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A Report On Production & Marketing strategy of small Business

Submitted By Group of
SL. No. 01. 02. 03. 04. 05. Name Md.Anisul Islam Syed Mazba Uddin Shiuly Sarkar Md. Arifur Rahman Mahtabul Alam ID 10335174 10335135 10335175 10335176 10335173

42nd Batch School of Business MBA program University of Information Technology & Sciences Chittagong

This term paper is submitted for the partial fulfillment of the requirement of MBA award

Date of Submission: September 08, 2011

A Report On Production & Marketing strategy of small Business

Course Title: Entrepreneurship Development

Submitted to
Rumana Tasrin Khanam Lecturer School of Business MBA program University of Information Technology & Sciences Chittagong.

Prepared by
SL. No. 01. 02. 03. 04. 05. Name Md.Anisul Islam Syed Mazba Uddin Shiuly Sarkar Md. Arifur Rahman Mahtabul Alam ID 10335174 10335135 10335175 10335176 10335173

42nd batch School of Business MBA program University of Information Technology & Sciences Chittagong

Date of Submission: September 08, 2011

Letter of Submission
Date September 08, 2011
To

Rumana Tasrin Khanam Lecturer School of Business MBA program University of Information Technology & Sciences
Khulshi, Chittagong. Subject: Submission of Term Paper on ” Production & Marketing strategy of small Business”

Dear Madam, This is the most excellent time when we have the overwhelming experience of submitting the term paper on “Production & Marketing strategy of small Business” as a requirement of RMBA Program. This report has been attempted to focus on the above mentioned topic exclusively which will give full fledged idea concerning the same. We have tried our best to gather relevant information for constructing a complete term paper as outlined. The preparation of this term paper enables us to a great extent to complement out the theoretical knowledge with practical analysis. We have tired to prepare this term paper with best of our skill to make it as sound to go through the accompanying term paper & evaluate it how far we have been successful in the endeavor. We should like to express our profound gratitude for your kind and conscious guidance in preparing our term paper in the given time. We sincerely believe that you will find this Study very interesting, informative and enlightening. Thank you very much for your kind co-operation. Sincerely,

Group members

It’s a great pleasure for us to work with the term paper based on a topic “Production & Marketing strategy of small Business” This is very much significant today. Shujon. sincerer application to our honorable teacher Rumana Tasrin Khanam whose massive support supervision and advice was support us in preparing this term paper than we should like to then the various authority to give us many information. we should like to offer a specials that thanks Mr.Acknowledgement At the very first we are expressing our gravitated to almighty Allah for whose kindness we are sound mentally and physically enough to prepare this term paper. We hope working on this topic will help us to gather various experience to practical field. Mr. Group members . & Mr. Without their support as well as help this paper could never have been completed. Mr. Maruf. Rahman . Riaz for their cordial support & coordination to complete our term paper. We wish to express our gratitude.

therefore. Problems.Preface Term paper is the pre requisite for the post graduation in MBA classroom discussion alone cannot make a student perfect in handling the rest business situation. Various strategy. In term paper discuses about Definition. The topic of our term paper is “Production & Marketing strategy of small Business” The term paper is basically divided into various chapters. suggestions. Advantages. Characteristics. Disadvantages. it is an opportunity for the student to know about the real life situation through this program. Group members . some marketing strategies with Conclusion.

Content  DEFINATION  SOME OTHER DEFINITIONS:  DEFINITIONS IN THE CONTEXT OF BANGLADESH  CHARACTERISTICS OF SMALL BUSINESS ENTERPRISES  ADVANTAGES OF SMALL BUSINESS  DISADVANTAGES OF SMALL BUSINESS Small Business Strategies Competitive strategy: how-to compete? How to achieve overall cost leadership Advantages and disadvantage of industry-wide strategies Product Market Mix Strategy Offensive Defensive Strategies Some Marketing strategy for small business Common Problems of small Business  Suggestions  Conclusion  References .

does not engage in any new marketing. working at a single location. SOME OTHER DEFINITIONS: Curtis E.” A business which is independently owned and operated and not dominant in its field” is a Small Business.] From all of the above definitions we can make a general definition of Small Business. an owner. A business not dominating in its field. travel agent all of them are serving us in different ways. often with very few employees working at a single location”. -Worker and the owners are local. -Relatively smaller compared with the biggest unit of the industry [Sales. workers are local. A doctor. 1995. Tate.” Stoner. & Gilbert. laundry.DEFINATION:  According to Small Business act 1934. a place of operations. We get our daily necessaries from the grocery shops. market may not be so. books.”    According to executive committee for national economic development. employees etc. Freeman. produced units are relatively small in size. Bolton Report on the commission of the inquiry on Small Business firms.” . “Small Business refers to business locally owned and managed. and one or more workers other than the owner. “A Small Business is one with fewer than 500 employees. Hair cutting saloon. and his co authors in their book “Successful Small Business Management” (1982) define small business as “An organization with a name. engineer or a lawyer give us different consultation services. automobile and electronic mechanic. and often all organized by the owner or his family members.”A Small Business one of which process at least two of the following characteristics:     -Managers are the owners. US Government. Jr. electronics etc. 1977. Now-a-days there are a lot of Small Business firms are operating in verity of fields. One takes food from a restaurant or from a first food shop. Some shops are selling cloths.”Small firm is one that has a relatively small share profits market. -Capital supplier and the owner is individual or a small group.

