This article discusses and talks about the small business and how they are a part of the big business industry. They are very important part to get everything going in order. Also they make up the majority of all businesses. “Businesses with fewer than 100 employees account for 98 percent of all companies in the United States” (Davis, 2012) This article goes into detail about situations and real life things that businesses have done when it comes to small customers and small business decisions. The small business is what everyone wants because it is usually successful but much harder than people anticipate at first. “small business is big business -- above all, because small companies can often be targeted, profitably served, and retained without the discounting that large corporations demand”(Davis2012) This article also talks about the where profits are , how to make profits, targeting the customers and partnerships and alliances between businesses. This article does a very good job of giving examples to demonstrate what it is talking about in the text when it goes into talking about each aspect of the article. I have analyzed some of the examples and topics that shows concepts or theories I have learned in class.
For one the frequent marketing program was displayed. Which is rewarding the purchasers with cash or incentives like rebates and premiums for purchasing. It says that one PC manufacturer tried to offer distributors money in hope that it would trickle down to resellers in the form of marketing incentives. This did not end up working because the at the end of the day the incentive was not big enough. This shows that the PC manufacturer was willing to give money to the distributors which are the original buyers to make more business. Which this worked for them at the top but it did not go so well when the money and incentives tried to trickle down to even make the resellers happy with the whole marketing process.
Another example in the article that I analyzed was when they talked about forming a partnership with business to be more successful. This would be relationship marketing because the credit card company and the package delivery give discounts to people with a certain credit card that ship and mail there stuff through the package delivery company. This is a Win-win situation for both of the companies because the package delivery company gets more business and the credit card holder is using the card more. This relationship between the companies will stay because it benefits them both and that is what the companies are looking for. Relationship marketing is developing relationships and maintaining long term, cost and effect exchange relationship with partners. So I think this example fits this concept perfectly.
Marketing Concept was demonstrated in this article too. One bank had a twenty-four hour automated telephone and PC interface service of its basic customers inquires and it greatly reduced their cost, but they also had the regular way of doing things. “The teller talking to you or a phone representative. The bank had already cut transaction expenses from $10 for a face-to-face encounter with a branch teller to $5 for a human response in a call center. By introducing on-line and automated telephone transactions, it brought the cost down even further, to 28 cents”. This quote proves that the changes made helped the company in the long run with making customers happy at their convenience and saved money for the bank. That is the whole point of marketing concept is to promote long run success with customer orientation.
Another thing that stood out to me was the article related a lot to marketing mix. Which are four strategies to fit the needs and preferences of a specific target market. The four strategies are Product strategy, Distribution strategy, Promotional strategy and Pricing strategy. The article…