LR - Important and effective business strategies to promote a small business?

LR – Important and effective business strategies to promote a small business?

Literature Review

What are the most important and effective business strategies to promote a small business?

Introduction

In this assignment small-scale business is taken into the consideration. There is the different type of limitations for running a small scale business is understood in this assignment. The methods by which branding can provide a competitive advantage is analysed in this assignment. Marketing and Advertising that are followed by small businesses in the present market scenario is also investigated in this assessment. For the better understanding of the whole topic example of an organisation Ahead in Speaking is taken into consideration. This organisation provides training of public speaking to the different professions. Career advancement training is also provided by this organisation. This Organisation was started by sport hypnotic, certified business coach and clinical hypnotherapist Adrian Peck.

Literature Review 

As per Burns (2016), Small businesses are a small Enterprise that is having a total number of employees in the range of 10 to 50. If the annual turnover of the particular business is less than 10 million pounds and greater than 2 million pounds then that business will come under the category of small-scale business. There can be the different type of limitations are there while running a small business.

Limitations of running a small-scale business

Less brand recognition

In the words of Van Der Wijst (2012), the brand recognition of the small-scale business is less as compared to large-scale business. This can be understood well with the help of the example of Coca-Cola and Apple. These are the brands that are widely having recognition among the customers. The promotion of the product can be done easily in the large-scale businesses while it is not so in the small-scale businesses because small-scale businesses are dependent on a local and regional customer that gives them Feswer revenues and profits. Ahead in Speaking is exploring the potential market for Business opportunities, therefore, it is very necessary to do effective branding.

Higher costs

Small-scale businesses have to experience higher cost as compared to large-scale businesses. The bargaining power of the small scale businesses is not that much so that they can get good cost benefit. In the smaller scale businesses the negotiation of the cost and getting discount on the cost for the different resources on which the company is dependent. The buying power of the small business is also not that much so that they can avail lower cost (Loscocco & Bird, 2012). The production capacity of the small-scale businesses is also low that results in a high cost for a particular organisation. The different resources are costs that are needed in providing training of public speaking to the different clients of Ahead in Speaking.

Smaller Budgets

Ahead in Speaking is also having a small yearly budget. Small-scale businesses are having a small budget. The marketing budget, the research and development project of the small business is low. The research and development in the product and services that are provided by small-scale business are not accomplished fast as compared to large-scale businesses. Therefore these businesses used to focus on the sales so that the future year budget of small-scale businesses will be greater than the existing budgets. Small-scale businesses not able to employ highly skilful labours and workers as these people demand high salaries. due to the shortage of budgets, small-scale businesses used to hire qualified employees but with less skill as compared to large-scale business employees (Cronin-Gilmore, 2012).

Not able to compete with large-scale businesses in terms of price 

The competition between small-scale business and the large-scale business is not that much if the price is considered. This is because of lack of bargaining power of the small businesses. The cost of the product and services that are provided by the large-scale businesses is low because of high bargaining power (Nakabayashi, 2013). The cost of product and services is high in small-scale businesses. Therefore they have to provide the product and services at a higher cost to the customer. This provides a competitive advantage to the large-scale businesses as compared to small-scale business if both of the business belongs to the same industry.

Vulnerability to the late payments 

It is the situation with the small-scale businesses. The situation will affect the cash flow of the company. This situation generally arises in the economic downturn (Nakabayashi, 2013). In this situation, the customer put off payments for small-scale businesses because customer opts to pay to large-scale businesses.

The bank providing less amount of loan or no loan

There can be the situation in which bank credits will not be provided to the small businesses because of any critical situation of the particular small business. This can be done by the Bank to reduce the exposure. In the situation, fewer funds will be available for the small-scale businesses for the new Investments. Getting loans harder will definitely create the work situation with the small-scale businesses (Apostu, et. al., 2013). Ahead in Speaking also faced fewer credit offers from the different financial institution in the United Kingdom.

Lack of preparation for recession

There can be the situation in which the recession can be possible in the economy. Therefore it is necessary for the organisation to have good preparation so that particular organisation can work effectively in the time of recession also. Therefore small-scale businesses should prepare well so that there will not be the worst situation for such type of organisation at the time of recession. Ahead in Speaking had not yet face any economic downturn (Boswell, 2014). This organisation should be prepared well to tackle the different Downton that can be possible in the United Kingdom economy.

