BACKGROUND AND OVERVIEWThese modules are aimed at helping small-scale entrepreneurs to improve theirbusiness productivity through better marketing. Many businesses start yet fewbusinesses survive. Effective marketing is the difference between failure andsuccess.This training is based on the experiences of the ITDG-EA-Energy Programme,Upesi Project activities. The project aim is to develop and market rural domesticstoves.It is written in consideration of the fact that many small-scale entrepreneursparticularly need basic marketing training to conduct successful business in therural areas. The modules help to communicate the concept, provide a practiceexercise and finally an opportunity to test the ideas on the ground depending onwhich business one is conducting.The manual will be used by organizations working with rural communities tostrengthen their marketing skills and to enable sustainable marketing of theirproducts and services.MARKETING TRAINING GOALS Understand the four components of marketing: Product, Price, Distributionand PromotionEvaluate how well the product or service meets the needs of customersDetermine the best price for the product or serviceSelect the best way to distribute the productCreate new ways to promote the businessIdentify ways to expand the businessSolve the specific marketing problems that ariseDevelop a marketing plan for a defined period of timeKey to experience sharing is the fact that with marketing training alone thedissemination is not automatically successful. But successful disseminationcomes also with good leadership and organization in the case of groups. Thusthe organizations working with communities need to realize that groups marketsuccessfully when their production, marketing earning is well streamlined. Thusalong this manual it will be useful to consider looking at the manual on“Crganizing Communitiesfor Success”, produced by the same author.3

INTRODUCTION TO THE MANUALThe manual is written from modules developed by the training team on thestoves commercialization project and the OEF international Small businessesbook.The manual consists of sessions which are in order, and each session has theobjective spelt out, the training materials and preparations required, and possiblediscussion questions. At the end of each session there is the facilitator’s notes tobe used for reference. It is important that the facilitator is able to revise thenotes in preparation for each session. Handouts have developed from these andneed to be given out at the end of the training session.Appendix V shows a summarized list of materials required before one sets offthis marketing training and it is important that the facilitator has all of them.Appendix VI has a few energizers to be used during this training.4

SESSION ONE: LEARNING ABOUT EACH OTHERObjective:To create a positive beginning, know each other better, builda team and share the training goals and plans.Methodology:Individual participationTraining Materials/Equipment Required:Felt pens, newsprints, notebooks, pens, pencils and rulers.Preparation Required: the training goals on a large paperCut the papers in required designsPrepare what to tell the participants during this sessionHave the programme schedule at handCut manila papers into 5x3 inch pieces (name tags)Time: 1hr 30 minContent:Step Ia) Agree on the language to be used during the training programmeb) Evaluate the sitting arrangements and discuss the possibilities of changingfrom time to time to suit the session.Step IIIntroduction of participants.Cut the shapes into two, distribute and ask people to find their partners. Theyneed to introduce each other and familiarize with any aspects of their lives theywant people to know. Give them time to introduce one another on the plenary.Ask each participant to write the name they wish to be called by during theworkshop.5

Step IIIAsk participants to define marketing. Summarize their definitions into one agreeddefinition. Post the four marketing components posters and ensure that theteam understands what they mean. Internalize the visual expressionsStep IVDistribute cards to the participants and ask each participant to write oneexpectation of the meeting and one problem that they face in their businesson separate cards.Step VAsk participants to paste the cards with their expectations and problems on thewall. Mount the big poster with training goals on the wall then ask theparticipants to match their expectations with the training goals.Agree on how important expectations that may not be covered during thesession will be covered (these could be covered during another trainingprogramme).Step VIDiscuss appropriate training methods with the team (Use the Facilitator’s notesbelow).Step VIIPresent the programme schedule and find out if there are questions. Keep theprogramme for the day written on newsprints and posted everyday on the walls.Step VIIIAgree with participants on the workshop normsDiscussion notes (for the facilitator) Is the session objective clearly understood?What do the participants think about the programme?Find out how prepared the team is to go through the trainingFind out what difficulties the participants themselves go through during the trainingIs the training environment conducive?6


