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Chapter Eleven: Marketing
Lecture Links
Lecture Link 11.1: Customer Relationship Management for the Entrepreneur
(LO 11-4)
The authors in the text discussed that sales management refers to the individuals who
build and maintain relationships with customers, as well as to the methods and means
by which they do this (text page 217). Entrepreneurs acquire the knowledge to maintain
an effective sales management reporting system.
Visit Salesforce.com’s Web-Based Customer Relationship Management System (CRM)
(CRM salesforce.com)i at http://www.salesforce.com/ and review the products and
services that enhance the sales management reporting system process.
Lecture Link 11.2: Clubs & Organizations Enhance Entrepreneurship
(LO 11-4)
The authors in the text discussed that mail-order catalogues are a distribution method
used by small business owners to promote their products or services. They mentioned
that the Sierra Club is an influential association for a new small business that endeavors
to acquire a mailing list of individuals or businesses that are acquainted with
environmental practices.
Visit the Sierra Club websiteii (Sierra Club Home Page) at http://www.sierraclub.org/
and review the activities at this organization. What other organizations can you think of
that have the potential to provide data to assist you at your new small business?
Lecture Link 11.3: Security, Privacy and the Entrepreneur
(LO 11-4)
The authors in the text discussed that ongoing disadvantages to a small business owner
are the incidents related to credit card sales, returns, and fraud. There are obvious
privacy issues and credit card fraud associated with this method of distribution.
Visit the Tips to Prevent Mail Fraud (Tips to prevent mail fraud)iii at the website
https://www.usps.com/publications/pub300a/pub300a-tech-001.htm. Discuss how a
new small business owner can reduce the risk of fraud at the new small business.Bonus
Internet Exercises
Bonus Internet Exercise 11.1: Internet-Based Marketing & Entrepreneurship
(LO 11-4)
IM 11-1
Copyright © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
Chapter Eleven: Marketing
This chapter revealed the concept that distribution channels are essential to the
entrepreneur. Internet-based marketing is a rapidly growing distribution channel. With
those thoughts in mind, perform a search using your favorite search engine for
internet-based marketing strategies. Review at least two different resources that a new
small business owner can consider to implement distribution strategies. Next, answer
the following questions.
1. What two internet-based marketing resources did you discover?
2. How can these resources assist a new small business owner?
3. Where have you observed these strategies utilized to meet the needs in a
specific industry?
4. Think of your new small business and summarize the internet-based marketing
strategy that you expect to be an effective resource in your new small
business.Bonus Internet Exercise 11.2: The ZOHO CRM Experience
(LO 11-1, 11-2, 11-3, 11-4)
In this chapter the authors discussed non-profit organizations as a type of business.
ZOHO CRM software can assist a business owner to organize sales strategies for a
new small business. It is a dynamic tool that can be used to manage the sales force,
lead generation and qualification, sales state and probability analysis (ZOHO
CRMOnline Salesforce Automation & Tracking Software)iv. Visit the ZOHO CRM website
at http://crm.zoho.com/crm and answer the following questions.
1. How can ZOHO CRM assist the new entrepreneur in their ongoing needs as they
relate to the customer life-cycle?
2. Describe how sales are tracked in this dynamic software program.
3. Would you consider using this software package to track and maintain the sales
at your business?
Bonus Internet Exercise 11.3: The Small Business of the Year Award
IM 11-2
Copyright © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
Chapter Eleven: Marketing
Every year the Small Business Administration nominates a Small Business Person of
the Year and a variety of other awards to promote and honor the small business and the
small business owner. Perform a search using your favorite search engine and visit the
Small Business Administration (SBA) in your area and nominate your favorite Small
Business Person of the Year.
1. Which small business in your area did you cast your vote for?
2. Why did you vote for that particular business? Be specific.
3. What other award nominations were there for this small business?
4. Do you believe that these nominations are a good form of publicity and
recognition for the new small business? Why or why not?
Critical Thinking Exercises
Critical Thinking Exercise 11.1: Develop Marketing Plans for the Small Business
(LO 11-1, 11-2)
As we know from the text, a new small business owner develops a marketing plan to
specify who the best customers are and how they might be attracted to the new small
business.
