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1、5-1Chapter 5Copyright 2003 by Nelson, a division of Thomson Canada Limited. 5-2Chapter 5Copyright 2003 by Nelson, a division of Thomson Canada Limited. Looking AheadAfter studying this chapter, you should be able to:1. Describe small business marketing.2. Discuss the nature of the marketing research

2、 process.3. Explain the term market and methods of forecasting sales.4. Identify the components of a formal marketing plan.5. Explain how customer satisfaction influences customer loyalty.6. Identify the key characteristics of consumer behaviour. 7. Explain product strategy and related concepts. 8.

3、Describe the components of a firms total product offering.5-3Chapter 5Copyright 2003 by Nelson, a division of Thomson Canada Limited. What is Small Business Marketing? MarketingActivities directing the flow of goods and services from producer to consumer or user. Small business marketing consists of

4、 those business activities that relate directly to:Identifying a target marketDetermining target market potentialPreparing, communicating, and delivering a bundle of satisfaction to the target market5-4Chapter 5Copyright 2003 by Nelson, a division of Thomson Canada Limited. Essential Marketing Activ

5、itiesMarket AnalysisAn evaluation process that encompasses market segmentation, marketing research, and sales forecastingMarketing MixThe combination of product, pricing, promotion, and distribution activities.5-5Chapter 5Copyright 2003 by Nelson, a division of Thomson Canada Limited. Marketing Phil

6、osophies Make a Difference Consumer-OrientedAll marketing efforts begin and end with the customer; focus is on the consumers needsthis philosophy is the most consistent with long-term success of the firm Production-OrientedEmphasizes development of the product and production efficiencies over other

7、activities Sales-OrientedFavours product sales over production efficiencies and customer preferences5-6Chapter 5Copyright 2003 by Nelson, a division of Thomson Canada Limited. Figure 5.1Market AnalysisMarketing MixMarketing ResearchMarket SegmentationSales ForecastingTarget MarketTarget MarketEntrep

8、reneurEntrepreneurDistributionPromotionPricingProductCore Marketing Activities for Small Business5-7Chapter 5Copyright 2003 by Nelson, a division of Thomson Canada Limited. The Nature of Marketing ResearchSteps In the Marketing Research Process1. Identifying the informational needWhy do we need to k

9、now this?2. Searching for secondary dataWho has researched this topic already?3. Collecting primary dataWho do we ask and what do we ask them?4. Interpreting the dataGot the information, now what does it mean?continued5-8Chapter 5Copyright 2003 by Nelson, a division of Thomson Canada Limited. The Na

10、ture of Marketing Research Marketing ResearchThe gathering, processing, reporting, and interpreting of market information Secondary DataMarket information that has been previously compiled by others Primary Data New market information that is gathered by the firm conducting the research5-9Chapter 5C

11、opyright 2003 by Nelson, a division of Thomson Canada Limited. Methods for Collecting Primary DataObservational MethodsHumanMechanicalQuestioning MethodsSurveys Mail TelephonePersonal interviewsExperiments5-10Chapter 5Copyright 2003 by Nelson, a division of Thomson Canada Limited. Ingredients of a M

12、arketIngredient 1Customers:People or businessesIngredient 2Purchasing power: Money/creditIngredient 3Unsatisfied needs5-11Chapter 5Copyright 2003 by Nelson, a division of Thomson Canada Limited. Estimating Market PotentialThe Sales ForecastA prediction of how much (in units and/or dollars) of a prod

13、uct or service will be purchased within a market during a specified period of timeAn essential component of a business plan that: Assesses the new ventures feasibility. Assists in planning for product scheduling, setting inventory levels, and personnel decisions5-12Chapter 5Copyright 2003 by Nelson,

14、 a division of Thomson Canada Limited. Figure 5.3Limited Entrepreneurial/Managerial ExperienceNew VenturePoor Understanding ofForecasting TechniquesEstablished BusinessConditions That MakeForecasting EasierConditions That MakeForecasting More DifficultExperiencedEntrepreneur/ManagerEntrepreneur Fami

15、liar withForecasting TechniquesForecastDimensions of Sales Forecasting Difficulty5-13Chapter 5Copyright 2003 by Nelson, a division of Thomson Canada Limited. Sales Forecasts and Limitations This is a prediction of how much of a product or service within a market will be purchased during a specific t

16、ime frame. Formally defined, a sales forecast estimates how much of a product or service can be sold within a given market in a defined period of time. Sales forecasting can and will be inaccurate either due to inexperience or inconclusive forecasting assumptions.5-14Chapter 5Copyright 2003 by Nelso

