The marketing and promotion plan of a business includes all business activities involved in the moving of goods to the consumer, including selling, advertising, packaging, etc.  The business owner must recognize the importance of marketing and develop strategies for the business to be successful.  Small businesses, especially, must identify target markets and determine the potential of the market.

There are three basic types of marketing philosophies:

1.       Production Concept  -  The demand for a product is greater than the supply. 

2.       Selling Concept  -        The demand for a product is equal to the supply.  

3.       Marketing Concept  - The supply for a product is greater than the demand, creating competition among suppliers.      

A small business might want to consider a customer-satisfaction strategy since customer retention should be its goal. However, any size business with consumer products and services or industrial products will benefit from it. Customers appreciate good service from businesses and they will continue to show support, as well as spread the word of quality services/products to their acquaintances.  

DEMAND FOR PRODUCT/SERVICE

When you consider the possibilities of a business being successful you have to determine whether or not there is a demand for what you have to offer in the way of products and services. This involves lots of insight because it really doesn't matter what you are good at if no one is willing to pay you for it. An easy way to start this process is by looking at the recent trends in the market to give you some ideas for where you should focus your attention.  To figure that out, you need to begin by doing some research.  It doesn't have to be lengthy or tedious, and can be done in spurts over time.  One of the best ways to learn about what people and businesses need is to turn to the media. 

The best way to begin the process is to read the following:

·         Trade business magazines/journals

·         Local newspapers (and local news programs)

·         Visit How - To Network business Internet web sites

·         Publications related to topics of interest

The market is defined by different segments, such as:

Geographic:

Specialize products based on customers who live in certain neighborhoods or regions, or in a particular climate. Whether you sell business-to-business or business-to-consumer, location is one of the key factors to consider.  

Demographic: 

Direct advertising to families, teenagers, retirees, or to the occupation of consumers.

Psychographics: 

Target attributes relating to personality, values, attitudes, interests, or lifestyles of the consumer.

Product Benefits:  
 

Aim marketing to emphasize the benefits of the product or service that would appeal to consumers who buy for this reason in particular (for example, low cost or easy access ). 

Previous customers: 
 

Identify and promote to those groups who have purchased the product before.  Small businesses, especially, need to pay attention to detail and offer highly personalized or speedy service in order to be competitive.

MARKET RESEARCH 

As a prospective business owner you need to base your marketing decisions on evaluating sound marketing information.  The "cost" of gathering, processing, reporting, and interpreting market information accounts are part of the reason small businesses typically do little research prior to opening for business. However, the "benefits" of doing this research should be compared to the actual costs.

Market research should cover information based on four areas: customers, customer needs, competition, and trends.  The research conducted should define:

Customers

·         Age

·         Income

·         Occupation

·         Size of Family

·         Marital Status

·         Residence/location

·         Interests/hobbies

Customer Needs

·         Is the product needed for a limited time?

·         Are customers looking for faster service?

·         Do customers want guarantees with the products?

·         How will customers come to buy products?

·         Are customers seeking a convenient location?

Competition

·         Who is the competition?

·         How much sales volume do they produce?

·         How many similar businesses are currently in existence?

·         What draws customers to them?

·         What advertising techniques do they use?

Trends 

·         Population changes

·         Shifts in the local economic situation

·         Lifestyle changes (single parents, working women, decrease in family size)

There are two general sources used to obtain information:

1.   Readily Accessible Data:

·         Internet web sites and   local libraries      

·         Local area  Chamber of Commerce

·         Trade Show Advisor  business

·         Professional market research services

2.    Data collected by the businesses own research efforts by using:

·         Local and national newspapers

·         Survey Sampling

·         Harris Interactive Survey

·         Online Web Questionnaire

·         Local TV and radio stations

·         Interviewing in person or by phone

·         Customer service cards

·         Business Marketing Templates & Images   (Free)

DEMOGRAPHICS

Demographics usually include the age, marital status, sex, occupation, income, location, and ethnic origin of the targeted population for the service/product to be offered.  These individuals must have a "need" for what you plan to offer and the "money" to purchase, and "live," "work,"  or "travel" within the geographic location of the intended business.

PRICING OF THE PRODUCT/SERVICE

Pricing should be set high enough to cover all costs to you for the development, production, and distribution of your product/service; plus make a reasonable profit for your business.  It should also be competitive with the same or similar product/service in your locale. If you have a new company or a new product/service you generally cannot match prices with an established company with a similar offering.  This is because the established company is already known and has developed a trusting relationship with the customer so there is less risk involved. You can set any price range you want, but your "best" price means more sales for you because you will have figured out what your customers believe is a fair price for your products. In return, they will buy more.  

