978-1259912191 Chapter 11 Solutions Manual Part 2

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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)

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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

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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

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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.

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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

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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

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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.

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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

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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

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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.