High Individual Motivation Individuals are highly motivated for further exertion and organizational development.150. This keeps the organization more susceptible to changes in the business arena. Employees understand and commit themselves to corporate objectives. owners are responsible for managing the firm.” In the Small Business Act of 1953. comfortable and social life related workplace plays a role of the social motivator.000 in value in either case. Streamlined Communication With simple and petit structure of the organization. the US Congress gave the same definition of small business. good and effective communication are maintained with and among employees. Owners as Managers In most of the small businesses. 00. Pakistan Small Industries Corporation Act of 1957. building and machinery does not exceed Tk. Owners are responsible for taking any and all management decisions.The Federal Reserve Bank of USA says small business is one which “is independently owned and operated but is not dominant in its field. DEFINITIONS IN THE CONTEXT OF BANGLADESH: “Small industry means an industrial establishment or unit which is rum mainly by hired labor and not using mechanical motive power but does not normally employ more than 50 workmen and whose land. CHARACTERISTICS OF SMALL BUSINESS ENTERPRISES: There are many characteristics of small business.” – E. Though pay for performance is a principal motivator in a small business. yet support the unity of the organization. Some of which are described in the following paragraph: Unity of Individuals and the Organization The strength of small business is that individual employees retain their personal identities. The employees are hired on owner’s discretion. Supportive climate for Organizational Integration .

encouragement and counseling to subordinates for problem solving. . Employees are provided with challenging and enjoyable workplace.Management including supervisors keeps close relations with subordinates. They offer training.

Sometimes employment opportunities are limited in big industries. The management and the workforce in the small business may be more adaptable to change than those of the large corporation. and laying off people. Provides self employment opportunities Small business helps people provide job for themselves. Owners of small business enterprises have a degree of freedom that are not customary for managers in most big corporations this freedom encourages self-motivation. .ADVANTAGES OF SMALL BUSINESS: The small business has many advantages over its larger counterparts. The area of small business can provide a much-needed source of new employment. Staffs are encouraged to innovate there by reducing boredom in the workplace. or the professional management of the big businesses. Lines of communication are direct between owners and employees. and high overhead costs. Often this freedom of small business owners means the right to work harder and longer hours than they would if they were employees of big business. closing plants. They can react more quickly to changing market conditions or to modify a product for a customer more easily than could a large business. It does not have access to huge resources. but it does posses some distinct advantages that are only its won. numerous employees strong financial backup. Decision making in the small business frequently depends on only one or two persons. there are still some functions that can be performed more efficiently by small business enterprises than by large ones. Flexibility Large corporations often lack the flexibility of small business because of the complex organizational structure. This shows the important contribution the smaller firms are making to their respective notional economics. However. the psychological and financial satisfaction arising from enterprise ownership is powerful rewards for the risks of going into business for oneself. There are losing big firms that are frequently cutting back. Better Inter-personnel Relationships Both managers and staff in the small business are treated as individuals. Growth Small business helps entrepreneurs develop as an individual and expand their personal abilities. Their growth might have been hampered had they been employed under the guidance of a supervisor in any other organization. Managers are given freedom and decision making and provided with variety of responsibilities. Ambition also motivates entrepreneurs and makes them hang in there. Independence Small businesses give its owners the liberty or independence to come go as they please. established bureaucracies. This creates unemployed people in society who are otherwise capable of performing various jobs. Because of small percentage of income that goes for overhead and non-revenue-producing activities.

the factors that are advantageous to small business turn in to serious disadvantage when it is time to grow. It is important for small business to keep judicious balance among: Having too few products so that the orders of potential customers have to be turned down. directing and controlling. Yet the small business owner is often forced to become a generalist in management since he or she can’t afford to employ a specialized person having necessary managerial skills. they cannot take the advantage of economics of scale. These disadvantages have multiplied in the current years due to increased management problem in recent years. equipment. For this limitation. This leads to the inability to cope up with their larger competitors in new facilities. which the owner may lack.Quick decision As the owner of the business does all in all in that particular concern. Also they do not give the subordinates enough responsibility to manage. That is the failure to balance and coordinate these to critical functions. Management problem Effective and efficient management is very important for the smooth running of any kind of business. So the decision is taken relatively quickly because he or she does not have to discuss other people or superiors to take the decision. Having too big inventory as to bear too much inventorying and maintenance cost. staffing. They cannot take the advantage of discounts given for bulk purchases. Lack of coordination Another disadvantage is the lack of coordination between production and marketing. Inability to cope with growth Sometimes. tools. DISADVANTAGES OF SMALL BUSINESS: The small business has their share of disadvantages too. the owner does decision-making mostly. and methods. growth also requires specialized management skills. Growth often requires the owner to give up certain authority. A new businessperson often has the knowledge and skill to produce a good but will lack the necessary kills of planning organizing. Similarly. . Shortage of working capital Shortage of working capital is the most predominant limitation of small business.

