1 D. Marketing a Small Business6.00 Explain the fundamentals of marketing in a small business. 6.01 Explain marketing and its importance.

2 Marketing Marketing: The process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives.

3 Marketing Concept Marketing concept: The philosophy that achieving organizational goals depends on determining the needs and wants of target markets and delivering the desired products/services more effectively and efficiently than competitors do.

4 The Marketing Mix The combination of the four strategies for product, price, place and promotion—the four Ps of marketing. These decision make up a business’s marketing mix— strategies that work together to affect the marketplace.

5 Product ConsiderationsChoice of products Packaging Services to support products Branding Warranties Level of quality Business image Product research & development Positioning

6 Price Considerations Price setting – What is your goal?Terms – Conditions of purchase and payment between suppliers and buyers. Discounts – Reductions in the price of goods, which are sometimes negotiated.

7 Place Considerations Channels of distribution – How do products get from manufacturer to customer? Specific stores Transportation – What carrier will you choose to move your products?

8 Promotion ConsiderationsAdvertising: Non-personal promotional messages paid for by an identified sponsor. Personal Selling: Communication between a salesperson and a customer intended to influence the customer’s buying decision. Publicity: Information about a business or its products distributed through the media at no cost to the business. Sales Promotion: All promotional activities other than advertising, personal selling, publicity, and public relations designed to stimulate sales and sales effectiveness.

9 External Factors That Affect the Marketing MixCustomer attitudes Economic conditions Technological advances Political forces Natural forces Competition

10 Internal Factors That Affect the Marketing MixCompany objectives Company policies Financial situation