| Course | MKT 431 Small Business Marketing (MKT/431) |
|---|---|
| Week | 1 |
| Paper type | Small business customer analysis |
| Length | about 1,041 words, 4 double-spaced pages plus title page and references |
| Format | APA 7 student paper |
| School | University of Phoenix |
| Program | BS in Business |
| Updated | October 2026 |
Free sample paper for MKT 431 Week 1
Who Walks Through the Door: Knowing the Customers of a Family Bike Shop in Chattanooga
[Student Name]
University of Phoenix
MKT/431: Small Business Marketing
Week 1 Assignment
[Instructor Name]
[Date]
Iron Horse Cycles and all customer figures are composites written for a model paper.
Iron Horse Cycles has served Chattanooga, Tennessee, since 2009. Owners Dana and Marcus Webb run the composite shop with nine employees, selling bicycles and gear, repairing bikes and renting bikes to visitors near the Tennessee Riverwalk. Revenue last year was about $1.6 million: 58% from bike sales, 22% from service, 12% from parts and accessories and 8% from rentals. Online retailers and a sporting goods chain have taken some sales, and e-bikes are changing what customers want. A small shop cannot outspend online retailers, so it has to out-know them, understanding each customer well enough to offer what a website cannot. This paper analyzes who Iron Horse's customers are and how the shop can keep learning about them.
How Small Businesses Market
Gilmore et al. (2001) found that small and medium-sized firms market differently from large companies, relying on owner involvement, personal contact and networks rather than formal planning. Coviello et al. (2000) compared marketing practices across firm sizes and found that smaller firms placed more emphasis on relationship and interaction marketing, though they also used transactional methods. Iron Horse fits this pattern: the Webbs know many customers by name, and much business comes through cycling clubs and word of mouth.
What the Shop Already Knows
The owners believe most customers are serious riders and families. They know that service brings people back and that rentals rise in summer. Their knowledge, however, is based on memory and impressions rather than data.
Sources of Customer Information
The shop has three low-cost sources. Its point-of-sale system records each sale and repair with customer names and contact details for about 70% of transactions. A short online and in-store survey reached 310 customers in a month. Staff keep informal notes on customer requests and complaints. Online reviews and social media comments add more.
Sales Data Findings
Over two years, the system recorded about 4,100 customers. Repeat customers, about 35% of the total, produced 68% of revenue. The top 10% of customers by spending accounted for 41% of revenue, mostly through bike upgrades and frequent service.
Survey Findings
Respondents valued expert advice, fast repairs and the ability to test ride. Most had compared prices online before buying. About half said they first heard of the shop from friends or a cycling club.
Group One: Serious Riders
Road and mountain cyclists who ride several times a week spend heavily on bikes, upgrades and service. They value expertise and fast repairs and are well connected in local clubs. They make up about 18% of customers and 39% of revenue.
Group Two: Commuters
Riders who use bikes for transportation need reliable bikes, lights, locks and quick repairs. They are price-conscious and value convenience, making up about 15% of customers.
Group Three: Families
Parents buying bikes for children and casual family rides value safety, durability and friendly advice. They buy less often but return as children grow. About 30% of customers.
Group Four: E-Bike Buyers
E-bike buyers are often older or newer to cycling and spend $2,000 to $5,000 per bike. They need setup, education and regular service. They are a fast-growing group, now 9% of customers but 22% of bike sales revenue.
Group Five: Tourists
Visitors renting bikes near the Riverwalk spend modestly and rarely return, but they write online reviews that attract others. About 28% of customers by count.
Customer Lifetime Value
Rust et al. (2004) showed how firms can estimate customer equity, the total discounted lifetime value of their customers, and use it to judge which marketing investments are worth making. A simple version for Iron Horse multiplies average annual profit per customer by expected years of patronage. Serious riders, at about $600 profit a year over eight years, are worth about $4,800 each. E-bike owners, through service, about $3,200. Families, about $900. Tourists, about $40.
Customer Needs by Moment
Customer needs change with the moment of contact. Before buying, customers want honest advice and a chance to test ride. At purchase, they want a fair price and a bike fitted correctly. After purchase, they want quick, reliable service and help when something goes wrong. Online retailers serve the purchase moment well on price but cannot fit a bike, offer test rides or fix a broken chain the same afternoon. Iron Horse's advantage lies in the moments before and after the sale, which is where its marketing should focus.
Competitors Through Customers' Eyes
Survey respondents who had bought elsewhere named three reasons: lower prices online, a wider selection at the sporting goods chain and convenience. Those who chose Iron Horse named advice, fit and service. Several serious riders said they buy some parts online but bring bikes to Iron Horse for service, which suggests the shop should welcome those service visits rather than resent them.
What the Analysis Means
Serious riders and e-bike owners are the most valuable groups, and both depend on service and expertise that online sellers cannot match. Families are a steady base. Tourists matter mainly for reviews and visibility.
Building a Customer-Driven Culture
The shop will train staff to record customer notes in the system, such as riding style and upcoming needs, and review them before conversations. A monthly staff meeting will share what customers are asking for.
Ongoing Learning
Iron Horse will run an annual survey, track repeat rates and service intervals, read reviews weekly and host monthly group rides where staff can talk with customers.
