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1、SmallBusinessManagement ProfessorHornadayLecture5SMALLBUSINESSMANAGEMENTTYPESOFCOMPETITION1.Monopoly2.Oligopoly3.MonopolisticCompetition4.PureCompetitionOverhead50BSMALLBUSINESSMANAGEMENTTHEMARKETINGDISTRIBUTIONCHANNELPRODUCERPROCESSORMANUFACTURERDISTRIBUTORRETAILERCONSUMERLOWVALU
2、EHIGHVALUESMALLBUSINESSMANAGEMENTMARKETNICHE1.GroupofCustomerswithSimilarPurchasingPatterns2.RelevantPriceRangeProducesProfit3.DefensibleagainstAllComersOverhead50ASMALLBUSINESSMANAGEMENTSEGMENTINGTHEMARKET1.Demographics:Age,Sex,Race,Income,Location,Transportation,Etc.2.ShoppingHa
3、bits:When,Where,Impulse,PlannedPurchases,Etc.3.MethodofPayment:CashorCharge.Overhead50CSMALLBUSINESSMANAGEMENTMARKETINGRESEARCH1.SecondarySources:Library,SBA,TradeAssociations,ChamberofCommerce,Suppliers,Banks,Etc.2.PrimarySources:Interviews,Questionnaires,MailandTelephone,Demonst
4、rations,Etc.3.CollectandCollatetheInformation.WhatistheDataTellingYou?4.NeedtoKnow:HowManyUnitscanYouSellatWhatPrice?Overhead51SmallBusinessManagementTheFour"Ps"1.Product2.Place3.Price4.PromotionSMALLBUSINESSMANAGEMENTPRICING1.Strategy:SkimorLongTerm?2.CoverCosts3.MeetCompetition4
5、.SatisfyDemandCurve5.RelevantRangeOverhead52RelevantPriceRange"A""B"RelevantPriceRangeLowestPricetoCoverCosts$350$275$2000PricetooHighforCustomersPricetooLowforCustomersSMALLBUSINESSMANAGEMENTSETTINGTHEPRICE1.Markup=GrossMarginPercentageofCost2.Markon=IncreaseoverMarkuptoallowforM
6、arkdown3.MultiplierApproachforServiceFirms4.JobCostEstimatesOverhead52ASMALLBUSINESSMANAGEMENTADVERTISING1.ProductorInstitutional2.TheMessage3.TheMedia4.GettingAssistance5.TheCostversustheBenefitOverhead53SMALLBUSINESSMANAGEMENTSELLING1.GetOrganizedtoSell2.TheFour"P's"3.SalesPeopl
7、eOverhead54SMALLBUSINESSMANAGEMENTSALESTRAINING1.KnowYourself2.KnowYourCompany3.KnowYourProduct4.KnowYourCustomerOverhead54ASMALLBUSINESSMANAGEMENTBUYINGMOTIVES1.Packaging&Image2.BrandName3.StoreLocation4.Price5.TreatmentbySalespeopleOverhead54BSMALLBUSINESSMANAGEMENTCUSTOMERCREDI
8、T1.RetailersuseCash&CarryorCredit
