Transcript Document

Welcome to Seminar – Unit 4
Audio will start promptly at 9 pm.
If for any reason there is technical
difficulty….stay online.
If you can see the screen,
please share with your
classmates the following:
If I could turn back the
hands of time, I would go
back to age ? …because ….
AB209 -- Small Business Management
Agenda
• Brief Review of Chapter 7, 14, and 17
• Questions
Unit 4 Outcomes
• 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.
Chapter 7
The Marketing Plan
Small Business Marketing
Small Business Marketing – Business activities
that direct the creation, development, and delivery
of a bundle of satisfaction from the creator to the
targeted user and that satisfy the targeted user.
The three Levels of a
Product/Service
Augmented
Product/Service
(the basic
product/service
plus any extra or
unsolicited
benefits to the
consumer that
may prompt a
purchase.
Actual
Product/Service
(the basic
physical
product/service
that delivers
those benefits.
Core
Product/Service
(benefit or
solution sought
by customers)
Market Analysis
Market Analysis –
The process of locating and
describing potential
customers
QUESTION?
Based on the business you have
or aspire to have, what would you
do to locate potential customers
for your business?
The Marketing Plan
•Market Analysis
•The Competition
•Marketing Strategy
•Product/Service
•Distribution
•Promotion
•Pricing
Steps in the Marketing
Research Process
1.Identifying the
Informational Need
2.Searching for
Secondary Data
3.Collecting Primary
Data
4.Interpreting the Data
Gathered
Question for all
As you think about your business idea or
current business, what sources of
secondary data will address your needs?
CHAPTER 14
REVIEW
What is Customer Relationship
Management (CRM)?
A company-wide business strategy designed to optimize
profitability, revenue, and customer satisfaction by
focusing on highly defined and precise customer groups.
The Importance of CRM
to the Small Firm
1.
2.
3.
4.
5.
Acquisition costs for new customers
are high.
Long time customers spend more
money than new ones.
Happy customers refer their friends
and colleagues.
Order-processing costs are lower for
established customers.
Current customers are willing to pay
more for products.
Question: Think about a
time when you
experienced great
customer service. What
did the business do to
make you feel this way?
Question for all: In your
opinion, do you believe
customer complaints can
cause a business to
make a change? If so,
have you ever made a
complaint, as a
customer, and the
business took action?
Sign posts to
extraordinary
service:
1.
2.
3.
4.
5.
Doing business of a first-name basis
Keeping in touch
Finding ways to help
Customizing your service
Addressing problems promptly
Customers as Decision Makers
Stage 1: Problem Recognition
Stage 2: Information search and evaluation
Stage 3: The purchase decision
Stage 4: Post-purchase evaluation
Does CRM put more emphasis on current
or potential customers? Why?
Understanding
Psychological
Influences on
Customers
Needs – The starting point for
all behavior
Perceptions – The individual
processes that give meaning
to the stimuli confronting
consumers.
Motivations – Forces that
organize and give direction to
the tension caused by
unsatisfied needs.
Attitude – An enduring
opinion based on knowledge,
feeling, and behavioral
tendency.
Understanding
Sociological
Influences on
Customers
Culture – the behavioral patterns and values that
characterize a group of customers in a target market.
Social Class – Divisions within a society having different
levels of social prestige.
Reference groups – Groups that an individual allows to
influence his or her behavior.
Opinion Leaders - A group member who plays a key
communications role.
Marketing Mix
• Highlights areas that must be addressed by a firm’s
marketing strategy.
“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?
Chapter 17 Review
Promotional Planning
Promotion: Getting the Message Across
Personal Selling
Advertising
Marketing communications that
inform and persuade consumers
Sales
Promotional
Tools
© 2010 South-
17–24
The Communication Process in Promotion
• Communication Process Components
-Source—the message sender
-Channel—the path the message travels
-Receiver—the recipient of the message
• Forms of Promotional Communication
-Nonpersonal—advertising
-Personal—personal selling
-Special forms—sales promotion
© 2010 South-
17–25
Determining the Promotional Budget
• “How much should a small business spend on
promotion?”
1. Allocating a percentage of sales
2. Deciding how much can be spared
3. Spending as much as the competition
4. Determining what it takes to do the job
© 2010 South-
17–26
Personal Selling: Prospecting
• Prospecting
-A systematic process of continually looking
for new customers
• Prospecting Techniques
-Personal referrals
-Salesperson initiates customer contact through
referral by another party known to the customer.
-Impersonal referrals
-Information on potential new
customers developed from public
records and published sources.
© 2010 South-
17–27
Overcoming Customer Objections
I had problems with a similar
product before and don’t want to
go through that again!
Yes, I understand your attitude,
but have you considered . . . ?
I’m too busy.
That’s why I want to explain
how I can save you time by . . .
I like what you have said, but I
need to wait.
Let’s figure how much you can
save by acting now.
Your product sounds just like your
competitor’s.
There are similarities, but we
have . . . at a better price.
I’m not sure I can risk a
changeover to your product.
Let me tell you how a competitor
decided to buy from me.
© 2010 South-
17–28
As we reviewed the
list of customer
objections, as you
think about situations
in which you’ve been
sold something, what
did the sales person
say that “really”
convinced you to
make a purchase?
Have you ever had a situation in
which you were the sales person
and either did well, or did not do
well in convincing your
customer? In retrospect, what
would you have done differently,
if you didn’t convince them, and
what did you do right, if you did
convince them?
Web Advertising
• Basic Web Promotions
-Banner ads
-Advertisements that appear across a Web page,
often as moving rectangular strips
-Pop-up ads
-Advertisements that burst open
on computer screens
-Direct e-mail promotion
-Advertising delivered by means
of electronic mail
-Spam: unsolicited e-mail
© 2010 South-
17–31
Web Advertising (cont’d)
• Basic Web Promotions (cont’d)
-Web sponsorships
-A type of advertising in which the firm pays
another organization for the right to be part of that
organization’s Web page.
-Linkages
-One firm pays another to include a click-on (clickthrough) advertising link on its Web site.
© 2010 South-
17–32
Web Advertising (cont’d)
• Basic Web Promotions (cont’d)
-A corporate Web site on the
Internet
-Creating and registering a site name
-Building a user-friendly Web site
-Promoting the Web site
-Blogs
-An interactive website in which an
individual can maintain a personal
online journal, post comments and
reflections, and provide hyperlinks.
© 2010 South-
17–33
Exhibit 17.4 Website Design Tips
Tip 1: Know your purpose
Tip 2: Think like your customer
Tip 3: Make it easy to navigate
Tip 4: Reduce the load time
Tip 5: Avoid surprises
Tip 6: Document everything
Sources: Gary Klingsheim, “How to Create an Attractive,
© 2010
SouthUser
Friendly
Website,”17–34
March 20, 2009,
Exhibit 17.5 Options for Getting Your Website Listed in Search Engines
1. Use a free submission service
2. Use a low-cost, automated submission service
3. Do it yourself by manually submitting your website to
individual search engines
4. Use a professional search engine consultant
5. Use submission software
6. Pay for inclusion.
© 2010 South-
17–35
Any questions?
Thank you for joining me today! I look
forward to joining you next week!