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

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. Its 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. We hope working on this topic will help us to gather various experience to practical field. We wish to express our gratitude, 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. Without their support as well as help this paper could never have been completed, we should like to offer a specials that thanks Mr. Maruf, Mr. Rahman , Mr. Shujon, & Mr. Riaz for their cordial support & coordination to complete our term paper.

Group members

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; therefore, it is an opportunity for the student to know about the real life situation through this program. The topic of our term paper is Production & Marketing strategy of small Business The term paper is basically divided into various chapters. In term paper discuses about Definition, Advantages, Disadvantages, Characteristics, Various strategy, Problems, suggestions, some marketing strategies with Conclusion.

Group members

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

DEFINATION:

According to Small Business act 1934, A business which is independently owned and operated and not dominant in its field is a Small Business. Bolton Report on the commission of the inquiry on Small Business firms, 1977,Small firm is one that has a relatively small share profits market. Stoner, Freeman, & Gilbert, 1995, Small Business refers to business locally owned and managed, often with very few employees working at a single location. US Government, A Small Business is one with fewer than 500 employees.

According to executive committee for national economic development,A Small Business one of which process at least two of the following characteristics:

-Managers are the owners, -Capital supplier and the owner is individual or a small group, -Worker and the owners are local, market may not be so. -Relatively smaller compared with the biggest unit of the industry [Sales, employees etc.]

From all of the above definitions we can make a general definition of Small Business. A business not dominating in its field, does not engage in any new marketing, workers are local, working at a single location, produced units are relatively small in size, and often all organized by the owner or his family members. Now-a-days there are a lot of Small Business firms are operating in verity of fields. We get our daily necessaries from the grocery shops. One takes food from a restaurant or from a first food shop. Some shops are selling cloths, books, electronics etc. Hair cutting saloon, laundry, automobile and electronic mechanic, travel agent all of them are serving us in different ways. A doctor, engineer or a lawyer give us different consultation services. SOME OTHER DEFINITIONS: Curtis E. Tate, Jr. and his co authors in their book Successful Small Business Management (1982) define small business as An organization with a name, a place of operations, an owner, and one or more workers other than the owner.

The Federal Reserve Bank of USA says small business is one which is independently owned and operated but is not dominant in its field. In the Small Business Act of 1953, the US Congress gave the same definition of small business. 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, building and machinery does not exceed Tk.150, 00,000 in value in either case. E. Pakistan Small Industries Corporation Act of 1957.

CHARACTERISTICS OF SMALL BUSINESS ENTERPRISES:

There are many characteristics of small business. 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, yet support the unity of the organization. Employees understand and commit themselves to corporate objectives. High Individual Motivation Individuals are highly motivated for further exertion and organizational development. Though pay for performance is a principal motivator in a small business, comfortable and social life related workplace plays a role of the social motivator. Owners as Managers In most of the small businesses, owners are responsible for managing the firm. The employees are hired on owners discretion. Owners are responsible for taking any and all management decisions. Streamlined Communication With simple and petit structure of the organization, good and effective communication are maintained with and among employees. This keeps the organization more susceptible to changes in the business arena. Supportive climate for Organizational Integration

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

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

Quick decision As the owner of the business does all in all in that particular concern, the owner does decision-making mostly. So the decision is taken relatively quickly because he or she does not have to discuss other people or superiors to take the decision.

DISADVANTAGES OF SMALL BUSINESS:

