How small firms grow Flashcards
(7 cards)
Internal stakeholders
Employees - They work directly for the business and are affected by its policies and performance.
Managers - Responsible for overseeing operations and making strategic decisions.
Owners/Shareholders - Have a financial interest in the business’s success.
External stakeholders
Customers - Purchase products or services from the business.
Suppliers - Provide goods or services to the business.
Investors - Provide capital and expect returns on their investment.
Community - Residents and organisations affected by the business’s operations.
Government - Regulates and taxes the business.
Competitors - Other businesses in the same industry.
Advertising
Creating awareness of and desire for a brand by communicating a clear brand message
Use of humour e.g. compare the meerkat
Lifestyle/aspiration e.g. Its not just food, its M&S food
Persuasive language e.g. BA the World’s favourite airline
importance of product differnentiation
important to small businesses in order to provide a competitive advantage
Firms will spend try to establish brand loyalty and repeat custom by making the consumer aware of the product and persuading them to use it through informative and persuasive advertising
Looking at trends to understand customer needs
Looking at past data to forecast the future to understand what happens in the market
How is customer satisfaction measured
be measured by whether the product has met or surpassed customer expectations
A happy customer is a good source of advertising, especially in a local market, where recommendations can create trade
It is easier and cheaper to sell to existing or repeat customers
Niche Marketing
when a firm targets a small subsection or previously unexploited gap in a larger market
Niche marketing may give a business first mover advantage and allow them to charge a premium price
The target market is well defined with distinct characteristics. Promotional activities will be targeted at just a
small subsection of the whole market
