marketing your small business

T h e l e a d i n g r e s o u r c e f o r s m a l l b u s i n e s s

Marketing Your Small Business

T h e l e a d i n g r e s o u r c e f o r s m a l l b u s i n e s s

What is this Marketing?• What?

– Marketing is the delivery of customer satisfaction at a profit• When?

– In almost every aspect of the business from the moment potential customers begin to take an interest in the company

• Who? – Everyone in the organization has the ability and opportunity.

• How?– Through talking with customers, suppliers, employees, experts

and research.• Why?

– Two goals: to attract new customers by promising superior value AND to keep current customers by delivering satisfaction

– Who

T h e l e a d i n g r e s o u r c e f o r s m a l l b u s i n e s s

Components of Marketing

• Market: Customer needs, wants, and demands

• Create a product that meets a need rather than the reverse.

• Perceived value – no reality; only perception• Marketing Mix - Four P’s

– Product– Price– Place /Distribution– Promotion

T h e l e a d i n g r e s o u r c e f o r s m a l l b u s i n e s s

Target Customers

Intended Positioning

Four P’s of Marketing

PRODUCTProduct varietyQualityDesignFeaturesBrand namePackagingSizesWarrantiesReturns

PRODUCTProduct varietyQualityDesignFeaturesBrand namePackagingSizesWarrantiesReturns

PRICEList priceDiscountsAllowancesPayment periodCredit terms

PRICEList priceDiscountsAllowancesPayment periodCredit terms

PROMOTIONAdvertisingPersonal sellingSales promotionPublic relations

PROMOTIONAdvertisingPersonal sellingSales promotionPublic relations

PLACEChannelsCoverageAssortmentsLocationsInventoryTransportationLogistics

PLACEChannelsCoverageAssortmentsLocationsInventoryTransportationLogistics

T h e l e a d i n g r e s o u r c e f o r s m a l l b u s i n e s s

Conduct Market Research

• Observation: watch pedestrian/vehicle traffic, mystery shop

• Informal surveys: talk to people, mystery shop

• Keep it simple: use different media or change marketing message

Primary Market Research:

Secondary Market Research:• Utilize secondary data: associations, local

newspapers, chambers of commerce, govt. agencies

T h e l e a d i n g r e s o u r c e f o r s m a l l b u s i n e s s

Secondary Data: FREE Resources

• Quickfacts– http://quickfacts.census.gov– Census bureau data about spending, incomes, age,

other demographics

• Bizstats– http://bizstats.com– Industry benchmarks, other financial help

• SBA “Size-Up” Program– http://www.sba.gov/sizeup– Able to compare your business against industry

competitors, map your competitors, Customers, suppliers, and find the best places to advertise

T h e l e a d i n g r e s o u r c e f o r s m a l l b u s i n e s s

Levels of Marketing

• Mass marketing– Mass producing, distributing, and promoting

same product in same way to all consumers

• Segment marketing– Marketing to a specific group based on needs,

perception, and buying power

These methods traditionally used by large companies

T h e l e a d i n g r e s o u r c e f o r s m a l l b u s i n e s s

Marketing in a Small Business

• Money magazine does Niche marketing– Marketing to a specific subgroup within a

segment• Micromarketing

– Tailoring products/services and marketing programs to suit tastes of specific individuals and locations

– Local and individual marketing

T h e l e a d i n g r e s o u r c e f o r s m a l l b u s i n e s s

Indentify Market Segments

• What are the groups that will want/need this product/service?

• Which of these groups are the most logical?

• Which of these groups are not obvious but still likely to buy?

Who, very precisely, are your customers?

T h e l e a d i n g r e s o u r c e f o r s m a l l b u s i n e s s

Choose Your Market Segments

You can’t have them all.• Geographic: focus is on specific area or

location• Demographic: focus is on specific

attributes• Psychographic: focus is social class,

lifestyle, and/or personality• Behavioral: focus is on social, cultural,

and attitude aspects

T h e l e a d i n g r e s o u r c e f o r s m a l l b u s i n e s s

Rank the Differentiated

SegmentsThe goal is PROFIT• Be sure there is a market

big enough.• If the “bull’s-eye” is too

small, aim for the next ring as well.

T h e l e a d i n g r e s o u r c e f o r s m a l l b u s i n e s s

Product Classifications

• Consumer products:– Convenience – milk, bread – Shopping – clothing, computers– Specialty – diamond rings, luxury items– Unsought -

• Industrial products: products purchased for further processing or for use in conducting a business: capital items, and supplies and services

T h e l e a d i n g r e s o u r c e f o r s m a l l b u s i n e s s

Factors in Pricing

• Marketing objectives– Short-term

• Survival: helps keep business in business• Current profit maximization: increases cash

– Long-term• Market share leadership: greater market share

equals long-term profits – usually this strategy is to lower price to lowest possible

• Product quality leadership: charging high price to cover higher performance and cost of R&D