Facilitator’s Notes Keep the training goals throughout the trainingKeep the group norms postedKeep 4 components of marketing postedBusiness is about constant interaction with partnerships (Business partners)Customer – buyer etcCustomer – service providerProducer – service provider – user etc.Definition of marketing and marketing conceptMarketing is a 4- step process, which aims at increasing sales and profits by concentrating ongiving customers what they need/want.STEP ONEUnderstand what customers need /wantSTEP TWODevelop a product which gives customers what they need/want.STEP THREEPromote the product to customers.STEP FOURKeep on improving the product (keep up with the customers)MARKETING CONCEPTThe concept holds that the key task of the business is to determine the needs/wants of thetarget markets (customers) and to adapt all the activities at delivering the desired satisfactionsmore effectively and efficiently than its competitors.CUSTOMERAnyone (individual or organization) with a need for a product or service which he/she is willing tobuy and has a purchasing power)Types of customersRetailers – Buy mainly from wholesaler and sell to the customersWholesalers - Buy product in bulk from producer and resell to the retailers and sometimes tofinal customersConsumers or end users. - Persons who use the products to satisfy their needsTo emphasize the concept, post some of the slogans below at the business place:“A customer is a King”“ A customer is the most important visitor”“ Have it your way”“You are the boss”What is a market?Physical place where buyers and sellers gather to exchange goods and servicesUseful tipsThe training programme is a problem -solving activityBeing adults, experience sharing will make a big contribution to what you come up with duringthe trainingThere will be no teacher since participants already know many things and can help each other8

For each session covered, participants should ensure that they apply it to the business they aredoing or they are planning to doBy the end of the training programme participants will have a new plan for marketing their product andperhaps a plan to expand their business.Key Training Methods Individual contributionsGroup discussionsRole playsField visitsAt the end of this session give handoutsa) Marketing Training Goalsb) Important Definitions of marketingExperience sharingIn this session the facilitator needs to ensure that all the definitions are examined in light of thebusinesses that the trainees are involved. After defining marketing e.g.Customers – after determining the customer, identify with the trainees the product they are selling andwho their customers are and what type of customers they are9

SESSION TWO: INTRODUCTION TO MARKETINGObjective:To understand the importance and challenges of small-scalebusinessesMethodology:Role play and group discussionsTraining materials /equipment required:Newsprints and felt pensPreparation Required:During the break before this session, ask for 8 volunteers. Explain to thevolunteers that they will be involved in a role-play in the next session. Explain tothem the role-plays and give them time to prepare.Time: 1 hourContentStep IIntroduce participants to the session.Define with the team what is considered on small scale-business. Ask them tolist some of the small-scale businesses they know.Tell them that they will watch 2 role-plays. Ask them to record the problemsfaced by small-scale businesses and strengths of small scale as depicted in thetwo role-plays.Step IIInvite group II to present their role-play.Invite group I to present their role-playStep IIIIn plenary ask the team to list the problems and importance of small scalebusinesses mentioned in the two role-plays.Record all the feedback on the newsprints.10

Step IVCompare the information recorded to those on the facilitator’s notes and addwhat has not been recorded then, summarize challenges and strengths of smallscale businesses. Ask the participants to discuss question 1 in groupsDiscussion Notes1. How can we make our small businesses survive? Or What are the possible solutions tochallenges faced by small scale businesses?2. What happens in your situations? What problems do your businesses face?3. Why do you think you face these problems?ConclusionsTo conduct a successful small-scale business, it is important to have a clearmarketing strategy and practical market plan. The training sessions in thismanual will:1.Help to improve marketing and solve marketing problems2.Help to teach marketing concepts for participants to use in their situationsFacilitator’s NotesMany times, small-scale businesses are largely practiced and they often face a number ofchallengesCharacteristics and examples of small scale businesses: Produce and sell in small scaleLess use of heavy machineryBelong to individuals and small groups and small associationsRole playDivide the volunteers into two groups and explain to them the following:Group 1: Challenges for Small scale BusinessesAssume the role of an entrepreneur. Discuss among themselves the problems faced by smallscale entrepreneurs. Practice to act this for presentation in the plenaryKey items to capture Product quality, acceptability, price and availabilityPackagingMethod of selling (how selling is done)Awareness and effective promotion of the productProfitability11

Maintenance (Problems easily eat away capital)Group II: Strengths of small-scale businessesTell them that they will discuss and act out the strengths of small-scale businesses. Practice toact this for presentation in the plenaryKey items to capture Requires minimum capital to start Easy to manage, monitor and control Quality control is easy Can be practiced anywhere including rural areasAsk the participants to write their problems and keep them for the handout ‘introduction tomarketing - session on problem solving’. Effective marketing involves dealing with the problemsfaced.EXPERIENCE SHARINGSmall businesses need to be run as business in order to surviveFor development activities – marketing aspect of interventions is importantSustainable marketingSustainable marketing is obtained by allowing the commercial elementProfitableCarried out by independentIndigenizedImproved levels of skills We have to clearly develop the marketing strategies and implement 12

