Unlock document.
This document is partially blurred.
Unlock all pages and 1 million more documents.
Get Access
Retain Existing Customers.
Devotion to Quality.
2. Work with a team of your classmates to select a local business that has no social
media presence and develop a plan to boost its visibility, sales, and profits with a
3. Identify at least three additional bootstrap marketing strategies discussed in this
chapter that Victory Auto can use to increase it visibility, sales, and profits. Explain
how the company should implement each one. (LO 4) (AACSB: Application of
knowledge)
You Be the Consultant: “The Impact of Second-Mile
Service”
1. What impact has Chick-fil-A’s strategy of providing superior customer service
had on the company’s success? (LO 4) (AACSB: Reflective thinking)
2. Chick-fil-A does not compete with its rivals using low prices. What lessons can
other small businesses learn from Chick-fil-A about the relationship between prices
and customer service? (LO 4) (AACSB: Reflective thinking)
3. What advice would you give to one of Chick-fil-A’s competitors to try to match
Chick-fil-A’s customer service? (LO 4) (AACSB: Reflective thinking)
4. Choose a fast-food restaurant that you frequent and identify steps it would need
9-1. Define marketing plan. What lies at the center of a marketing plan? (LO 1)
(AACSB: Reflective thinking)
9-2. What objectives should a marketing plan accomplish? (LO 1) (AACSB:
Reflective thinking)
9-3. How can market research benefit entrepreneurs as their businesses grow?
(LO 3) (AACSB: Reflective thinking)
9-4. List some possible sources of market information for an entrepreneur. (LO 3)
(AACSB: Reflective thinking)
Individualized (one-to-one) marketing is a system based on gathering data on individual
customers and developing a marketing program designed to appeal specifically to their
needs, tastes, and preferences.
Customer surveys and questionnaires
Market research
Articles
Local data
9-5. Explain why market research does not have to be expensive and sophisticated to
be valuable. (LO 3) (AACSB: Reflective thinking)
For most business owners, information is often floating around. It is a matter of collecting
and organizing the data to make it valuable.
Copyright © 2019 Pearson Education, Inc.
Chapter 9, Page 150
Then the entrepreneur should list the major trends they have identified and briefly
describe how well their products or services match these trends. Market research is
the answer.
9-6. Describe several trends that are driving markets today and their impact on
small businesses. (LO 3) (AACSB: Application of knowledge)
Students’ answers may vary but the following may be trends they mention:
Increasing population diversity offers special challenges and opportunities to
9-7. Why is it important for small business owners to define their target markets
as part of their marketing strategies? (LO 2) (AACSB: Analytical thinking)
9-8. What is a competitive advantage? (LO 4) (AACSB: Reflective thinking)
9-9. Describe how a small business owner could use finding a niche and fill it for a
competitive advantage. (LO 4) (AACSB: Reflective thinking)
9-10. Describe how a small business owner could use the power of publicity for a
competitive advantage. (LO 4) (AACSB: Reflective thinking)
Publicity is any commercial news covered by the media that boosts sales but for which a
9-11. Describe how a small business owner could use entertaining instead of just
selling for a competitive advantage. (LO 4) (AACSB: Reflective thinking)
9-12. Describe how a small business owner could use striving to be unique for a
9-13. Describe how a small business owner could use building a community of
customers for a competitive advantage. (LO 4) (AACSB: Reflective thinking)
9-14. Describe how a small business owner could use connecting with customers at
an emotional level for a competitive advantage. (LO 4) (AACSB: Reflective
thinking)
9-15. Describe how a small business owner could use creating an identity for the
business through branding for a competitive advantage. (LO 4) (AACSB: Reflective
9-16. Describe how a small business owner could use social marketing for a
competitive advantage. (LO 4) (AACSB: Reflective Thinking)
Copyright © 2019 Pearson Education, Inc.
Chapter 9, Page 152
Businesses recognize that many of their current and potential customers use social
networking sites and are reaching out to them with social marketing efforts. Three of the
most popular are LinkedIn, Facebook, and Twitter. Refer to Figure 9.3 Social Media
Entrepreneurs Use as Marketing Tools, and Figure 89.4 Benefits of Social Media
Marketing.
