forums/online chats. Source:

34 11| 34 © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Hot Market: The Aging Population By 2030, over 71 million Americans will be over the age of 65. Ninety percent want to grow old in their homes. Home health care is a fast-growing segment. GrandCare Systems invented technology to help seniors live an independent lifestyle provide sensors around the home that track room temperature, blood pressure, weight, pulse Source:


Download ppt "11| 1 © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in."

Similar presentations


Ads by Google