The " Breakeven Analysis" is a commonly used method that focuses on the volume of sales at which total revenues will equal total costs. The idea is to set the price of a unit of product or service at a level where it will cover all of its own variable costs (material, labor, marketing etc.) plus its portion of the fixed costs of the company (overhead). At the point where enough units have been sold to cover all fixed and variable costs, breakeven is achieved. After that point, the sales price of a unit sold minus the variable (direct) cost to produce it equals pure profit.

SELF-ASSESSMENT                                                                                                      

It maybe helpful to use  the following self-assessment to insure you have the proper equation for your pricing model .

• Do I have a clear idea of what my competition is charging?
   
• What market position do I aspire to obtain? (i.e., am I going for lower quality and prices, or am I aiming to be the best and charge premium prices?)
   
• Do I have an overall understanding of what the market will bear for my service or time?
   
• Have I closely examined the supply-and-demand ratio for my service or time?
   
• Do I have an established reputation within the marketplace as someone who consistently performs quality work?
   

Many small businesses have  a  Credit/Debit Card Terminal (Credit/Debit Card Processing equipment)  which allows customers to make purchases using their credit/debit card as an alterative method of payment. Major credit card companies such as  Visa,  Mastercard,  American Express, and  Discover  can be accessed through the terminal. The following is a list of companies that sell/lease and program the equipment:   

Visa Fraud Control Basics  are safety tips  designed to protect cardholders.      

ON-LINE RESEARCH REFERENCES

In order to target your market and beat the competition, you should strategically and effectively use such on-line marketing research references as:

MARKETING AND PROMOTING YOUR PRODUCT      

• Be sure to use quality products for your marketing materials. If you use cheap paper or materials, this will reflect poorly on your business.
• If you create a poster to promote your business that includes tear-off tags with your phone number at the bottom, be certain to include the name of your business as well as a paragraph or two that describes you in more detail on each tag. Otherwise, people will see your number but probably not remember what it's for.
• Your marketing materials should include testimonials, which demonstrate how your product/service helped previous customers. General comments are not as effective for selling as citing specific quotations from customers.
• If you want to write attractive headlines for your marketing materials, review the  Wall Street Journal   web site. Often, the editors will provide catchy titles that make you want to read the story.
• If you are in one of the building trades or another occupation that requires licensing in order to do business in your state, be sure to include your  license  on all of your promotional materials.
• If you are a member of one or more associations, from the  Chamber of Commerce to the professional association for your field, display that fact on all your marketing materials.
• Share space with another company and display your product at trade shows. You may also review  The Trade Show Exhibitors Association's Show Locator   for listings and dates.
• If your business is family oriented, don't overlook simple marketing opportunities: create brochures or other promotional materials that focus directly at children. Use a variety of color and bold graphics and make the copy easy to read. Insert a section in the brochure for parents about the specific things your business does for kids.
• Intentionally make some mistakes, around your place of business or on your promotional materials, and challenge current customers and prospective customers to find them. Reward the winners with a free product, discount coupons and/or free samples.
• Calendars as a promotional tool never go out of style because your customers will think of your business every day of the year. Be sure to make your calendar different and attractive. Alternatively, you may also use computer mouse pads or pens with your logo and address in your promotions.
• Your fax cover sheet can also be a promotional tool. Include your company name, phone number, logo, and slogan at the very least. Include special limited offers and other news in boxes at the bottom.
• If you're on a restricted budget, the least expensive way to get the word out is to create a simple one-sided flyer that you can tack on bulletin boards, put under windshield wipers, or even hand out to people.
• Mail coupons with hidden discounts that are revealed when you rub off a seal with a coin, like some lottery tickets. This idea can promote the discount in the range of 10 to 50 percent, but the discount is only valid when they rub off the seal in the store right before the sales clerk rings up the customers purchase.
• As an entrepreneur, you can benefit from getting good business advice.  SCORE Counselors provide free and confidential e-mail counseling. Several business volunteers are available to provide you with assistance in solving business problems.
• If you find during your research that local companies are unwilling to share their secrets of success, then you may want to call similar business owners in another town or state. Because you're not likely to be a competitor, they may be willing to talk to you about what they've done that has worked and not worked.
• Some potential customers will view your small size as an asset. Magnify this theme of "smaller is better" in all of your marketing materials; by doing this it sends a message to the customer that say "small business owner's take pride in personalizing products and services".
• If you provide a wide variety of services and/or products to audiences that differ from one another, you should create different materials aimed at each group.
• If you are considering using a banner keep your message brief six or fewer words.
• Review the  American Demographics, this reference provides insight on emerging trends as a result of changes in the population.
• Speak at the  Chamber of Commerce and other community organizations. Make sure your company name is on all literature distributed at the function.
• Monitor the local media to learn about the stories they cover regularly, this will give you an idea of what might be of interest.
• Online marketplaces offer entrepreneurs' a place to showcase their wares. Artspan,  Etsy ,  Shanalogic  and  Yessy   are just a few websites to consider.     
   