Diversifying too fast. These advantages help small businesses to be a part of any economy. which ensures less risk factor on investment. the followings are the situations where small businesses have an edge over their bigger counterparts. ntroducing new product or idea There is always a risk involved in introducing a new idea or product. Situation Leading to Formation of Small Business: The formation of small business is a result of certain situational advantages it enjoys. preferable to introduce the product through a small firm. operation in a larger market is not economically viable. they lack in scientific market research. Therefore. Apart from relaxed government policy. Having a Local Market for the Commodity offered In certain form of business. The advantage of diversification and the advantages of product specialization should be balanced. Lack of effective selling techniques Small businesses usually don’t have the access to specialized person at marketing. market reaction and consumer acceptability need to be tested. Such scale of operation exceeding the local demand would cause inefficient use of resources. a small firm does better in a small scale. For instance. As a result sales are comparatively lower than the larger enterprises. specialty advertising and personal selling. In a monopolistic competitive market there is little possibility to grab a substantial market share. . small business offers better returns. Location of the head office and the accessibility does affect the sale to certain degree. So. small business is the best choice. In such case. it will not be economical for a restaurant to sell its product to a large market. It is therefore. In case of a radical innovation. Availability of Limited Market When the market is limited.

b. Differentiation – is the exploitation of a product or service which the industry as a whole believes to be unique. Providing goods and/ or services at lower cost to that segment (cost-focus) b. Competitive strategy: how-to compete? Competitive advantage is anything that gives one organization anedge over its rivals in the products it sells and the services it offers. Providing a differentiated product or service to that segment (differentiationfocus) . 3. The management guru Michael Porter states that there are threegeneric competitive strategies.We will at these three strategies individually. As part of the small business strategies . Institutional strategies – determine the method of growth. The three main small business strategiesasproposed by Michael Porter are cost leadership. Product-market strategies – determine where you compete and the direction of growth. the purpose of small business strategies should be to seizecompetitive advantage for the long term.competitive strategy isessential for the organization to survive. Cost leadership – being the lowest cost producer in the industry as a whole. They determine how you compete. Focus involves a restriction of activities to only a part of the market (a segment) through. There are broadly three categories of strategic choice: a. Hence we will also look at the mostimportant competitive tactics and strategies.Small Business Strategies For a business. 2. differentiation and focus -these three business concepts are now the cornerstones of any business strategy. A firmshould adopt a competitive strategy to secure a competitive advantage. The competitive strategies are the strategies that the organization will pursue for competitive advantage. a. They are: 1. Strategic choice: Having determined the gap that needs tobe filled to achieve budgeted performance we can look at the alternative small business strategiesthat can be implemented to fill the gap. c.

c. f. exploit the learning curve effect. . Minimize overhead costs. How to achieve overall cost leadership: a. By producing more items than any other competitor. a strategy of cost leadership or differentiation. Cost leadership A cost leadership strategy seeks to achieve the position oflowest cost producer in the industry as a whole. d. Focus involves segmentation but involves pursuing. the manufacturer cancompete on price with every other producer in the industry. g. the manufacturer can compete on price with every other producer in theindustry as a whole. a firm can benefit more from the learning curve and achieve lower average costs. if the manufacturer so chooses. and in industries depending on labour skills for product design and production methods. Concentrate on improving productivity. Use the latest technology to reduce cost and/or enhance productivity (or use cheap labour if available). Get lower cost sources of supply. In high technology industries. and earn unitprofits. Relocate to cheaper areas. Set up production facilities to obtain economies of scale. By producing at the lowestcost.They are graphically illustrated in figure below: Cost leadership and differentiation are industry wide small business strategies. e. b. within thesegment only. By producing at the lowest cost.

c. Competitive products derive their appeal from a particular compromise of cost and performance. They compete with each other by trying to offer a more attractive compromise than rival models. c. How-to differentiate a. Breakthrough products offer a radical performance advantage over competition. b. Volvo cars supposed to be safer than any other car) b. Advantages and disadvantage of industry-wide strategies Advantages New entrants Substitutes Cost Leadership Differentiation Economies of scale raise entryBrand loyalty and perceived barriers uniqueness are entry barriers Firm is not vulnerable as its less Customer loyalty is a weapon against cost-effective competitors to the substitutes threat of substitutes Customers cannot drive down Customers have no comparable prices by further than the most alternative efficient competitor Flexibility to deal with costHigher margins can offset increases vulnerability to supplier price rises Firm remains profitable when Brand loyalty should reduce price rivals go under through excessive sensitivity price competition Cost leadership Differentiation Technological change will require capital investment or makeNew entrants can differentiate too production cheaper for competitors Sooner or later customers become price sensitive Cost concerns ignore productCustomers may not value the design or marketing issues differentiating factor Increase in input costs can reduceDifferentiation may require specialist price advantages inputs Competitors can benchmark theirCompetitors can copy Customers Suppliers Industry rivalry Disadvantages New entrants Substitutes Customers Suppliers Industry rivalry . For example. perhaps at a drastically lower price. Build-up a brand image (e. Exploit other activities of the value chain. nor do they all provide emaculate comfort and performance. Give the product special features to make it stand out. cars are not all sold at rock bottom prices.Differentiation A differentiation business strategy assumes that competitiveadvantage can be gained through particular characteristics of a firm’sproducts. Improved products are not radically different from their competition but are obviously superior in terms of better performance for a similar price. Products may be categorized as: a.g.

