D. Marketing a Small Business 6.00 Explain the fundamentals of marketing in a small business. 6.01 Explain marketing and its importance.
Marketing • Marketing: The process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives.
Marketing Concept • Marketing concept: The philosophy that achieving organizational goals depends on determining the needs and wants of target markets and delivering the desired products/services more effectively and efficiently than competitors do.
The Marketing Mix • The combination of the four strategies for product, price, place and promotion—the four Ps of marketing. • These decision make up a business’s marketing mix— strategies that work together to affect the marketplace.
Product Considerations • Choice of products • Packaging • Services to support products • Branding • Warranties • Level of quality • Business image • Product research & development • Positioning
Price Considerations • Price setting – What is your goal? • Terms – Conditions of purchase and payment between suppliers and buyers. • Discounts – Reductions in the price of goods, which are sometimes negotiated.
Place Considerations • Channels of distribution – How do products get from manufacturer to customer? • Specific stores • Transportation – What carrier will you choose to move your products?
Promotion Considerations • Advertising: Non-personal promotional messages paid for by an identified sponsor. • Personal Selling: Communication between a salesperson and a customer intended to influence the customer’s buying decision. • Publicity: Information about a business or its products distributed through the media at no cost to the business. • Sales Promotion: All promotional activities other than advertising, personal selling, publicity, and public relations designed to stimulate sales and sales effectiveness.
External Factors That Affect the Marketing Mix • Customer attitudes • Economic conditions • Technological advances • Political forces • Natural forces • Competition
Internal Factors That Affect the Marketing Mix • Company objectives • Company policies • Financial situation