Consider that you are a new small business owner and you are in the development
process of your marketing plan.
1. Identify the location of the target market for your small business. What resources
will you use to develop this target market?
2. Identify your target customer population for your new small business. What
resources will you use to develop a target customer base?
3. Discuss the pricing strategies for your new small business. How will you price the
products and services at the new small business? Be specific.Critical Thinking
Exercise 11.1 Develop Marketing Plans for the Small Business - Notes
IM 11-3
Copyright © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
Chapter Eleven: Marketing
1. The student responses are expected to vary in this exercise. The purpose of this
lesson is to get the students to start the creation of a marketing plan for the new
small business. The students are expected to identify the target market and the
industry for the new small business.
2. The student responses are expected to vary in this exercise. The purpose of this
lesson is to get the students to identify their target customer associated with the
new small business. This element of the marketing plan specifically identifies the
potential clients to market the products and services to in the new small
business.
3. The student responses are expected to vary in this exercise. The purpose of this
lesson is to motivate the students to discuss how they will potentially price their
products and services.
Follow up questions for students:
1. In reference to defining the geographic area for the new small business, what
methods will you utilize to target the geographic area? What marketing tools will
you use to assure that this is an adequate target for the new small business?
2. What is the anticipated cost associated with targeting clients for the new small
business?
3. How will you obtain a competitive advantage in the marketplace? How will you
assure that your products or services are priced to maintain a sustainable
competitive advantage in the new small business?
Critical Thinking Exercise 11.2: Promoting the New Small Business
(LO 11-3)
As we learned in this chapter, promotion is the means by which we make our product or
service known to a potential customer.
IM 11-4
Copyright © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
Chapter Eleven: Marketing
List the three types of promotions and discuss the advantages and disadvantages
associated with each type of promotion. Next, provide three examples of each type of
promotion.
1. Pure promotions
2. Mixed-model promotions
3. Virtually Free Promotions
4. Which type of promotion do you expect to implement in your new small
business? Why?
Critical Thinking Exercise 11.2: Promoting the New Small Business - Notes
1. Pure promotions: Pure promotions are the most popular method of promoting
2. Mixed-model promotions: The mixed-promotion community support promotion
3. Virtually Free Promotions: Virtually free marketing promotions are also referred
4. Which type of promotion do you expect to implement in your new small
business? Why? The students are expected to discuss how they will implement
IM 11-5
Copyright © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
Chapter Eleven: Marketing
Critical Thinking Exercise 11.3: Sales Management at the New Business
(LO 11-4)
The authors in the text discussed that sales management refers to the individuals who
build and maintain relationships with customers, as well as to the methods and means
by which they do this. A new small business owner develops an effective sales
management system to ensure the business gains a competitive advantage in the
marketplace.
1. How will you design and maintain a sales management system for your new
small business? Be specific.
2. How will you forecast sales in your new small business? What are the methods
associated with forecasting sales at the business?
3. What method of distribution interests you? Which method would you consider
implementing at your new small business? Why?
4. What are the advantages of creating and maintaining an effective sales
management system to assure you have a sustainable competitive advantage in
the marketplace for the new small business?
Critical Thinking Exercise 11.3: Sales Management at the New Business - Notes
In this lesson, the students are encouraged to plan how they will design and maintain a
sales management system for their new small business. Students discuss the methods
associated with forecasting sales and describe which method might be effective to
implement in their new small businesses. The students will discuss methods of
distribution and choose the method that best suits their new small business. Next,
students discuss the advantages associated with the creation and maintenance of the
sales management systems.
Bonus Cases
Bonus Case 11.1: Marketing Strategies and the New Small Business
(LO 11-2)
The authors in the text discussed that pricing the new product or service at a new small
IM 11-6
Copyright © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
Chapter Eleven: Marketing
Go to www.pricingsolutions.com and answer the following:
Discussion Questions:
1. The site lists advice on avoiding a price war. What is a price war and what steps
does the author suggest?
