management of small business
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Management of Small Business
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Key Functions in Managing Small Business
Marketing Management
Financial Management
Strategic Management
Production Management
Human Resource Management
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Marketing Management
Marketing is defined as a process which identifies,anticipates and satisfies customer needs efficientlyand profitably in keeping with the objectives ofenterprise.
Marketing Process:
Identification of opportunity
Market survey
Choosing the target market Designing the market strategies
Implementation of marketing strategies & practices
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Marketing Management
Common marketing problems faced by small Business:
Lack of Brand image
Lack of sales force
Product Quality
Credit sales
Low prices
Local and limited market
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Marketing Management
Customer relationship management (CRM)
CRM focuses on meeting the individual needs of
customer. The skill requires building a customerdatabase and doing data mining to detect thetrends, segments and needs. CRM finds answer to3 basic questions:
1. Who buys?2. When do they buy?
3. Why do they buy?
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Market Research
Step One : Defining the Purpose or Objectives Ask people what they think of the product or service and
collect some background demographics & attitudes of
these individuals. How much potential customers would be willing to pay
for the product or service.
Where potential customers would prefer to purchase the
product or service.
Where the customer would expect to hear about or learn
about such a product or service.
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Market Research
Step Two: Gathering Data from SecondarySources
Data that already exists i.e information from
Trade magazines Libraries
Government Agencies
Universities
Internet
The entrepreneur should exhaust all possible secondary data
sources, observation, and networking before beginning any more
costly primary data research.
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Market Research
Step Three: Gathering Information from Primary
Sources
Information that is new is Primary data and involves
data collection procedures like Observation
Networking
Interviewing
Focus Groups Experimentation
Data collection is done with the help of Data Instruments like Questionnaire.
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FOCUS Groups:They are more informal method of gatheringin-depth information. A focus group is a sample of 10-12 potentialcustomers who are invited to participate in a discussion relating
to the Entrepreneurs research objectives.
Step Four: Analyzing & Interpreting the results
The results should be evaluated and interpreted inresponse to the research objectives. The data can thenbe cross tabulated to give better insights andinterpretations regarding the segmentation of the
market.
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Marketing Research Analyze
Complexity of Buying Behaviour
CULTURALBELIEFS &
VALUES, LIFE
STYLES
SOCIOLOGICAL
SOCIAL CLASS,
STRUCTURE
FAMILY/GROUP
INFLUENCE,LIFE
CYCLE, OPINION
LEADERSHIP
ECONOMICPRICE, DELIVERY,
PAYMENT TERMS,
SALES SERVICE
INDIVIDUAL PSYCHOLOGICAL
FACTORSCOGNITION, LEARNING PROCESSES,
INTERPERSONAL RESPONSE, ATTITUDESMOTIVATION, PERSONALITY THEORIES
BUYING PROPOSITION PRODUCT OR SERVICE
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External Determinants of Consumer Behavior:
CULTURE AND ITS INFLUENCE ON CONSUMER
BEHAVIOUR CULTURE
SOCIAL
Class SUB-
CULTURE
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Positive attitudestoward brands
help with brandextensions
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EDUCATION
SOCIAL CLASSA RANGE OF SOCIAL POSITIONS ON WHICH EACH
MEMBER CAN BE PLACED
PHYSICIAN
FARMERSTRUCK-DRIVER
LAWER
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Understanding Consumer Characteristics
CHARACTERISTICS Innovators
2-3%
Early
Adopters
12-15%
Early
Majority
33%
Late
Majority
34%
Laggards
12-15%
PERSONAL
Social,
Income, Occupation,
Education,
Housing,
Family Influence,
Time orientation
PSYCHOLOGICALNature of needs,Perceptions,
Self-concept,Aspiration Groups,
Reference Groups
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Reference Groups
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Changing Priorities
Stage Priorities Major Purchases
Fledging : Teens & early 20s Self, Socializing, Education Appearance Products,Clothing, Automobiles,Recreation, Hobbies, Travel
Courting :20s Self & Other, Pair bonding,
Career
Furniture & Furnishing,
Entertainment, Savings
Nest Building:20s &early 30s Babies & Career Home, Garden, Baby Careproducts, insurance
Full Nest 30-50s Children, Career, Midlife crisis Children Food, clothing,education, transportation, life
counseling
Empty Nest 50-70 Self & others, relaxation Furniture, Entertainment,Travel, Hobbies, LuxuryAutomobiles, Investments
Sole survivor 70-90 Self, health, loneliness Health care , Diet, Security,
Comfort, TV, Books, Longdistance telephone services
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Analyse Target Market
OCCUPANTS WHO
SERVICES WHAT
OCCASION WHEN
ORGANISATION WHO IS INVOLVED
OBJECTIVES WHY
OPERATIO HOW
M k ti St t t b B d
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Buying Decision
USER
INITIATOR
INFLUENCER
DECIDER
BUYER
Marketing Strategy to be Based
on
WHO MAKES THE BUYING DECISIONS
DECIDER
INFLUNCER INFLUENCER
BUYER
USER
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Characteristics of a Marketing Plan
Should be flexible i.e. should provide scope forinclusion ofwhat if scenarios
Should provide a strategy for accomplishing
company goals and missions
Should be based on facts and valid assumptions
Should provide for continuity so that future
plans can be built on it for long-term goals
Should be simple and short
Should specify performance criteria that will be
monitored and controlled
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Marketing Plan- The Algorithm
Defining the Business SituationDescribe
the past and present business achievements of
the new venture.
