AB209 Small Business Management

Unit 4 – Marketing the Business

Contact Information

• Email: tbjorling@kaplan.edu• AIM: teachterrab• Office Hours: Tuesday 7:30-8:30pm EST• Kaplan Technical Support: 1-866-522-7747

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Marketing the Business

No matter how great the business idea or product, without adequate marketing the business will not succeed! Effective marketing is about so much more than just advertising or selling. Marketing may be best described as all activities within a business that work together to deliver “bundles of value” for the customer. In Unit 4, we examine the marketing function and how it must be centered on the customer.

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.

 

 

Unit 4 To Do ListStart the Unit:•Review the key terms

Study:•Read Chapter 7, Chapter 14, and Chapter 17 in your text

Prepare:•Carefully review the completed sections of your descriptive business plan.

Graded Assignments:•Respond to the Unit 4 Discussion Board •Complete the Marketing Plan in the AB209 Project Template•Attend the Unit 4 Class Seminar or complete the Alternative Assignment •Complete the Unit 4 Quiz

Unit 4 Class Discussion

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: http://www.entrepreneur.com/marketing/article202334.html#

 

Then respond to the following:

1. Describe your particular business plan concept.

2. What would form your target market and why?

3. How would this particular choice impact your promotional considerations?

Be sure to give some specific examples.

Unit 4 AssignmentUsing the AB209 Project Template and the AB209 Project Instructions; complete the Marketing Plan section of your Descriptive Business Plan in the AB209 Project Template.

 

1. Market analysis – Develop a customer profile for each identified potential target market customer. What kind of potential customer does your business seek to reach? Include customer demographics like age, geographical areas, ethnicity, religion, culture, income levels, gender, If these are relevant to your product or service. Some general things you would most likely want to know: 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?

 

2. Competitors – Outline and describe principal rivals for each target market customer group. Be sure to also include indirect competitors as well as direct competitors.

  

3. Marketing strategy – Describe how you propose to reach the target customer. Will you use a single segmented, multi-segmented, or un-segmented strategy? Explain how you will promote the product or service to the target customer. Explain your proposed pricing strategy and why. Explain your distribution strategy; how you will deliver your product or service to the customer.

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.

The Goals of a Marketing Plan

Goals for the Marketing Plan should be to:

•Name and describe each market your new business seeks to serve.

•Explain what specific methods you plan to use to reach customers in each of these markets.

•Establish the costs in both time and money to effectively market your new venture’s products or services.

•Integrate your marketing plans with all other areas of your business plan.

Key Initial Marketing Questions

• Is there a consistent demand for my product or service? • Who will I be competing against for the same customers and how strong are

they?  • Can I realistically compete against these on a basis of price?  • Can I realistically compete against these on a basis of quality? • Can I realistically compete against these on a basis of delivery? • Can I do all of the above and still produce my projected profits?

These are key questions that must be satisfactorily answered before proceeding with a venture!

  

Marketing Research

).  

•Shows other possible approaches to your market(s)

•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 within markets.

Two 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 libraries•Some available on Internet•Competitors

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

Both secondary and primary market research are required! The goodness of your marketing plans rests on good research!

Qualitative versus Quantitative

). In this class, the quantitative data provided by market research is beyond the time constraints allowed. Our focus on this aspect of Market Research will instead be on understanding the process and the elements that must be addressed in good marketing research within a business plan. You will address market research in depth in a marketing course.

Its All About the Customer!

The ultimate goal of your market research is learning about a special group of people – your customers!  •Who are your customers?•Where are your customers located?•What do your customers need or want?•What resources do your customers have?•Is your product or service something needed in their day-to-day lives? •Can your customers afford your products or services at your proposed pricing levels?•Where can you create a demand for your product or service?•What areas within your market are declining or growing?•What is the general economic state and outlook of your product or service market area?

Marketing – Delivering Bundles of Satisfaction!

• Core Product or Service – Fundamental benefit sought in product or service

• 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.

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.

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?

Any questions?

Unit 5 To Do ListStart the Unit:•Review the key terms

 

Study:•Read Chapter 18 in your text

Prepare:•Carefully consider role of your venture in a global market.

Graded Assignments: •Respond to the Unit 5 Discussion Board•Complete the Unit 5 Review Quiz•Attend the Unit 5 Class Seminar or complete the Alternative Assignment

 

See you next week!

Remember, our Class Seminars will always be held at the same hour and the same day each week! After this seminar has concluded, there will be a recording in the archives located in the seminar room. It may be selected by date.

Thank you for joining me today! I look forward to joining you next week!