1. Small Business Management, 11th edition Longenecker, Moore, and Petty © 2000 South-Western College Publishing Chapter 7 Developing the Market Plan In the Spotlight: Three Dog Bakery www.threedog.com In the Spotlight: Three Dog Bakery www.threedog.com 7-1

2. Small Business Management, 11th edition Longenecker, Moore, and Petty © 2000 South-Western College Publishing Small Business Marketing: A Definition 1. Identifying a target market 2. Determining target market potential 3. Preparing, communicating, and delivering a bundle of satisfaction to the target market 7-3 Small business marketing consists of those business activities that relate directly to:

3. Small Business Management, 11th edition Longenecker, Moore, and Petty © 2000 South-Western College Publishing Marketing M ix Product Pricing Promotion Distribution Entrepreneur Target Market Market Analysis Market Segmentation Marketing Research Sales Forecasting Entrepreneur Target Market Core Marketing Activities for Small Business 7-4

4. Small Business Management, 11th edition Longenecker, Moore, and Petty © 2000 South-Western College Publishing Three Distinct Marketing Philosophies 1. Production-oriented: Emphasizes the product 2. Sales-oriented: Emphasizes product sales 3. Consumer-oriented: Emphasizes consumer needs 7-5

5. Obstacles to Consumer-Oriented Approach Competition Interest and Abilities Focused on the Present

6. Small Business Management, 11th edition Longenecker, Moore, and Petty © 2000 South-Western College Publishing The Marketing Research Process Step 1: Identifying the informational need Step 2: Searching for secondary data Step 3: Collecting primary data Step 4: Interpreting the data 7-7

7. Developing a Questionnaire Ask questions that relate to the issue Select the question form that is most appropriate Ask sensitive questions near the end Choose simple, clear, & objective wording Pre-test the questionnaire

8. Small Business Management, 11th edition Longenecker, Moore, and Petty © 2000 South-Western College Publishing 7-10 The Ingredients of a Market Ingredient 1 Customers: People or businesses Ingredient 2 Purchasing power: Money/credit Ingredient 3 Unsatisfied needs

9. Sales Forecast Estimate--amount of product/service that can be sold within a given market in a defined time period èStated in terms of dollars/units èTarget market should be as defined as possible èNeed short- and long- term forecasts

10. Small Business Management, 11th edition Longenecker, Moore, and Petty © 2000 South-Western College Publishing The Forecasting Process Point at which process is started Breakdown process Buildup process Nature of the predicting variable Direct forecasting Indirect forecasting 7-12