Defining the Target market Market Segmentation- Dividing a market into
definable and measurable groups for the purpose of
targeting
market strategy.
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Market Segmentation- The process of segmenting &
targeting the market should process in the following
way
Decide what general market or industry you
wish to pursue
Divide the market into smaller groups based
on
Characteristics of the customer
Geographic
Demographic
Psychographic
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Buying situation
Desired benefits (e.g. Product features)
Usage (e.g. frequency of usage)
Buying conditions (e.g. time available & product purpose)
Awareness of buying intention (e.g. familiarity of product
& willingness to buy)
Select segment or segments to Target Develop a marketing plan integrating product,
price, distribution & promotion (togethercalled THE MARKETING MIX)
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Marketing Mix
Marketing mix, simply stated, is the process of
designing and integrating various elements of
marketing in such a way as to ensure the
achievement of enterprise objectives.
The elements of marketing mix have beenclassified under four heads - product, price,
place and promotion. That is why marketing mix
is said to be a combination of 4 Ps.
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Decisions relating to the product include product designing, packagingand labelling and varieties of the product.
Decision on Price is very important because sales depend to a largeextent on product pricing. Whether uniform price will be charged ordifferent prices will be charged for the same product in differentmarkets are examples of decision pertaining to the price of theproduct.
The third important element is place, which refers to decisionregarding the market where products will be offered for sale.
Promotion involves decisions bearing on the ways and means ofincreasing sales. Different tools or methods may be adopted for thispurpose.
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Marketing Plan
Considering the Strengths and Weaknesses The SWOT analysis which was discussed earlier.
Establishing Goals & Objectives Asking
oneself Where do we want to go? in terms of
Market share, profits, sales, market penetration,
new products launching etc. All such goals n
objectives should be quantifiable and could be
measured for control purposes.
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Marketing Plan
Defining Marketing Strategy Outline all the
activities needed to meet the ventures business plan
goals & objectives.
The 5-Ps
In the marketing plan, you should endeavor to follow
best practice to maximize your competitive advantagein each of the following key areas:
Product packaging, the brand name, warranty,
image, service, delivery time, features, style etc.
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Price Pricing of a product or service has to be done very carefullyconsidering numerous things like quality, prospective demand, margins,competitors prices, discounts, market segmentation etc..
Promotion The promotion plan itself a mini-marketing plan. Advertising isan effective as well as an expensive way & has to be taken care of. Theprocedure to be followed includes :
Set specific campaign objectives (building sales, market share) Decide your strategy (budget, media choice, geographical profile)
Target the Audience (market segment, demographic profile)
Decide the advertising content (specific product/service benefits tohighlight)
Decide the execution and style
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Place (Distribution Plan)- The distribution plan mustmatch the other elements of the Marketing MIX tomaintain the differentiation and focus of theCompany.
If your product is of highest quality, with price &promotion to match, it must be available in the majorquality stores.
The choice of distribution channel, therefore canmake an important contribution to both yourcompany differentiation & to reaching your targetgroup of customers.
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People The final ingredient in the marketing plan
jigsaw must be quality salespeople who can
consistently maintain your marketing differentiation.
A well remunerated & motivated staff will act as
enthusiastic sales promoters and act as eyes and ears
of the company in the competitive market place.
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Marketing Plan
Coordination of the planning process
Designating responsibility for implementation
Budgeting the Marketing Strategy
Implementation of the Market Plan
Monitoring Progress of Market Actions
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Marketing Management
Difference between goods and servicemarketing
Goods marketing Service Marketing
Tangible Intangible
Standardized Heterogeneous
Production separatefrom consumption
Simultaneous productionand consumption
Non perishable Perishable
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Differentiation Strategies
1. Differentiating the product
1. Differentiating on the basis of services offered
2. Differentiating by personnel
3. Differentiating by image
4. Differentiating by Markets
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Market entry strategy
Exporting
Two types of Exports
Indirect Export
Direct Export
Documents required for Export in
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Documents required for Export in
India(Example Apparel)
Shipping Bill/Bill of Export
Customs Declaration Form
Dispatch Note
Commercial Invoice
Consular Invoice
Customs Invoice Certafied Invoice
Packing List
Certificate of Inception
Manufacturers Certificate
Certificate of Chemicals Analysis Certificate of Shipment
Health/Sanatary Certification
Certificate of Conditioning
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DOCUMENTS REQUIRED FOR IMPORT IN U.S
Commercial invoice
Bill of lading
Packaging list
Original CITES permit
Certificate of Origin
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Thank you