There are several ways to market your business that will not cost you a fortune. Truth is most marketing does take money, but there are some low-cost options that you can put into action that will help you get the word out about your products and service. While these ideas will not cost you a lot of money they will cost you time, so prepare for that. Here are  a few ideas for the company that is just getting started. Choose two out of the six and move forward on them weekly. Once you begin to see that in fact these promotional ideas can bring you business your momentum will build and drive you to pick two more.

MARKETING TIPS

1. Network at events. Go to Chamber of Commerce meetings and other business events that will attract your "ideal" client.

Gather as many business cards as you can and then begin to phone and email to follow up. If they unable to  use your services, ask them if they know of someone who can and get their contact information.

2. Attend public meetings.   This is a great way to not only share your knowledge and help others, but it also puts you in contact with those who could use your services.

3. Create a "useful" handout.   Prepare a handout that when given to a recipient they keep because it has value. Make sure that you include your name, phone number, email address, website information and your 30 second commercial that tells the recipient about your business.

4. Create joint-ventures. Locate colleagues and business associates whose business compliments yours and do joint promotions. Create a list of individuals you could partner with.

5. Write letters to local business publications. Make them interesting by sharing newsworthy information. You'll be surprised at how often a good letter will get printed. Do not forget to include your contact information and website address.

    6.   Click here for 50 ways to find new business!

You can expand your business opportunities by committing to one of these items on a weekly basis. Within a month you will  gain recognition and see progress in your business venture.  You can get the word out there without spending hundreds of dollars.

DEVELOP A WEB SITE  

To  develop a web site   you will need a computer, modem, Internet connection software, and an agreement with a web hosting provider. Your online materials should always match your print advertising and marketing material.  To make sure your web site fits with the rest of your company's image, apply the same technique you use to examine brochures, letterhead or business cards.  Your web site should be: 

·         Simple - Too much information confuses people and it won't be impressive to the user. Look at all your products and services and market them by using a simple message. 

·         Strong - Make sure your message is plain, in bold terms so that users will remember. Your words can be very simple but account for a lot .

·         Consistent - Your message will be easier for users to comprehend when your web site shares features with other material produced by your company.   

·         Intriguing - On a Web site you want readers to become enthusiastic so everything about the site should encourage people to explore .

·         Targeted - Have a clear understanding of how your Web site will benefit your target audience, then use that as the basis for its design.  Present information that is valuable, be concise, and make the most important features easy to find.  

How to market on the Internet using SCORE.

Customers fear transmitting personal and financial information over the Internet and the risk of releasing sensitive data to the public. The following are tips to help customers feel more confident about your site:

·         Address security issues - Ease your customers fears by including a statement on your Web site that informs buyers about your security policy. For more information visit Stay safe online.org-small business.

·         Make customers aware of the Fair Credit Billing Act - It's important for customers to know that there are laws that protect them when they shop with personal checks and credit cards on the internet. 

·         State your security code - Many customers are surprised to learn how infrequently security breaches occur.  For example, a company may clearly state that none of its 3 million customers have reported fraudulent use of a credit card resulting from purchases made at its site. 

·         Seek out approval from consumer organizations  -  There are several organizations such as  Better Business Bureau on-line and the American Institute of Certified Public Accountants that offer seals of approval for on-line shops that meet their standards for conducting business.  

·         Provide Alternatives - Some customers may never feel comfortable enough to transmit personal information across the Internet regardless of what assurances you supply.  For  these customers, offer alternative methods for buying. One page of your web site can offer phone, fax or mail for order fulfillment.        

E-MAIL MARKETING

This is an expedient and  cost-effective way to generate revenue, build brands and enhance customer relationships. With the right   email-marketing tools , all you need is a Web browser and a few minutes to deliver professional looking campaigns that are:

·         Cost efficient, so you can stay within your budget.