17、n, a division of Thomson Canada Limited. The Forecasting Process:Two Dimensions of ForecastingThe Starting PointBuildup process All potential buyers in various submarkets are identified and then the estimated demand is added up (bottom-up).5-15Chapter 5Copyright 2003 by Nelson, a division of Thomson

18、 Canada Limited. Understanding Potential Target Markets MarketA group of customers or potential customers who have purchasing power and unsatisfied needs Focus strategyA type of competitive strategy in which cost and marketing strategies are achieved within narrow market segments Market Segmentation

19、The division of a market into several smaller groups with similar needs.5-16Chapter 5Copyright 2003 by Nelson, a division of Thomson Canada Limited. The Formal Marketing Plan Market AnalysisCustomer profile A description of potential customers in a target marketSales forecasts “most likely,” “pessim

20、istic,” and “optimistic” The CompetitionProfile of key management personnelOverall strengths and weaknessesRelated products being marketed or testedLikelihood of competitors entry into target marketcontinued5-17Chapter 5Copyright 2003 by Nelson, a division of Thomson Canada Limited. The Formal Marke

21、ting PlanMarketing StrategyTotal product and/or service plan Decisions affecting the total productDistribution plan Decisions regarding product delivery to customersPricing plan Setting an acceptable value on the productPromotional plan Communicating information to the target market5-18Chapter 5Copy

22、right 2003 by Nelson, a division of Thomson Canada Limited. Satisfying the Customer: The Key to Customer Loyalty Three Basic Beliefs:1. Superior customer service creates customer satisfaction.2. Customer satisfaction produces customer loyalty.3. Small firms possess great potential for providing supe

23、rior customer service.5-19Chapter 5Copyright 2003 by Nelson, a division of Thomson Canada Limited. Components of Customer Satisfaction1. The most basic element of the product or service that customers expect all competitors to deliver.2. General support services, such as customer assistance.3. A rec

24、overy process for counteracting bad experiences.4. Extraordinary services that excel in meeting customers preferences and make the product or service seem customized.5-20Chapter 5Copyright 2003 by Nelson, a division of Thomson Canada Limited. Why Firms Fail to Adopta Consumer Orientation The State o

25、f CompetitionWith no competition or high demand, firms focus on production. Production Focus of Small Business ManagersSmall business managers tend to have strong production skills and weak marketing skills. Focus on the PresentSmall business managers tend to focus on current success which is the re

26、sult of an overemphasis on selling.5-21Chapter 5Copyright 2003 by Nelson, a division of Thomson Canada Limited. Ways to Develop Extraordinary Services Naming NamesGreet customers by name. Custom CareKnow what your customers want. Keeping in TouchCommunicate frequently with your customers. Boo-Boo Re

27、searchAsk lost customers why they went elsewhere.5-22Chapter 5Copyright 2003 by Nelson, a division of Thomson Canada Limited. The Customer Service Commitment Exceptional customer service provides a potential competitive edge opportunity to small firms. Being attentive and respectful of customers lea

28、ds to customer satisfaction and to success. Superior levels of customer service are not easy to attain and are not cheap.5-23Chapter 5Copyright 2003 by Nelson, a division of Thomson Canada Limited. Evaluating Customer ServiceCustomer service problems are the main source of customer complaints.Ways t

29、o address complaints:Watch for problemsTalk to customersCheck up on the serviceEvaluating customer service is essential of any business5-24Chapter 5Copyright 2003 by Nelson, a division of Thomson Canada Limited. Understanding the CustomerKey Points about Customers:Customers are first and foremost hu

30、man beings.A customers satisfaction results from their interaction with the firm.Understanding customers leads to more customer satisfaction and loyalty.5-25Chapter 5Copyright 2003 by Nelson, a division of Thomson Canada Limited. Simplified Model of Consumer BehaviourDecision-Making ProcessSociologi

31、cal FactorsCultureSocial ClassReference GroupsOpinion LeadersPsychological FactorsNeedsPerceptionsMotivationsAttitudesInformationSearchand EvaluationProblemRecognitionPurchaseDecisionPost-PurchaseDecisionFigure 5.55-26Chapter 5Copyright 2003 by Nelson, a division of Thomson Canada Limited. Stage 1 i

32、n Consumer Decision MakingProblem RecognitionThe current state or a change in current state is not the ideal state of affairs due to: Change in financial status Change in household characteristics Normal depletion of a resource Product or service performance Past decisions Availability of products5-

33、27Chapter 5Copyright 2003 by Nelson, a division of Thomson Canada Limited. Stage 2 in Consumer Decision MakingInformation Search and EvaluationEvaluation criteria The features of a product or service that customers use to compare brands.Evoked set A group of brands that a customer is both aware of a