9-17. Describe how a small business owner could use dedication for service and
customer satisfaction for a competitive advantage. (LO 4) (AACSB: Reflective
Thinking)
Tips include: consistently track all social media; respond and take responsibility; the
9-18. Describe how a small business owner could use retaining existing customers for
a competitive advantage. (LO 4) (AACSB: Reflective Thinking)
The goal is to form loyal, long-term relationships. Retaining these customers may be the
9-19. Describe how a small business owner could use devotion to quality for a
competitive advantage. (LO 4) (AACSB: Reflective Thinking)
Quality goods and services are a prerequisite for survival. Total quality management
(TQM) is the philosophy of producing a high-quality product or service and achieving
Copyright © 2019 Pearson Education, Inc.
Chapter 9, Page 153
quality work; develop a company-wide strategy for constant improvement; back up the
quality pledge with a guarantee.
9-20. Describe how a small business owner could use paying attention to
convenience for a competitive advantage. (LO 4) (AACSB: Reflective Thinking)
Studies show that customers rank convenience at the top of their purchasing criteria.
Successful companies must show that it is easy for customers to do business with them.
9-21. Describe how a small business owner could use concentrating on innovation
for a competitive advantage. (LO 4) (AACSB: Reflective Thinking)
9-22. Describe how a small business owner could use an emphasis on speed for a
competitive advantage. (LO 4) (AACSB: Reflective Thinking)
Technology, particularly the Internet, has changed the pace of business. To be
competitive companies must reduce the time it takes to develop, design, manufacture, and
9-23. One experienced entrepreneur says that when a company provides great
service, its reputation benefits from a stronger emotional connection with its
customers, as well as from increased confidence that it will stand behind its
Copyright © 2019 Pearson Education, Inc.
Chapter 9, Page 154
Students’ answers may vary. While you can expect many to agree with the statement,
others may disagree because other competitive advantage aspects are more important to
them. For example, some students may say they value convenience and speed over great
service.
9-24. Describe a positive service experience you have had with a company and your
9-25. What are the implications of a company providing poor customer service?
9-26. Describe a negative service experience you have had with a company and your
likeliness of doing business with that company in the future. (LO 4) (AACSB:
Application of knowledge)
Expect students to realize that, in most cases, great service experience creates a bond and
9-27. With a 70 percent customer retention rate (average for most U.S. firms,
according to the American Management Association), every $1 million of sales will
grow to more than $4 million in 10 years. If you retain 80 percent of your
customers, the $1 million will grow to a little over $6 million. If you can keep 90
percent of your customers, that $1 million will grow to more than $9.5 million.
What can the typical small business do to increase its customer retention rate?
(LO 4) (AACSB: Application of knowledge)
Part 5: Case Studies
The following text cases may be used for lecture and assignments for topics presented in
this chapter.
Case 1: United Apparel Liquidators
Case 8: Gitman Brothers
Case 10: Nuts.com
Part 6: Online Videos and Podcasts
These online videos may enhance class discussion and provide additional insight for the
chapter topics. Inform your students that another term for bootstrap marketing is “guerilla
marketing. Also search for videos on “marketing plan” and other chapter related terms.
Search Engine Marketing on a Bootstrap Budget 29:56 minutes
http://www.youtube.com/watch?v=TVl323v4O_Y
How to Write a Strategic Marketing Plan 5:38 minutes
http://www.youtube.com/watch?v=-ul65NjOMzo
Target Marketing: 10 Questions to Find Your Perfect Customer 5:42 minutes
http://www.youtube.com/watch?v=WlprJhqM4zI
Your Target Market: How to Find It 2:16 minutes
http://www.youtube.com/watch?v=Y8aRzL_gkRY
Guerrilla Marketing 2:07 minutes
http://www.youtube.com/watch?v=_5D52OB84Gw
Guerrilla Marketing Ideas for Any Business 8:58 minutes
http://www.youtube.com/watch?v=ZdtC0VeH5OI
Guerrilla Marketing Example – Fast Lane 1:42 minutes
http://www.youtube.com/watch?v=98EJx7OKqLI
Guerilla Marketing Example – Coca-Cola Happiness Machine 2:03 minutes
http://www.youtube.com/watch?v=qMOuF8oskRU
Launching a New Product 2:23 minutes
http://smallbiztrends.com/2009/12/launching-a-new-product.html
Strategies for Growth: Marketing Advice from an Expert 6:58 minutes
http://www.sba.gov/tools/sba-learning-center/video/strategies-growth-marketing-
advice-expert
The Simple Truths of Service 2:00 minutes
http://www.stservicemovie.com/
Links to additional online resources are available on the companion Web site at
