Define the marketing plan. What lies at its center? What objectives should a mar

Question

Define the marketing plan. What lies at its center? What objectives should a marketing plan accomplish?

How can market research benefit a small business owner? List some possible sources of market information.

Does market research have to be expensive and sophisticated to be valuable? Explain.

Describe several market trends that are driving market into the next millennium and their impact on small business and their impact on small business.

Why is it important for small business owners to define their target markets as part of their marketing strategies?

What is a competitive advantage? Why is it important for a small business owner to create a plan for establishing one?

Describe how a small business owner could use the following sources of a competitive advantage – see text for list.

One manager says, “When a company provides great service, its reputation benefits from a stronger emotional connection with its customers, as well as from increased confidence that it will stand behind its products.” Do you agree? Explain. If so, describe a positive service experience you have had with a company and your impressions of that business. What are the implications of a company providing poor customer service? Once again, describe a negative service experience you have had with a company and your impressions of that business. How likely are you to do business with that company again?

.First, consumer behavior expert and retail consultant Paco Underhill says, “A [retail] store is a 3-D brand. Everything that’s there has to be there for a reason.” Do you agree? Second, find two retail stores in the local area – one that offers a good example of a 3-D brand and one that does not. Prepare a one-page summary explaining your reasoning for selecting these two stores.

With a 70 percent customer retention rate (average for most U.S. firms, according to the American Management Association), every $1 million of business in 2000 will grow to more than $4 million by the year 2010. If you retain 80 percent of your customers, the $1 million will grow to a little over $6 million. If you can keep 90 percent of your customers, that $1 million will grow to more than $9.5 million. What can the typical small business do to increase its customer retention rate?

Explanation / Answer

Marketing Plan is the summary of the goals, strategy and budgets defined by the business to achieve in a specific time frame. The main part of a marketing plan is its price, product, distribution and promotion strategies. The objective of a marketing plan is the strategy adopted by the firm based on its strengths, weaknesses, opportunities and threats. The objectives to be achieved by a marketing plan are achievement of market share, fulfillment of customer needs, promotion of the business or product, adhering to the financial goals.

Market research can benefit a small business by giving information about the customers, their needs and feedback, lifestyle and purchase behavior, competition, market trends, use of technology, future of business. Possible sources of market information is internet, surveys, trade chambers, local market associations, interviews, magazines and newspapers.

It is not necessary for market research to be expensive and sophisticated to be valuable. The valuable market information needs to be precise, accurate and unbiased. The basic market research methods like surveys, interviews, focus groups, web analytics methods like tracking conversions, keywords search etc. provide information that is valuable for the business to formulate strategies.

Market trends affecting small businesses are use of digital payment methods, online buying trends, home deliveries, small packaging for traveling customers, demand for wide range of product options, quick service, online communication. Their impact on small businesses is need for improvement in service, need for customization in products or services, role of relationship building, innovative promotions and marketing methods like use of online mediums for sharing information, sourcing competitive products and prices.

Competitive advantage is the specific feature like a product, technology or location that helps a business to serve the customers and market in a better way than its competitors. It can be a economic source of raw materials that gives cost and price advantage, a technology in demand that is owned by a business, high quality product or service which is unique. It is important for small business to develop a plan for establishing a competitive advantage as it helps them to retain their market share against competition or changes. It can help to grow the market and business, find financing options and gain stability in the market.

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