MARKETING FOR THE SMALL BUSINESS: AN OVERVIEW
INTRODUCTION
One great need of small business managers is to understand and develop marketing programs for their products and services. Long-term small business success depends on the ability to maintain a strong body of satisfied customers while continually increasing this body with new customers. Modern marketing programs build around the marketing concept, which directs managers to focus their efforts on identifying, satisfying, and following up the customer's needs - all at a profit.
THE MARKETING CONCEPT
The marketing concept rests on the importance of customers to a firm. All company policies and activities should be aimed at satisfying customer needs while obtaining a profitable rather than maximum sales volume.
To use the marketing concept, a small business should:
1) Determine the needs of their customers (marketing research).
2) Develop their competitive advantages (market strategy).
3) Select specific markets to serve (target marketing).
4) Determine how to satisfy those needs (marketing mix).
5) Analyze how well they've served their customers, and then return to step 1 (marketing performance).
MARKET RESEARCH
The aim of market research is to find out who the customers are, what the customers want, where and when they want it. This research can also expose problems in the current product or service, and find areas for expansion of current services to fill customer demand. Market research should also encompass identifying trends that may affect sales and profit levels.
Market research should give you more information, however, than just who your customers are. Use this information to determine matters such as your market share, the effectiveness of your advertising and promotions, and the response to new product developments that you have introduced into the market.
For once, small business holds an edge. While larger companies hire professionals to do their research, small business managers are close to their customers. They can learn much more quickly the likes and dislikes of their customers and can react quickly to change in customer buying habits.
Direct Mail - Secret Weapon For Small Business
Direct mail is a marketing technique in which the seller sends marketing messages directly to the buyer. Unlike other forms of marketing communications, such as TV advertising or placing articles in newspapers through media relations, with direct mail you don't have another medium carrying your message for you. With direct mail, you have total control over the presentation of your message.
Direct mail is a unique blend of advertising and sales. While good advertising should certainly lead to sales, direct mail allows you to present the product or service, make an offer and try to close the sale–all at once!