34、nd willing to consider as a solution to a purchase problem.5-28Chapter 5Copyright 2003 by Nelson, a division of Thomson Canada Limited. Stages 3 & 4 in Consumer Decision MakingPurchase decisionDeciding how and where to make the purchase decision: Store versus nonstore (catalogue, TV, and the Interne

35、t)Post-purchase evaluationCognitive dissonance The anxiety that occurs when a customer has second thoughts immediately following a purchase.5-29Chapter 5Copyright 2003 by Nelson, a division of Thomson Canada Limited. PurchaseThis is the oneI want.Post-PurchaseDissonanceDid I buy theright one?UsageI

36、found anotheruse for”ProductDisposalCan I trade this in?PositiveEvaluation“It works great.NegativeEvaluation“Doesnt work well.ConsumerComplaintsIm callingthe store.No RepurchaseRepurchasePost-Purchase Activities of ConsumersFigure 5.65-30Chapter 5Copyright 2003 by Nelson, a division of Thomson Canad

37、a Limited. Consumer Behaviour ModelPsychological FactorsNeeds Can be classified as physiological, social, psychological, and spiritual. Consumers needs are never completely satisfied. Difficulty occurs in determining which need can be satisfied by a specific product or service. A service or product

38、can satisfy more than one need.continued5-31Chapter 5Copyright 2003 by Nelson, a division of Thomson Canada Limited. Consumer Behaviour ModelPsychological Factors (continued) Perceptions The individual processes that give meaning to the stimuli confronting consumers.Perceptual categorization The pro

39、cess of grouping similar things so as to manage huge quantities of incoming stimuli. Brand loyalty (a perceptual barrier) makes it difficult for competing brands to reach the loyal consumer.continued5-32Chapter 5Copyright 2003 by Nelson, a division of Thomson Canada Limited. Consumer Behaviour Model

40、Psychological Factors (continued)Motivations Goal-directed forces that organize and give direction to the tension caused by unsatisfied needs. Provide the behavioural impetus for consumers to act to fulfill a need. Marketing is motivation and does not create needs.Attitudes An enduring opinion based

41、 on knowledge, feeling, and behavioural tendency.continued5-33Chapter 5Copyright 2003 by Nelson, a division of Thomson Canada Limited. Consumer Behaviour ModelSociological FactorsCulture Behavioural pattern and values that characterize a group of consumers in a target market.Social class Societal di

42、visions that have different levels of social prestige.continued5-34Chapter 5Copyright 2003 by Nelson, a division of Thomson Canada Limited. Consumer Behaviour ModelSociological FactorsReference groups Groups that an individual allows to influence his or her behaviour.Opinion leaders A group leader w

43、ho plays a key communications role.5-35Chapter 5Copyright 2003 by Nelson, a division of Thomson Canada Limited. Product DefinitionProductA total bundle of satisfactiona service, a good, or bothoffered to consumers in an exchange transaction.Includes both the main element (physical product or core se

44、rvice) and complementary components (features).5-36Chapter 5Copyright 2003 by Nelson, a division of Thomson Canada Limited. Service Marketing versus Goods MarketingCharacteristicsPure ServicesMarketingPure GoodsMarketingTangibilityProduction/ConsumptionStandardizationPerishabilityIntangiblegoodsOccu

45、r at the same timeLess standardizationGreater perishabilityTangiblegoodsOccur at different timesMore standardizationLess perishabilityHybridServices/GoodsMarketingFigure 5.75-37Chapter 5Copyright 2003 by Nelson, a division of Thomson Canada Limited. Product Strategy Product StrategyThe way the produ

46、ct component of the marketing mix is used to achieve a firms objectives.Product item The lowest common denominator in the product mixthe individual itemProduct line The sum of the related individual product itemsProduct mix consistency The similarity of product lines in a product mixcontinued5-38Cha

47、pter 5Copyright 2003 by Nelson, a division of Thomson Canada Limited. Product StrategyProduct Development ProcessIdea accumulation Increasing the number of ideas under considerationBusiness analysis Products relationship to the existing product line Cost of development and introduction Available per

48、sonnel and facilities Competition and market acceptancecontinued5-39Chapter 5Copyright 2003 by Nelson, a division of Thomson Canada Limited. Product StrategyProduct Development ProcessTotal Product Development Branding, packaging, pricing, and promotionProduct Testing Proving the product design through consumer reaction to the product.5-40Chapter 5Copyright 2003 by Nelson, a division of Thomson Canada Limited. Product Life CycleFigure 5.85-41Chapter 5Copyright 2003 by Nelson, a division of Thomson Ca

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