Term Paper On Major Marketing Concepts And Its Importance For The Success Of A Small Business

Abstract

This report focuses on the capability of marketing for small companies or businesses. This report consists of definitions for an explanation of the marketing concepts and its benefits for the small business. The central question which covered in this report is that what wonders the process of marketing carries to take the business to the higher level of success. The example taken in this report is a small business of gifts services running in Los Angeles. The covered points include the relationship between of marketing and a small business or a start-up company, the major marketing concepts that can be suitable and beneficial for a small business, and the conclusion that how the process of marketing contributes to the small business. There are different papers examined in this report to reach to the end idea. It identifies and explains the processes of running a gifts services business with its marketing efforts and its effectiveness.

Keywords: Small business, customers, marketing concept, business success, gift service, Christmas gifts.

The Importance of Major Marketing Concepts to the Success of the Small Business

Discussion

Businesses run for profits for sure, but it’s not an easy task to accomplish. To make it easy special science is used that is known as Marketing. Any type of business whether selling goods or services, manufacturing goods or coming with an idea are not enough. Marketing has enormous importance to the success of a business. Marketing is the set activities, set of processes, and institutions to create, communicate, deliver, and exchange goods and services that have value for customers, community, or society at large scale. According to Melanie (2016), marketing is a process that can turn a business into something greater by helping the business to achieve its goals and targets.

Many studies related to the importance of marketing have conducted that shows the positive impact of marking on business. It identifies that for the success of a business process of marketing carries significance. But for small or startup business ideas raise many questions that include is marketing is essential for small business? How much importance that carries? What should be the process? What concepts should use?

Small business is less budgeted and with limited resources. Therefore, a practical and customized marketing plan should be made by understanding its importance and concepts. In this report to identify the significance of marketing concepts for the success of a small business, we take an example of a small business of gifts services in Los Angeles that mainly work in “Christmas gifts”. An exclusive gifts services business is a small business that delivers and arranges Christmas gifts and surprises on orders. This business started with very less investment; it has fewer resources with limited employees and budget. What concepts of marketing can be beneficial for this business? These points are the primary focus of this report to clarify the importance of marketing for small business.

Small Business And Marketing

Small business is a one that either started with a meager budget and fewer resources or wants to grow over time. If considering marketing, processes then marketing is the backbone of any business whether its services providers or manufactures. It’s necessary to develop the reasonable conceptual model of marketing in this technical business environment. There are some difficulties in marketing for small businesses that include less budge. Marketing is a process comprises communication, activities, interaction, and feedback which takes an enormous amount of affords and finance. Marketing for small business creates an innovative mechanism because it will customize due to smaller in size with limited resources. The customized activities that have the flexibility to change business condition with suitable and limited marketing tools are needed the most (Borzakovska, 2013).

A company in Los Angeles provides services for delivering Christmas gifts on customers’ orders. As they knew they are smaller in size, they hired a marketing consultant taking in the view that how much marketing is necessary for their business. According to Severian & Roxana (2013), the small business operates informally because of its inaccessible resources than a large enterprise that makes the process of achieving goals easy. The marketing consultant focused on a related study made a marketing plan that was convenient to pursue. A Christmas gifts services business has flexible management and fewer budgets with this they also wanted to create a dynamic relationship with customers. But, the marketing consultant failed to focus on all the needs of the time.

Therefore, Christmas gifts services business employed the services of another marketing consultant to identify the gap of their success, and the factors on the previous basis consultant failed to develop a successful marketing plan with the help of suitable marketing concepts. An analysis of the marketing capability of a small business can base on two rules that include, (1) in small businesses, marketing can consider as the central problem area in their management, (2) In small businesses, the scope of the marketing is mainly misunderstood by considering marketing as an operational and sale increasing tool (Kristian & Mai 2008). The same misunderstanding occurred in a gift delivery services business. The consultant focused on the sale oriented marketing or involved marketing process in operational processes that leads to the failed marketing plan. That was recognized when the second consultant took charge and identifies these factors that analysis of marketing capability misunderstood completely.

