D. Marketing a Small Business 6.00 Explain the fundamentals of marketing in a small business. 6.01 Explain marketing and its importance.

Marketing Marketing: The process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives.

Marketing Concept Marketing concept: The philosophy that achieving organizational goals depends on determining the needs and wants of target markets and delivering the desired products/services more effectively and efficiently than competitors do.

The Marketing Mix The combination of the four strategies for product, price, place and promotion—the four Ps of marketing. These decision make up a business’s marketing mix— strategies that work together to affect the marketplace.

Product Considerations Choice of products Packaging Services to support products Branding Warranties Level of quality Business image Product research & development Positioning

Price Considerations Price setting – What is your goal? Terms – Conditions of purchase and payment between suppliers and buyers. Discounts – Reductions in the price of goods, which are sometimes negotiated.

Place Considerations Channels of distribution – How do products get from manufacturer to customer? Specific stores Transportation – What carrier will you choose to move your products?

Promotion Considerations Advertising: Non-personal promotional messages paid for by an identified sponsor. Personal Selling: Communication between a salesperson and a customer intended to influence the customer’s buying decision. Publicity: Information about a business or its products distributed through the media at no cost to the business. Sales Promotion: All promotional activities other than advertising, personal selling, publicity, and public relations designed to stimulate sales and sales effectiveness.

External Factors That Affect the Marketing Mix Customer attitudes Economic conditions Technological advances Political forces Natural forces Competition

Internal Factors That Affect the Marketing Mix Company objectives Company policies Financial situation