The small business has their share of disadvantages too. These disadvantages have multiplied in the current years due to increased management problem in recent years. Inability to cope with growth Sometimes, the factors that are advantageous to small business turn in to serious disadvantage when it is time to grow. Growth often requires the owner to give up certain authority. Similarly, growth also requires specialized management skills, which the owner may lack. Management problem Effective and efficient management is very important for the smooth running of any kind of business. A new businessperson often has the knowledge and skill to produce a good but will lack the necessary kills of planning organizing, staffing, directing and controlling. Yet the small business owner is often forced to become a generalist in management since he or she cant afford to employ a specialized person having necessary managerial skills. Also they do not give the subordinates enough responsibility to manage. Shortage of working capital Shortage of working capital is the most predominant limitation of small business. For this limitation, they cannot take the advantage of economics of scale. They cannot take the advantage of discounts given for bulk purchases. This leads to the inability to cope up with their larger competitors in new facilities, equipment, tools, and methods. Lack of coordination Another disadvantage is the lack of coordination between production and marketing. That is the failure to balance and coordinate these to critical functions. 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. Having too big inventory as to bear too much inventorying and maintenance cost.

Diversifying too fast. The advantage of diversification and the advantages of product specialization should be balanced. Lack of effective selling techniques Small businesses usually dont have the access to specialized person at marketing. So, they lack in scientific market research, specialty advertising and personal selling. As a result sales are comparatively lower than the larger enterprises. Location of the head office and the accessibility does affect the sale to certain degree.

Situation Leading to Formation of Small Business:

The formation of small business is a result of certain situational advantages it enjoys. These advantages help small businesses to be a part of any economy. Apart from relaxed government policy, 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. In case of a radical innovation, market reaction and consumer acceptability need to be tested. It is therefore, preferable to introduce the product through a small firm, which ensures less risk factor on investment. Having a Local Market for the Commodity offered In certain form of business, operation in a larger market is not economically viable. For instance, it will not be economical for a restaurant to sell its product to a large market. Such scale of operation exceeding the local demand would cause inefficient use of resources. Therefore, a small firm does better in a small scale. Availability of Limited Market When the market is limited, small business is the best choice. In a monopolistic competitive market there is little possibility to grab a substantial market share. In such case, small business offers better returns.

Small Business Strategies

For a business, the purpose of small business strategies should be to seizecompetitive advantage for the long term. The three main small business strategiesasproposed by Michael Porter are cost leadership, differentiation and focus -these three business concepts are now the cornerstones of any business strategy.We will at these three strategies individually. As part of the small business strategies - competitive strategy isessential for the organization to survive. Hence we will also look at the mostimportant competitive tactics and strategies. 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. There are broadly three categories of strategic choice: a. The competitive strategies are the strategies that the organization will pursue for competitive advantage. They determine how you compete. b. Product-market strategies determine where you compete and the direction of growth. c. Institutional strategies determine the method of growth.

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. A firmshould adopt a competitive strategy to secure a competitive advantage. The management guru Michael Porter states that there are threegeneric competitive strategies. They are: 1. Cost leadership being the lowest cost producer in the industry as a whole; 2. Differentiation is the exploitation of a product or service which the industry as a whole believes to be unique; 3. Focus involves a restriction of activities to only a part of the market (a segment) through; a. Providing goods and/ or services at lower cost to that segment (cost-focus) b. Providing a differentiated product or service to that segment (differentiationfocus)

They are graphically illustrated in figure below:

Cost leadership and differentiation are industry wide small business strategies. Focus involves segmentation but involves pursuing, within thesegment only, 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. By producing at the lowestcost, the manufacturer can compete on price with every other producer in theindustry as a whole. By producing at the lowest cost, the manufacturer cancompete on price with every other producer in the industry, and earn unitprofits, if the manufacturer so chooses.

How to achieve overall cost leadership:

a. Set up production facilities to obtain economies of scale; b. Use the latest technology to reduce cost and/or enhance productivity (or use cheap labour if available). c. In high technology industries, and in industries depending on labour skills for product design and production methods, exploit the learning curve effect. By producing more items than any other competitor, a firm can benefit more from the learning curve and achieve lower average costs. d. Concentrate on improving productivity. e. Minimize overhead costs. f. Get lower cost sources of supply. g. Relocate to cheaper areas.

