Transcript Chapter 7 ppt - U of L Class Index

SMALL BUSINESS
MANAGEMENT
Chapter 7 & 8
Marketing Management
GOPRO
Brand Man
Poop Smell
Handbag
Wild West
Blendtec
Idea Paint
QVC
Skeets and Skiles
Skeets and Skiles
How do we make a Buck?
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Margin * Volume
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(Selling price – cost) * Volume
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How could these companies increase their
making a buck?
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Breadman
Java Nook
Cottage Cheesecake
Earth Buddy
Bright Lights
The Role of Marketing Management in the
Small Business
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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
Market Segmentation and Target
Marketing: Beyond the Basics
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Market segmentation is simply defined as
breaking a marketplace down into
categories of buyers who share similar
characteristics
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Target marketing is the process of looking
at what segment your company can most
profitably serve and then modifying your
product, price, placement and promotion to
deliver value versus your competition to
your chosen targets
Steps in Preparing the Marketing
Plan
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Keys to Successful Market
Segmentation
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1.
2.
3.
4.
5.
Meaningful
Mutually exclusive
Measurable
Substantial
Actionable
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Steps in Moving Your
Segmentation Beyond the Basics
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1. Decide what general market or industry
you wish to pursue
2. Divide the market into smaller groups
based on the characteristics of the customer
and buying situation. These may include the
following:
Demographic
 Geographic
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Brand Man
Target Customer
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Consumer Market
Organization market
Export market
How do find out info about the
target customer> Market research
Steps in Moving Your Segmentation
Beyond the Basics (cont.)
Psychographic (e.g., personality and
lifestyle)
 Motivation (e.g., rational, emotional)
 Influencers (e.g., anyone else influencing
decision, importance or opinion leaders)
 Price sensitivity
 Desired benefit (e.g., product features)
 Usage (e.g., rate of use)
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Steps in Moving Your Segmentation
Beyond the Basics (cont.)
Buying conditions (e.g., familiarity of
product and willingness to buy)
 Awareness of buying intentions (e.g.,
familiarity of product and willingness to
buy)
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3. Make sure the segments are
meaningful, mutually exclusive,
measurable, substantial, and actionable
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Steps in Preparing the Marketing
Plan
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Steps in Moving Your Segmentation
Beyond the Basics (cont.)
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4. Select a segment(s) to target
5. Develop a marketing plan that integrates
product, price, placement, and promotion
Copyright © 2014 McGraw-Hill Ryerson.
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Steps in Preparing the Marketing
Plan
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Customer Relationship Marketing
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Database Information System
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Database Marketing For The Small Business
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Steps in Preparing the Marketing
Plan
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Applications of Customer Relationship
Management And Databases
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Nurture The Customer
Grow The Customer
Retain The Customer
Win Customers Back
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All rights reserved.
Influences External to the Market
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The Economy
Competition
Legal Restrictions
Social and Cultural Environment
Technology
Influences External to the Market (Fig 8-6)
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Management of External Influences
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The Influences
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Economy, competition, legal,
socio/cultural, technology
The Possible Characteristics
System to Monitor
Possible Internal Adjustments
The Marketing Plan
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The Marketing Mix
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The actual short-term marketing decisions in
the marketing plan will consist of four
important marketing variables: Product or
service, pricing, distribution or place, and
promotion
GOPRO
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Developing the Product or Service
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Develop Product or Service Policies
Decide How the Product Will Be
Manufactured
Understand the Product Life Cycle
Determine Factors That May Accelerate
Product or Service Adoption
Wild West
Developing the Product or Service (cont)
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Determine Factors that Accelerate
Adoption
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relative advantage
complexity
divisibility
communicability of results
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Vulcan Alberta -- Wild West
How the Consumer Classifies the
Product and/or Service
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convenience products
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shopping products
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appliances, stereos, cameras
specialty products
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Staple vs impulse
Mercedes
Unsought
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Funeral plots
How the Organizations Classifies the
Product and/or Service
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Production Goods
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Raw Materials:
Component parts: becomes part of the
physical product
Process materials: not readily identifiable part
of the production of other products
Support Goods
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Major Equipment:
Accessory Equipment: Type writers and tools
Consumable Supplies: IE Paper, pencils or oils
Business to Business services: Financial, legal
marketing research etc.
Developing the Distribution System (Fig 8-9)
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Channel Options
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Manufacturer to Consumer (Short-Direct)
Manufacturer to Wholesaler to retailer to
consumer (Long-Indirect)
Channel length
Channel Intensity
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Breadman
Java Nook
Cottage Cheesecake
Earth Buddy
Bright Lights
Spitz
Idea Paint
Setting the Price for the Good and/or Service
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Cost-Based Pricing
Demand-Based Pricing
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elasticity
Competition-Based Pricing
Movement & Shift of demand curve
QVC
Promotion
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Types of Promotion
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Advertising
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types, advantages, disadvantages,
suitability, costs
Sales Promotion
Public Relations
Personal Selling
Poop Smell
Handbag
Types of Promotion
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Non-traditional Promotional Methods
Non-traditional promotional methods can be defined as
pursuing traditional business goals of sales and profits
through non-conventional means
 Guerrilla Marketing
 Public Relations
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Public relations is defined as generating positive awareness
of your company
Internet Marketing
Company Web Pages
 Search Engine Optimization (SEO)
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Types of Promotion
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Internet Marketing (cont.)
Pay-Per Click Advertising (PPC)
 Online Newsletter
 Direct Email to Customers
 Banner Advertisements
 Affiliate Programs
 Online Classified Advertising Sites
 Online Auction Sites
 Gamification
 Online Games
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Types of Promotion
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Internet Marketing (cont.)
Podcasts
 Webinars
 Social Networking
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Social networking sites are online communities
where people can meet new people, talk to current
friends, and build their networks
Facebook
 Linkedin
 Foursquare
 Twitter/Tumblr/Online Blogs
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Types of Promotion
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Internet Marketing (cont.)
Photo Sharing Sites (Pinterest, Instagram,
and Flickr)
 Video Sharing Sites (YouTube, Vine)
 Mobile Marketing
Blendtec
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Apps or Application
Text/SMS Messages
QR Codes
Proximity/Location-Based Marketing
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Steps in a Promotional Campaign
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1. Set Promotional Objectives (NUMBERS)
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2. Determine the Promotional Target
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3. Understand the Target’s Needs and
Perceptions of the Product/Service
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4. Develop the Relevant Theme
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5. Determine the Method or Media to Use
Steps in a Promotional Campaign (cont)
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6. Develop a Specific Promotional
Message
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7. Set the Promotional Budget
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8. Implement the Program
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9. Evaluate the Effectiveness of the
Promotion