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    Canadian Entrepreneurship & Small Business Management: Balderson and Mombourquette

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    Rishab Joshi
    M&B Tooling Ltd. is assessing two available options for the purchase of new equipment with a negotiated cash price of $100,000. The manufacturer is willing to accept a down payment of 20% of the purchase price and an instalment note for the balance. The note would require quarterly fixed principal payments (plus interest) starting October 1, 2020, for a period of two years. M&B has a proposal from its bank for an instalment loan for two years that requires a fixed blended monthly payment (includ

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    Canadian Entrepreneurship & Small Business Management: Balderson and Mombourquette

    Uploaded by

    Rishab Joshi
    390 views21 pages
    M&B Tooling Ltd. is assessing two available options for the purchase of new equipment with a negotiated cash price of $100,000. The manufacturer is willing to accept a down payment of 20% of the purchase price and an instalment note for the balance. The note would require quarterly fixed principal payments (plus interest) starting October 1, 2020, for a period of two years. M&B has a proposal from its bank for an instalment loan for two years that requires a fixed blended monthly payment (includ

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    Balderson10e_PPT_CH08

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    M&B Tooling Ltd. is assessing two available options for the purchase of new equipment with a negotiated cash price of $100,000. The manufacturer is willing to accept a down payment of 20% of the purchase price and an instalment note for the balance. The note would require quarterly fixed principal payments (plus interest) starting October 1, 2020, for a period of two years. M&B has a proposal from its bank for an instalment loan for two years that requires a fixed blended monthly payment (includ

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    390 views21 pages

    Canadian Entrepreneurship & Small Business Management: Balderson and Mombourquette

    Uploaded by

    Rishab Joshi
    M&B Tooling Ltd. is assessing two available options for the purchase of new equipment with a negotiated cash price of $100,000. The manufacturer is willing to accept a down payment of 20% of the purchase price and an instalment note for the balance. The note would require quarterly fixed principal payments (plus interest) starting October 1, 2020, for a period of two years. M&B has a proposal from its bank for an instalment loan for two years that requires a fixed blended monthly payment (includ

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 21

    Balderson and Mombourquette,

    Canadian Entrepreneurship & Small Business Management,


    10th Edition

    Presentation prepared by:

    Peter Mombourquette of
    Mount Saint Vincent
    University
    CHAPTER 8
    MANAGING THE MARKETING MIX

    Copyright © 2017 McGraw-Hill Education Ltd. 2


    Learning Objectives
    LO1 Recognize the importance of the marketing mix.
    LO2 Explain how products are created.
    LO3 Discuss the three methods of setting price.
    LO4 Explain the different pricing strategies employed by
    small and medium businesses.
    LO5 Identify the major elements in a promotional
    campaign.
    LO6 Compare and contrast the different promotional
    tools.
    LO7 Discuss the difference in marketing to consumers
    compared with marketing to businesses.

    Copyright © 2017 McGraw-Hill Education Ltd. 3


    The Role of the Marketing Mix in Small
    Business
    A good marketing mix will create value and long-term
    relationships with target customers and distinguish a
    business from its competitors.

    Copyright © 2017 McGraw-Hill Education Ltd.


    4
    Developing the Product or Service
    ◦ Develop Product or Service Policies
    ◦ Decide How the Product Will Be Manufactured
    ◦ Understand the Product Life Cycle
    ◦ Determine Factors That May Accelerate Product or
    Service Adoption

    Copyright © 2017 McGraw-Hill Education Ltd.


    5
    Product Life Cycle

    Copyright © 2017 McGraw-Hill Education Ltd. 6


    Developing the Product or Service
    Determining Factors That May Accelerate Product
    or Service Adoption
    ◦ Relative Advantage
    ◦ Complexity
    ◦ Divisibility
    ◦ Communicability of Results

    Copyright © 2017 McGraw-Hill Education Ltd.


    7
    Developing the Product or Service
    Understanding How the Customer Classifies the
    Product or Service
    ◦ Convenience products
    ◦ Shopping products
    ◦ Specialty products

    Copyright © 2017 McGraw-Hill Education Ltd.


    8
    Developing the Distribution System
    Channel Options
    ◦ Manufacturer to Consumer (Short-Direct Channel)
    ◦ Manufacturer to Wholesaler/Retailer to Consumer (Long-
    Indirect Channel)
    Channel Length
    Channel Intensity
    Multi-Level Marketing

    Copyright © 2017 McGraw-Hill Education Ltd.


