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The marketing concept takes an outside-in perspective2. It starts with a well-defined market, focuses on customer needs, coordinates all the activities that will affect customers, and produces profits through creating customer satisfaction.
Importance of Marketing in Small Business Since marketing is consumer oriented, it has a positive impact on the business firms. It enables the entrepreneurs to improve the quality of their goods and services. Marketing helps in improving the standard of living of the people by offering a wide variety of goods and services with freedom of choice, and by treating the customer as the most important person. Marketing generates employment both in production and in distribution areas. Since a business firm generates revenue and earns profits by carrying out marketing functions, it will engage in exploiting more and more economic resources of the country to earn more profits.
A large scale business can have its own formal marketing network, media campaigns, and sales force, but a small unit may have to depend totally on personal efforts and resources, making it informal and flexible. Marketing makes or breaks a small enterprise. An enterprise grows, stagnates, or perishes with the success or failure, as the case may be, of marketing. Marketing of Services The services sector is more than twice the size of the manufacturing sector. The growing competitive market for services means that a marketing orientation has become essential for the survival for service industries too.
In addition, there is the most popular segment of its services sector, the entertainment industry, particularly films and TV happens to be one of the fastest growing in the world.
They are now penetrating the western world. Marketing Research Marketing research is the means by which the information necessary to run a business is obtained. It helps an entrepreneur to take decisions concerning the type of product, the price policy, the channel of distribution, and sales promotion can be made rightly with the help of marketing information at the right time.
It is the gathering, recording, and analysis of all facts about problems relating to the transfer and sale of goods and services from producer to consumer. For example, a hotel should find out what all services are needed to satisfy its customers and the soft toy manufacturer making teddy bears needs to find out if children really want purple teddy bears and so on.
Every company, irrespective of size, must research its market, customers and competition; initially to set it on the right course and then continually to monitor its performance. Small-scale firms are often unable to afford continuous marketing research.
However, they can use personal contacts and other informal methods for collecting required information about markets.
Market Segmentation A market consists of large number of individual customers who differ in terms of their needs, preferences and downloading capacity. Therefore, it becomes necessary to divide the total market into different segments or homogeneous customer groups.
Such division is called market segmentation.
They may have uniformity in employment patterns, educational qualifications, economic status, preferences, etc.
Market segmentation enables the entrepreneur to match his marketing efforts to the requirements of the target market. Instead of wasting his efforts in trying to sell to all types of customers, a small scale unit can focus its efforts on the segment most appropriate to its market.
A market can be segmented on the basis of the following variables : Geographic Segmentation : The characteristics of customers often differ across nations, states, regions cities or neighborhoods. The entrepreneur can decide to operate in one or a few or all the geographic areas, but pay attention to differences in geographic needs and preferences.
Demographic Segmentation : Variables such as age, sex, family size, income, occupation, education, religion, race and nationality are widely used for market segmentation. Psychological variables : Personality, life style, social class, etc. For example, some products like pens, watches, cosmetics and briefcases are designed differently for common men and status seekers.
Behavioural Segmentation : downloaders are divided into groups on the basis of their knowledge, attitude, use or response to a product. Marketing Mix In order to cater to the requirements of identified market segment, an entrepreneur has to develop an appropriate marketing mix.
An appropriate combination of these four variables will help to influence demand. The problem facing small firms is that they sometimes do not feel themselves capable of controlling each of the four variables in order to influence the demand. A brief description of the four elements of marketing mix is as follows : 1. DBMS is the integral part of every organization today. The Study material which you have keep in google drive is not accessible.
The material is accessible to all and the candidates can use it well for the exam preparation. Your email address will not be published. Email Address: Save my name, email, and website in this browser for the next time I comment.
Skip to content. Network Security Read about the security features of Networking as it is the main part of communication.
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