to compete with Mercedes and BMW) c. with increased resources (e. a firm concentrates its attention on one ormore particular segments or niches of the market. ii. b. Porter argues that a firm must pursue one of them. b. Problems with cost leadership i. A differentiation-focus strategy: pursue differentiation for a chosen segment. A niche is more secure and a firm can insulate itself from competition. clothes manufacturer and car repair industries. Luxury goods are the prime example of such a strategy. A cost-focus strategy: aim to be a cost leader for a particular segment. The segments needs may eventually become less distinct from the main market. capital investment and resolve to play the low cost game. Internal focus. a.” In practice.processes or cut costs Focus or niche strategies In a focus strategy. It can be used to gain market share: but it is the market share that is important not cost leadership Only one firm. This type of strategy is often found in the printing. or the focus to create differentiation or a low cost position in amore limited sphere.g. only one firm will pursue this strategy successfully. Advantage of focus a. A stuck in themiddle strategy is almost certain to make only low profits. The firm sacrifices economies of scale which would be gained by serving a wider market. it is not simple to draw hard and fast distinctionsbetween generic strategies – here are some of the problems: a. The firm does not spread itself out too thinly. If cost leadership applies cross the whole industry. the Japanese moved into the US car market. theindustry-wide differentiation necessary to obviate the need for a low costposition. rather than market demand. Which strategy? Although there is a risk with any of the generic small business strategies. Cost refers to internal measures. b. . “This firm lacksthe market share. Competitors can move into the segment. Drawbacks of a focus strategy a. and does not try to serve theentire market with a single product.

Restaurants aim to create an ambience as well as serving food of good quality. Inpractice many companies follow this strategy. b. Problems with differentiation – the assumption here isthat the differentiated good will always be sold at a higher price: i. Being a cost leader gives the company freedom to choose other competitive strategies. as it compares well against ideas of market segmentation. Focus small business strategies probably have fewer conceptualdifficulties. describing a combination of a firm’s activities in current and new market.iii. iii. In practice a differentiated product may be sold at the same price as competing products in order to increase market share. with existing and new products. Product Market Mix Strategy Product Market Mix Strategy . Having lower cost does not mean that you have to charge lower prices or compete on price.Ansoff drew up a growth vector matrix. Higher margins can be used for differentiation. Differentiation against which competitor? Do they compete on the same basis? Are the same market segments covered? Are some of the questions not covered. ii. Source of differentiation – this can include all aspects of the firms offer not only the product. The product-market mix strategy is illustrated in diagram below: .

New products to present markets: product development a. Advantage – Product development forces competition to innovate. b. c. The firms strengths matches the opportunity if – outstanding new products have been developed by the company’s research and development department. The drawbacks include the expense and the risk. c. The profit opportunities from diversification are high. Secure dominance of growth markets. b. Differential pricing policies to attract different types of customer and create new market segments. There are two types of diversification.Current products and current market: market penetration Market penetration: the firm seeks to: a. Present products and new markets: market development a. Investing surplus – funds not required for other expansion needs: but the funds could be returned to shareholders. related and unrelated diversification. Increase usage by existing customer.g. organic foods sold in supermarkets not just specialist shops) d. Maintain or increase its share of the current market with current products. Different package sizes for food and other domestic items so that those who buy in bulk and small quantities are catered for. a. c. which the existing product market mix does not. Related diversification Horizontal integration refers to ‘development into activities which are competitive with . b. d.new products and new markets should be selected which offer prospects for growth. It has to have a clear idea of what it hopes to gain from diversification. Restructure a mature market by driving out competitors. New products and new markets: diversification Diversification occurs when a company decides to make new products for new markets. New distribution channels to attract new customers (e. new comers to the market might be discouraged. Growth . New geographical areas and export markets b.

c. The firm fails to benefit from any economies of scale or technical advances in the industry to which it has diversified.or directly complementary to a company’s present activities. Distributor or sales agent (forward vertical integration). Unrelated diversification . a. b. Win a share of the higher profits. Vertical integration occurs when a company becomes its own.’ Sony with its playstation started to compete in computer games.A company places too many bets on ‘a same end-market product’ b. head on attack meeting competitors with the same product line. Offensive Defensive Strategies Offensive Defensive Strategies . promotion. supplier of raw materials.conglomerate diversification Unrelated diversification or conglomerate diversification is very unfashionable now – but it has been a key strategy for many companies in Asia. Advantage of vertical integration a. for example: where a manufacturer of synthetic yarn begins to produce shirts from the yarn instead of selling it to other shirt manufacturers. To secure supply of components or raw materials with more control. Offensive warfare 1. Frontal attack – This is the direct. . This is why in the publishing industry most printing is subcontracted to the specialist printing firms. Pursue a differentiation strategy more effectively. Disadvantages of vertical integration a. components or services (backward vertical integration) b. Supplier bargaining power is reduced. e. who can work machinery to capacity by doing work for many firms. Strengthen the relationships and contacts of the manufacturer with the final consumer of the product. d. etc. Raise barriers to entry. Because attack is on the enemy’s strengths rather than weakness it is considered the most risky and least advised strategy.considering strategic options from a competitor rather than customer orientation is referred to as competitive marketing strategy. price. Over-concentration . Kotler and Singh identified five offensive and six defensive strategies – these are named after military strategies.

