SMALL BUSINESS MANAGEMENT - CHAPTER 6 - SMALL BUSINESS MARKETING
DESCRIBE THE COMPONENTS OF A FIRM'S TOTAL PRODUCT OFFERING
A label is an important informative tool, providing instructions on product use, care, & disposal. A warranty can be valuable for achieving customer satisfaction.
EXPLAIN THE TERM MARKET AND THE DIFFERENT METHODS OF SEGMENTING MARKETS
A market is a group of customers or potential costumers who have purchasing power and Unsatisfied needs. Markets usually have to be segmented based on differences or "segmentation variables." Variable categories include benefit, geographic, demographic, & psychographic.
APPLY BREAK-EVEN ANALYSIS AND MARKUP PRICING
Analyzing costs & revenue under different price assumptions identifies the break-even point: the quantity sold so that total costs equal total revenue. Markup pricing is a generalized cost-plus system of pricing used by intermediaries with many products.
IDENTIFY SPECIFIC PRICING STRATEGIES AND CREATE A PRICE-QUALITY GRID
Penetration pricing & skimming pricing are short-term strategies used when new products are first introduced into the market. Follow-the-leader, variable, & flexible pricing are special strategies that reflect the nature of the competition's pricing & concessions to customers.
EXPLAIN PRODUCT STRATEGY AND RELATED CONCEPTS
Product strategy describes how a product is used to achieve a firm's goals. There are six major product strategy alternatives; they are based on the nature of the firm's product offering & the number of target markets.
IDENTIFY SPECIFIC PRICING STRATEGIES AND CREATE A PRICE-QUALITY GRID: A price-lining strategy simplifies choices for customers by offering a range of several distinct prices.
Provincial and federal laws must be considered in setting prices, as well as any impact that a price may have on other product-line items. A price-quality grid can be created to illustrate the relative competitive position of your product to your competitors.
DESCRIBE SMALL BUSINESS MARKETING
Small business marketing consists of numerous activities, including market analysis & determining the marketing mix. Three distinct marketing philosophies are the production-oriented, sales-oriented, & consumer-oriented philosophies. A small business should adopt a consumer orientation to marketing.
IDENTIFY THE COMPONENTS OF A FORMAL MARKETING PLAN: The marketing plan should include sections on market analysis, the competition, & marketing strategy.
The market analysis should include a customer profile. Four areas of marketing strategy that should be discussed in the marketing plan are decisions affecting the total product or service, pricing decisions, promotional decisions, & distribution decisions.
DESCRIBE THE COMPONENTS OF A FIRM'S TOTAL PRODUCT OFFERING
The name is a critical component of a product. It should be easy to pronounce and remember, descriptive, eligible for legal protection, full of promotional possibilities, and suitable for use on several products. Packaging is a significant tool for increasing total product value.
DESCRIBE THE ROLE OF COST AND DEMAND FACTORS IN SETTING A PRICE
The revenue of a firm is a direct reflection of two components: sales volume and price. When setting a price, a firm should examine the relationship of price and quality demanded.