Differentiation
A differentiation business strategy assumes that competitiveadvantage can be gained through particular characteristics of a firmsproducts. Products may be categorized as: a. Breakthrough products offer a radical performance advantage over competition, perhaps at a drastically lower price. b. Improved products are not radically different from their competition but are obviously superior in terms of better performance for a similar price. c. Competitive products derive their appeal from a particular compromise of cost and performance. For example, cars are not all sold at rock bottom prices, nor do they all provide emaculate comfort and performance. They compete with each other by trying to offer a more attractive compromise than rival models.

How-to differentiate
a. Build-up a brand image (e.g. Volvo cars supposed to be safer than any other car) b. Give the product special features to make it stand out. c. Exploit other activities of the value chain.

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

processes or cut costs

Focus or niche strategies

In a focus strategy, a firm concentrates its attention on one ormore particular segments or niches of the market, and does not try to serve theentire market with a single product. a. A cost-focus strategy: aim to be a cost leader for a particular segment. This type of strategy is often found in the printing, clothes manufacturer and car repair industries. b. A differentiation-focus strategy: pursue differentiation for a chosen segment. Luxury goods are the prime example of such a strategy.

Advantage of focus
a. A niche is more secure and a firm can insulate itself from competition. b. The firm does not spread itself out too thinly.

Drawbacks of a focus strategy

a. The firm sacrifices economies of scale which would be gained by serving a wider market. b. Competitors can move into the segment, with increased resources (e.g. the Japanese moved into the US car market, to compete with Mercedes and BMW) c. The segments needs may eventually become less distinct from the main market.

Which strategy?
Although there is a risk with any of the generic small business strategies, Porter argues that a firm must pursue one of them. A stuck in themiddle strategy is almost certain to make only low profits. This firm lacksthe market share, capital investment and resolve to play the low cost game, theindustry-wide differentiation necessary to obviate the need for a low costposition, or the focus to create differentiation or a low cost position in amore limited sphere. In practice, it is not simple to draw hard and fast distinctionsbetween generic strategies here are some of the problems: a. Problems with cost leadership i. ii. Internal focus. Cost refers to internal measures, rather than market demand. It can be used to gain market share: but it is the market share that is important not cost leadership Only one firm. If cost leadership applies cross the whole industry, only one firm will pursue this strategy successfully.

iii.

Higher margins can be used for differentiation. Having lower cost does not mean that you have to charge lower prices or compete on price. Being a cost leader gives the company freedom to choose other competitive strategies.

b. Problems with differentiation the assumption here isthat the differentiated good will always be sold at a higher price: i. ii. iii. In practice a differentiated product may be sold at the same price as competing products in order to increase market share. Differentiation against which competitor? Do they compete on the same basis? Are the same market segments covered? Are some of the questions not covered. Source of differentiation this can include all aspects of the firms offer not only the product. Restaurants aim to create an ambience as well as serving food of good quality.

Focus small business strategies probably have fewer conceptualdifficulties, as it compares well against ideas of market segmentation. Inpractice many companies follow this strategy.

Product Market Mix Strategy

Product Market Mix Strategy - Ansoff drew up a growth vector matrix, describing a combination of a firms activities in current and new market, with existing and new products. The product-market mix strategy is illustrated in diagram below:

Current products and current market: market penetration Market penetration: the firm seeks to: a. Maintain or increase its share of the current market with current products. b. Secure dominance of growth markets. c. Restructure a mature market by driving out competitors. d. Increase usage by existing customer.

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

or directly complementary to a companys present activities. Sony with its playstation started to compete in computer games. Vertical integration occurs when a company becomes its own; a. supplier of raw materials, components or services (backward vertical integration) b. Distributor or sales agent (forward vertical integration), for example: where a manufacturer of synthetic yarn begins to produce shirts from the yarn instead of selling it to other shirt manufacturers. Advantage of vertical integration a. To secure supply of components or raw materials with more control. Supplier bargaining power is reduced. b. Strengthen the relationships and contacts of the manufacturer with the final consumer of the product. c. Win a share of the higher profits. d. Pursue a differentiation strategy more effectively. e. Raise barriers to entry. Disadvantages of vertical integration a. Over-concentration - A company places too many bets on a same end-market product b. The firm fails to benefit from any economies of scale or technical advances in the industry to which it has diversified. This is why in the publishing industry most printing is subcontracted to the specialist printing firms, who can work machinery to capacity by doing work for many firms. Unrelated diversification - conglomerate diversification Unrelated diversification or conglomerate diversification is very unfashionable now but it has been a key strategy for many companies in Asia.

