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-It is defined as some fraction or portion of the overall market. -Defining the target market is a logical process: •It starts with an understanding of who the customers are •It drives their desire to buy a product or service. The market can be segmented using a variety of criteria. -Demographics- which refers to age, gender, ethnic background, household income, and number of children•Advantages and Disadvantages•Sales promotion alternatives
•4-3i Marketing Collateral•The term refers to a company’s communications material that can be physically distributed and left behind. Includes such items as brochures, handbills, and business cards•4-3l Signage•Signage at the business location is vital when the location of a business is important to the business’s success. The size, color, and design of the company’s signs communicate a first impression of the business and its product. Point-of-sale (POS) displays are used by businesses whose products are sold through retail outlets. •Differentiating StrategiesCost/price leadership strategyQuality leadership strategyNiche strategy•Advantages and Disadvantages•Sales promotion alternatives•The Five Components ofRevenue Strategy •What Is Revenue Strategy?–Three rules for success:•Focus on the customer•Keep turnaround times short•Always give the customer what they want•How to develop a sustainable competitive advantage (SCA)•Study what competitors are offering to the market and attacking that market with a differentiated offering.
•Use trademarks, copyrights, patents and trade secrets.•Defend with SCA by legal means•Constantly improve and introduce new and complementary products and conduct ongoing market research and analysis.•Analyze consumer behavior and projections about future tastes and buying habits. •Marketing–The extent and amount of marketing conducted by a company—function of its budget. •In the early phases of a business, marketing budgets are usually limited. To maximize revenue:–Target a market–Develop a persuasive message–Use communication channels that routinely reach the target market. –Leverage contacts to generate low-cost marketing opportunities. –Observe the competition closely. •Sales•Selling is directly related to a company’s revenue. –Inside sales—employed by the company (usually). •Salespeople can be an expensive investment. •Guidelines for entrepreneurs to follow: –Remember sales compensation is for employees responsible for persuading the customer to act. –Realize that the company is going to change as it grows and compensation has to change as well. –Understand difference between sales compensation and total compensation which includes: salary, commission, expenses, benefits, contests, and recognition•Sales•The role of salespeople is to adapt the marketing message to individual customer’s needs:–Adaptive selling technique