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- 1. 11 Small Business Distribution and Location McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved.
Editor's Notes
- All marketing centers around the customer. Who are they? Where do they shop? What are they willing to pay for?
- Word-of-mouth is a friendly version of a rumor mill. Satisfied customers will recommend the product or service to friends. Dissatisfied customers will complain to anyone within earshot. Direct sales is the #1 way to sell to a business. Salespeople cal on those who make purchase decisions. Free samples and demo may be given Product demonstration can also be made at local shows to showcase the item Vending machines work well for small products. Consider: Soda, coffee & Candy Sandwiches Cigarettes Pain relievers Condoms Cheap kids jewelry
- Direct mail has to overcome a lot of clutter- consider the junk mail you receive in one week. Main problem is getting good addresses to focus your efforts on. Many companies may sell their lists for a price.
- The dreaded telemarketer who calls at dinner…. This form is expensive both for phone time and manpower, but allows the message to be customized to the consumers needs. Many states have ‘do-not-call’ lists but if you have ever done business with the company, they don’t have to honor that list. Inbound comes in response to an ad, or a direct mailer such as a catalog or sales flier.
- The key of Guerilla marketing is to catch the customers eye. However, this cheap form of advertising looks cheap and the image of you r company needs to be considered before entertaining this notion.
- Multichannel marketing is simply a coordinated effort of several methods. Increased frequency of contact with the customers increases the likelihood of remembering your company which is the first step towards purchasing.
- The Internet has forever changed the way we do business. Even small companies are expected to have a professional looking website. The web site lends to your legitimacy as a professional business. It can be used to: List products Sell products Provide product specs Provide trouble shooting advice Link to other related companies Post job openings Provide company background Tech support and contact info
- eBay- the world’s perfect marketplace. eBay is a standard internet auction site- the first and the biggest. Provides a method for the market demand to truly determine the price. Cannot link to your company in the auction, but can set up an eBay store.
- Everybody had an auction site including Yahoo! And Google. There are smaller sites specializing in products banned from general sites such as firearms.
- The world wide web is world wide. If you’re on it, anyone can see you. For most small businesses advertising world wide is neither necessary nor feasible. If your product is in demand, though, it pays to know export rules I.e. you may not ship walkie-talkie radio to China from the US.
- Are you sure you want to make this step? Are customers in foreign countries ready for and demanding your product?
- Generally it is best to start small. Canada, the UK and Australia are common countries to export to both for language and level of development.
- There are companies that specialize in exporting either as a broker, or buying the inventory themselves to export. It may be worthwhile to contact one of these middlemen to research what must be done.
- Pricing issues become complex when working with foreign countries. Fluctuating exchange rates must be taken into account. Contracts may or may not be held up in foreign countries.
- If you are importing you are putting the burden of paperwork on the company from which you purchase. Travel abroad, see what products are popular that are not yet in the US but would translate to our culture well.
- When choosing a location to set up your company most entrepreneurs choose their hometown. It is close, comfortable, and they are known in the area. However, make sure local laws are checked first.
- The three locations are discussed on subsequent slides.
- Once you have chosen the area, you must pick the specific spot. “ Downtown” where? Which building in the Business district?
- While some buildings for sale or rent have signs, brokers can help you find locations in your price range. Brokers may also know of places not yet for sale, but coming up for sale soon. They can also do legwork for you and cut out some locations based on required criteria you give them
- The layout for a pool hall differs from that of a piano bar or night club though all three are in the same general business area. Check for details, storage, windows, lighting, etc. Make sure the exterior is both sound and attractive. If you are in a historical district the exterior cannot be easily changed.
- Relocate Your Business Buying requires more upfront capital investment, but provides security and the opportunity for capital appreciation Costs less to get into leased space--and it's easier to get out, too--but monthly payments may be higher consider a lease with an option to own One option open is to make a personal purchase of property and then lease it to your business gets to deduct the lease payment while you receive added income