The Major Marketing Concepts Lead To Success

The belief that every type of business should assess the needs of the customers or prioritize customers is called the marketing concept of any firm. According to those needs, a business takes decisions to satisfy their customers more appropriately than their competitors. Firms that belief customers are the driving force of business have more chance to be successful because customer’s satisfaction scale can predict a business’s future.

Therefore, for small business, it is necessary to incorporate the marketing concept. For that small business should know that who are our customers and what are their needs and wants? For small businesses, marketing concepts and framework should be personalized because of its size and limited recourses (Kumar, 2014).

The Marketing Concept for a Gift Service Business

A Christmas gifts delivery service business in Los Angeles focused on the marketing concept that helps to achieve their goals and targets. After realizing that hired marketing consultant is failed to develop a marketing plan, they go to another consultant that focuses on the reasons why they failed and what concepts should be used by a gift service small business. The new consultant declares that emphasizing on customer relationship is the most appropriate strategy they can handle. For developing a better relationship with customers, it is necessary to define the needs and wants of their customers. The new consultant identified that as it is a services related business, communication with customers is essential. They should acknowledge the customer’s needs and use it as the force that takes them towards specific product and services.

As Christmas gifts services business desperately wanted to increase its customers base, the new consultant identifies the factors that can help a small business like a gift service to understand and apply the major marketing concept that is mention below:

Target Market. For a small business, it is necessary to identify the target market. A gift services business should focus on the group of customers who can purchase their services. There are many factors on which target market relay that includes demographics, lifestyle characteristics, and behavioral pattern. This process enables Christmas gifts services business to direct its recourses to the high potential customers for sale growth, loyalty, and interest in the services.

Identify Needs And Wants. It is important to identify the needs and wants of the customers to increase the customer base. Mainly they need a good quality of a gift and delivery on time.

Creating Product Or Services According To Customers’ Needs. Christmas gifts services business should deliver their services to the customer according to their expectations. It’s the biggest challenge for them. Through product marketing by promotion, PR, social media marketing, they can announce the benefits of their gift services and can get feedback from a customer at the same time (Douglas, 2012).

Customer satisfaction. The steps as mentioned earlier lead to the customer satisfaction which is the most important key for the success of any business. The key objective of a gift services company is to satisfy their customers. It is a fact positive word of mouth can affect your business mainly for small business because for them customers satisfaction is the most beneficial marketing technique. According to a book Legal Guide for Starting & Running a Small Business, a happy customer comes back and also sends other people to have the same product or service (Fred, 2017).

Making A Profit. Christmas gifts services business should also focus on profit. The challenge is to accomplish all of these above steps while earning a profit because the success of a business can be visible by the growth in profit.

Conclusion

This report concludes that major marketing concepts are very important for small business success. It is necessary for a business to understand and apply the marketing concepts according to their business type, size, and product or service. The steps which are involved in marketing concepts enable a business to create activities, communicate with customers, delivers customer value, and exchange goods and services. By understanding and applying the marketing concepts, a business can achieve a good relationship with customers that directly lead to the business success.

References:

Borzakovska, L. V. (2013). The concept of holistic marketing: the essence and the theoretical basis. Marketing and Management of Innovations, 2, 85-94.
Douglas,B. (2012). Strategic marketing concepts and models. Journal of Marketing Management. 1(2), 157-194.
Fred, S. S. (2017). Legal Guide for Starting & Running a Small Business (15th ed.). Berkeley, California: NOLO.
Kristian, M., Mai, A. (2008). Marketing capability–a key success factor in small business?. Journal of Marketing Management. 3(2), 185-203.
Kumar, S. D. (2014). Marketing: concepts and framework. Journal of Productivity, 54(4), 370-377.
Melanie, D. (2016). The art of marketing. Business in Calgary, 26(5), 42-46.
Severian, V. I., Roxana, M. (2013). Meanings of small business and its management. Journal of Engineering Studies & Research, 19(4), 34-42.