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Prepare an income statement for a small business - Essay Example

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Small businesses also employ certain marketing strategies in order to ensure that they attract and retain their customers. This asserts that marketing…
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Prepare an income statement for a small business
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Prepare an Income ment for a Small Business Prepare an Income ment for a Small Business Marketing can be defined as a procedure employed by companies so as to build a strong client affiliation (Daft & Marcic, 2010). Small businesses also employ certain marketing strategies in order to ensure that they attract and retain their customers. This asserts that marketing is hugely significant in any business organization. Furthermore, marketing research, marketing segmentation and sales forecasting is also crucial for small businesses. This paper will discuss the importance of marketing for small businesses.
Marketing is employed in small businesses in order to identify potential customers and satisfy them accordingly (Daft & Marcic, 2010). In most instances, marketing is also used by marketers as an approach to retain more customers. Therefore, the success of a small business significantly relies on the marketing procedure. Marketing also boosts the sales of a business since, more people will be aware of the product being sold. This also builds a strong reputation of the company. Small businesses also rely on marketing research because; in most cases, the small businesses are found in challenging situations.
Businesses should conduct adequate research to ensure a strategic marketing procedure. In marketing, customer segments should be measurable. This means that they should be large enough to constitute a market. The marketer usually faces a challenge when determining how to segment a market. This is because marketing segmentation enables a business to develop effectively. On the other hand, if the marketer is unsuccessful in the marketing segmentation, then, the business can incur collosal losses (Longenecker, Moore, & Petty, 2002).
Market segmentation is a way of fine-tuning the target market. An unsegmented strategy is a strategy which identifies the total market as the target market. This strategy is also known as mass marketing. In some cases, this strategy can be productive to a company. However, it assumes that all clients share similar benefit from the products and services of the company. A multisegment strategy is defined as a strategy which recognizes different preferences of individual market segments and develops a unique marketing mix for each. Lastly, there is the single-segment strategy which usually involves the use of a single marketing mix for one market segment (Longenecker, Petty, Palich, & Hoy, 2012).
For example, a pen store in the local area uses the unsegmented strategy since; the pen is promoted via a single medium and a broad distribution plan. This shows that only those who use writing instruments will be attracted to the pen store. The store also applies a single combination of price, promotion, distribution and product.
In conclusion, sales forecasting is also essential for any small business. All types of businesses should be able to locate their target market and assess the feasibility of a new venture. Sales forecasting allows the business to market its products and services to the target population. Scholars claim that small businesses are supposed to establish an outstanding program which combines marketing techniques and sales activities. However, business people should not fully rely on forecasting because it can give the wrong impression (Longenecker, Petty, Palich, & Hoy, 2012).
References
Daft, R., & Marcic, D. (2010). Understanding management (7th ed.). Mason: South-Western College Pub Press.
Longenecker, J., Moore, C., & Petty, W. (2002). Small business management: An entrepreneurial emphasis. Mason: South-Western College Pub Press.
Longenecker, J., Petty, J., Palich, L., & Hoy, F. (2012). Small business management: Launching and growing entrepreneurial ventures (16th ed.). Mason: South-Western Cengage Learning.   Read More
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