Marketing Perspectives

1. 1

   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.

2. 2

   Twelve (12) percent of small businesses sell to a small number of business customers creating the potential of becoming a captive supplier.

3. 3

   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.

4. 4

   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).

5. 5

   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.

6. 6

   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.

7. 7

   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.

8. 8

   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.

9. 9

   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.

10. 10

    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.

11. 11

    More small employers intend their marketing efforts to lead customers (61%) than to respond to them (28%).

Volume 6, Issue 8, 2006
ISSN 1534-8326

Claes Hultman
Örebro University

Gerald E. Hills
University of Illinois-Chicago

William J. Dennis, Jr.
NFIB Research Foundation

• 1Does your business sell primarily to:?
• 1aTo a large number of businesses or just a very few?
• 2Is your customer base:?
• 3Do you think marketing and sales are:?
• 4(marketing perspective) Our business doesn’t need much marketing. Our products or services sell without having to do much.
• 5(marketing perspective) It is more important to focus on what the customer buys now, rather than what the customer will buy in the future.
• 6(marketing perspective) Our business has a separate, annual marketing budget item within the overall budget.
• 7(marketing perspective) Our current customers are the firm’s most important asset.
• 8(marketing perspective) Everyone in this firm makes customers a top priority.
• 9(marketing perspective) We rely heavily on experience when making marketing decisions.
• 10(marketing perspective) We invest in building long-term relationships with our customers.
• 11(marketing perspective) We quickly adjust to meet changing customer expectations.
• 12(marketing perspective) It is more expensive to retain a current customer than to acquire a new one.
• 13(marketing perspective) Customer demand is usually the reason we introduce a new product/service.
• 14(marketing perspective) Long-term growth is more important than immediate profits.
• 15(marketing perspective) We learn from our competitors.
• 16(marketing perspective) It is easier to get a new customer than it is to keep an older one.
• 17(marketing perspective) A marketing plan is a critical business tool.
• 18(marketing perspective) Most of our marketing decisions are based on what we learn from day-to-day customer contact.
• 19(marketing perspective) Our primary objective is to grow the business.
• 20(marketing perspective) We aggressively try to expand our present customer base.
• 21(marketing perspective) Adding innovative products or services is important to our success.
• 22(marketing perspective) We face tough competitors in our markets.
• 23(marketing perspective) It is important to rely on gut feeling when making marketing decisions.
• 24(marketing perspective) Introducing new products or services usually involves little formal market research and analysis.
• 25(marketing perspective) Our customers require us to be very flexible and adapt to their special requirements.
• 26(marketing perspective) We consistently look for new business opportunities.
• 27(marketing perspective) Our marketing decisions are based more on informal customer feedback than on formal market research.
• 28(marketing perspective) Our marketing efforts try to lead customers rather than respond to them.
• 29(marketing perspective) We work hard to establish reputation, trust, and credibility with our customers.
• 30(marketing perspective) We use our key industry friends and partners extensively to help us develop and market our products and services.
• 31(marketing perspective) Creativity stimulates good marketing decisions.
• 32(marketing perspective) We don’t think much about longer-term marketing objectives as much as we should.
• 33(marketing perspective) We usually introduce new products and services based on the recommendations of our suppliers.
• 34(marketing perspective) Most of our marketing decisions are based on exchanging information with those in our personal and professional network.
• 35(marketing perspective) We have to work very hard to reach our sales goals.
• 36AMy business places a strong emphasis on:? (innovative/proven)
• 36BIn the last three years, changes in my products or services have been:? (minor/dramatic)
• 36CMy business is inclined toward:? (low risk/high risk)
• 36DDue to the nature of the business environment in which you operate, is it best to:? (cautious/bold)
• 36EMy business typically:? (responds/initiates)
• 36FMy business is ________ the first to introduce new products or services, administrative techniques, etc. (often/seldom)