Marc Compeau; Wednesday 7142004.ppt

Marc Compeau; Wednesday 7/14/2004 Work Sheet 3 Review Any progress? What did we learn? What were some of the challenges you faced? A couple of random thoughts Salesmen are mean Inventory can be meaner Get educated about accounting practices Ad spending / 5% gross sales Shoot for a 10% net profit Ask for help Structure Sole proprietorship – simple, great for start ups Partnership – two people can’t be sole proprietors C Corporation – 15% is less than 28%, but not less than 43% S Corporation – avoid double taxation! The Key to Marketing a central foundation of marketing…a deep understanding of consumers -- how they arrive at their judgments, choices and their consumption behaviors -- is a critical factor in success. Marc’s Marketing Model Questions to consider when identifying Gaps Risks: What are the trends in this industry? What are the trends with the chosen target market? Am I entering a Niche Market? Are there any “fatal flaws”? Is the market subject to rapid change? Resources: Do I have the resources I need or can I gain control of them? Opportunities: Are the gaps big enough? What type of profit margin do the gaps provide? Is this a short term opportunity and if so can I adopt changes? Advertising Advertising The impersonal presentation of an idea that is identified with a business sponsor and is projected through mass media Advertising objectives: Inform, persuade and remind Types of advertising: Product – designed to make consumers aware of a specific product or service Institutional – advertising about a company or firm, designed to enhance a firm’s image Frequency of advertising: continuous vs. non continuous (new product, single event) Where to advertise: reaching but not overreaching (empty reach) /news/special/badadsMiss.jhtml Promotional Spending Allocating a percentage of sales: Advantage: simple Disadvantage: spending drops as sales drop How much can be spared: Advantage: widely used Disadvantage: piecemeal approach that avoids