Leaders need to develop and hold secondary markets to prevent competitors from using them as a spring board into the primary market. Mobile defence – A high degree of mobility prevents the attackers chances of localizing the defence and accumulating its forces for a decisive battle. retaining current product markets by consolidating resources within existing areas. Product proliferation supplying different types of the same product to the market. diversify into unrelated products or diversify into new geographical markets. 4. The aim is to destabilize the competitor by small attacks. Encirclement attack – Multi pronged attack aimed at diluting the defenders ability to retaliate in strength. . an attack on the battlefield later. Flanking attack – The aim here is to engage competitors in those products markets where they are weak or have no presence at all. 3. Three type of bypass are possible. A business should seek market development. Market encirclement consists of expanding the products into all segments and distribution channels. Such attacks take several forms. Bypass attack – This is the most indirect form of competitive strategy as it avoids confrontation by moving into new and as yet uncontested fields. Pre-emptive defence – Attack is the best form of defence.2. Position defence – static defence of a current position. Defensive warfare 1. this involves making small attacks in different locations whilst remaining mobile. develop new products. Exclusive reliance on a position defence effectively means that a business is a sitting target for competition. Pre-emptive defence is launched in a segment where an attack is anticipated instead of moving into related or new segments. 3. Its overreaching goal is to build a position from which to launch. product development and diversification to create a stronger base. 5. 2. Guerilla warfare – Less ambitious in scope. The attacker stands ready to block the competitor no matter which way he turns the product market. 4. Flank position defence – This is used to occupy a position of potential future importance in order to deny that position to an opponent.

for next to nothing. Create Relevant Content Marketing Strategy For Small Business: Promote your business online via creating content areas on your website that would attract users and position your business and brand as a source of valuable knowledge. with the landing page being a question survey. For less than the cost of a 1/4 page ad in a local paper. A snappy question to attract people.5. Google AdWords On The Cheap Marketing Strategy For Small Business: Run market research on the cheap by using Google Adwords to target an audience. basket ball. along with Google's Geo-targeting can provide great results. you can buy team uniforms for a local soccer. You can demonstrate your expertise and position yourself as the go-to person for your product or service. Creating these content pages does not require any additional budget. Sponsor Your Local Sport Teams Marketing Strategy For Small Business: Sponsor a local sports team. This requires immediate response to any competitor entering a segment or initiating new moves. there is nothing like writing an article for a trade magazine (for B2B) or local magazine (for B2C) to gain credibility and exposure. a children clothes store can dedicate a page to ‘Tips on keeping your child busy on school vacation’ and through that page. but they do require time and creativity. Write For Trade Magazines Marketing Strategy For Small Business: If you want people to call you. family and fans that your business is a genuine part of the local community. It's a . This strategy generates responses from people who are the ready-to-buy stage. This a sure fire way to get the team. and their friends. more information about your product & services. attract parents to the site. 2. Some Marketing strategy for small business 1. Follow up by sending. baseball or other sports teams. 3. For example. 5. Ask for a (very) short article for your newsletter or a quick phone interview for your podcast. Counter offensive defence – This is attacking where the company is being attacked. 4. or better yet dropping by with a copy of your finished production with a thank-you and of course. Focus On One Contact Marketing Strategy For Small Business: Target one decision maker you'd like to meet and invite him to share his expertise.

as your local press will be very interested that you're taking this action and will probably send a photographer round to photograph you with the team and their new strips! 6. or by building informative yet informal profiles on social networking sites like Facebook or Twitter. covered by bloggers. Your business will receive promotion through the event itself. and to add another layer in relationship building. Building a strong database with a focus on media/bloggers. whether it's by creating an interactive. Establishing a presence online is key. 8. making exposure on the web critical. The "Wow" Factor Marketing Strategy For Small Business: Marketing gurus often refer to it as “differentiation. Volunteer to teach seminars through your local Chamber of Commerce about your area of expertise. and least expensive. it may sound “old fashioned” in today’s Twitter world. it'll also boost your company's rank on search engines. Go To The Chamber Marketing Strategy For Small Business: Make yourself the expert in your field.great PR technique too. 9. 10.” Academics who fancy themselves as marketers – they’re the ones who . and prove that you're a business that "gets it" and doesn't live in the dark ages. or open the door to a more extensive PR pitch. E-News is more than a sales pitch. Get Out Of The Dark Ages Marketing Strategy For Small Business: Business owners should look beyond the brick and mortar and reach out to a bigger audience with the web. marketing tools in our arsenal. as well as through all marketing for the event. Create An E-News For Your Biz Marketing Strategy For Small Business: As a relatively new start up. as well. 3 out of 4 internet users live in North America. and publishing frequently (but not obtrusively) is still one of the best. giving your clients the opportunity to subscribe. You would be surprised how often your content is tweeted on twitter. rather. 7. but having a great e-news with valuable content is key for our business. provide relevant information. Your association with the Chamber will boost your credibility. regularly updated site or blog. Its All Keywords Marketing Strategy For Small Business: Statistically. Opening communication channels online will not only increase brand awareness. Having a website that is keyword optimized for what your small business does and where you are located works as an online brochure as well as a “24 hours a day” sales person for your services and products. the opportunity to position your business as an expert.