T h e l e a d i n g r e s o u r c e f o r s m a l l b u s i n e s s

Factors to Consider when Pricing

• Organizational goals– market share, profits

• Market and demand

• Cost to produce

• Competitors’ prices and costs

T h e l e a d i n g r e s o u r c e f o r s m a l l b u s i n e s s

Pricing Strategies

• Cost-based pricing

– Charging a % over what product costs as profit– Relies heavily on expected unit sales in order to work

aggressively

• Breakeven analysis and target profit pricing

– Based on investment $$ and fixed profit target– Determine how many units to sell to achieve targeted

profit– Controlled by external factors: price elasticity and

competition

T h e l e a d i n g r e s o u r c e f o r s m a l l b u s i n e s s

Environmental Scan

How do these affect your business?

• Competition• Technology• Economy• Legal/Regulatory• Social & Cultural

T h e l e a d i n g r e s o u r c e f o r s m a l l b u s i n e s s

Analyze the Competition

Benefits:• Indicates the activities that competing firms

are engaged in– Gives you alternatives to consider

• Shows what the competition has been doing, is doing, and gives you insight into what they are likely to do

• Helps you to identify your unique selling point/niche

T h e l e a d i n g r e s o u r c e f o r s m a l l b u s i n e s s

Online Marketing

• Create an electronic storefront or marketing website

• Place advertisements online• Participate in forums, newsgroups, and web

communities• Use email and web casting

T h e l e a d i n g r e s o u r c e f o r s m a l l b u s i n e s s

Establish Goals and Objectives

• What does the business intend to accomplish?• How should the business advertise its goods

and services?

Marketing Functions and Objectives• Promoting customer awareness of the business

and its products and services• Directly stimulating sales • Establishing or modifying a business’

image in the public’s eye

T h e l e a d i n g r e s o u r c e f o r s m a l l b u s i n e s s

Formulate Strategy

• “The worst strategy is no strategy at all.”• Advertise to the right people• Use effective tools:

– Ex. Mailing lists, Coupons, Offers– Social Media

• Obtain information and test its affectivity

“The more accurately you can reach your target market, the more effective your campaign will be.”

T h e l e a d i n g r e s o u r c e f o r s m a l l b u s i n e s s

Execute Strategy

• Verify that your plan is strong• Stick to your plan!

– If it was carefully thought out, it deserves a chance

– However, don’t follow it blindly– Monitor and control

T h e l e a d i n g r e s o u r c e f o r s m a l l b u s i n e s s

Budget Limitations

• Determine…– What the business can

afford to spend– Balance against what

the business needs to spend

– Compared with what the business would like to spend

T h e l e a d i n g r e s o u r c e f o r s m a l l b u s i n e s s

Setting the Budget and Mix

• Promotion mixes– Advertising– Personal selling– Sales promotion– Public relations– Direct marketing How the mix is set will

determine the strategy:

Push or PullSometimes businesses may

have a push/pull strategy

How the mix is set will determine the strategy:

Push or PullSometimes businesses may

have a push/pull strategy

T h e l e a d i n g r e s o u r c e f o r s m a l l b u s i n e s s

Construct your Marketing Plan

• The Marketing plan is more than a budget– It is another way to evaluate the entire

budget• Properly put together and followed, the

plan will make a positive contribution to the future of the business

T h e l e a d i n g r e s o u r c e f o r s m a l l b u s i n e s s

The Marketing Plan

• Target Market

• Marketing Goals

• Strategic Strategies

• Implementation Activities

• Evaluation of Results

T h e l e a d i n g r e s o u r c e f o r s m a l l b u s i n e s s

• Stick to the plan!

• Expect results over time

– The growth process is slow

• The control stage:

– All business activities must be checked against budgeted plans

– Identify deviations: Positive & Negative

– Evaluate the impact of the marketing campaigns (i.e. coupons, surveys, etc.)

Implement and Evaluate

T h e l e a d i n g r e s o u r c e f o r s m a l l b u s i n e s s

• Allow sufficient time for results

• Once it is clear the plan is not working, it is essential to move quickly

• Time and money are limited resources

• Changing the plan is easier than creating one from scratch

• Build upon the knowledge already gained

Change Strategy as Needed

T h e l e a d i n g r e s o u r c e f o r s m a l l b u s i n e s s

Successful Marketing

• Set Goals and Objectives• Create an activity and spending budget• Inspect what you expect• Follow 5 C’s of Marketing

– Client/customer focused– Consistency and continuity– Communication– Cost-effectiveness– Creativity

T h e l e a d i n g r e s o u r c e f o r s m a l l b u s i n e s s

Q & A

T h e l e a d i n g r e s o u r c e f o r s m a l l b u s i n e s s

Inland Empire Small Business Development Center

Schedule an appointment with an SBDC Consultant and develop your strategy for successfully implementing the information you’ve learned here today.

(951) 781-2345 | www.iesmallbusiness.com

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Ontario, CA 91762

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