SESSION THREE: IMPORTANT COMPONENTS OF MARKETINGObjective: To understand the four components of marketing and the thingsabout each of them.Methodology:Group discussionsTraining Materials/Equipment Required:Newsprints, felt pens and masking tapePreparation Required:Have at hand the four posters on marketing components and clear notes ondefinition of the components.Time: 3 hours (with a 10-min. break)ContentStep IIntroduce the session by posting the four posters on the wall one by one andclearly defining the components.Ask the Participants to think of the important things to consider regarding eachparticular marketing component. Allow only up to two answers for eachcomponent.Step IIInform the participants that they will work in four groups. Each group willchoose a Chairperson, Secretary and Presenter. Explain to them their roles.Step IIIGive the assignment and allow 30 minutes for group discussion.13

Step IVPlenary presentation - allow 5 minutes for presentations and 15 minutes fordiscussions. Look at the facilitator notes and add what may not be includedDiscussion NotesHave we been looking at these things in our businesses?ConclusionsThese four components of marketing are the foundation for the rest of thetraining program. The facilitator may already have thought a lot aboutdistribution and promotion. Pay special attention to these areas. Keep theposter posted on the wall for the rest of the training sessionFacilitator’s NotesImportant components of marketingProduct:Distribution:Price:Promotion:The item you are sellingFinding the best way to get your product to the selling pointSetting your price to make a profitCreating ways to persuade customers to buyyour productRoles –Chairperson - to moderate the discussionsSecretary - to record discussions on the newsprintsPresenter - to present the group results to the plenaryAssignmentSupply posters with the definitions written on them and ask the group to highlight key things toconsider in marketing under these components:Group I – productGroup II – distributionGroup III – priceGroup IV - promotion(NOTE: If the participants can read, make a large copy of this to post on the wall or give eachperson her own copy. Show this list after participants have given their own ideas.)14

Things to consider about the four Marketing ComponentsPRODUCT:The item you are sellingDeciding which item to sellDeciding which product will appeal to customersFinding out if similar products are sold, how they are made, priced, and what customers like ordislike about themFinding quality raw materials at a good priceDeciding how many products can be made within a specified timeImproving the quality of your productMaking packaging more attractiveA) DISTRIBUTION: finding the best way to deliver your product to the selling pointWho you should sell your product toWhether to use a retailer or sell directlyWhether to use a middlemanGetting your product to the market or customerType of transportationCost of transportationCooperation with other business peopleWhere to sell: house to house, markets, shops etc.Methods of storage and their costsB) PRICE: Setting your price to make a profitSetting your priceMargin of profit over costsPrices of competitor’s productsSpecial prices for quick salesSpecial prices to entice customers into the shopDeciding whether customer purchases are based on price or qualityPrice changes in different seasons of the yearPROMOTION: Creating ways to persuade customers to buy your productDisplay of theproduct at the shopSigns about pricingSigns with information about product benefit for the customerManners of the salespeopleCleanliness/dress of the salespeopleThings to entice a customer to visit a businessWays to introduce a new product, such as free samplesWays to advertise with signs, music, loudspeakersLocation and condition of businessDemonstration of how to use the productCreating messages about the productAppealing look of shop and the way the products are arrangedCreating an image of the product in the customers’ minds15

Experience sharing of the upesi stoves or a related product. ProductDistributionPricepromotion16

SESSION FOUR:Objective:PRICINGTo learn key pricing principles or important elements toconsider in the costing and pricing of a productMethodology:Brainstorm, group discussionTraining Materials/Equipment Required:Newsprints and felt pensTime: 1 hour 30 minContentStep IDiscuss with the participants the importance of setting prices for the product thatis being soldStep IIAsk the participants to identify a well-known product and brainstorm on howthey would cost the product. Record the discussions on newsprints.Step IIICompile the list and identify what is not included.Step IVDiscuss with participants.Discussion Notes Could we try to price the product you are selling?When do price changes take place?Do prices of products like pots have to be controlled?What is the danger when one sells at a lower price than other competitors?What are the problems of setting exorbitant prices?What pricing problems do you face with the product you are selling?17

