For your presentation

1. CHAPTER 12
MARKETING FOR SMALL
BUSINESS

2. • During the ancient times, marketing was done through
barter.
• At present, the marketing system has become modern
through the modern technology.
Marketing has contributed greatly in improving
our material appliances, elegant houses, beautiful
cars, and other symbols of convenience, prestige
and wealth.

3. OUR TOPICS:
 MAJOR MARKETING FUNCTION
 IMPORTANCE OF CONSUMER SERVICE
 MARKETING PLAN
 CONSUMER BEHAVIOR
 DEVELOPING MARKETING STRATEGIES
 INTRODUCING NEW PRODUCTS

4. IN ADDITION:
 PROMOTION
 DISTRIBUTION CHANNELS
 PRICING STRATEGIES
 BREAK—EVEN ANALYSES
 BREAK—EVEN GRAPH

5. MARKETING DEFINED:
PROFESSOR KOTLER
He defined marketing as a set of human
activities directed at facilitating and e
consummating exchange. It includes:
1. Two or more person who are
potentially interested in exchange
2. Each person having things of value
to offer to the others
3. Each of them is capable of
communication and delivery
AMERICAN MARKETING
ASSOCIATION
He defines marketing as the performance
of business activities that directs the flow
of goods and services from producer to
consumer. Marketing is not just a single
activity, but a process. It is a process of
establishing natural satisfaction in
exchange relationship between buyer and
seller.

6. MARKETING DEFINED:
PROFESSOR WILLIAM STANTON
He explains that marketing is a transaction intended to satisfy
human needs. Aside from goods and service, ideas, people, and
places are also marketed.
needs to satisfy
A market is money to spend
people with willingness to buy

7. MAJOR MARKETING FUNCTION

8. EXCHANGE, DISTRIBUTION AND FACILITATING
FUNCTIONS
EXCHANGE
FUNCTIONS
A. BUYING
B. SELLING
DISTRIBUTION
FUNCTIONS
A. TRANSPORTING
B. STORING
FACILITATING
FUNCTIONS
A. FINACING
B. STANDARDIZING
C. GRADING
D. RISK—TAKING
E. MARKETING INFORMATION

9. MARKETING VS. SELLING CONCEPT
• MARKETING CONCEPT
The marketing concept determines the needs of the customers first, then
develops the product and service to satisfy such needs. In short,
marketing is customer—oriented.
• SELLING CONCEPT
Uses a reverse strategy. The enterprise makes the product first. Then it
uses various ways of persuading people to buy the product. The focus of
selling is on the needs of the seller instead of the buyer.
SELLING IS ONE OF THE OLDEST PROFESSION. BUT NOT MARKETING.

10. TAB 1. COMPARISON OF MARKETING CONCEPT AND SELLING CONCEPT
NO. MARKETING CONCEPT SELLING CONCEPT
1. Is based on producing the satisfaction of
the customer.
Is based upon the volume of production
without thinking of the customer.
2. Organization determines the customer
requirements first and then produces the
product which meets the customer
requirements.
Organization first makes the product
and then figures how to sell it.
3. Begins with the customer and focuses
constantly on the needs of the customer.
Begins with the organization which is
pre-occupied all the time with meeting
the requirements of selling.
4. Customer determines the product which
is to be offered by the organization.
The selling organization determines
which product is to be offered.
5. In making concept, emphasis is on the
requirements of the customers.
In selling concept, emphasis is on th
product.
6. Outside—In perspective. Inside—Out perspective.

11. IMPORTANCE OF
CONSUMER SERVICE

12. IMPORTANCE OF CONSUMER
SERVICE
STEW LEONARD’S RULES:
NO. 1: THE CUSTOMER IS ALWAYS RIGHT
NO. 2: IF THE CUSTOMER IS WRONG, SEE THE RULE NO.1.

13. Here are some approaches in customer service:
1. Train all employees to be courteous.
2. Coddle the customer.
3. Remember that dissatisfied customers tell others
about their experience.
4. Listen to others about your business.

14. MARKETING PLAN

15. MARKETING PLAN
Marketing plan is an outline of actions design to achieve a
specific set of goal. A plan should be realistic. That is, it
should be based on available resources. Likewise, a
marketing plan must be compatible with marketing
resources and the external environment of the enterprise.