2. What would happen to a company if it failed to evaluate its pricing model?
3. What are some examples of other pricing strategies that a company could
consider in order to remain competitive in the marketplace? Be specific.
4. In your opinion, are quantity discounts a good idea for a business owner to
consider in a pricing strategy? Why or why not?
Bonus Case 11.1: Marketing Strategies and the New Small Business
(LO 11-2) - Notes
Discussion Questions:
1. The site lists advice on avoiding a price war. What is a price war and what
steps do the authors suggest? The site suggests:
a. Be careful about misreading your competitors’ actions
b. Selectively communicate your strategy
c. Have good information about your customer’s level of price sensitivity
d. Be consistent in your response and move quickly
2. What would happen to a company if it failed to evaluate its pricing model?
3. What are some examples of other pricing strategies that a company could
consider in order to remain competitive in the marketplace? Be specific.
4. In your opinion, are quantity discounts a good idea for a business owner to
consider in a pricing strategy? Why or why not? Student responses will vary.
IM 11-7
Copyright © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
Chapter Eleven: Marketing
Discounts may be necessary depending on the strategies used by
competitorsBonus Case 11.2: Marketing Trends at Small Businesses
(LO 11-3)
The authors in the text discussed various methods that a business owner should
consider when implementing a marketing plan for the new small business. One
important consideration is the industry where the business competes. Is the business in
an isolated industry that has very little interaction with individuals and groups? Is the
business in an industry where there is excessive interaction with individuals and
groups?
It is important to observe the external environment where the firm competes. Why?
The trend to market to a social environment is not surprising when you consider the
amount of social media sources in the environment today.
1. What is your opinion of the marketing resources available in the social
environment today?
2. What is your opinion of the trends about social media? How do you feel about
word-of-mouth marketing? Do you believe it is an effective means of marketing a
product or service? Why or why not?
3. What marketing methods do you anticipate using when you establish your new
small business? Why?
Bonus Case 11.3: Promoting a Competitive Advantage at the New Small Business
(LO 11-2)
The authors in the text discussed promotion strategies including those strategies which
make a product or service known to a potential customer. A new small business can
consider creating an image that associates the business to a name, slogan, sign, or
other form of brand image that a potential customer can associate with the business.
The new business owner strives to maintain a sustainable competitive advantage for the
new small business.
A new business owner should establish methods to differentiate the business from
competitors in the marketplace. Business owners are encouraged to differentiate
themselves by utilizing three methods to determine a brand name. These methods
include “take inspiration and brainstorm”, “make your brand name memorable”, and
IM 11-8
Copyright © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
Chapter Eleven: Marketing
“make sure it matches your company’s missionv (Flandez, 2009)” What will you create
for your new small business?
1. Brainstorm and list at least six ideas that might differentiate your new small
business in the marketplace.
2. How can you make your brand name memorable to a potential consumer? Be
specific.
3. How do these ideas match the mission statement that you developed for your
new small business? Be specific.
4. How will you develop a brand image that contributes to your efforts to maintain a
sustainable competitive advantage in the marketplace?
Endnotes
IM 11-9
Copyright © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
iCRM-salesforce.com. http://www.salesforce.com/. Retrieved on February 11, 2015
iiSierra Club Home Page. (2015). http://www.sierraclub.org/. Retrieved on February 11, 2015.
iiiTips to Prevent Mail Fraud. PNC. https://www.pnc.com/webapp/unsec/ProductsAndService.do?
siteArea=/pnccorp/PNC/PNC+Security+Center/How+to+Prevent+Fraud/Fraud+Prevention+Tips+fo
r+Consumers/Tips+to+Prevent+Mail+Fraud. Retrieved on February 11, 2015
ivOnline Salesforce Automation & Tracking Software. Zoho CRM.
https://www.zoho.com/crm/sales-force-automation.html?src=zoho . Retrieved on February 11,
2105.
vFlandez, R. (September 18, 2009). Three best ways to create a brand name. The Wall Street
Journal Online. http://online.wsj.com/article/SB125328266881923153.html . Retrieved on October
30, 2009.