Not able to give satisfaction interest of customers

Small-scale businesses are generally new in the market. It is their ultimate goal to satisfy the current customers. The current customers can be satisfied if the good services and products are provided to them. This will change into the trust of the customer towards a small scale business. But, small-scale business is not able to satisfy the customers and not able to get the trust of the customers easily (Boswell, 2014). This is because of less product and service development strategies with small-scale businesses. Limited access to advanced technology is also the factor that becomes the reason of unsatisfied customer of small-scale businesses. These results in customers have less trust in small business.

Branding providing a competitive advantage to small business

In the present time branding is very necessary for any organisation whether the particular organisation is in small scale business or large scale. There is various type of brand differentiators involved in the process of branding that can provide a competitive advantage to a small scale business. This will lead to growth and development of the particular business. This will lead to an increase in the revenue of the particular business (Helm &  Özergin, 2015). In this way, the branding can be helpful in providing a competitive advantage to the business that is involved in the small-scale sector.

Market responsiveness

Branding involved in market responsiveness that is very beneficial for the customers. The customer’s needs and demands can be fulfilled well with the help of market responsiveness (Sweeney, et. al., 2014). The product and the services can be provided by the organisations like Ahead in Speaking according to the needs and demands of the customers. If the product and services are provided to the customers according to their needs and demands then the particular custom will get satisfied by the organisation. Then trust will be created in the mind of the particular customer (Helm &  Özergin, 2015). In this way, a competitive advantage can be provided to the organisation following market responsiveness.

Product or service superiority

The quality can be enhanced with the help of feedbacks collected from the different customers. This can be helpful in providing the preventive measures on the feedback. The development can be accomplished in the process of Ahead in Speaking. This will be helpful in providing a better quality of services to the customers of Ahead in Speaking. Therefore the number of new customers will attract this organisation (Skaalsvik & Olsen, 2014). In this way, product or service superiority can be created for an organisation with the help of branding. This will be helpful in having a competitive advantage for the organisation.

Natural or human resource

According to Skaalsvik & Olsen (2014), there can be the situation in which the particular small-scale business is present at Prime location in your area. Therefore the particular location can be reached by a maximum number of customers. This can be helpful for the organisation that is new in the market. They can be the situation in which the particular organisation is having a person present in the team that is popular or very skilful. All such factors are also responsible for creating a competitive advantage for the organisation that is involved in small-scale businesses. Therefore natural and human resources are the factors that are included in branding have created and competitive advantage.

Quality management

The services that are provided to the customers and the clients should be managed well. The internal inspection is also involved in the branding for analysing the goods services are provided to the customers or not. If there is any necessity in the development of quality of services that are provided to the customers is fulfilled (Krystallis & Chrysochou, 2014). This is beneficial for the organisation in providing good quality of services. This results in the popularity of the particular product among the customers. This results in the branding of the particular product. This lead to getting a competitive advantage for the organisation involved in small businesses.

Market dominance

With the help of branding, market dominance can be accomplished by the organisations. The investment in the promotion and marketing by the small-scale businesses leads to enhancement in the popularity of services that are provided to the customer. This results in accomplishment of dominating nature of the particular Organisation in the market (O’Cass, et. al., 2013). The customers used to attract to that particular organisation like Ahead in Speaking. The brand awareness among the people becomes good result in an increase in a number of customers for the organisation. The more revenues are collected because of an increase in the customers lead to more investment in promotion in branding by the organisation.

Method of sale

Small business organisations are involved in direct selling of their product to the customers. There used to be the different type of middleman present in process of selling (Martin Strandvik & Heinonen, 2013). Organisations are now focusing on cutting out such middleman so that a good share of profit will be with directly to the small business. Therefore the process of selling is accomplished with effective promotion and Integrated Marketing mix (Johnson, 2013). This leads to the effective branding of the services that are provided by the organisation like Ahead in Speaking. The increase in sales can also be accomplished with the help of this process. This leads to getting a competitive advantage to the organisation that follows this method of sale.

Short term profit

With the help of branding short-term profits can be more in amount with the organisation that processing and doing branding effectively.The short-term profits can become huge with savings. This can be used in the further investment of the small businesses. This will lead to growth and expansion of a small business. This leads to providing a competitive advantage to the organisation.

Supply chain management

With the help of effective supply of the product and services to the customers, the customer not has to wait long in a queue for the product and services. This helps in motivating the customer to purchase product and services from an organisation that is involved in small business. This is the situation of effective supply chain management. This results in creating loyal customers for the organisation (Johnson, 2013). This can be only possible with the help of effective branding. The lawyer customer to the organisation will take the future services and product from the organisation only. This provides a competitive advantage to the organisation.