16. External environment;
1. ECONOMIC FORCES
2. SOCIETAL FORCES
3. POLITICAL FORCES
4. TECHNOLOGICAL FORCES

17. Developing a marketing plan
1. Assess the marketing plan
— Present the potential market
— Marketing programs / strategies
— Availability
2. Formulate specific marketing plan
— Reasonable
— Realistic
— Relevant to firm’s goals

18. Developing a marketing plan
3. Choose a target market
with strategies on:
— Product
— Pricing
— Promotion
— Distribution
4. Monitor and evaluate the operations
of the marketing program through:
— Marketing research
— Marketing information system
(computer—based)

19. CONSUMER BEHAVIOR

20. • CONSUMER BEHAVIOR
Success in marketing depends on the ability of the entrepreneur to
identify and understand the behaviors of consumers. An
entrepreneur can easily satisfy the needs of consumers if he
knows their behaviors. Such knowledge and understanding of
consumer behaviors create mutual benefits for both seller and
buyer.

21. In studying consumer behavior, the following
should be considered:
1. Who buys?
2. What do they buy?
3. Where do they buy?
4. When do they buy?
5. How they do buy?
6. Why do they buy?

22. Why do consumers buy?
1. The product satisfies their
basic needs
(e.g.) food, clothing, shelter, transportation,
Medicare, education, and others.
2. The product gives them
convenience
(e.g.) washing machines, vacuum
cleaners, appliances and other tools.
3. The product gives them
fame
4. The product offers fame
(e.g.) Rolex watches experience great
pride and high social status.
(e.g.) stamps, painting, coins and
other antiques.
5. The product protects them
(e.g.) health, life and fire insurance for
protection, alarm and safety devices.

23. DEVELOPING MARKETING
STRATEGIES

24. According to Professor Philip Kotler, a
marketing strategy is consistent, appropriate
and feasible set of principle through which a
particular enterprise hopes to attain its long—
run customer and profit objectives in a
particular competitive market.

25. Strategy takes into consideration:
1. Competitive size and market position of the enterprise
2. Resources, objectives, and policies of the enterprise
3. Marketing strategies of competitors
4. Buying behavior of target market
5. Stage of product-life-cycle
6. Character of the economy

26. MARKETING STRATEGIES TARGET MARKET
1. Product Strategy
2. Price Strategy
3. Promotion Strategy
4. Distribution Strategy
1. Age
2. Race
3. Education
4. Sex
5. Income
6. Occupation
7. Residence
8. Social Class

27. INTRODUCING NEW PRODUCTS

28. Product have their life cycles, from
introduction to growth and maturity, and
finally to decline. Because of this nature of
product life, there is a need to their limited
resources, have the disadvantages of
introducing new products.

29. Main reasons of new product failures:
1. Inadequate market analysis about market needs and prize
2. Product defects such as poor quality and design
3. Underestimated costs resulting to higher prices
4. Poor timing in developing the product
5. Competitors driving away the new products with lower prices
6. Inadequate marketing effort to support the new product
7. Weal sales force for lack of training and motivation
8. Wrong channels of distribution

30. PROMOTION
• Two methods of promotion are advertising and personal
selling.
Advertising: Media, Newspaper, Magazine, Radio, Television,
Mail and Yellow paper.
• The proper way of creating advertising is to evaluate the
products, services, competitors, customers and critical
factor.

31. DISTRIBUTION CHANNEL
• The right distribution channel depend on the target market. All
other things being equal. The most economical and most
profitable channel of distribution should be—chosen.
FACTORS IN SELECTING THE MOST APPROPRIATE DISTRIBUTION CHANNEL
1. Who are the buyers? 3. How can they reached?
2. Where are the located? 4. When do they buy?

32. PRICING STRATEGIES
• Price is the value of a product or service expressed in money. In
our capitalist company, price allocates goods and service. Those
who have more money acquire more goods and services. The
government interferes in the pricing system to protect the
consumer against unreasonable prices.
It is much better to offer non—price competition in the form of:
QUALITY – SERVICE – CONVENIENCE – DELIVERY – SAFETY – GUARANTEES – CLEALINESS – EASY CREDIT OPTION.

33. BREAK—EVEN ANALYSIS
Break—Even Analysis is a tool used by economists in solving
managerial problems. Even government agencies and other
organizations depend on break—even analysis in protecting
their revenues, costs and profit.
Break—Even Analysis compares total revenues (TR) with
total cost (TC). TC represents income while TC represents
expense of the enterprise. But when TR equals TC, it is
break—even. That is no profit and there is no loss.

34. BREAK—EVEN GRAPH
A Break—Even Graph assumes that the average variable
cost (AVC) is constant. Therefore, this makes TC a
straight line. AVC is derived by dividing total variable
cost (TVC) with the number of output it sells. Thus, TR
is a straight line. TR is equal to price times quantity or
number of output.

35. THE END! THANK YOU SO MUCH!
PRESENTED BY: GURO, JANNAH PATARANDANG