Offensive Defensive Strategies

Offensive Defensive Strategies - considering strategic options from a competitor rather than customer orientation is referred to as competitive marketing strategy. Kotler and Singh identified five offensive and six defensive strategies these are named after military strategies. Offensive warfare 1. Frontal attack This is the direct, head on attack meeting competitors with the same product line, price, promotion, etc. Because attack is on the enemys strengths rather than weakness it is considered the most risky and least advised strategy.

2. Flanking attack The aim here is to engage competitors in those products markets where they are weak or have no presence at all. Its overreaching goal is to build a position from which to launch, an attack on the battlefield later. 3. Encirclement attack Multi pronged attack aimed at diluting the defenders ability to retaliate in strength. The attacker stands ready to block the competitor no matter which way he turns the product market. Product proliferation supplying different types of the same product to the market. Market encirclement consists of expanding the products into all segments and distribution channels. 4. Bypass attack This is the most indirect form of competitive strategy as it avoids confrontation by moving into new and as yet uncontested fields. Three type of bypass are possible; develop new products, diversify into unrelated products or diversify into new geographical markets. 5. Guerilla warfare Less ambitious in scope, this involves making small attacks in different locations whilst remaining mobile. Such attacks take several forms. The aim is to destabilize the competitor by small attacks.

Defensive warfare 1. Position defence static defence of a current position, retaining current product markets by consolidating resources within existing areas. Exclusive reliance on a position defence effectively means that a business is a sitting target for competition. 2. Mobile defence A high degree of mobility prevents the attackers chances of localizing the defence and accumulating its forces for a decisive battle. A business should seek market development, product development and diversification to create a stronger base. 3. Pre-emptive defence Attack is the best form of defence. Pre-emptive defence is launched in a segment where an attack is anticipated instead of moving into related or new segments. 4. Flank position defence This is used to occupy a position of potential future importance in order to deny that position to an opponent. Leaders need to develop and hold secondary markets to prevent competitors from using them as a spring board into the primary market.

5. Counter offensive defence This is attacking where the company is being attacked. This requires immediate response to any competitor entering a segment or initiating new moves.

Some Marketing strategy for small business

1. 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. Ask for a (very) short article for your newsletter or a quick phone interview for your podcast. Follow up by sending, or better yet dropping by with a copy of your finished production with a thank-you and of course, more information about your product & services.

2. 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. Creating these content pages does not require any additional budget, but they do require time and creativity. For example, a children clothes store can dedicate a page to Tips on keeping your child busy on school vacation and through that page, attract parents to the site.

3. Write For Trade Magazines

Marketing Strategy For Small Business: If you want people to call you, there is nothing like writing an article for a trade magazine (for B2B) or local magazine (for B2C) to gain credibility and exposure. You can demonstrate your expertise and position yourself as the go-to person for your product or service. This strategy generates responses from people who are the ready-to-buy stage.

4. Google AdWords On The Cheap

Marketing Strategy For Small Business: Run market research on the cheap by using Google Adwords to target an audience, with the landing page being a question survey. A snappy question to attract people, along with Google's Geo-targeting can provide great results, for next to nothing.

5. Sponsor Your Local Sport Teams

Marketing Strategy For Small Business: Sponsor a local sports team. For less than the cost of a 1/4 page ad in a local paper, you can buy team uniforms for a local soccer, basket ball, baseball or other sports teams. This a sure fire way to get the team, and their friends, family and fans that your business is a genuine part of the local community. It's a

great PR technique too, 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. Its All Keywords

Marketing Strategy For Small Business: Statistically, 3 out of 4 internet users live in North America, making exposure on the web critical. 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.