Charity Donations Marketing Strategy For Small Business: My #1 PR tip for small businesses: FOCUS. conversation = participation. I have found a lot of success with the good old fashioned hand-written follow up card. How many hand written cards do you get in the business world these days? Almost none.. Buzz Marketing At Trade Shows Marketing Strategy For Small Business: Best tip. www. sales. Create a letter that says why you chose the organization(s) so when you get inundated with requests for large donations.) 12. that’s your Wow!." Buzz = conversation. your business name (and web page link) is put in front of potential customers. T-shirts with the URL and booth number were the only "branding. What they’re both taking about is more correctly described as “Wow!” Whatever it is that separates your Stuff – your products or services – from the similar Stuff your competition is selling. you can politely and formally say NO and still send a respectful message that you are committed to the community. It seems simply and old-fashioned but it works.Paulding. Whether it's to say thank you. Purchase a membership that allows you to advertise your business and USE IT. To create buzz at a trade show for a client and demonstrate how other competitors waste customers' time.write marketing text books – prefer to call it a USP. You’ll save a ton of money on $50 year book ads and donations to the latest event that is NOT your target market. FOCUS. or that I'm simply looking forward to a future business relationship. Post about your specials. (Be VERY careful to remember that every post is representative of your business... Page with highest traffic in this specific area . resist the urge to look/sound like your bigger competitors.. that it was a pleasure meeting.com . Every time you post with your business ID. Leverage Online Forums Marketing Strategy For Small Business: Many communities now have online forums/bulletin boards that offer varying levels of paid memberships. Pick one or two charity organizations or causes and donate only to them for the year. your Unique Selling Proposition.. business advertising membership $150/year. 13. what have you.it's an extremely personal effort that helps you stick out and remain memorable in your clients' mind. FOCUS.. I am much more likely to hear back from that lead than someone who I simply met and didn't write to follow up with. 11. we strapped a big clock to a gurney and walked it around the show floor with two EMT types. 14. . what makes your Stuff better. Hand Written Follow Up Cards Marketing Strategy For Small Business: Believe it or not.

10th is .call to meet for coffee. talents. boutique hotel recommends a restaurant. Cost self printed is $0.we've used it for a fun contest and sent a $10. gift for all correct answers and a $ 2.. Guest Blogging Marketing Strategy For Small Business: Visit blogs that attract your ideal customers and offer to write a guest post in exchange for a link and a byline. public speaking or by publishing a special report. The restaurant gives the diner a free dessert."more to come". Participate in Trade Associations Marketing Strategy For Small Business: Business-to-business professional service organizations get the most bang for their buck when they impress prospective referrers with their capabilities. including the stamp.list 8. Use real-life examples of projects you completed. compliments of the hotel! Everyone wins. Relate your story through articles. Tell Memorable Stories Marketing Strategy For Small Business: A convincing (and free) marketing strategy you can use to 'tangibilize' your service is by telling stories—give specific and practical examples of what you have accomplished for clients. Title . Personalized Gifts Marketing Strategy For Small Business: Identify a unique. 17. Enter A Business Award Competition Marketing Strategy For Small Business: There is nothing like entering a business award competition to strengthen the reputation of your small business. Many competitions cost nothing to enter – except for the time it takes to prepare . the 9th .100 reasons to call us . specific problems you solved or successes you achieved. One of the best ways to do this is through active involvement at trade associations where prospective referrers' congregate. They read the card! 20.15. blog posts." 19. tasks and ask questions .46 ea. 16.00 gift for participating. List your skills. Winning an award can catapult your reputation within your industry and with the sales audience you aim to attract. create a realistic scenario about how you would help your ideal client overcome a typical challenge. personalized gift to give your target customer's customer on the target customer's behalf. Example: A small. If you're a new entrepreneur. . Inspire Customers To Call You Marketing Strategy For Small Business: Send a postcard mailing monthly instead of a hard copy newsletter. 18. This participation enables them to a) increase their visibility and b) gain the opportunity for the consistent and frequent interactions it takes to build lasting relationships.

most influential friends or business associates to introduce you to the five people they think you should meet to expand your business. even try pitching the media. Never Stop Growing Your Network Marketing Strategy For Small Business: Expand your network of contacts and potential clients. and advice from people to date that I have never met face to face. Ask your best. When trying to spread the word about my company. I do believe that woman share an unspoken sisterhood and are more likely to help eachother out…even without really knowing the other person. Take each of the contacts out for coffee and get to know them. Can’t write well? Then pay someone who can to prepare your entry – or barter services if you’re trying to save money. tell them about why your business is special and ask for their . Discuss your plans and future goals. The rewards for winning a business award can last seemingly forever. send out a press release and get your picture in the paper! 21. Share Your Expertise Freely Marketing Strategy For Small Business: Let the public know what you're an expert at and use that to boost your credibility and value. Better Business Bureaus. 22. Brag about winning on your website. post the award in your office or store so whoever comes in will see it. most powerful. Network Your Networks Marketing Strategy For Small Business: Networking with friends who then network with their friends. And of course. Someone ultimately knows someone that can help you out…and believe it or not…will want to. make it super easy for people to associate you and your business with excellence and expertise in your field.your entry. send a letter to clients. And remember. Publish tips. I have e-mailed everyone I know and told them to e-mail everyone they know…and so on. They are all around. I have received unbelievable support.. tips. there is a secret all award winners share: They have taken the time to prepare well-written entries.. universities – even churches. The power is in numbers…6 degrees of separation. 23. Who awards business prizes? Professional and trade organizations. I’ve expressed that I am a one woman business and desperately need the support of my friends. share your expertise through public speaking. Keep your eyes open for opportunities. chambers of commerce.