Conclusions It is always important to cost the time element when calculating costs.Always ensure that you set a profit margin when setting prices.Always investigate through market tests what prices people are willing to pay.Facilitator’s NotesImportance of setting pricesa)b)c)d)e)f)To determine the price at which the product can be soldTo ensure a profitTo remain in the businessHelps you reduce and control your pricesHelps you make better decisions about your businessHelps you plan the future of your businessProduct example:Water PotPricing of a Water Pot. The costing should include the following:A. Production CostsB. Marketing CostsC. Profit MarginITEMCost of clayTime for clay collectionTime for mouldingFiring costsLossesStorage costsLabourTOTAL PRODUCTION COSTSTransportationSeller’s timeStorageTaxesLossesPromotionPackagingTOTAL MARKETING COSTMark up of Production Cost Marketingcosts Profit MarginWholesale pricesProduct price production cost marketing cost profit marginRetail pricesTOTAL PROFIT MARGINTIMECOSTSHand out - Pricing18

SESSION FIVE: PROMOTIONObjective:To learn the role of promotion in marketing and how toeffectively promote a product.Methodology:Discussion, brainstorm and case studies.Training materials/equipment required:Newsprints, pens, radio cassette & video machine.Preparation Required:Facilitator to have enough copies of the related case studies at hand.Promotion materialsCase cassetteCase videoT - shirtPoster to show where the Upesi stove is sold.Time: 1hour 30 minContentStep IRe-visit the definition of promotion as one of the components of marketing.Step IITake the participants through the different methods used to promote a givenproduct. Use the case studies.Discussion NotesWhat methods have you used to promote your product to date?What other methods could you explore?Do you face any promotion problems?19

ConclusionsProducts must have a name in order to be promoted.One needs to have to have a clear promotion strategy.For demonstrations to be effective, they must be well planned and audible(practical, step by step, and use of loudspeakers).Clear marketing messages are important for effective promotion.Facilitator’s NotesDefinition of promotion: creating ways to persuade customers to buy your productDuring this session, reflect back on the things to consider regarding promotion as a marketingcomponent. But remember the product must be promoted under a suitable name (Identify logo)Promotion Methodsa) Practical demonstration to potential users/customers Demonstrate at local institutions and local functions (Schools, churches, women groups,chiefs’ barazas, mosques, weddings, funerals, fundraising events) Market demonstrations (at market centres, posho mills etc)b) Production of promotion materials (encourage use of local artists and local languages wherepossible) Road signs, leaflets posters in local languages, T - shirts, murals, tapes, stockists posters,calendars, price list etc.It is important that the product identified appear on all the materials used for promoting it.There must be a distribution strategyc) Word of mouth "Spread the gospel by word of mouth" very important for rural products. What otherssay about you and your business is very important. If good then it provides freepromotion to your business.d) Use of local mass media Shows radio services if available field days – quite often organized by various departmentse) Local market video showsf)Publicity events. Articles to newspaper, field days, open fires, explore cultural methods andevents e.g. cultural music and traditional dancesg) Sales promotion – everything you do to make customers buy more once they come to yourbusiness. School events : Sports competitions Music festivals Poetry competitions20

AssignmentsDivide participants into groups and give the following assignments. Tell them that the results willbe used during a latter session (Nine) so they need to do them to their best.“Using information gathered on promotion”Group IRoad sign stockist’s posterGroup IIMuralGroup IIILeafletGroup IVPrice list for promotion calendarGroup VAny other.21

SESSION SIX: CREATING MARKET MESSAGESObjective:Learn how to create effective messages for promoting andselling productsMethodology:Brainstorm and group discussionsTraining materials/equipment required:Newsprints and felt pensPreparation Required:Have at hand samples (Models/pictures), cassettes of sample messages andsongs.Prepare 2 marketing messages written on large posters.Time: 1 hour 30 minContentStep IExplain to the participants the meaning of “marketing messages”.Step IITell the participants of the characteristics of a good sales messageStep IIIAsk the participants to think of some products that are sold in their community.Discuss the messages from these sellers that have persuaded them to buy theirproducts and not products from other sellers.Step IVLet the participants create two messages on a given product and discuss whichof them they prefer and why.22

