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1- Definition of Guerilla marketing plan ch 8

Are unconventional, low-cost, and creative marketing techniques that allow a small
enterprise to realize a greater return from its marketing investment than larger rivals.

 Do not require large amounts of money to be effective – just creativity.

2- Guerrilla Marketing Principles ch 8

I. Create an identity for your business through branding.
II. Embrace social networking.
III. Start a Social media too
IV. Create online videos.
V. Focus on the customer.
VI. Be devoted to quality.
VII. Pay attention to convenience.
VIII. Concentrate on innovation.
IX. Be dedicated to service and customer satisfaction.
X. Emphasis to Speed

3- The Marketing Mix & the product life cycle

The marketing mix is a business tool used in marketing and by marketers. The marketing mix is
often crucial when determining a product or brand's offer, and is often associated with the four
Ps: price, product, promotion, and place.
PLACE
P

PROMOTION

Stages in the Product Life Cycle

 Introductory stage
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 Growth and acceptance stage

 Maturity and competition stage

 Market saturation stage

 Product decline stage

4- 10 Myths of E-Commerce CH9:

Myth 1: Online customers are easy to please.

Myth 2: If I launch a site, customers will flock to it.

Myth 3: Making money on the Web is easy.

Myth 4: Privacy is not an important issue.

Myth 5: The most important part of an e-commerce effort is technology.

Myth 6: I don’t need a strategy to sell online.

Myth 7:Customer service is not important.

Myth 8: Flashy Web sites are better than simple ones.

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Myth 9: It’s what’s up front that counts.

Myth 10: Its too late to get on the Web.

5- Search Engine Strategies

 Natural (organic) Listings –
Arise as a result of “spiders,” powerful programs search engines use to crawl around the Web.

 Paid (sponsored) Listings –

Short text ads with links to the sponsoring company’s Web site.

 Paid Inclusion –
When a company pays a search engine for the right to submit either selected pages or its entire
Web site content for listing.

6- Basic strategies of introducing a new product to the market ch10

Three Goals:
1. Getting the product accepted
 Revolutionary products
 Evolutionary products
 Me-too products
2. Maintaining market share as competition grows
3. Earning a profit

3 Basic Strategies:
 Market penetration
 Skimming
 Life Cycle Pricing
7- Pricing techniques ch 10:
 A pricing technique in which a company sets different prices on the same products and
services for different customers using the information that it collects about its
customers.

1. Odd pricing (Psychological pricing )

2. Price lining ( Hyundai )

3. Leader pricing ( Market attack low or zero profit )

4. Discounts (Markdowns)
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5. Bundling (Combos or computer sets )

6. Optional-product pricing ( Cameras + Bag + Tripod )

7. Captive product pricing ( Gillett Fusion+ Razors )

8. Byproduct pricing ( Low value products : Used Banners )

9. Suggested retail prices ( Best buy for X $ )

8- Steps for creating financial statements ch 11:

Det erm ine Your Curr ent Fina ncia l S itua tion

Ree valua te and R ev ise Your Plan D eve lop Fin ancia l Goa ls

Cre ate and Imple ment a Financial Ac tion P lan Ide ntify Alter native Course s of A ction

Eva lua te Altern ative s

1- Determine Your Current Financial Situation

2- Develop Financial Goals

3- Identify Alternative Courses of Action

4- Evaluate Alternatives

5- Create and Implement a Financial Action Plan

6- Reevaluate and Revise Your Plan

9- How lenders view liquidity & leverage ch 11

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How Lenders View Liquidity and Leverage
Liquidity
Low If chronic, this is often evidence of
mismanagement. It is a sign that the owner has
not planned for the company's working capital
needs. In most businesses characterized by low
liquidity, there is usually no financial plan. This
situation is often associated with last minute or
"Friday night" financing.
Average This is an indication of good management. The
company is using its current assets wisely and
productively. Although they may not be
impressed, lenders feel comfortable making
loans to companies with adequate liquidity.
High Some lenders look for this because it indicates a
most conservative company. However,
companies that constantly operate this way
usually are forgoing growth opportunities
because they are not making the most of their
assets.
10- Location criteria for retail & services ch 14
1. Trade area size – the region from which a business can expect to draw customers
2. Retail compatibility
3. Degree of competition
Leverage
This is a very conservative position. With this kind of
leverage, lenders are likely to lend money to satisfy a
company's capital needs. Owners in this position
should have no trouble borrowing money.
If a company's leverage is comparable to that of other
businesses of similar size in the same industry, lenders
are comfortable making loans. The company is not
overburdened with debt and is demonstrating its
ability to use its resources to grow.
Businesses that carry excessive levels of debt scare
most lenders off. Companies in this position normally
will have difficult time borrowing money unless they
can show lenders good reasons for making loans.
Owners of these companies must be prepared to sell
lenders on their ability to repay.
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4. Index of retail saturation (IRS)

5. Laws in the region

C x RE

6.
7.
8.
Transportation network
RF
Physical and psychological barriers
Customer traffic
9. Adequate parking
10.
11.
Reputation
Visibility
Where:
C = Number of
11-Retail & Service Location customers Options chin 14
1. Central Business Districts (CBDs)
2. Neighborhood locations
the trading
3. Shopping centers and malls area
 Theme or festival centers

RE = Retail
o Employ a unifying theme, often involving entertainment, to attract tourists.
 Outlet centers

prices; usually followsexpenditures

o Feature manufacturers’ and retailers’ outlet stores selling name-brand goods at discount
“open air” design.

o Located near affluentequals the designed to look more like a central

 Lifestyle centers
residential neighborhoods;

average
business district than a shopping center or mall.

expenditure
 Regional shopping malls

 50 to 100 stores; anchor is one or more major department stores; draws customers
per
from a large trading area, oftenperson for
5 to 15 miles or more.