7. 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. Establishing a presence online is key, whether it's by creating an interactive, regularly updated site or blog, or by building informative yet informal profiles on social networking sites like Facebook or Twitter. Opening communication channels online will not only increase brand awareness, it'll also boost your company's rank on search engines, and prove that you're a business that "gets it" and doesn't live in the dark ages.

8. Go To The Chamber
Marketing Strategy For Small Business: Make yourself the expert in your field. Volunteer to teach seminars through your local Chamber of Commerce about your area of expertise. Your business will receive promotion through the event itself, as well as through all marketing for the event. Your association with the Chamber will boost your credibility, as well.

9. Create An E-News For Your Biz

Marketing Strategy For Small Business: As a relatively new start up, it may sound old fashioned in todays Twitter world, but having a great e-news with valuable content is key for our business. E-News is more than a sales pitch, rather, the opportunity to position your business as an expert, provide relevant information, and to add another layer in relationship building. Building a strong database with a focus on media/bloggers, giving your clients the opportunity to subscribe, and publishing frequently (but not obtrusively) is still one of the best, and least expensive, marketing tools in our arsenal. You would be surprised how often your content is tweeted on twitter, covered by bloggers, or open the door to a more extensive PR pitch.

10. The "Wow" Factor

Marketing Strategy For Small Business: Marketing gurus often refer to it as differentiation. Academics who fancy themselves as marketers theyre the ones who

write marketing text books prefer to call it a USP, your Unique Selling Proposition. What theyre 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, thats your Wow!, what makes your Stuff better.

11. Leverage Online Forums

Marketing Strategy For Small Business: Many communities now have online forums/bulletin boards that offer varying levels of paid memberships. Purchase a membership that allows you to advertise your business and USE IT. Page with highest traffic in this specific area ... www.Paulding.com ... business advertising membership $150/year. Every time you post with your business ID, your business name (and web page link) is put in front of potential customers. Post about your specials, sales, what have you. (Be VERY careful to remember that every post is representative of your business.)

12. Charity Donations

Marketing Strategy For Small Business: My #1 PR tip for small businesses: FOCUS, FOCUS, FOCUS. Pick one or two charity organizations or causes and donate only to them for the year. Create a letter that says why you chose the organization(s) so when you get inundated with requests for large donations, you can politely and formally say NO and still send a respectful message that you are committed to the community. Youll save a ton of money on $50 year book ads and donations to the latest event that is NOT your target market.

13. Hand Written Follow Up Cards

Marketing Strategy For Small Business: Believe it or not, I have found a lot of success with the good old fashioned hand-written follow up card. Whether it's to say thank you, that it was a pleasure meeting, or that I'm simply looking forward to a future business relationship, 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. How many hand written cards do you get in the business world these days? Almost none...it's an extremely personal effort that helps you stick out and remain memorable in your clients' mind. It seems simply and old-fashioned but it works.

14. Buzz Marketing At Trade Shows

Marketing Strategy For Small Business: Best tip, resist the urge to look/sound like your bigger competitors. To create buzz at a trade show for a client and demonstrate how other competitors waste customers' time, we strapped a big clock to a gurney and walked it around the show floor with two EMT types. T-shirts with the URL and booth number were the only "branding." Buzz = conversation, conversation = participation.

15. Personalized Gifts

Marketing Strategy For Small Business: Identify a unique, personalized gift to give your target customer's customer on the target customer's behalf. Example: A small, boutique hotel recommends a restaurant. The restaurant gives the diner a free dessert, compliments of the hotel! Everyone wins.

16. 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.

