1. SMALL BUSINESS MANAGEMENT Chapter 8 Marketing Management Skeets and Skiles

2. How do we make a Buck?  Margin * Volume (Selling price – cost) * Volume  How could these companies increase their making a buck? Breadman Java Nook Cottage Cheesecake Earth Buddy Bright Lights

3. The Role of Marketing Management in the Small Business  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

4. Target Customer  Consumer Market  Organization market  Export market  How do find out info about the target customer> Market research

6. The Consumer Market Demographics Age, income, education, occupation, location Lifestyle characteristics Activities, interests opinions Purchase characteristics What when where how much of product Purchase motivations Why ?

7. The Organization Market Companies and government agencies that purchase from small businesses Influences on industrial demand  the economy,  government legislation and regulations,  potential competition  agencies that exert influence on purchasers The Bidding-Tendering Process Ace clear defence

8. The Export Market Government Assistance for Exporting Unique Characteristics of the Foreign Market Mechanisms of Exporting  Documentation, credit offered, distribution, Security

9. Influences External to the Market  The Economy  Competition  Legal Restrictions  Social and Cultural Environment  Technology

10. Influences External to the Market (Fig 8-6)  Management of External Influences The Influences  Economy, competition, legal, socio/cultural, technology The Possible Characteristics System to Monitor Possible Internal Adjustments

11. Developing the Product or Service  Develop Product and/or Service Policies  Decide how the product will be manufactured  Understand the product life cycle Wild West

12. Wild West - Vulcan  Describe the Influences External to the Market for this company and how it might affect the adoption of this product

14. Developing the Product or Service (cont)  Determine Factors that Accelerate Adoption relative advantage complexity divisibility communicability of results  Poop Smell NY

15. How the Consumer Classifies the Product and/or Service convenience products  Staple vs impulse shopping products  appliances, stereos, cameras specialty products  Mercedes Unsought  Funeral plots Field of Seeds

16. Spitz  How would you classify this consumer product? Why?  Describe their distribution system? Is it effective? Why or why not?  Where would you describe this product in the PLC? How could they ( or have they) alter this position in the PLC?

17. Field of Seeds  Margin * Volume As managers at Spitz how do increase making a buck?  What might be the best strategy for Spitz to move into the Quebec market?

18. How the Organizations Classifies the Product and/or Service  Production Goods Raw Materials: Component parts: becomes part of the physical product Process materials: not readily identifiable part of the production of other products  Support Goods Major Equipment: Accessory Equipment: Type writers and tools Consumable Supplies: IE Paper, pencils or oils Business to Business services: Financial, legal marketing research etc.

19. Developing the Distribution System (Fig 8-9)  Channel Options Manufacturer to Consumer (Short-Direct) Manufacturer to Wholesaler to retailer to consumer (Long-Indirect)  Channel length  Channel Intensity Breadman Java Nook Cottage Cheesecake Earth Buddy Bright Lights Spitz

20. Setting the Price for the Good and/or Service  Cost-Based Pricing  Demand-Based Pricing elasticity  Competition-Based Pricing Movement & Shift of demand curve

21. Promotion  Types of Promotion Advertising  types, advantages, disadvantages, suitability, costs Sales Promotion Public Relations Personal Selling Spin Master

22. Spin master  What inexpensive forms of promotion have been used by Spin Master?  What are the advantages and disadvantages of an Air Hog section in this industry?  What are the risks associated with operating a business in this industry?

23. marketing strategy to achieve a competitive advantage  find a niche and fill it $3,000,000 find a niche and fill it  don’t just sell; entertain ( Cabellas) don’t just sell; entertain  strive to be unique $400,000 strive to be unique  connect with the customer on an emotional level connect with the customer on an emotional level  focus on the customer  devotion to quality  attention to convenience  concentration on innovation  dedication to service  emphasis on speed

24. Steps in a Promotional Campaign 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 NY Smell

25. Steps in a Promotional Campaign (cont) 6. Develop a Specific Promotional Message 7. Set the Promotional Budget 8. Implement the Program 9. Evaluate the Effectiveness of the Promotion

26. Appendices  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