 Super-regional shopping mallsthe product in

 Similar to a regional mall but the trading

bigger; trading area is 25 miles or more in all directions.

 Examples
area
RF = Retail
facilities = the
 total square
feet of
selling space
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allocated to
 Mall of America (Bloomington, MN), the largest mall in the U.S.

the product in
West Edmonton Mall (West Edmonton, Canada), the largest mall in North America

12-Retail and Service Location

1. Near competitors
the trading
Options ch 14

2. Inside large retail store area

3. Outlying areas
4. Home-based businesses
13- Manufacturing Locations ch 14
1. Foreign trade zones
2. Empowerment zones
3. Business incubators:
Organizations that combine low-cost, flexible rental space with a multitude of support services
for their small business residents

14- Nine Strategies for Going Global ch 15

1. Create a presence on the Web

2. Trade Intermediaries:

Domestic agencies that serve as distributors in foreign countries for companies of all sizes.

Types of intermediaries:
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a. Export Management Companies (EMCs)

b. Export Trading Companies (ETCs)
c. Manufacturer’s Export Agents (MEAs)
d. Export merchants
e. Resident buying offices
f. Foreign distributors

3- Joint Ventures:
a. Domestic joint venture
b. Foreign joint venture
4- International Franchising

To expand internationally, franchisers should:

a. Identify the country or countries that are best suited to the franchiser’s business
concept.
b. Generate leads for potential franchisees.
c. Select quality candidates.
d. Structure the franchise deal.

Direct franchising

Area development

Master franchising

5- Exporting

Steps to Successful Exporting

1. Recognize that even the tiniest companies and least experienced entrepreneurs have the
potential to export.
2. Analyze your product or service.
3. Analyze your commitment to developing export markets.
4. Research potential markets and pick your target.
5- Develop a distribution strategy.
6. Find your customer.
 U.S. Department of Commerce
 International Trade Administration
7. Find financing for export sales.
8. Ship your goods.
9. Collect your money.

6- Importing or Outsourcing
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15- Barriers To International Trade ch 15

1. Tariff – A tax a government imposes on goods and services imported into that country.

2. Nontariff barriers – Governments that protect domestic industries

3. Quotas - Limits on the amount of a product imported into a country.

4. Currency ???

5. Import or Export Problems

6. Embargo - Total ban on imports of certain products.

7. Dumping - Selling large quantities of a product in a foreign country below cost to gain market
share.

8. Smuggling ????

9. Political barriers - Rules, regulations and political risks.

10. Business barriers – Different cost structures and business practices.

11. Cultural barriers - Differing languages, philosophies, traditions, and accepted practices.

16- Guidelines For Success In International Markets ch15

1. Take time to learn before jumping in.

2. Seek out assistance from professionals.

3. Make yourself at home in all three of the world’s key markets - North America, Europe, and Asia.

4. Appeal to the similarities in the various regions and recognize the differences in local cultures.

5. Develop new products for the world market.

6. Learn foreign customs and languages.

7. “Globalize” - make global decisions about products, markets, and management and allow local
employees to make tactical decisions.

8. Recruit and retain multicultural workers.

9. Train employees to think globally.

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10. Hire local managers to staff foreign offices and branches.

11. Do whatever seems best wherever it seems best.

12. Consider using partners and joint ventures to break into foreign markets

17- Leadership characteristics ch16

 Innovative
 Passionate
 Willing to take risks
 Adaptable
 Create a set of values and beliefs for employees and passionately pursue them.
 Establish a culture of ethics.
 Define and then constantly reinforce the vision they have for the company.
 Respect and support their employees.
 Set the example for their employees.
 Create a climate of trust in the organization.
 Build credibility with their employees.
 Focus employees’ efforts on challenging and driving toward those goals.
 Provide the resources employees need to achieve their goals.
 Listen to their employees and Value the diversity of their workers.
 Celebrate their workers’ successes who are willing to take risks.
 Encourage creativity among their workers.
 Maintain a sense of humor.
 Create an environment in which people have the motivation, the training, and the freedom to
achieve the goals they have set.
 Create a work climate that encourages maximum performance.
 Become a catalyst for change when change is needed.
 Keep their eyes on the horizon.

18- Conducting a Job Analysis ch16

 Create a job description - a written statement of the duties, responsibilities, reporting
relationships, working conditions, and materials and equipment used in a job.

Handy tool: Dictionary of Occupational Titles

 Create a job specification - written statement of the qualifications and characteristics needed for
a job, stated in terms such as education, skills, and experience.

19- Planning an Effective Interview ch16

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 Involve others in the interview process.

 Develop a series of core questions and ask them of every job candidate.

 Ask open-ended questions rather than questions calling for “yes or no” answers.

 Create hypothetical situations candidates would encounter on the job and ask how they would
handle them.

20- Planning an Effective Interview ch16

 Break the ice.

o Goal: to diffuse nervous tension.

 Ask questions.

o Puzzle interviews.

o Remember the 25/75 Rule.

o Be respectful and keep it legal!

 Sell the candidate on the company.

Best candidates will have other job offers.
Your job: to convince the best candidates that your company is a great place to work.

21- Job Design Strategies

1- Job simplification - breaks work down into its simplest form and standardizes each task.

2- Job enlargement (horizontal job loading) - adds more tasks to a job to broaden its scope.

3- Job rotation - cross-trains workers so they can move from one job in a company to others,
giving them a greater number and variety of tasks to perform. Often used with a skill-based
pay system.