    9
    Methods of Setting Price
    ◦ Cost-Based Pricing – Once the cost is determine a
    percentage markup is added to reflect the profit
    objective of the firm.

    ◦ Demand-Based Pricing – Price takes into consideration


    consumer sensitivity to price.

    Copyright © 2017 McGraw-Hill Education Ltd.


    10
    Methods of Setting Price
    ◦ Competition-Based Pricing – firms take into
    consideration prices of competitors.

    ◦ Value-Based Pricing – price reflects the value of the


    entire purchasing experience

    Copyright © 2017 McGraw-Hill Education Ltd.


    11
    Promotion
    Steps in a Promotional Campaign
    1. Set Promotional Objectives
    2. Determine the Target of the Promotion
    3. Understand the Target’s Needs and Perceptions of the
    Product or Service
    4. Develop the Relevant Theme
    5. Determine the Method or Media to Use
    6. Develop a Specific Promotional Message

    Copyright © 2017 McGraw-Hill Education Ltd.


    12
    Promotion
    Steps in a Promotional Campaign (cont.)
    7. Set the Promotional Budget
    8. Implement the Promotional Program
    9. Evaluate the Effectiveness of the Promotion

    Copyright © 2017 McGraw-Hill Education Ltd.


    13
    Types of Promotion
    ◦ Advertising
    ◦ Advertising is a non-personal form of promotion. It is
    directed at a mass audience through various forms of
    media such as television, radio, newspapers, magazines,
    billboards, the Internet, and direct mail
    ◦ Sales Promotions
    ◦ Sales promotions are also non-personal forms of
    promotion, but they are directed at a much more
    restricted audience than is advertising

    Copyright © 2017 McGraw-Hill Education Ltd.


    14
    Types of Promotion
    ◦ Personal Selling
    ◦ Short distribution channel
    ◦ Traditional Promotional Methods
    ◦ Direct Mail
    ◦ Telephone Directories
    ◦ Newspapers/Magazines
    ◦ Radio
    ◦ Television

    Copyright © 2017 McGraw-Hill Education Ltd.


    15
    Types of Promotion

    Non-traditional Promotional Methods


    ◦ Non-traditional promotional methods can be defined as
    pursuing traditional business goals of sales and profits
    through non-conventional means.
    ◦ Guerrilla Marketing – development of creative, catchy and
    low cost methods to attract attention and grow sales.
    ◦ Public Relations - is defined as generating positive
    awareness of your company.

    Copyright © 2017 McGraw-Hill Education Ltd.


    16
    Internet Marketing
    ◦ Company Web Pages
    ◦ Search Engine Optimization (SEO)
    ◦ Pay-Per Click Advertising (PPC)
    ◦ Online Newsletter
    ◦ Direct Email to Customers
    ◦ Banner Advertisements
    ◦ Affiliate Programs
    ◦ Online Classified Advertising Sites

    Copyright © 2017 McGraw-Hill Education Ltd.


    17
    Internet Marketing (cont.)
    ◦ Online Auction Sites
    ◦ Gamification
    ◦ Online Games
    ◦ Podcasts
    ◦ Webinars

    Copyright © 2017 McGraw-Hill Education Ltd.


    18
    Internet Marketing (cont.)
    ◦ Photo Sharing Sites (Pinterest, Instagram, and Flickr)
    ◦ Video Sharing Sites (YouTube, Vine)
    ◦ Mobile Marketing
    ◦ Apps or Application
    ◦ Text/SMS Messages
    ◦ QR Codes
    ◦ Proximity/Location-Based Marketing

    Copyright © 2017 McGraw-Hill Education Ltd.


    19
    Social Networking
    Social networking sites are online communities where people
    can meet new people, talk to current friends, and build their
    networks. Examples include:
    ◦ Facebook
    ◦ LinkedIn
    ◦ Foursquare
    ◦ Twitter/Tumblr/Online Blogs

    Copyright © 2017 McGraw-Hill Education Ltd.


    20
    Concept Checks
    1. Why is the marketing mix important?
    2. Discuss the important elements in developing a product or
    service
    3. Explain the product life cycle
    4. What are the methods of setting price
    5. List the steps in a promotional campaign
    6. Describe what the term ‘Non-traditional Promotional
    Methods’ means

    Copyright © 2017 McGraw-Hill Education Ltd.


    21

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