If you are part of a group. Free Soap Marketing Strategy For Small Business: give away soap products on Twitter. my name and/or org. You will be amazed at how these new contacts will pay off ten-fold with recommendations to you for new business and innovative ideas you hadn't thought of. The first person to answer wins soap. Be Transparent. blog and give a shout out for your products. Pretty simple but a good way to get people to your site. 25. Once both parties agree that there is a fit it can lead to quality networking and future business opportunities. Check in with them every month or so and ask how you can help them as an expert in your field.advice. When I am on the air. it’s that much easier to get them to print it! 27. First I ask a question about a product on my web site or Blog. please retweet upon receipt on the envelope so they will go on Twitter and say thanks. 26. get announced as part of the introduction or if you are creative you can weave in what you do with what you are saying about the program if there is a sensible link. you can answer phones during one of their pledge periods during one of their more popular shows they will mention your groups’ name. Tell Your Story Marketing Strategy For Small Business: The best way to get noticed in today's market is to tell a personal story. 28. 24. The media is dying for news as they lay off thousands at . Work For Free Marketing Strategy For Small Business: I volunteer for the local public broadcasting station as on-air talent and to answer phones. You can find decision makers with events that have a match for your product or service. When you do have news. even when you don’t have news for them. Network With The Media In Your Niche Marketing Strategy For Small Business: Maintain relationships with media contacts that cover your industry. The I write Be Sweet. HARO Gift Bags Marketing Strategy For Small Business: Each Friday in the second edition of HARO there are Gift Bag Requests.

Only personal and family funds and personal loan from the friends are major source. vehicles etc all of these require a huge amount of money. 30. Without necessary fuel (money) no ship (Small Business firm) can run. With every successful referral I sent a thank you card enclosing a Starbucks (or their favorite restaurant) gift card thanking them for their support. In a country like Bangladesh it is not very easy to arrange a satisfactory capital to buy all these. The key to a Small Business success rests mostly on the ability of the entrepreneur to raise adequate amount of fund for infrastructural development as well as meeting the day to day working capital needs. The major problem a Small Business firm faces in its establishment period is the problem for capital or sufficient financing problem. One of the first questions any potential entrepreneur must ask is. furniture. more experienced attorneys to lunch and asked that they consider referring me smaller cases they didn’t have time to handle. In this part we will try to identify the key problems that a Small Business firm faces in its establishment and operating period. Build That List Marketing Strategy For Small Business: Use opt in email marketing to talk to your best customers – the ones that want to hear from you and have signed up to receive your marketing messages and offers. Be sure to deliver relevant. Have ready-to-run articles prepared to send off at a minutes notice will create a great relationship with papers. machinery and equipments. "How do I get the money"? The type of the business may be anything but the money necessary for finance is must. there is no chance to raises the capital from share market. . This can build loyalty. This helped me start my practice and build a client base without having to spend a lot on advertising. It is very hard to operate and make a business profitable here. As it is about Small Business. The Low Hanging Fruit Marketing Strategy For Small Business: When I opened my law firm I treated older.newspapers across the country. Common Problems of small Business As we got some real life idea now we will try to find out where the problems actually lie. It is also not very easy to start a new Small Business firm. They'll consider you a source of valuable information! 29. But in this way it is very hard to raise a sufficient amount of capital. drive sales and cut other costs. Plant or fixed asset. unique and valuable messages to their inbox. In Bangladesh there are a lot of Small Business firms but all of them can not succeed in their business. financial needs include purchasing land and buildings.

micro credit by NGO. Another major problem of Small Business development in Bangladesh is lack of necessary government planning’s to up this sector. certificate of previous business experience. Every business needs some power supply and some other public utility services. Sometimes they take away personal property of the loan receiver on force if he is unable to pay back the loan. But there are some problems with NGO. sometimes all are very high in price and sometimes adequate raw materials are in the market and it is more than necessary. So this sector needs a special attention from the government. mutual fund etc. Government finished there duty by installing a few training center for potential entrepreneurs. Entrepreneurs are ready to pay necessary money for it but there is no instable supply. It is really a hard job to get a loan from a commercial bank for a Small Business firm. It is almost impossible for an inexperienced entrepreneur to manage a loan from a commercial bank. All of the work needs to be done before getting the loan. From all these except NGO none of them have any good record of financing Small Business.As we use to see Bank as a financing agent. But they are ready to help the BANKRUPTS. . Lack of necessary raw material is another problem. It is also often said that some NGOs practice some unfair way to get their loan back. Everyone need run and run for raw materials. Actually banks and other financial institutions are not really interested about giving a loan for a Small Business firm. After doing all these no one can assure about the loan to be sanctioned. There is nobody to monitor the whole activities. If any one wants to apply for a loan he must show some influential guarantor. No one to suggest that how many entrepreneurs should be trained for what. Although they claim that they have a very high percentage of returning loan back but its only the one side of the coin. They create much pressure to refund the loan. There are some other sources for finance . But the central controlling is inadequate. a certificate of citizenship. Still there is no plan that how many Small Business firms is to be financed each year. it is very normal to think that one can get a loan easily from the bank. 31 years already have been passed after our independence. bond. trust company. with the application paper. A few debtors even got suicide enabling to refund the loan. The procedure of distributing loan is not very easy. The other side says quite different a story. Company and Small Business is very different. Sometimes it is also necessary to make (?) please the associated officials of the bank. Sometimes there is nothing found when necessary. Sometimes they distribute loan to very much needy entrepreneurs in a high rate of interest. a letter of permission for the business from authority etc. But still today we suffer from sufficient planning. Small Business financial bank. Here we don't have a definite supply chain of raw materials and the producers. But the true story is far from this imagination. There are a lot of formalities and paper works need to be completed to get a loan. There are some other inner story too. character certificate. charitable foundation.