·         Directed, to reach your most interested audience.

·         Personalized, to meet unique customer needs.

·         Measurable, so you can improve marketing structures.

Target your customers with customized communications

·         Design and send targeted e-mail newsletters with product promotions, advice, tips and more.

·         Develop segmented customer groups and target your messages to group interests and needs.

·         Keep customers informed about your business and give them a fast and simple way to respond to you with questions and comments.

Cut marketing cost

·         Cut marketing costs by a marginal percentage when you use e-mail to announce new products and special offers.

·         Increase responses rates by using colorful, HTML newsletters.

·         Deliver your news and offers to customers quickly, with no lag time.

·         Having access to numerous tools (many that are free of charge) is beneficial to keeping a strong online presence without consuming your marketing budget.

Computerized Mailing

"Net Post Mailing Online" is a convenient way to send mail via your computer to someone's mailbox. To obtain more information regarding this service you may visit the United States Post office web site.  Some examples of Net Post include:     

Business Connect

·         Create and send customized mail to each business partner

·         Use your company name, logo, and handwritten signature inside the card

·         Keep track all activity of your mailing campaigns through net post reporting and billing system.

Personnel Connect

·         Design and send personalized cards for every occasion

·         Select designs from post net gallery or create your own choose from fonts, colors and stamps

·         The process is easy to manage, fast and convenient.  

ON-LINE AUCTIONING

An online auction is the process that allows users to log onto a website and bid for items or services posted on the site by other users. A potential buyer participates by bidding on an item that a seller has listed.  The person who has offered the highest bid at close of the auction wins the right to purchase the item at that price.   The way online auctioning works is similar to ordinary auctioning differentiating by allowing a much greater audience.    

How To Begin The Process

Register - Complete online registration information. Once you register, you will be able to buy, sell, and take part in additional online options. 

Choose a Category - Browse through the list of categories until you locate the specific category where other items like yours are listed.

1. Auction Fees  

·         Insertion Fee - Which may be applied at no cost depending on your starting bid and which web site you decide to use.

·         Additional Option Fee - This fee is charged when you choose one or more of the seller features.

·         Final Value Fee - This is a  small percentage of the final value after the winning bidder has been declared.  

2 . Selling Your Item

·         List Your Item - Before listing your item, there is a section which informs you of items that are not allowed to be sold.     

·         Add Photos - Bidder's will be much more interested in purchasing your product if they are able to see the item's condition.

3 . Item Information

·         Title - Include a short title that clearly describes the item you are selling.  

·         Description - Give a thorough description of the product.  

·         Sales Policies - Select the types of payments you're willing to accept. These could include: cash, personal checks, money orders, credit cards, etc. or you may use PayPal - a third party merchant.  

·         Shipping Options - You decide whether you or the buyer will pay the shipping costs  

4 . Auction Preferences

·         Quantity of Item

·         Starting Price

·         Length of Auction

·          

5 . Additional Promotion Tips

·         Featured Auction

·         Bold Text Listing

·         Gift Icon

6 . The " Auction Manager " feature allows you to:

·         Cancel or close an auction

·         Cancel a bid

·         Make additions to your description

·         Keep track of your sells
 

RESOURCES TO ASSIST WITH SELLING YOUR PRODUCTS AND SERVICES TO THE STATE OF MICHIGAN AND THE U.S. FEDERAL GOVERNMENT

Doing Business with the State of Michigan

Doing Business with the U.S. Government

GOING GLOBAL?

The concept of  the global marketplace could be defined as a companies ability to provide products anywhere, anytime, to a local market.  As the world evolves, few business es can ignore the global market place . Small to mid-size firms are faced with the challenge of deciding whether or not their businesses are candidates for global expansion and, if so, how to get started.  

The following are steps in beginning the global expansion process:

·         Conduct Market Research Within Your Budget

·         Assess Your Internal Resources

·         Get Yourself Export Ready

·         Adopt a Global Mind-set

There are four basic approaches to participation in the global marketplace:

·         Exporting your existing products to a foreign market

·         Modifying your products to fit the cultural and environmental requirement of foreign markets

·         Filling a market niche in a foreign market

·         Developing a new and unique market niche in a foreign market 

Whether or not you decided to expand your business globally, global business expansion should be a part of your strategic-planning process. If you decide to go global, here are some questions to ask yourself:

·         Is my company a candidate for global expansion?

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