The document provides a comprehensive guide on marketing for small businesses, outlining the purpose, components, and strategies involved in effectively reaching target customers. It emphasizes the importance of market research, product differentiation, and the marketing mix (product, price, place, promotion) while suggesting ways to establish marketing goals and evaluate the success of marketing campaigns. Additionally, it highlights the necessity of adapting strategies based on market conditions and competition.

1. 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

2. 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

3. 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

4. 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
PRODUCT
Product variety
Quality
Design
Features
Brand name
Packaging
Sizes
Warranties
Returns
PRICE
List price
Discounts
Allowances
Payment
period
Credit terms
PROMOTION
Advertising
Personal selling
Sales promotion
Public relations
PLACE
Channels
Coverage
Assortments
Locations
Inventory
Transportation
Logistics

5. 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

6. 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

7. 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

8. 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

9. 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?

10. 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

11. 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
Segments
The 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.

12. 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

13. 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

14. 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

15. 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

16. 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

17. 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

18. 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

19. 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

20. 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.”

21. 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

22. 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

23. 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 Pull
Sometimes businesses may
have a push/pull strategy

24. 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

25. 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

26. 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

27. 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

28. 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

29. 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

30. 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.
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