in all places. It is a challenging job to manage a Small Business firm here as they need to compete with giant companies. All these hazards are hampering the Small Business sector in Bangladesh. You need to pay a handsome amount o bribes to a invisible hand. purchasing raw materials. One need to pay for it while buying or constricting a house. Management people should know all the arts of management. This terrorism is also hampering this Small Business very much. They cannot take appropriate decision in the right moment. There are also weekly. In recent times they kidnap entrepreneurs and businessmen if they don’t get the money. specially a Small Business firm. monthly or special tolls in any religious festival one need to pay. It is possible for a giant company to stop all its operations for a couple of months and then start it again. Now a day’s terrorism is becoming the cancer of Bangladesh. Political and social instability is another big problem. Terrorists are becoming daring day by day. Toll collectors are very daring and create pressure on the businesses to collect illegal tolls. Whether it is a giant company or a Small Business the success of a business is greatly dependant on the political and social stability of a country. As the Small Businesses already suffer from lack of financing it is similar to death to them when they have to please the toll collectors. 173 days of ‘Hartal’ were been called in total. But a Small Business firm can not do this. This is the blood stream of a Small Business firm. Water. Above discussed political instability is the reason for it. In our country higher study on business management is a new concept. They can not sustain this loss. This is almost impossible for a small business firm to continue its operation in such a condition. Otherwise those people may stop its operation and sometimes more. There are terrorists and toll collectors all and everywhere in Bangladesh. Bachelor degree in business administration is being awarded form IBA for eight years. It was 140 in 1996-2001 sessions. -Believes advertising is an expense not an investment. transporting to the factory. Telephone etc. From any giant company to a cottage shop good management is a must for success. These under trained people create a lot of problems. Always they are face to face with each other. In case of telephone you might have to wait for more than years to get connected. Such a loss can not be sustained. Now let’s have a look at some internal management problems of Small Business firms. If one tries to launch a Small Business firm he needs to pay these tolls in a number of places. This condition is a serious obstacle for the development of Small Business in our country. In Bangladesh our political and social climate is not stable at all. So a lot of management personnel of Small Business firms are without any formal management study. are some prerequisites for a business. Very often they call ‘Hartal’ and strikes. In the period of 1991-1996. -Does not plan. If any of these two is stopped no Small Business can exist. Gas.Electricity. They are not capable of managing.    -Cannot identify target market or target customer. In Bangladesh only the sufferer know how tough it is to get those connections. There is a condition of pre-war between the ruling party and the opposition. Every business firm is dependant on production or purchasing and selling. . selling a good.

Another common problem of Small Business development in Bangladesh is problem of distribution of goods. Their fund needs to be increased and rules should be more flexible. It is natural that a new product needs to go through a strong completion from other similar products. They are very conservative and very much brand loyal. Terrorism must be sustained and keep under control. Special ministry can be made to coordinate all this.       Red tapism must be abolished. Taxation rules should be more flexible for Small Business. As capital is the major problem for Small Business development in Bangladesh special emphasis should be put here. It should be assured that the Small Business firms will get sufficient raw materials in lower cost. There activity should be spending all over the country. Government can give some subsidies to boost up this sector. Political and social instability should be maintained. -Believes loan would solve every problem. Government should make definite plan to boost up this sector.  NGOs are very active in this sector. -Cannot delegate. All these problems are usually created by an unskilled management people. Another point is about our customers. Commercial banks should finance Small Business by giving them loan in low interest and for long term. Small Business firms suffer from lack of distribution as they cannot compete with the giants. Suggestions Here we are giving some suggestions that may be helpful to improve the Small Business sector in Bangladesh.    -Only primary knowledge of pricing policy and strategy. -Cannot identify trading area. And it is it is more that skilled people are not available in the market. These are the major problems that our Small Business firms usually face while operating. Corrupted officials need to be punished and replaced. . Youth development department should be more activate.

Khan. by Dr. by World Bank. Publisher: University Press Limited. In today’s super market's and giant corporation's world as Small Business is still alive and transacting thousands of million of taka each year it can be said that Small Business firm can take a very important role in our economic development. 1981. . page: 1 . We can employ a number of unemployed people in this sector. But we can launch a Small Business firm easily. Publisher: University Press Limited. 1998. So in my opinion the prospect of Small Business in Bangladesh is very bright. by Monjurul Akhter. Conclusion As we discussed all these it is clear that there are a lot of problems that Small Business is facing. page: 2 165.It must be assured that the Small Business firms will get public utility service connection without any delay and bribe. page: 31 . A syndicate can be made to help the entrepreneurs and to support this sector. Publisher: Maola Brothers. 3) 'Entrepreneurship and Lives of Successful Entrepreneur'. 67-286.34. We cannot build some giant corporations like Microsoft or Sony Electronics overnight. It has many positive effect and some drawbacks too. R. 1986. A. References: 1) 'A Study on East Asian Economy'. 2) 'Developing Careers on Small Business'.407.