Describe small business marketing. Identify the components of a formal marketing

Question

Describe small business marketing.

Identify the components of a formal marketing plan.

Describe the characteristics and value of a strong management team.

Identify and explain the six forms of legal organization discussed in the text.

Identify and explain the general considerations affecting the choice of a business location.

Explain how efficiency can be achieved in the layout of a physical facility.

Describe the purpose and content of financial statements.

Describe the various sources of financing available to small firms.

Explain the choice between debt financing and equity financing.

Identify the key characteristics of consumer behavior.

Explain product strategy and related concepts.

Explanation / Answer

1. Small Business Marketing can be defined as promoting and delivering the value to the customer. The objective is to make the target customers aware of the product or service and retain them. As, in the smaller businesses, Resources are limited, the Marketer needs to use these resources very efficiently to reach the wider target market and manage the consumer interest. Nowadays Smaller Businesses can utilize the platform of Social Media Marketing and Google Advertisement, which provides the platform to the customer to promote their product Geographically, for some specific time etc which can further reduce their cost of Advertisement.

2. The most important components of a formal Marketing Plan are:

a). Marketing Research: To understand the buying habits of Consumers, the size of Market and the trends of the Target market

b) Target Market: Segment the market first and then find out who can be the potential target customers for the company

c) Positioning: What is the perception of the brand or What is the unique image of the brand created in the minds of the customer. SO it's the marketing which is responsible for How your brand will be perceived as per your communication

d) Competitive Analysis: How different are you with respect to competitors in terms of Price, Product offerings, Target Market and Positioning

e) Marketing Strategy: What are the goals you have set and How will you achieve in the future

f) Budget: How much is your budget and How are you allocating the budget to different domains

g) Metrics: How is the sales data, how is your ROI, How much sales has been increased, What is your trend. These things are very important to know

3. Characteristics of a Strong Management team:

a) Understanding of the market and industry

b) Definiteness of the goals and objectives

c) The commitment of the team towards achieving the goals

d) They should be a team player

e) They should stick to the business mission

f) They need to be strategic in their approach

g) They need to be a good communicator

h) They should be opportunistic

4. The six forms of business organization are:

a) Sole Proprietorship: An Individual person is the owner of the company. He can be either a contractor, consultant or a simple freelancer

b) General Partnership: Two or more owners when collaborating together for doing a business then it is known as General Partnership

c) Limited Partnership: This is also formed by two or more People but there should be at least one General partner and one Limited Partner

d) C Corporations: Formed through the collaboration of a number of stockholders but are taxed as an individual entity irrespective of the owners

e) S Corporation: The S corporation is basically a C corporation in which the owner receive the liability of corporate shareholder and get benefitted for paying taxes as a sole proprietor

f) Limited Liability Company: It is the hybrid between Partnership and Company

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