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SmallBusinessManagement
ProfessorHornadayLecture5SmallBusinessManagement
ProfSMALLBUSINESSMANAGEMENT
TYPESOFCOMPETITION1.Monopoly2.Oligopoly3.MonopolisticCompetition4.PureCompetitionOverhead50BSMALLBUSINESSMANAGEMENT
TYPESMALLBUSINESSMANAGEMENT
THEMARKETINGDISTRIBUTIONCHANNELPRODUCERPROCESSORMANUFACTURERDISTRIBUTORRETAILERCONSUMERLOWVALUEHIGHVALUESMALLBUSINESSMANAGEMENT
THESMALLBUSINESSMANAGEMENT
MARKETNICHE1.GroupofCustomerswithSimilarPurchasingPatterns2.RelevantPriceRangeProducesProfit3.DefensibleagainstAllComersOverhead50ASMALLBUSINESSMANAGEMENT
MARKSMALLBUSINESSMANAGEMENT
SEGMENTINGTHEMARKET1.Demographics:Age,Sex,Race,Income,Location,Transportation,Etc.2.ShoppingHabits:When,Where,Impulse,PlannedPurchases,Etc.3.MethodofPayment:CashorCharge.Overhead50CSMALLBUSINESSMANAGEMENT
SEGMSMALLBUSINESSMANAGEMENT
MARKETINGRESEARCH1.SecondarySources:Library,SBA,TradeAssociations,ChamberofCommerce,Suppliers,Banks,Etc.2.PrimarySources:Interviews,Questionnaires,MailandTelephone,Demonstrations,Etc.3.CollectandCollatetheInformation.WhatistheDataTellingYou?4.NeedtoKnow:HowManyUnitscanYouSellatWhatPrice?Overhead51SMALLBUSINESSMANAGEMENT
MARKSmallBusinessManagement
TheFour"Ps"1.Product2.Place3.Price4.PromotionSmallBusinessManagement
TheSMALLBUSINESSMANAGEMENT
PRICING1.Strategy:SkimorLongTerm?2.CoverCosts3.MeetCompetition4.SatisfyDemandCurve5.RelevantRangeOverhead52SMALLBUSINESSMANAGEMENT
PRICRelevantPriceRange"A""B"RelevantPriceRangeLowestPricetoCoverCosts$350$275$2000PricetooHighforCustomersPricetooLowforCustomersRelevantPriceRange"A""B"ReleSMALLBUSINESSMANAGEMENT
SETTINGTHEPRICE1.Markup=GrossMarginPercentageofCost2.Markon=IncreaseoverMarkuptoallowforMarkdown3.MultiplierApproachforServiceFirms4.JobCostEstimatesOverhead52ASMALLBUSINESSMANAGEMENT
SETTSMALLBUSINESSMANAGEMENT
ADVERTISING1.ProductorInstitutional2.TheMessage3.TheMedia4.GettingAssistance5.TheCostversustheBenefitOverhead53SMALLBUSINESSMANAGEMENT
ADVESMALLBUSINESSMANAGEMENT
SELLING1.GetOrganizedtoSell2.TheFour"P's"3.SalesPeopleOverhead54SMALLBUSINESSMANAGEMENT
SELLSMALLBUSINESSMANAGEMENT
SALESTRAINING1.KnowYourself2.KnowYourCompany3.KnowYourProduct4.KnowYourCustomerOverhead54ASMALLBUSINESSMANAGEMENT
SALESMALLBUSINESSMANAGEMENT
BUYINGMOTIVES1.Packaging&Image2.BrandName3.StoreLocation4.Price5.TreatmentbySalespeopleOverhead54BSMALLBUSINESSMANAGEMENT
BUYISMALLBUSINESSMANAGEMENT
CUSTOMERCREDIT1.RetailersuseCash&CarryorCreditCards2.ServiceFirmssometimesmustOfferCredittoMajorCustomers3.Distributors,Wholesalers,andManufacturersuseCreditasaSalesTool4.LargeCustomersareSometimesDifficult,SlowPayersOverhead55SMALLBUSINESSMANAGEMENT
CUSTSMALLBUSINESSMANAGEMENT
LOCATIONSELECTION1.GeneralFactorsa.Personalb.Economicsc.Competitiond.Geographice.LocalLaws2.RetailLocationsa.ConsumerDrivenb.CostversusFootTraffic3.WholesaleLocationsa.Accessb.ZoningandSpace4.ServiceLocationsa.CustomersCometoYoub.YougototheCustomer5.ManufacturingLocationsa.Accessb.LaborForcec.Utilitiesd.ZoningSMALLBUSINESSMANAGEMENT
LOCASMALLBUSINESSMANAGEMENT
OTHERCONSIDERATIONS1.LeaseBuildings&Equipmenta.LowInitialInvestmentb.LeasePaymentsTaxDeductible2.BuyBuildings&Equipmenta.CapitalAppreciationb.CreatesAssets3.FixturesandFacilitiesa.Retailb.Wholesalec.Serviced.ManufacturingSMALLBUSINESSMANAGEMENT
OTHESmallBusinessManagement
CustomerDraw1.TrafficStudy2.TransportationMethods3.LicensePlateCheck4.InterviewsSmallBusinessManagement
CustSmallBusinessManagement
ServiceBusinesses1.ServicesIntangible2.BuyersandSellersInterdependent3.ServiceandSellerInseparable4.ServicesarePerishable5.QualityStandardizationDifficultSmallBusinessManagement
ServSmallBusinessManagement
