Chapter 8

 Definition of Guerrilla ( Bootstrap )marketing plan

 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.

 Guerrilla marketing principles

1. Create an identity for your business through branding.

2. Embrace social networking.

3. Start a Social media too

4. Create online videos.

5. Focus on the customer.

6. Be devoted to quality.

7. Pay attention to convenience.

8. Concentrate on innovation.

9. Be dedicated to service and customer satisfaction.

10.Emphasis to Speed

 Marketing mix
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.
  The Product life cycle
1. Introductory stage

2. Growth and acceptance stage

3. Maturity and competition stage

4. Market saturation stage

5. Product decline stage

Chapter 9
  10 Myth of E- commerce
 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.

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

 Myth 10: It’s too late to get on the Web.

 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.

Chapter 10
  Basic strategies of introducing a new product to the market
3 Basic Strategies:

1. Market penetration
Sell the product with low price even with zero profit to gain market share
2. Skimming
Sell at high price for a certain segment then leave the market for others
3. Life Cycle Pricing
The products price starts at high price then decrease like TV`s or the opposite like
cars

 Pricing techniques
1. Odd pricing (Phsychological pricing ) 199 or 19.99

2. Price lining ( Hyundai ) <‫تفاوت بين الموديالت باسعار< مختلفة او السندوتشات‬

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

4. Discounts (Markdowns) ‫قبل وبعد الخصم‬.. ‫السعرين‬

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 ) ‫البواقى< و الفضل‬

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

10.Follow the leader price

11.Below market pricing

12.Breakeven pricing

Chapter 11

 Steps to create financial plan

 Step 1: Determine Your Current Financial Situation
 Determine your current financial situation with regard to income, savings, living expenses, and
debts.

 Preparing a list of current asset and debt balances and amounts spent for various items gives you a
foundation for financial planning activities.

Step 2 : Develop Financial Goals

 Periodically analyze your financial values and goals. This involves identifying how you feel about
money and why you feel that way.

 The purpose of this analysis is to differentiate your needs from your wants.

 Specific financial goals are vital to financial planning. Others can suggest financial goals for you;
however, you must decide which goals to pursue.

 Your financial goals can range from spending all of your current income to developing an
extensive savings and investment program for your future financial security.

Step 3: Identify Alternative Courses of Action

Developing alternatives is crucial for making good decisions. Although many factors will
influence the available alternatives, possible courses of action usually fall into these categories:

 Continue the same course of action.

 Expand the current situation.

 Change the current situation.

 Take a new course of action.

Not all of these categories will apply to every decision situation; however, they do represent
possible courses of action.
 Step 4: Evaluate Alternatives

 You need to evaluate possible courses of action, taking into consideration your life
situation, personal values, and current economic conditions.

 Consequences of Choices. Every decision closes off alternatives.

 For example, a decision to invest in stock may mean you cannot take a vacation. A decision
to go to school full time may mean you cannot work full time.

 Opportunity cost is what you give up by making a choice. This cost, commonly referred to
as the trade-off of a decision, cannot always be measured in dollars.

 Evaluating Risk : Uncertainty is a part of every decision.

 In many financial decisions, identifying and evaluating risk is difficult. The best way to
consider risk is to gather information based on your experience and the experiences of
others and to use financial planning information sources.

Step 5 : Create and Implement a Financial Action Plan

 Develop an action plan. This requires choosing ways to achieve your goals. As you achieve your
immediate or short-term goals, the goals next in priority will come into focus.

 To implement your financial action plan, you may need assistance from others. For example, you
may use the services of an insurance agent to purchase property insurance or the services of an
investment broker to purchase stocks, bonds, or mutual funds.

Step 6: Reevaluate and Revise Your Plan

 Financial planning is a dynamic process that does not end when you take a particular action.

 You need to regularly assess your financial decisions. Changing personal, social, and economic
factors may require more frequent assessments.

