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Understanding Money, Management and Marketing: The 3Ms of Successful Small Business Venture PART 3
by Prof. James Gaius Ibe, Ph.D.

In this three parts series we explore the 3Ms of successful small business venture. Please bear in mind that the following are merely guidelines and in no way constitute formal business advice. They are designed to provide general information regarding the subject matter covered. Laws and practices often vary from state to state and are subject to change. And because real-world situations differ markedly, specific illustrations may not be applicable. Please consult a competent professional for specific business advice. A preliminary review of failed small businesses indicates a common pattern: Lack of attention to the 3Ms of business enterprise: Money, management and marketing.

Understanding Marketing:

Marketing function consists of a series of activities undertaken by a firm to relate profitably to its customers. A firm’s ultimate success in the global marketplace depends largely on its ability to perform the marketing function efficiently and effectively. This requires adequate knowledge of the market dynamics: who are its prospective customers? Where are they? What do they buy? From whom do they buy? When, how and why? To create and maintain competitive advantage, a firm should be the best able to identify and satisfy the needs of its customers better than the competition, both domestic and global. Firm grasp of customers’ product adoption process is vital.

Identifying the needs of potential customers is not sufficient. Understanding market dynamics alone is critical but not sufficient. To create and maintain competitive advantage, a firm should anticipate and effectively respond to the market dynamics-shifts in customers’ demand and preferences and the attendant competitive responses. Relevant, accurate and timely marketing intelligence is critical. However, accurately forecasting market demand is difficult but essential to the formulation of efficient and effective marketing strategy. As Pride and Ferrell (2003) points out, while marketing is the process of creating, distributing, promoting, and pricing goods, services, and ideas to facilitate satisfying relationships in a dynamic environment, marketing management is the process of planning, organizing, implementing, and controlling marketing activities to facilitate exchanges efficiently and effectively. Successful firms efficiently and effectively integrate marketing strategy and overall corporate global strategy: International, multi-domestic, global and transnational.

In practice, marketing strategy involves a plan of action for developing, distributing, promoting, and pricing products that meets the needs of the target market(s). Marketing strategy requires that marketing managers focus on four fundamental tasks to accomplish the stated objectives: (1) target market selection, (2) marketing mix development (4Ps), (3) marketing environment analysis, and (4) marketing management. Indeed, to best satisfy the needs of the target market(s) requires an effective coordination of marketing programs-a set of activities formulated around the marketing elements (4Ps: product, price, promotion and place), that allows the organization to achieve its stated goals. The overriding purpose of marketing strategy is to create and maintain competitive advantage. Additionally, the timing must be consistent with the calculus of economic advantage. Finally, a firm through its strategic planning process should clearly articulate its organizational mission and goals, corporate strategy, marketing objectives, marketing strategy, and marketing plan. The formulation and execution of an effective marketing plan allows a firm to accomplish not only its marketing objectives and goals but its overall corporate goals consistent with ethical marketing decisions that foster mutual trust in profitable marketing relationships.

ABOUT THE AUTHOR: Dr. James Gaius Ibe, is the principal of Global USA: Marketing and Management Consultants; and a senior professor of Economics and Marketing at one of the local universities.

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