ServiceBuyers1.PersonalAttention2.SubjectiveImpressions3.MarketingTimeSaving4.CustomerWantsIncrease5.SmallThingsCountSmallBusinessManagement
ServSmallBusinessManagement
ValuingService1.LifeStyleChanges2.HighPriceStrategy3.VolumePurchases4.PricingElementsSmallBusinessManagement
ValuSmallBusinessManagement
PromotingServices1.PromoteBenefitsandImage2.Advertising3.PersonalSelling4.FreePublicitySmallBusinessManagement
PromSmallBusinessManagement
ProfessorHornadayLecture5SmallBusinessManagement
ProfSMALLBUSINESSMANAGEMENT
TYPESOFCOMPETITION1.Monopoly2.Oligopoly3.MonopolisticCompetition4.PureCompetitionOverhead50BSMALLBUSINESSMANAGEMENT
TYPESMALLBUSINESSMANAGEMENT
THEMARKETINGDISTRIBUTIONCHANNELPRODUCERPROCESSORMANUFACTURERDISTRIBUTORRETAILERCONSUMERLOWVALUEHIGHVALUESMALLBUSINESSMANAGEMENT
THESMALLBUSINESSMANAGEMENT
MARKETNICHE1.GroupofCustomerswithSimilarPurchasingPatterns2.RelevantPriceRangeProducesProfit3.DefensibleagainstAllComersOverhead50ASMALLBUSINESSMANAGEMENT
MARKSMALLBUSINESSMANAGEMENT
SEGMENTINGTHEMARKET1.Demographics:Age,Sex,Race,Income,Location,Transportation,Etc.2.ShoppingHabits:When,Where,Impulse,PlannedPurchases,Etc.3.MethodofPayment:CashorCharge.Overhead50CSMALLBUSINESSMANAGEMENT
SEGMSMALLBUSINESSMANAGEMENT
MARKETINGRESEARCH1.SecondarySources:Library,SBA,TradeAssociations,ChamberofCommerce,Suppliers,Banks,Etc.2.PrimarySources:Interviews,Questionnaires,MailandTelephone,Demonstrations,Etc.3.CollectandCollatetheInformation.WhatistheDataTellingYou?4.NeedtoKnow:HowManyUnitscanYouSellatWhatPrice?Overhead51SMALLBUSINESSMANAGEMENT
MARKSmallBusinessManagement
TheFour"Ps"1.Product2.Place3.Price4.PromotionSmallBusinessManagement
TheSMALLBUSINESSMANAGEMENT
PRICING1.Strategy:SkimorLongTerm?2.CoverCosts3.MeetCompetition4.SatisfyDemandCurve5.RelevantRangeOverhead52SMALLBUSINESSMANAGEMENT
PRICRelevantPriceRange"A""B"RelevantPriceRangeLowestPricetoCoverCosts$350$275$2000PricetooHighforCustomersPricetooLowforCustomersRelevantPriceRange"A""B"ReleSMALLBUSINESSMANAGEMENT
SETTINGTHEPRICE1.Markup=GrossMarginPercentageofCost2.Markon=IncreaseoverMarkuptoallowforMarkdown3.MultiplierApproachforServiceFirms4.JobCostEstimatesOverhead52ASMALLBUSINESSMANAGEMENT
SETTSMALLBUSINESSMANAGEMENT
ADVERTISING1.ProductorInstitutional2.TheMessage3.TheMedia4.GettingAssistance5.TheCostversustheBenefitOverhead53SMALLBUSINESSMANAGEMENT
ADVESMALLBUSINESSMANAGEMENT
SELLING1.GetOrganizedtoSell2.TheFour"P's"3.SalesPeopleOverhead54SMALLBUSINESSMANAGEMENT
SELLSMALLBUSINESSMANAGEMENT
SALESTRAINING1.KnowYourself2.KnowYourCompany3.KnowYourProduct4.KnowYourCustomerOverhead54ASMALLBUSINESSMANAGEMENT
SALESMALLBUSINESSMANAGEMENT
BUYINGMOTIVES1.Packaging&Image2.BrandName3.StoreLocation4.Price5.TreatmentbySalespeopleOverhead54BSMALLBUSINESSMANAGEMENT
BUYISMALLBUSINESSMANAGEMENT
CUSTOMERCREDIT1.RetailersuseCash&CarryorCreditCards2.ServiceFirmssometimesmustOfferCredittoMajorCustomers3.Distributors,Wholesalers,andManufacturersuseCreditasaSalesTool4.LargeCustomersareSometimesDifficult,SlowPayersOverhead55SMALLBUSINESSMANAGEMENT
CUSTSMALLBUSINESSMANAGEMENT
LOCATIONSELECTION1.GeneralFactorsa.Personalb.Economicsc.Competitiond.Geographice.LocalLaws2.RetailLocationsa.ConsumerDrivenb.CostversusFootTraffic3.WholesaleLocationsa.Accessb.ZoningandSpace4.ServiceLocationsa.CustomersCometoYoub.YougototheCustomer5.ManufacturingLocationsa.Accessb.LaborForcec.Utilitiesd.ZoningSMALLBUSINESSMANAGEMENT
LOCASMALLBUSINESSMANAGEMENT
OTHERCONSIDERATIONS1.LeaseBuildings&Equipmenta.LowInitialInvestmentb.LeasePaymentsTaxDeductible2.BuyBuildings&Equipmenta.CapitalAppreciationb.CreatesAssets3.FixturesandFacilitiesa.Retailb.Wholesale
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