Download Marketing Strategies for Small Businesses: A Comprehensive Guide and more Exams Advanced Education in PDF only on Docsity!
MGMT 3850 Exam 2 With
Complete Solution
Marketing - ANSWER the process of creating and delivering desired goods and services to customers involves all of activities associated w.. indentifying the companies target customer and winning and retaining loyal customers A solid business plan needs to contain both a - ANSWER financial plan and a marketing plan 4 P's of Marketing Mix - ANSWER Product, Price, Place, Promotion Product - ANSWER variety, quality design, package, brand Price - ANSWER retail price, discounts, bonuses, payment plans, Credit terms Promotion - ANSWER advertising, personal selling, sales promotion, public relation, sponsorship, sales calls, borchures, emails Place - ANSWER distribution, delivery, retail locations, download, logistics Boot strap marketing strategies - ANSWER unconventional, low cost, and creative marketing techniques do not require large amounts of money to be effective- just creativity How to execute bootstrap marketing strategies - ANSWER maximizing efficiency of your small marketing budget
3 objectives of bootstrap marketing plan - ANSWER pinpoint specific targets market research analyze competitve advantages and create a marketing strategy to communicate its value proposition to the target market Target markets - ANSWER target customer must permeate entire business-merchandise sold, background music, layout, decorr, and other features Demographics - ANSWER study of important poplulation characteristics, age, income, race, education Market research - ANSWER vehicle for gathering the information that serves as the foundation for marketing plan Types of market research - ANSWER web based- online surveys social media trend tracking Trend tracking - ANSWER To do so you have to enlarge your horizons by, for example, reading current publications everyone is discussing, Watch some top TV shows and movies Talk to as many of your customers as possible and to smart people you know; Listen to your children and their friends How to conduct market research - ANSWER Step 1. Define the objective, Step
- Collect the data, Step 3. Analyze and interpret the data, Step 4. Draw
useless when it comes to branding low relevance, low differentiation Fools Gold - ANSWER features that are unique to your company but do not drive customers' loyalty to your product and services High differentiation, Low relevance Building a competitive advantage - ANSWER create an identity for your business through branding which consists in communicating a USP to the target market in a consistent integrated manner communicate your usp to your customers often Unique selling proposition - ANSWER threshold attributes, performance attributes, and excitement attributes _______% of entrepreneurs use social media to connect w/ existing and potential customers - ANSWER 90 ____of unhappy customers tell others about their experiences. - ANSWER 79% For every complaint a company receives - ANSWER 17 other complaints go unspoken. _____% of shoppers say they won't patronize stores where they know others have had negative experiences. - ANSWER 48% Repeat customers spend ----% more than new customers. % - ANSWER 67 Attracting new customers costs = - ANSWER = seven to nine times as much as keeping existing customers.
Total Quality Management (TQM): - ANSWER Quality in the product or service itself. Quality in every aspect of the business and its relationship with the customer. Continuous improvement in quality. Attributes of product/service quality - ANSWER reliability,durability, responsiveness,convenience time compression management - ANSWER Speed new products to market. Shorten customer response time in manufacturing and delivery. Reduce the administrative time required to fill an order. Emphasis on Speed - ANSWER Use principles of Time Compression Management (TCM): Speed new products to market. Shorten customer response time in manufacturing and delivery. Reduce the administrative time required to fill an order. Re-engineer the process rather than try to do the same thing - only faster. Create cross-functional teams of workers and empower them to attack and solve problems. Set aggressive goals for production and stick to the schedule. Connect with customers on an emotional level by _________ and ________________
- ANSWER building trust; defining a unique selling proposition (USP). One "natural" advantage small businesses have over large businesses, which
ANSWER texas;california The primary variable(s) that influence(s) the scope of a trading area is/are the ________. - ANSWER type and size of business operation Which of the following is NOT a form of waste? - ANSWER process layout A type of business that does well when located near competition is ________. - ANSWER Which of the following is NOT a factor to consider when choosing the state for business? - ANSWER proximity to major waterbody Choosing a location - ANSWER Right location as source of competitive advantage. Consider: The right region of the country The right state in the region The right city in the state The right site in the city Choosing the State - ANSWER Factors to consider: Proximity to markets Proximity to needed raw materials Wage rates Labor supply needs
Business climate Tax rates Internet access Total operating costs Choosing the city - ANSWER Local Laws and regulations Population trends family size income levels job categories Gender competition clustering compatability w/ community appropriate infrastructure cost of utilities and public services incentives quality of life Choosing the site - ANSWER Test the suitability of potential locations by opening "pop-up" stores. Consider downsizing outlets to lower start-up and operating costs.