Step VAsk the participants to think of some messages which have made them buy otherproductsStep VIGroup up the team to come up with messages on the product they are selling.Ask the pairs to team up with one other pair to discuss their messages.Step VIILet the groups share their ideas and messages in the plenary and have themrecorded. See if there is any they think is not good enough.Step VIIIGood messages are also effective if are properly relayed to the customer.Role-play: “Talking to customers”. Invite four volunteers and explain to themthe two role-plays. Give them time to act it out and them to present the play inthe plenary while the others observe.Step IXAsk the following questions:What did you observe in the two plays?What happened thereafter?Were the messages effective?How did the seller treat the customer?What did they do to persuade the customer to buy?Discussion NotesApplying these ideas to participant’s own businesses:What are their new ideas for selling their own products? Which ideas were most helpful?ConclusionsBy using simple clear messages and good sales presentations one can makemore sales.23

Facilitator’s NotesMessages that when seen or heard can make customer buy.Sales messages do not have to involve large or expensive advertising. They can be simple.Good messages can help the products stand out more than others.Sales messages need to:a)b)c)d)Be clear and effectiveBe related to the benefits of the productTell something special about the product e.g. an ingredient like Tamarind has natural citricThey must be tested before they are usedCharacteristics of a good sales message Simple and shortClear and effective(Records something on people’s minds and make them have a desire to buy)Include the known name and identity of the product (logo)Be related to the benefits of the productTell something special about the productMust be tested and provenRole- play: To be a successful sales personDivide the four volunteers into two groups. Each of them will present a play.Play IYou are a seller in a market and you do not know how to talk to customers. Your product is ofpoor quality and badly presented. You are selling your product to the customer.Play IIYou are a seller in a market and you are selling a quality product and you know how to talk tocustomers. Your product is well packed and well presented. You are attending to a customer.To be a successful sales person Know your customers and their needsKnow how to treat your customersKnow your products and how to sell them24

SESSION SEVEN: SOLVING MARKETING PROBLEMSObjective: To get a practice in solving marketing problemsMethodology:A gameTraining Materials/Equipment Required:Marketing game materials (Pebbles and identification cards)Posters of various marketing componentsPreparation Required:Make sure that the four posters showing the components of marketing areplaced around the room. If participants can read, write the one-line explanationsfor each poster.Read “Some Things to Consider about the Four Marketing Components”. Forliterate groups write the lists on large paper or make individual copiesRead the “Marketing Game Instructions” in Appendix III. Prepare the necessarygame materials using these instructions. If possible, play the game with a friendbefore the session.Set up the game board and materials on tables or the floor before the sessionbegins. Have one board for each group. The smaller the group, the moreopportunities each person will have to participate. (Note: Make sure that eachsmall group includes both experienced and new business people, both articulateand quieter participants)Scheduling: If you have group members who are reluctant to talk very muchduring sessions, it is helpful to play the game until all cards have been used.The game usually draws more participation and excitement from some of thequieter members than the other activities with large group discussions. If yourgroup plays the game near lunch time, schedule a break rather than going on solong that lunch is delayed. People can concentrate better once they have eatenYou may identify game coordinators and prepare them in advance.Time:3 hours25

ContentStep IIdentify and prepare the game coordinators. They will read the questions ineach group and keep the game moving and promote discussionShow the game board to the coordinators before the session. Explain thesymbols and how to play the game. Discuss these ideas with thecoordinators:The purpose of this game is to explore as many marketing ideas and problems aspossible. Participants should be encouraged to discuss the options, butdiscussion on one question should not go on too long. This will be thecoordinators’ most difficult job.When players give solutions to problem cards, the coordinator should ask theother players what they think. If the coordinator has an opinion she mayexpress it after encouraging the others to give their ideas. The participants, notthe coordinator, should do most of the talking and be encouraged to eel like theexperts on marketing their own businesses. This may be the first time theyreally think about marketing.There can be more than one solution to a problem. Sometimes, to keep thegame moving, the coordinator may have to say something like this:“We need to move on to the next person now. There are many good ideas here,including that of the person who drew the card. Hers may not be the onlysolution, but it is an acceptable one and she can move one square forward”After true/false answers are given, ask questions to stimulate thought anddiscussion, such as questions that begin with “why” or “what?”Before the group disperses the coordinator should ask them to give their list ofproblems form session two. Let the groups discuss them. Ask each group tobring one challenging problems to plenary for discussionDiscussion NotesAfter the game is completed, conduct a discussion by asking these questions: What did you learn from this ga

By the end of the training programme participants will have a new plan for marketing their product and perhaps a plan to expand their business. Key Training Methods Individual contributions Group discussions Role plays Field visits At the end of this session g