Seasonality
Customer mix changes through the year. Tourists and families dominate from May through August, while serious riders and commuters keep service busy in spring and fall. Winter is slow, which makes it the best time for bike fitting appointments and maintenance classes that deepen relationships with the most valuable groups.
Privacy
Customer data will be used only for service reminders and offers customers agree to receive, and it will be stored securely.
Conclusion
Iron Horse Cycles' customers fall into five groups with very different value. Data from sales records, a survey and staff show that serious riders and e-bike owners are the most valuable, while families and tourists play supporting roles. Research on small firm marketing supports relationship-based approaches, and simple habits will keep the shop close to its customers.
References
Coviello, N. E., Brodie, R. J., & Munro, H. J. (2000). An investigation of marketing practice by firm size. Journal of Business Venturing, 15(5-6), 523-545. https://doi.org/10.1016/S0883-9026(98)00035-4
Gilmore, A., Carson, D., & Grant, K. (2001). SME marketing in practice. Marketing Intelligence & Planning, 19(1), 6-11. https://doi.org/10.1108/02634500110363583
Rust, R. T., Lemon, K. N., & Zeithaml, V. A. (2004). Return on marketing: Using customer equity to focus marketing strategy. Journal of Marketing, 68(1), 109-127. https://doi.org/10.1509/jmkg.68.1.109.24030
What the MKT 431 Week 1 instructions ask
The first MKT 431 assignment usually asks students to analyze the customers of a small business. Common requirements include identifying who the customers are, describing their needs and buying behavior, explaining how the business can gather customer information on a small budget, segmenting customers into groups and discussing how a customer-focused culture supports growth. Some prompts ask students to choose a local business or one they would like to start. Use data where possible, explain sources and methods, apply marketing research on small firms and cite in APA style. A brief table that compares customer groups is helpful. Focus on insights the owner can act on, since small businesses have little money to waste on marketing that misses its audience.
How this MKT 431 Week 1 example is built
A family bike shop competes with online retailers and a big-box store, and the paper shows how knowing its customers helps it win. It explains research showing that small firms market through relationships and networks rather than formal plans. Data from the point-of-sale system, a survey of 310 customers and staff observations reveal five groups: serious road and mountain riders, commuters, families, e-bike buyers and tourists renting bikes. The paper estimates customer lifetime value, finding that serious riders and e-bike owners are worth the most through service visits, and recommends habits such as staff notes, monthly ride events, weekly review reading and an annual survey.
MKT 431 Week 1 grading rubric: where the points go
Strong customer analysis papers use real or realistic data to describe customers and turn the findings into actions. Instructors credit clear customer profiles, low-cost research methods suited to a small business, sensible segmentation, attention to customer value and recommendations that build a customer-driven culture. Papers that distinguish the most valuable customers and explain why show business judgment. Reviewers look for scholarly sources on small business marketing, specific numbers and links between customer insight and marketing decisions. A table summarizing customer groups helps the owner see priorities at a glance, along with organized headings and accurate APA citations. Respect for customer privacy also counts. Writing should be practical and clear, as if advising the owner directly.
MKT 431 Week 1 help: mistakes to avoid
Students often describe customers in general terms such as people who like bikes. Use data to define groups. Another frequent gap is proposing expensive research a small business cannot afford. Use sales records, short surveys and staff knowledge. Students also treat all customers as equally valuable. Estimate lifetime value to find the most important groups. Describe needs and buying behavior, not just demographics. Explain how the owner will keep learning about customers over time. Use research on small firm marketing to explain why relationships matter. Keep recommendations practical for a business with a few employees. Finally, connect customer insight to the decisions covered in later weeks.
Related MKT 431 sample papers
Other MKT 431 week samples
- MKT 431 Week 2: Evaluating Growth Opportunities
- MKT 431 Week 3: Value and a Value Proposition
- MKT 431 Week 4: Pricing Strategy
- MKT 431 Week 5: Advertising and Customer Loyalty
More BS in Business sample papers
- MGT 465 Week 1: Strategy and the Business Concept
- MGT 498 Week 1: Strategic Planning and Management Fundamentals
- MKT 353 Week 1: Products and the Product Life Cycle
- MKT 421 Week 1: Marketing Concepts and Research
MKT 431 Week 1 questions, answered
What does MKT 431 Week 1 usually cover?
It usually covers knowing the small business customer: identifying customers, describing needs and behavior, gathering information on a budget, segmenting customers and building a customer-driven culture.
Where can I find a free MKT 431 Week 1 sample paper?
The customer analysis for a Chattanooga bike shop is included in full above, and a custom draft for the small business you chose is available on request.
How can a small business learn about its customers cheaply?
By using sales records, short surveys, conversations, online reviews, social media comments and staff observations rather than costly outside research.
What is customer lifetime value?
An estimate of the total profit a business expects to earn from a customer over the whole relationship, used to decide how much to invest in winning and keeping customers.
What is a customer-driven culture?
An organizational culture in which everyone, from owners to frontline staff, focuses on understanding and meeting customer needs and shares what they learn.
Write yours, or have the desk draft it
This paper is an original model document written by our desk, not a submitted student paper and not an official University of Phoenix document. Read it for the moves, then write your own to the instructions in your classroom. If you want one built to your exact prompt and rubric, the first custom sample is free and arrives in 24 to 48 hours.
Request this one custom, free · All MKT 431 week samples · All courses