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SBDC Small Business Breakfast Keynote Presentation
“The Impact of Marketing on Small Business Practices”
Tuesday, January 10th, 2006 Denton Chamber of Commerce,
Denton, Texas
Charles Blankson, Ph.D. Department of Marketing & Logistics, UNT
Charles Blankson, Ph.D., Department of
Marketing & Logistics, University of
North Texas
“…successful companies understand the
need to tailor the strategy to suit the
market/customer…” Brian Smith (2004)
Charles Blankson, Ph.D., Department of
Marketing & Logistics, University of
North Texas
What is a market? And who is a
customer?
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According to Kotler (2004), “a market consist
of all the potential customers sharing a
particular need or want who might be
willing and able (i.e., propensity to) to
engage in exchange to satisfy that need or
want”.
Source: Kotler, P. (2004), Marketing Management, Prentice-Hall,
Englewood Cliff, NJ.
Charles Blankson, Ph.D., Department of
Marketing & Logistics, University of
North Texas
What is Marketing?
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Marketing is 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 goals.
Source: The American Marketing Association (AMA) (see www.ama.org).
Charles Blankson, Ph.D., Department of
Marketing & Logistics, University of
North Texas
What is Marketing?
„ Marketing
is the management process
responsible for identifying, anticipating,
and satisfying customer requirements
profitably.
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Source: The Chartered Institute of Marketing (CIM) (UK) (see
www.cim.co.uk)
So what do you think is the basis (concept) of
marketing?
Charles Blankson, Ph.D., Department of
Marketing & Logistics, University of
North Texas
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The Marketing Concept states that if a business
or organization is to achieve profitability, the
entire organization must be oriented towards
satisfying consumer needs, wants and
aspirations.
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In other words, The Marketing Concept holds
that the key to success is through determining
the needs/wants/aspirations of target markets
and delivering these more effectively and
efficiently than competitors.
Charles Blankson, Ph.D., Department of
Marketing & Logistics, University of
North Texas
Do you know your market, business
and your management team?
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What is the product or service being offered?
What are the market trends in the industry?
What are your plans for financing your business?
Who are your customers? And what are they looking for?
Who are your competitors? And how do they
operate/react/behave?
Why do (should) your customers buy your product/service
rather than that of your competitors?
Can you describe your business?
Location, location, location!
Who runs the business? (profile of management team)
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What is your estimate of revenue/expenses for year 1, 2 and 3?
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Charles Blankson, Ph.D., Department of
Marketing & Logistics, University of
North Texas
The Marketing Mix (ingredients or tools of marketing; also
called the 4 P’s)
Tangible goods
Services
Product
Price
Place/distribution
Promotion
Product
Price
Place/distribution
Promotion
People
Process
Physical evidence
Marketing research
Charles Blankson, Ph.D., Department of
Marketing & Logistics, University of
North Texas
Entering the market place, what are
your plans?
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Your goals, aims and objectives
Your industry
Your business/company identity
Your products/services
Your target market
Your competition
Your marketing/sales approach
Your marketing mix
Your marketing tactics and strategies
Your marketing budget
Charles Blankson, Ph.D., Department of
Marketing & Logistics, University of
North Texas
Marketing Planning
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Defined as the planned application of
marketing resources to achieve marketing
objectives.
It is usually geared for the long-term
In other words, it is the logical and systematic
sequence of the various activities effected in the
setting of the business objectives and the
formulation of plans for achieving them
(McDonald, 1992, pp.13).
Charles Blankson, Ph.D., Department of
Marketing & Logistics, University of
North Texas
The basics of Marketing Planning –
your business
„ Who are you?
„ Where are you going?
„ Where do you want to go/be?
„ How would you get there?
„ How are you doing?/have you
got there yet?
Charles Blankson, Ph.D., Department of
Marketing & Logistics, University of
North Texas
Specific functional issues influencing
small business success - marketing
Poor location; business is inaccessible to
customers
„ Ineffective marketing
„ Inability to segment the market and identify target
markets (consumers/customers)
„ Failure to conduct market research, to find out
about the consumer
„ Misreading the market
„ Poor products/services
„ Poor positioning
Need to appreciate market orientation
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Charles Blankson, Ph.D., Department of
Marketing & Logistics, University of
North Texas
Market Orientation
„ Focus on the identification of
customers needs, organizational
resources and objectives. Achieve
effective match through market
segmentation, targeting,
positioning and resource
development.
Charles Blankson, Ph.D., Department of
Marketing & Logistics, University of
North Texas
Simple formulas for turning a good
customer into a loyal customer
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Know your customer
Inform your customers
Help customers; let them know that they matter
Surprise your customers
Delight your customers
Thank and/or reward your customers
Reactivate inactive customers
Give customers more of what they want
Treat new (or ethnic) customers like your best customers
Do more of what you do best
Get feedback from customers; research, research, research.
Charles Blankson, Ph.D., Department of
Marketing & Logistics, University of
North Texas
Key strategies to employ in small
business market orientation
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Concern for staff: providing good working environment and
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Awareness of market environment: being aware and
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Profitability/objectives: ensuring the profitability and
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Customer service: motivation among staff members positively
where concern for staff problems and salary is important.
proactive in assessing changes in the market place.
financial stability and achievement of business objectives.
affects high level of customer care/service.
Source: Blankson and Cheng (2005)
Charles Blankson, Ph.D., Department of
Marketing & Logistics, University of
North Texas
Your action plan
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Adopt an aggressive externally focused strategy even in the face of
downturn in the economy.
Take a long term view of your market.
Choose the marketing tactics and strategies that fit your market – 4 P’s,
7 P’s, social responsibility, segmentation and targeting etc.
Position your business in the context of your business’ aims and
objectives and with the competition in mind.
Seek to expand the market and win market share from competitors.
Carefully adjust the above based on changes in the environment –
changing consumer needs, political, social, economic and legal
changes in the Denton area.
Differentiate (i.e., position) your business/products and add unique
qualities.
Build assessment processes or systems to ensure you are on track.
Charles Blankson, Ph.D., Department of
Marketing & Logistics, University of
North Texas
Questions
Charles Blankson, Ph.D., Department of
Marketing & Logistics, University of
North Texas