 When life events affect your financial needs, this financial planning process will provide a vehicle
for adapting to those changes.
 Regularly reviewing this decision-making process will help you make priority adjustments that
will bring your financial goals and activities in line with your current life situation.
 How Lenders View Liquidity and Leverage
Table 11.1 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.
Averag This is an indication of good
e 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.
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.
 Chapter 14
 Location criteria for retail and service
1. Trade area size – the region from which a business can expect to draw customers

2. Retail compatibility

3. Degree of competition

4. Index of retail saturation (IRS)

5. Laws in the region

6. Transportation network

7. Physical and psychological barriers

8. Customer traffic

9. Adequate parking

10.Reputation

11.Visibility

 Retail and service location option

1. Central Business Districts (CBDs)

2. Neighborhood locations

3. Shopping centers and malls

4. Near competitors
 5. Inside large retail store

6. Outlying areas

7. Home-based businesses

 Manufacturing locations
1. Foreign trade zones

2. Empowerment zones

3. Business incubators

Chapter 15

 Strategies for going global

1. Create a presence on the Web

- Available 24 hours a day to anyone anywhere in the world.

2. Trade Intermediaries

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

- Types of intermediaries:

o Export Management Companies (EMCs)

o Export Trading Companies (ETCs)

 o Manufacturer’s Export Agents (MEAs)

o Export merchants

o Resident buying offices

o Foreign distributors

3. Joint Ventures

- Domestic joint venture – two or more U.S. companies form an alliance for the purpose of
exporting their goods and services abroad.

- Foreign joint venture – a domestic firm forms an alliance with a company in the target
nation.

- Most important ingredient: Choosing the right partner.

- Use the joint venture as a learning process.

4. International Franchising

 To expand internationally, franchisers should:

- Identify the country or countries that are best suited to the franchiser’s business concept.

- Generate leads for potential franchisees.

- Select quality candidates.

- Structure the franchise deal.

o Direct franchising

o Area development

o Master franchising

5. Exporting
 - Significant impact: Small companies generate $1.1 billion each day in export sales!

 Barriers to international trade

Domestic Barriers
 Government imposed barriers.

 Attitude: “My Company is too small to export.”

 Lack of information about how to get started

International Barriers
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.

  Guidelines for success in international markets
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. “Glocalize” - 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.
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.

Chapter 16

 Leadership characteristics
1. Create a set of values and beliefs for employees and passionately pursue them.
2. Establish a culture of ethics.

3. Define and then constantly reinforce the vision they have for the company.

4. Respect and support their employees.

5. Set the example for their employees.

6. Create a climate of trust in the organization.

7. Build credibility with their employees.

8. Focus employees’ efforts on challenging and driving toward those goals.

9. Provide the resources employees need to achieve their goals.

10.Listen to their employees and Value the diversity of their workers.

11.Celebrate their workers’ successes who are willing to take risks.

12.Encourage creativity among their workers.

13.Maintain a sense of humor.

14.Create an environment in which people have the motivation, the training, and the freedom to
achieve the goals they have set.

15.Create a work climate that encourages maximum performance.

16.Become a catalyst for change when change is needed.

17.Keep their eyes on the horizon.

 Conducting job analysis techniques

 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.

 Planning effective interview

1. Involve others in the interview process.

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

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

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

5. Probe for specific examples in the candidate’s work history that demonstrate the necessary traits
and characteristics.

6. Ask candidates to describe a recent success and a recent failure and how they dealt with them.

7. Arrange a “non-interview” setting that allows others to observe the candidate in an informal
setting.

 Job design strategies

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

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

 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.

 Job enrichment (vertical job loading) - builds motivators into a job by increasing the planning,
decision making, organizing and controlling functions (which traditionally were managerial
tasks).

 Five core characteristics:

 Skill variety

 Task identity

 Task significance
  Autonomy

 Feedback

 Flextime - an arrangement under which employees build their work schedules around a set of
“core hours” - such as 11 a.m. to 2 p.m. - but have flexibility about when they start and stop work.

 Job sharing - a work arrangement in which two or more people share a single full-time job.

 Flexplace - a work arrangement in which employees work at a place other than the traditional
office, such as a satellite branch closer to their homes or, in some cases, at home.

 Telecommuting - an arrangement in which employees have employees working from their homes
use modern communications equipment to hook up to their workplaces.