978-0134741086 Chapter 9 Part 2

 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.

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)

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

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

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