neighborhood shopping center - ANSWER 5 to 20 store; anchor is supermarket or drugstore; serves up to 40,000 people Community Shopping Centers - ANSWER 15 to 40; anchor is department or variety store; serves 40,000 to 150,000 people Power centers - ANSWER combine drawing power of a mall with convenience of neighborhood shopping center; anchor stores typically occupy 80 percent of space. Theme or festival centers - ANSWER Employ a unifying theme, often involving entertainment, to attract tourists (Trader's Village) Outlet centers - ANSWER Feature manufacturers' and retailers' outlet stores selling name-brand goods at discount prices; usually follows "open air" design (Tanger) Lifestyle centers - ANSWER Located near affluent residential neighborhoods; designed to look more like a central business district than a shopping center or mall (Fire Wheel) Regional Shopping malls - ANSWER 40 to 80 stores; anchor is one or more major department stores; draws customers from a large trading area, often 5 to 15 miles or more in all directions (Parks Mall) Super regional shopping malls - ANSWER Similar to a regional mall but bigger; trading area is 25 miles or more in all directions. Examples Mall of America (Bloomington, MN), largest mall in the U.S. West Edmonton Mall (West Edmonton, Canada), largest mall in the world
Retail and service location options - ANSWER Near competitors Shared spaces Inside large retail store Nontraditional locations Home-based businesses On the road Foreign Trade zones - ANSWER A specially designated area in or near a U.S. customs port of entry that allows resident companies to import materials and components from foreign countries; assemble, process, manufacture, or package them; and then ship the finished product while either reducing or eliminating tariffs and duties Business Incubators - ANSWER Organizations that combine low-cost, flexible rental space with a multitude of support services for their small business residents. Layout - ANSWER The logical arrangement of the physical facilities of a business that contributes to efficient operations, increased productivity, and higher sales. Gensler Study - ANSWER Employees believe that the quality and quantity of their work would increase by an average of 25% with better workplace design. Brand and Layout external factors - ANSWER Size It must be adequate to accommodate business needs. Appearance
Layout for manufacturers - ANSWER Consider: Type of product Type of production process Ergonomic considerations Economic considerations Space availability within the facility
Types of manufacturing layouts - ANSWER Three basic layouts: Product Process Fixed position
Designing production layouts - ANSWER Avoid the seven forms of waste: Transportation Inventory Motion Waiting Overproduction Processing Defects
Pricing - ANSWER governed by art and science requires balancing a multitude of complex forces influences every aspect of small company important signal of value to customers involves math and psychology has greater impact on profits than corressponding increases in unit volume or reductions in costs
Companies that take a strategic approach to pricing and monitor its results can raise their sales revenue between ___ & ___% - ANSWER 1;
Price send important signal to customers about a company like - ANSWER brand, quality, presitge, others
Common small business mistakes include: - ANSWER Failure to recognize extra value, service, quality, and other benefits they offer and charging prices that are too low.
The key of pricing is to undertstand - ANSWER how much customers willing to pay
Consider absorbing cost increases Eliminate discounts, coupons, and freebies Use cheaper raw materials Raise prices incrementally and consistently Modify the product or service to lower its cost Offer products in smaller sizes or quantities Differentiate your company and its products and services from the competition Anticipate rising costs and try to lock in prices of raw materials early Emphasize the value of your company's product or service to customers
Factors determining prices - ANSWER Product/service costs Market factors - supply and demand Sales volume Competitors' prices The company's competitive advantage Economic conditions Business location Seasonal fluctuations
Psychological factors Credit terms and purchase discounts Customers' price sensitivity Desired image
Three goals when introducing a new product - ANSWER Three Goals: Getting the product accepted Revolutionary products Evolutionary products Me-too products Maintaining market share as competition grows Earning a profit
Penetration pricing strategy - ANSWER Introduce at lower price to gain market share Accompany it with heavy advertising and promotions Advantage- This makes it less attractive for new competitors to enter the market Disadvantage - No brand loyalty, customers only incentivized by low cost
products for free while charging for others, or offering a product for free to some customers while charging others for it
Subscription pricing - ANSWER
Dynamic pricing - ANSWER adjusting prices continually to meet the characteristics and needs of individual customers and situations
Leader pricing - ANSWER setting some very low prices - real bargains - to get customers into retail stores
Geographic pricing - ANSWER reductions for transportation and other costs related to the physical distance between buyer and seller Zone pricing, delivered pricing
Earned discounts - ANSWER discounts customers earn by making repeat purchases at a business
Limited time offers - ANSWER
Steadily decreasing discount - ANSWER A limited duration discount that
declines over time.
Multiple unit pricing - ANSWER Packaging together two or more identical products and selling them at a single price
Bundling - ANSWER grouping two or more products together and pricing them as a unit
Optional product pricing - ANSWER the pricing of optional or accessory products along with a main product
captive product pricing - ANSWER setting a price for products that must be used along with a main product, such as blades for a razor and games for a video-game console
By-product pricing - ANSWER setting a price for by-products in order to make the main product's price more competitive
Suggested retail prices - ANSWER when the manufacturers print the suggested retail price on their products or include them on the invoices.
Follow the leader pricing - ANSWER a strategy that is similar to a
