For a business to succeed, getting the attention of the customer is very essential. Hence the marketing strategy for small businesses should be such that it results in maximum profit and a loyal base of customers. Small business owners should be mindful of the great benefits of devoting their time and energy in finding who their customers are and how can they serve them better. This is “marketing concept” and modern marketing programs are built around them.

 

The Marketing Concept

 

A marketing concept incorporates and measures the customers importance to the firm and is as follows:

 

1. The main aim of all company policies and activities is to satisfy the customer’s need, and
2. It is better to have as a company goal, a profitable sales volume than a maximum sales volume.

 

Hence, to use this marketing concept, a small business has to:

• Find what their customer’s need which is Market Research;

• Find out their unique selling point i.e. Market Strategy;

• Pinpoint a market to serve meaning Target Marketing; and lastly

• Use all available resources to satisfy the needs of the customers which is Market Mix.

 

Market Research

 

The first important thing, which a small business should have in order to implement these marketing functionalities, is good knowledge of the market. This information can be easily gathered. Just give your present customer or would-be customers a questioner and find out their dissatisfaction and what remedies they think the business should adopt to rectify it. This question session can also be used to find out what new products or service the customer wishes to get from the business.

 

The market research must include finding out trends that may leave a mark on the sales and the profitability level of the company. It is better for the future of the small business that the owner be up-to-date with demographical and economical condition of the market. For a sudden change in population level or their income level can have a ripple effect in the market. Another thing to look out for is legal development which also has great implication in the running of a business. Small businesses will also do well if they keep an eye on their competitors; see what their market strength is and analyze their competitive edge.

 

Marketing Strategy

 

Marketing strategy is a mixture of target marketing and Market Mix. It means that the small businesses should find out which their target customer base is and how they can be better in that market than their competitors. They should find out how they can tailor their product to their customer’s need and which price is best for attracting them as well generate enough profit. Effective distribution of products and what kind of promotional effort will have maximum impact should also be researched. The best strategy is to find out what is lacking in the market that the customer wants; and how the company can provide them with it. Small businesses must understand that it is better for them to focus on niche customers than going after a broader customer base.

 

Target Marketing

 

After the company has pinpointed its niche customer category; its aim than should be how to reach that market. They must understand that the biggest constrain a small business owner has is limited resource. So they must concentrate their entire marketing program on their targeted market. There are two ways a small business can curve out their market and they are:

 

1. Geographical Division: Taking a geographical area as a market can be very effective. For example, a small neighborhood store can send its promotional literatures only to the people living within a few blocks. It will generate more loyal customers than sending flyers all over the city!
2. Customer Division: Determine which section of the society most identifies with the business. Then promote the business among those groups of customers. It will not only generate an exclusive customer base, but will attract new ones as well!

 

Managing the Marketing Mix

 

Four very important areas make up the marketing program for a small business, which are:

 

• Promotion
• Distribution
• Product and Services and
• Pricing

 

The effectiveness of the marketing mix will depend in what proportion the owner-operator of the small business mixes these four elements. Let’s see them in details:

 

Promotion: - It includes advertising, salesmanship and different promotional activities. Since small businesses cannot afford huge marketing blitz so high salesmanship should be the first and foremost weapon for them to attract customers. For small retailers, advertising in Yellow Pages can be very effective. Another low-cost advertising medium is the Direct Mailers.

 

Distribution: - Making sure that the customer gets the product at the easiest way is very important. Hence it will be better for small businesses to place their product in the market through established chains of wholesalers and manufacturer’s agent. Another important criterion for effective distribution is location of the business. It has to be in a high traffic area so that customers can easily come to the establishment.

 

Product and Service: - It is better for small businesses to concentrate in making niche product or offering unique services. Focusing on a limited product line will allow the business to offer a highly personalized and customized service to the customer.

 

Pricing: - It is a major factor in generating the revenue for the business. Generally, high price may scare away potential customer; but small businesses can offset that by offering such personalized services that the customer will feel like a king!

 

Besides these entire factors, location is another big factor. If it is something the customer buys on a impulse (like candy), then visibility is a big factor. If the customer is willing to travel a distance for the product, then any location will do. But location is becoming quite redundant now with the introduction of mailing list for each particular segment. They can be procured from list brokers, magazines and such sources and has made it possible for a small business to serve international companies!

 

Marketing Performance

 

It is not enough in making a marketing program; owner-managers need to see from time to time how these marketing decisions have turned out to be. There must be a standard for evaluating the success of the marketing program. The basis of comparison can be reliable industry information and the part performance of the business.

 

Quarterly auditing of company’s performance should be done by owners of small businesses. Look at the bibliography to get information about the books from which they can find list for what to look for and how to recognize danger signals.

 

The main questions to ask are:

 

1. Is being customer-oriented the company’s first priority?
2. Do the employees know how to make the customer’s feel special and induce them to come back for repeat business?
3. Do customers find what they need at a reasonable price from the business?