Marketing Perspectives
• The primary customer base for 45 percent of small businesses is the general public; the base for another 22 percent is other businesses; and, for still another 2 percent it is government and/or non-profits. However, for 30 percent, the primary customer base is too varied for small employers to identify one.
• Twelve (12) percent of small businesses sell to a small number of business customers creating the potential of becoming a captive supplier.
• Fifty-five (55) percent of small employers think that their businesses do not need much marketing since their products/services pretty much sell themselves. Forty-two (42) percent disagree.
• A large share of the small-business population depends on repeat customers. Twelve (12) percent of small-business owners indicate virtually all customers are repeat customers while another 35 percent say most are repeat. Forty-five (45) percent report their customer base is mixed between repeat and non-repeat customers. Repeat customers are prized because they are easier to attract than developing new ones (according to three in four small employers) and are cheaper to retain than to newly acquire (according to seven in 10 small employers).
• The distinction between marketing and selling is sharp for virtually as many as the distinction is non-existent. Twenty-eight (28) percent think the two concepts are the same thing while 29 percent think they are very different. Forty (40) percent think marketing and selling are somewhat different.
• Forty-eight (48) percent of small businesses have a separate annual marketing budget within the firm’s overall budget; 43 percent do not have a separate, annual marketing budget.
• Experience and customer observation are substantially more likely to influence small-business owner marketing decisions than formal, systematic approaches. For example, 83 percent assert that they base most of their marketing decisions on what they learn from day-to-day contact with customers. Seventy-four (74) percent think it is important to rely on gut feel when making marketing decisions. Their use of formal market research is modest.
• Small-business owners advocate a long-term business outlook. Eighty-five (85) percent argue that long-term business growth is a higher priority than immediate profit. Ninety-seven (97) percent say that they try to build long-term relationships with their customers.
• Seventy-eight (78) percent of small employers think that adding innovative products/services is important to business success. Most small employers introduce innovative products/services in response to customer demand, though suppliers also stimulate introduction.
• Small-business owners recognize that customers are critical to their success. They also understand that customers are becoming more difficult to satisfy and an abundance of competitors are ready to leap on their customers should they falter. For example, 87 percent agree that customers require businesses to be very flexible and adapt to special customer requirements. Eighty-three (83) percent think that they face tough competition in their markets.
• More small employers intend their marketing efforts to lead customers (61%) than to respond to them (28%).
