Chapter 10:

Marketing the Small Business

By:
Mendoza, Bernadeth M.
Velasco, Winfred Justine
Small Business and Marketing Concept

 The marketing concept

serves as a guide for
small businesses in
order for them to be
able to match the target
market and the
products and services
offered.
Small Business and Marketing Concept

The following questions must be answered to

achieve the desired match:
1. Who are my customers?
2. What are the products and services needed
by my customers?
3. What should the price of the products and
services be?
Small Business and Marketing Concept

The following questions must be answered to

achieve the desired match:
 Where should the products and services be
sold?
 When should the products and services be
sold?
 How should the products and services be
delivered?
Small Business and Marketing Concept

The following must be undertaken to provide

the answers to the questions cited:
1. Devise a marketing strategy.
2. Engage in marketing research.
3. Develop a marketing mix.
4. Identify the size of the target market.
Devising a Marketing strategy
 A marketing strategy serves
as a guide to the small
business organization (SBO)
for it to be able to achieve its
goal. It is necessary so that
the organization will be able
to deliver the products to the
customers in a cost
effective, timely and
appropriate manner.
Market Strategy Planning

 A method used by the organization to be able

to determine the strengths and weaknesses
of the company and find attractive
opportunities and develop profitable
marketing strategies followed by an analysis
of the external environment.
Market Strategy Planning

The output of the market strategy plan contains

the following:
1. The target market
2. The applicable marketing mix
3. The size of the market area
Target Marketing

Refers to the process of selecting the target

market and choosing a marketing mix to
satisfy their needs and preferences.
The following steps are undertaken in target
marketing:
1. Identifying the target market.
2. Identifying their wants and needs.
3. Measuring the size of the target market
area.
Market Strategy Planning Process
Identify the strengths and
weaknesses of the firm.

Analyze the external

environment.

Identify the attractive

market opportunities.

Identify the target market.

Determine the applicable

marketing mix.

Determine the size of the

market area.
Identification of the Target Market

 It is the specific market segment the

business organization wishes to serve.
 Before deciding on which among the specific
market segment the firm will wish to serve,
the small business organization (SBO), the
firm must first decide on the number of
markets they wish to serve.
Identification of the Target Market

The firm may be one of

the following:
1. Mass market
company
2. Market segment
company
3. Multi segment
company
Choosing the Target Market
The following should be
considered when deciding
on which of the market
segment the firm intends
to reach:
2. The goods and services
category of the firm
3. The firm’s goals
4. What the competitors are
doing
5. The size of the various
segments
Choosing the Target Market
The following should be
considered when deciding
on which of the market
segment the firm intends
to reach:
2. The relative efficiency of
each segment of the firm
3. The resource required
4. Other factors
Identifying the Characteristics of the
Target Market

The important characteristics of the target market

should be identified to effectively serve the
target market.
1. Age
2. Sex
3. Family Size
4. Family Life Cycle
5. Income
6. Occupation
7. Religion
8. Race
9. Nationality
 Identified with
Preschool highly desirable
characteristic

Identified with
Elementary moderately
desirable
characteristic

The Target Identified with

Market High School less desirable
characteristic

College Identified with

less desirable
characteristic

Vocational Identified with

least desirable
characteristic
Measuring the Size of the Target Market

The following information must

be provided in order for
the SBO to make a match
between itself and the
target market:
1. The number of
potential
. consumers
2. The population
growth trend of the
target market area
The Marketing Mix

 Marketing mix is a set of tools the company

uses to achieve its goals.
 Target marketing is used to be able to
identify the appropriate marketing mix for the
business.
 The marketing tools are controllable
variables used to make a marketing mix.
The Marketing Mix

The controllable variables are the following:

2. Product offering
3. Price
4. Promotion
5. Place
Product Offering
 The intangible service
or tangible commodity
that the small business
firm offers to sell to
prospective customers
is referred to as
products.
Price
 The amount charged in
exchange for the
products and services
sold.
Promotion
 Disseminating the
information to
potential buyers in
attractive ways to
entice them to avail.
2. Personal selling
3. Mass Selling
4. Sales promotion
Place
 The place of the
product should be near
the target market in
order to make it
available whenever the
customers want them.