MT209 Small Business Management Unit 4 – Marketing the Business

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Agenda  Introduction – Seminar Ground Rules  Unit 4 – Outcome  Unit 4 - Assignments  Unit 4 – Marketing Plan  Unit 4 – Marketing Products or Services  Conclusion

Seminar Ground Rules  Write screen name of person you are chatting to  For whole class – To all  For instructor – Mark  Write responses in full, complete sentences  After seminar starts – do not announce your arrival or departure  No side conversations while I’m speaking  Seminars designed for interaction NOT completing PowerPoint Slides  Seminar debrief – how valuable was the seminar to you in terms of information and interaction with instructor and other students  Scale 5 (best) – 1 (not worth my time)  Explain why you gave the rating you did

Unit 4 Outcomes As a result of your work in this unit, you should be able to:  Identify the components of a formal marketing plan.  Explain the different methods of forecasting sales.  Define customer relationship management (CRM) and explain its importance to a small business.  Understand psychological and sociological influences on the consumer.  Identify advertising options for a small business.

Unit 4 – To Dos  Start the Unit  Review the key terms  Read  Chapters 7, 14, and 17 in your text  Graded Assignments  Unit 4 Discussion  Unit 4 Assignment  Unit 4 Quiz  Seminar or alternative assignment

Unit 4 - Discussion  Read the article on entrepreneur.com describing each of the following five consumer groups: Gen I, Gen Y, Gen X, Boomers, and The Greatest Generation at:   Then respond to the following:  Describe your particular business plan concept.  What would form your target market and why?  How would this particular choice impact your promotional considerations? Be sure to give some specific examples.

Unit 4 - Assignment Using the MT209 Project Template and the MT209 Project Instructions; complete the Marketing Plan section of your Descriptive Business Plan in the MT209 Project Template. How your proposed product or service fills a gap in the marketplace, or how your product or service will be “better” than those already existing in the marketplace.  Market analysis – Develop a customer profile for each identified potential target market customer. 1. What is the purchasing power of this group (how much disposable income)? 2. What is their dominant family status (families, singles)? 3. What are their age ranges? 4. What are their leisure habits?  Competitors – Outline and describe principal rivals for each target market customer group. Be sure to also include indirect competitors as well as direct competitors.  Marketing strategy – Describe how you propose to reach the target customer. Will you use a single segmented, multi-segmented, or un-segmented strategy?

Questions

Unit 4 - Marketing  Marketing: The process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create and maintain relationships that satisfy individual and organizational objectives.

Unit 4 – Goals of Marketing  Goals of the marketing plan should be to:  Name and describe each market  Explain specific methods you plan to use to reach these markets  Establish the costs in both time and money to market your products  Integrate the marketing plan with all other sections of the business plan

Unit 4 – Key Questions  Is there a consistent demand for my product or service?  Who will I be competing against for the same customers?  Can I realistically compete on price?  Can I realistically compete on quality?  Can I realistically compete on distribution?  Can I do all the above and still reach my projected profit?

Unit 4 – Marketing Research  Shows other possible approaches to your markets  Gives meaningful basis for making assumptions about profits  Helps in development of goals  Helps in organizing the marketing plan  Helps in identifying the limits of profitability in markets

Unit 4 – Types of Market Research  Secondary Research:  Consists of already reported research. Statistics, and projections done by others  Often provided by governmental agencies, state agencies, business trade organizations, universities  Often available as references in public library  Some available on the Internet  Competitors

Unit 4 – Types of Market Research  Primary Research:  Specific research conducted by the entrepreneur or by those engaged by the entrepreneur  Is costly and time consuming  Fills in the gaps not addressed by secondary research

Unit 4 – Qualitative vs Quantitative  For this course, the quantitative data provided by market research is beyond the time constraints allowed  Instead we will focus on understanding the process and the elements that must be addressed in good marketing research within a business plan  Market research will be addressed in depth in a marketing course

Questions

Unit 4 – The Customer  Your market research goal is learning about your customers:  Who are you customers?  Where are they located?  What do they need or want?  What resources do your customers have?  Is your product or service something they need in their everyday life?  Can your customers afford your products at your proposed pricing levels  Where can you create demand for your product?

Unit 4 – Bundle of Satisfaction  Core product or service – fundamental benefit sought  Actual product or service – the actual product or service that fulfills the fundamental benefits sought  Augmented product or service – the basic product or service plus any additional perceived benefits that prompt a customer to purchase the product or service

Unit 4 – Market Analysis  Customer Profile – Created by secondary and primary research carefully describes how your product or service will specifically create perceived value for your target customer  Analysis of Competition – Also created by research seeks to thoroughly identify the strengths and weaknesses of rivals in your potential market  Marketing Strategy – Specific strategies must be created to address each target market segment or group of customers. These will outline how the business will create its marketing mix

Unit 4 – Marketing Mix  The 4 P’s:  Product – How to transform the product or service into bundles of customer satisfaction?  Place – How to deliver the product or service to the customer?  Price – How to set the appropriate pricing levels for the product or service?  Promotion – How to communicate the necessary information to the potential customers?

Questions

Thank You!