17. Tell Memorable Stories

Marketing Strategy For Small Business: A convincing (and free) marketing strategy you can use to 'tangibilize' your service is by telling storiesgive specific and practical examples of what you have accomplished for clients. Use real-life examples of projects you completed, specific problems you solved or successes you achieved. If you're a new entrepreneur, create a realistic scenario about how you would help your ideal client overcome a typical challenge. Relate your story through articles, blog posts, public speaking or by publishing a special report.

18. 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. One of the best ways to do this is through active involvement at trade associations where prospective referrers' congregate. 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."

19. Inspire Customers To Call You

Marketing Strategy For Small Business: Send a postcard mailing monthly instead of a hard copy newsletter. Cost self printed is $0.46 ea. including the stamp. Title - 100 reasons to call us - list 8, the 9th - call to meet for coffee, - 10th is .."more to come". List your skills, talents, tasks and ask questions - we've used it for a fun contest and sent a $10. gift for all correct answers and a $ 2.00 gift for participating. They read the card!

20. 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. Winning an award can catapult your reputation within your industry and with the sales audience you aim to attract. Many competitions cost nothing to enter except for the time it takes to prepare

your entry. Who awards business prizes? Professional and trade organizations, chambers of commerce, Better Business Bureaus, universities even churches. Keep your eyes open for opportunities. They are all around. And remember, there is a secret all award winners share: They have taken the time to prepare well-written entries. Cant write well? Then pay someone who can to prepare your entry or barter services if youre trying to save money. The rewards for winning a business award can last seemingly forever. Brag about winning on your website; send a letter to clients; post the award in your office or store so whoever comes in will see it. And of course, send out a press release and get your picture in the paper!

21. Network Your Networks

Marketing Strategy For Small Business: Networking with friends who then network with their friends. When trying to spread the word about my company, I have e-mailed everyone I know and told them to e-mail everyone they knowand so on. Ive expressed that I am a one woman business and desperately need the support of my friends. I do believe that woman share an unspoken sisterhood and are more likely to help eachother outeven without really knowing the other person. I have received unbelievable support, tips, and advice from people to date that I have never met face to face. The power is in numbers6 degrees of separation. Someone ultimately knows someone that can help you outand believe it or notwill want to.

22. 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. Publish tips, share your expertise through public speaking, even try pitching the media... make it super easy for people to associate you and your business with excellence and expertise in your field.

23. Never Stop Growing Your Network

Marketing Strategy For Small Business: Expand your network of contacts and potential clients. Ask your best, most powerful, most influential friends or business associates to introduce you to the five people they think you should meet to expand your business. Take each of the contacts out for coffee and get to know them. Discuss your plans and future goals, tell them about why your business is special and ask for their

advice. 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.

24. HARO Gift Bags

Marketing Strategy For Small Business: Each Friday in the second edition of HARO there are Gift Bag Requests. You can find decision makers with events that have a match for your product or service. Once both parties agree that there is a fit it can lead to quality networking and future business opportunities.

25. Free Soap

Marketing Strategy For Small Business: give away soap products on Twitter. First I ask a question about a product on my web site or Blog. The first person to answer wins soap. The I write Be Sweet, please retweet upon receipt on the envelope so they will go on Twitter and say thanks. Pretty simple but a good way to get people to your site, blog and give a shout out for your products.

26. Network With The Media In Your Niche

Marketing Strategy For Small Business: Maintain relationships with media contacts that cover your industry, even when you dont have news for them. Check in with them every month or so and ask how you can help them as an expert in your field. When you do have news, its that much easier to get them to print it!

27. Work For Free

Marketing Strategy For Small Business: I volunteer for the local public broadcasting station as on-air talent and to answer phones. If you are part of a group, you can answer phones during one of their pledge periods during one of their more popular shows they will mention your groups name. When I am on the air, my name and/or org. 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.

28. Be Transparent, Tell Your Story

Marketing Strategy For Small Business: The best way to get noticed in today's market is to tell a personal story. The media is dying for news as they lay off thousands at

newspapers across the country. Have ready-to-run articles prepared to send off at a minutes notice will create a great relationship with papers. They'll consider you a source of valuable information!

