All company policies and activities should be aimed at satisfying customer needs, keeping in mind that profitable sales volume is a better goal than maximum sales volume. Here are several basic marketing concepts:

1. Determine the needs of your customers (market research)

Always involve the customer. Use every opportunity to stay in touch with your clients. Customer surveys not only give good feedback but also offer businesses the opportunity to use this feedback in the form of testimonials-let your customers tell the story for you. Another excellent tool is e-mail (even if you don't have a Web site). E-mail is a very inexpensive way for you to send free information, discounts and even coupons to your customers and potential customers.

2. Analyze your competition - their advantages/disadvantages (market strategy)

Take the time to find out your competitor's products, key strategies and objectives, style, how they service their customers, and what they're working on or developing. In a competitive environment, adding value instead of cutting prices is the better way to go. For example, a florist could offer customers a free fact sheet or booklet on how to take better care of plants, make fresh flowers last longer etc. or offer free samples of plant food. This builds good will, adds value to your services and keep businesses from participating in the "race to the bottom" pricing.

3. Select specific markets to serve (target marketing)

As the saying goes "you can't be all things to all people" the same goes for business. Small businesses have limited resources to spend on marketing activities, so it's important to concentrate their efforts on a few key market segments. The major ways to segment a market are geographical or customer segmentation. Geographical segmentation serves the needs of customers in a particular area. For example, many businesses may send direct mail pieces only to people living within one-half mile of the place of business.

Customer segmentation identifies and promotes to those groups of people most likely to buy a product or service. In other words, try selling more to the heavy users before trying to develop new customers.

4. Determine how to satisfy your customer's needs (market mix)

There are four areas that business can combine into overall marketing efforts to satisfy their customers needs: products and services, promotion, distribution, and pricing.

Products and services - Effective product strategies could include concentrating on a narrow product line, a highly specialized service or a product-service package containing an unusual amount of service.

Promotion - This can include advertising, sales, and other promotional activities. In general, high quality sales are an essential promotion tool since most budgets limit a small business's ability to advertise heavily. Direct mail, especially postcards, is an effective and low-cost medium of advertising available to small business. Also online shopping malls and chamber Web sites can be as effective as advertising in the yellow pages.

Price - Determining price levels and/or pricing policies is the major factor affecting total revenue. We are all familiar with the high/low and low/high principles; however, small businesses can often command higher prices if they offer (extra) personalized service.

Distribution - For small business it isn't always "location, location, location." High traffic areas are necessary for small retailers. However, for small businesses offering services or business- to-business products location may not effect the bottom line.

Since most small businesses have limited budgets, there are a few rules to keep in mind. Spend money on:

1) Anything that will really save you time.
2) Services-don't do everything yourself.
3) Equipment-a speedier computer or fax machine can save you time and effort.
4) Networking-join and be active in professional associations, that's where growing your business by word of mouth comes in.
5) Forging a corporate identity-a good name, well-designed logo, and attractive collateral materials;
6) Good phone service-good voice mail and data lines
7) Adequate computer equipment (with modem for connection to the Internet) and a decent printer.
Time and money well-spent can only help your business grow and that's what makes a business successful.