Kimberly FrelowSmall Business Manager

Chapter 5 Slide 2

Marketing ConceptThe marketing concept is the belief that

consumer wants and needs are the driving force behind any successful business model or marketing effort.

Who Are Customers?Customers are individuals or organizations

with unsatisfied needs but who have the resources to fulfill those needs.

The single greatest competitive advantage that small businesses have over large businesses is that they know and understand their customers better.

Know Your Customer…Different Stages of Life = Different NeedsBachelor stageNewly married, no childrenFull nest I: youngest child under 6Full nest II: youngest child over 6Full nest III: older couple with dependent

childrenEmpty nest I: older couples, no children at homeEmpty nest II: older couplesWidowed, grown children - workingWidowed, grown children - retired

Know Your Customer…Find your “Target Market”Where do my customers live and work?What is the lifestyle of the people who are

most likely to need my product or service?What level of income is needed to purchase

my product or service?Which potential customers will receive the

greatest benefit from my product or service?

Which group will buy the most of my product or service?

Chapter 5 Slide 6

Chapter 5 Slide 7

Relationship MarketingBuilding a Relationship allows the small business

to:Receive more volume on fewer transactionsSpend less money on attracting new customers Concentrate on continuous improvementGet more involved with its customers by

providing education and building future salesBe seen as credible, sincere, and trustworthyReceive strong referrals from a satisfied

customer base

Chapter 5 Slide 9

The Four P’s of the Marketing MixProductPlacePricePromotionPerson

Chapter 5 Slide 10

Chapter 5 Slide 11

ProductTangible features (things you can see and

touch)Intangible features (things you feel)Product mix

Chapter 5 Slide 12

PlaceThe exchange point of a productChannels of distribution

Channels of DistributionHome Depot Contractor

Client

Managing multiple jobs

Chapter 5 Slide 13

Chapter 5 Slide 14

PriceSetting a price demands that the business owner1. Cover the cost of the products and services sold,

including the cost of acquiring and receiving them2. Cover the cost of all business operating

expenses3. Make sure that profits are sufficient to pay the

owner a fair salary for efforts and risk invested4. Retain a certain portion of the revenue for future

expansion and improvement of the business5. Entice customers to return because of the high

value they perceive for the prices charged

Chapter 5 Slide 15

PromotionPromotion is the way a business

communicates with its market.Promotion includes advertising, sales

promotion, personal selling, visual merchandising, and public relations.

These activities are termed the promotional mix.

Chapter 5 Slide 16

AdvertisingAdvertising is defined as a paid-for,

nonpersonal presentation of a sales-enticing message.

Chapter 5 Slide 17

Importance of Advertising Lets customers know that the new business

exists and where it is locatedInforms customers about the products or

services that the business offersProvides ongoing communication with the

customerKeeps the business’s name in front of the

buying public

Chapter 5 Slide 18

Visual MerchandisingSignage on vehicles or on lawns are a

common form of visual merchandising.Business Cards (Info-Cards)Gifts of appreciationGive-aways/promotional items

Chapter 5 Slide 19

Public RelationsPublic relations (PR) consists of planned

events ie open housesSponsorships ie. Events, youth organizations

Chapter 5 Slide 20

Marketing StrategiesMarketing strategies are developed to

accomplish goals.

Chapter 5 Slide 21

Steps for ImplementingMarketing Strategies1. Establish an advertising budget2. Plan and schedule advertising3. Make decisions about sales promotions4. Decide how personal selling will be handled5. Create visual merchandising6. Develop a strategies calendar

Chapter 5 Slide 22

Chapter 5 Slide 23

Chapter 5 Slide 24

Small Business Marketing GuidelinesInvest time, energy, and imagination, not just

moneyMeasure their success by making profits, not salesUse good sense to make up for experienceFocus on excellence, not varietyPlace emphasis on making larger transactions with

existing customers and referrals, not just on adding new customers

Use a combination of marketing strategies instead of just sticking to one that appears to work

Look for free ways to promote the business

Chapter 5 Slide 25

Small Business Marketing Guidelines (continued)Keep track of the number of relationships they

establish, not just the number of salesFind ways to add drama to their promotional

activities and products in order to get the customer’s attention

Invite their customers to get involvedCommunicate in a believable and clear manner

Social MediaA Basic Guide to What It Is

AndHow to Get Your Business in the

Conversation

Social MediaMedia for social interaction, using highly

accessible communication techniques. Social media is the use of web-based and

mobile technologies to turn communication into interactive dialogue.

Consumer generated media (CGM).

Social media is a blending of technology and social interaction for the co-creation of value.

Social MediaExamples of Social Media Tools:FacebookTwitterLinkedInYoutube…More

Social MediaWhy is it important:This is how people interact on-line

Facebook has 1,310,000,00 active users

Twitter has 645 million active registered users

58 million tweets per dayLinkedIn has 225 million users

Find out about new business and trendsHelp spread the news to their social

network

Social MediaFaceBook

Allows you to instantly send information to your “friends” for freeGreat tool for a B2C business

Allows customers to interact with you and each other

Advertise based on targeted demographics

Your postings can become viral Links to other social networks

Company Profile

Social MediaTwitter

Instant communication Share promotions ie.valuable couponsFollow a discussion and join discussionsAllows you to instantly send information

to your followers for freeSponsored tweets Warning: must have frequent posts

Company Profile

Company/Industry Updates

•Project Status•Company updates/opportunities

• Retweet Industry Updates• Post Industry News/Events

Company/Industry Updates

Social MediaLinkedIn

Connect with thousands & millions of people

Receive recommendations and reviews (thumbs up) from trusted and verified resources

Find qualified employees Share important business

information

Company Profile

Identify Relationships

Get Introduced

Company Updates

•Industry news•New projects•Partnerships

•Community News•New Certifications

•Conference Participation

Company Updates

Social MediaYouTube

Great advertising vehicleUpload videos on DIY construction

projects Upload video of before and after

renovations Create a loyal followingBuild a “Brand”

Social MediaNow that you Built it…How do you get People to

come?First you must decide which tool is right for

you based on your business type and resources.

Customers need to be active and consistently following your site.

Which ever SM tool you prefer, you MUST keep it current and relevant.

You must take the time to update and keep content fresh-change out offers.

SM is not a duplication of your website.

Social MediaNow that you Built it…How do you get People to

come?

Put your social media buttons and links on your website, blogs and all other web-based pages.

Make sure that your Facebook, Twitter, LinkedIn or whatever social networks you have are clearly placed on all of your web pages with links to your social networking pages.

Add your social media links at the end of your emails, electronic newsletters and all electronic media.

Place a note on all of your electronic correspondence and invite people to “follow” you on Twitter or become a “fan” on Facebook.

Social MediaNow that you Built it…How do you get People to

come?

Use your social media to grow your followers.Invite FB friends to follow you on Twitter…or LinkedIn folks to friend you on FB.

Place your social media networks on your print materials. Add to your business cards, post cards, newsletters or any form of direct mail material. Every time someone sees your social network, it reinforces them to join you.

Write blogs and articles with valuable content that encourages people to respond or to share with others.

Social MediaNow that you Built it…How do you get

People to come?

Social media is all about engaging with others and sharing information. If you communicate consistently with your followers, they will share you with others and your social networks will grow.