With the help of development in the Technology, there will be developed in the tech product and services. The services that are provided by Ahead in Speaking are innovative in nature (Xie, et. al.,  2014). The new technology implementation is accomplished with the services. This helps in providing better services to the customers. This creates a competitive advantage to Ahead in Speaking. Good quality of services with innovative technology is provided to the customers that attract the good number of customer.

Marketing of small businesses

Market research

Market research is complete by the small businesses so that the particular customers can be targeted by the organisation. The analysis of the customers can be done. Effective implementation of the marketing mix can be done with the help of market research. The present situation of the company in the market can also be analysing the well with the help of market research (Mintz & Currim, 2013). The current trends that are present in the specific industry can also be analysed and the help of market research. In this way market research is accomplished by the small businesses.

Market segmentation

In this process dividing of the different type of customer on the basis of their demography and needs and wants is done. According to the customer services are provided. This is the process called market segmentation (Huang & Sarigöllü, 2014). Market segmentation is helpful in providing better services to the customers on the basis of marketing.

Effective distribution

The services and the product are provided to the customer by the organisations Ahead in Speaking. The customer does not have to wait a long for that the turn. This helps in creating a satisfaction among the customers of the organisation (Huang & Sarigöllü, 2014).

The SWOT analysis of Ahead in Speaking a small business organisation example is presented here: –

Strength

The operational cost of this organisation is quite low.

Cashless payment is used by this organisation attracts the good number of customers.

The prices are lower as compared to other Organisation in the specific industry (Ahead in Speaking, 2018).

Very little competition is present in such a specific industry.

Weakness

Ineffective implementation of an integrated promotional mix

Very unpredictable business

There is privacy concern of the particular client like weakness and strength of the particular person.

Not present in different parts of the world (Ahead in Speaking, 2018)

Opportunities

Whole Europe can be targeted while franchising a business.

A number of branches can be opened in the United Kingdom.

Threats

The idea can be imitated and there will be more competitors in the future (Ahead in Speaking, 2018).

Less investment opportunities are available because of less revenue.

Marketing mix

There is total 7 marketing mix implemented by a small business to do Marketing. A product should be clear is specified to the customer. A product should be exactly provided to the customers. The promotional mix is the price. The price should be such that it can attract a good number of customers services can be provided at the affordable price. The right place should be chosen for the selling of the product and services. Another marketing mix is a promotion. Product and services promoted in such a way that a good number of customers can be attracted. The services and products that are provided to the customer should be attractive in nature which is called a physical evidence of marketing mix. Another marketing mix is people. The people that are involved in providing services and product should be skilled and hard workers (Mintz & Currim, 2013). The process that is followed in providing production services to the customer should be understood well by the customer is another marketing mix followed by small businesses like Ahead in Speaking.

Advertising by small businesses

Advertising with the help commercials

Advertising can be accomplished by the small businesses. The commercials can be made and uploaded on the social media (Ormont & Zalowitz, 2013). The commercials can be telecasted on the TV and radios also.

Personal selling

With the help of oral presentation directly to the target customer can be done. This can be helpful in providing a better product according to the desire of the particular person (Konkol & Lasarow, 2014). This is the method by which more customers can be targeted.

Public relations or publicity

This can be done by the particular Organisation in an indirect way. This can be done with the help of the third party. planting a significant story by the particular organisation in the media is accomplished so that publicity can be done (Ormont & Zalowitz, 2013).

Direct marketing

The communication is formed between the customer and the profit and the non-profit Organisation. This can be done with the help of email, messaging, outdoor advertising etc.

Guerrilla marketing

According to Konkol & Lasarow, (2014), It is the miscellaneous method of marketing in which videos get viral on the social media and other internet sources because of tactics played by small-scale business.

In this way, a different type of promotions is accomplished by the different small-scale business. This helps in the creation of awareness and popularity of product and services that are provided by the small-scale business to the customers. The different methods are also implemented by Ahead in Speaking.

Conclusion

It can be concluded from the assignment that there is a different type of limitations are there in running a small business. It is not an easy task to expand the business from a small scale business to a large scale business. Branding is very necessary for the different type of business whether it is a small scale business or it is the largest in business. Branding can provide a competitive advantage to the small-scale business. Marketing research and other marketing methods are very necessary for the implementation of current trends in the business. The promotion in the advertising can be done effectively with the help of implementation of promotional mix and marketing mix.

References

Ahead in Speaking, 2018. About us. [Online] Ahead in Speaking. Available at: http://www.aheadinspeaking.co.uk/about/. [Accessed: 3 September 2018].

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