29. 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, unique and valuable messages to their inbox. This can build loyalty, drive sales and cut other costs.

30. The Low Hanging Fruit

Marketing Strategy For Small Business: When I opened my law firm I treated older, more experienced attorneys to lunch and asked that they consider referring me smaller cases they didnt have time to handle. With every successful referral I sent a thank you card enclosing a Starbucks (or their favorite restaurant) gift card thanking them for their support. This helped me start my practice and build a client base without having to spend a lot on advertising.

Common Problems of small Business

As we got some real life idea now we will try to find out where the problems actually lie. In Bangladesh there are a lot of Small Business firms but all of them can not succeed in their business. It is very hard to operate and make a business profitable here. It is also not very easy to start a new Small Business firm. In this part we will try to identify the key problems that a Small Business firm faces in its establishment and operating period. The major problem a Small Business firm faces in its establishment period is the problem for capital or sufficient financing problem. 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. One of the first questions any potential entrepreneur must ask is, "How do I get the money"? The type of the business may be anything but the money necessary for finance is must. Without necessary fuel (money) no ship (Small Business firm) can run. Plant or fixed asset, financial needs include purchasing land and buildings, machinery and equipments, furniture, vehicles etc all of these require a huge amount of money. In a country like Bangladesh it is not very easy to arrange a satisfactory capital to buy all these. As it is about Small Business, there is no chance to raises the capital from share market. Only personal and family funds and personal loan from the friends are major source. But in this way it is very hard to raise a sufficient amount of capital.

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

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

-Cannot identify target market or target customer. -Does not plan. -Believes advertising is an expense not an investment.

-Only primary knowledge of pricing policy and strategy. -Cannot identify trading area. -Cannot delegate. -Believes loan would solve every problem.

All these problems are usually created by an unskilled management people. And it is it is more that skilled people are not available in the market. Another common problem of Small Business development in Bangladesh is problem of distribution of goods. It is natural that a new product needs to go through a strong completion from other similar products. Small Business firms suffer from lack of distribution as they cannot compete with the giants. Another point is about our customers. They are very conservative and very much brand loyal. These are the major problems that our Small Business firms usually face while operating.

Suggestions
Here we are giving some suggestions that may be helpful to improve the Small Business sector in Bangladesh. As capital is the major problem for Small Business development in Bangladesh special emphasis should be put here. Commercial banks should finance Small Business by giving them loan in low interest and for long term.

NGOs are very active in this sector. There activity should be spending all over the country. Government should make definite plan to boost up this sector. Youth development department should be more activate. Their fund needs to be increased and rules should be more flexible. Special ministry can be made to coordinate all this. Government can give some subsidies to boost up this sector. Taxation rules should be more flexible for Small Business. It should be assured that the Small Business firms will get sufficient raw materials in lower cost. Political and social instability should be maintained. Terrorism must be sustained and keep under control.

Red tapism must be abolished. Corrupted officials need to be punished and replaced.

It must be assured that the Small Business firms will get public utility service connection without any delay and bribe. A syndicate can be made to help the entrepreneurs and to support this sector.

Conclusion
As we discussed all these it is clear that there are a lot of problems that Small Business is facing. It has many positive effect and some drawbacks too. We cannot build some giant corporations like Microsoft or Sony Electronics overnight. But we can launch a Small Business firm easily. We can employ a number of unemployed people in this sector. In todays 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. So in my opinion the prospect of Small Business in Bangladesh is very bright.

References:
1) 'A Study on East Asian Economy'; by World Bank; page: 31 - 407; Publisher: University Press Limited; 1981. 2) 'Developing Careers on Small Business'; by Monjurul Akhter; page: 1 - 34, 67-286; Publisher: Maola Brothers; 1998. 3) 'Entrepreneurship and Lives of Successful Entrepreneur'; by Dr. A. R. Khan; page: 2 165; Publisher: University Press Limited; 1986.