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Effective marketing is essential for entrepreneurs aiming to establish and grow their ventures. It involves creating and delivering customer value while managing relationships that benefit both the business and its stakeholders. Entrepreneurs face unique challenges such as limited resources and market insights. A solid marketing strategy, informed by thorough research and aligned with company capabilities, is crucial. Techniques like guerrilla marketing can help attract customers creatively and cost-effectively. Understanding market dynamics and customer needs is key to achieving long-term growth and success.
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Entrepreneurial Marketing • Definition of marketing by the American Marketing Association: • an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stake holders. • Marketing practices vary depending on the type of company and the products and services it sells.
Entrepreneurial Marketing Why Marketing is Critical for Entrepreneurs • Because no venture can become established and grow without a customer market; • Because it is difficult and expensive to bring new products and services to market; • To differentiate product or service to customers makes the company distinctive and valuable; • Companies must be able to switch marketing gears quickly to attract new customer segments.
Entrepreneurial Marketing Entrepreneurs Face Unique Marketing Challenges • limited resources in financial, managerial, and time; • limited market information; • decision-making inclined to be muddled by personal biases and beliefs; • poorly established relations with multiple audiences.
Entrepreneurial Marketing Acquiring Market Information • Marketing research could cover information such as: • -Product attributes important to customers; • -Possibility of customers’ buying willingness by marketing behaviors; • -Market trend; • -The location of the customers’ preference.
Entrepreneurial Marketing Acquiring Market Information • Two basic types of market data • Primary data • Data you collect yourself • Limitations of primary data • Secondary data • Economical and usually used to collect baseline information
Entrepreneurial Marketing Marketing Strategy for Entrepreneurs • A company’s marketing strategy must closely align with its resources and capabilities; • Segmentation, targeting, and positioning are key marketing dimensions that set the strategic framework.
Entrepreneurial Marketing Marketing Strategy for Entrepreneurs/the Marketing Mix promotion Product Strategy place Pricing Strategy
Entrepreneurial Marketing Entrepreneurial Marketing Marketing Skills for Managing Growth • Understanding and Listening to the Customer • Building brand awareness and building brand equity
Disadvantages to existing companies entering new markets • Core rigidities: companies are only good at things they are used to doing • Tyranny of the current market: companies listen to their customers, who are not a source of ideas for new products in new markets • Use myopia: customers of existing firms see needs or solutions very narrowly (i.e., not the needs of others)
Disadvantages to existing companies entering new markets • Because large companies have these disadvantages with new markets, new ventures should focus on new markets instead of established ones
Market dynamics • Entrepreneurs are more successful in large and growing markets • Large markets amortize the fixed costs of getting started over a larger number of units • It’s easier to sell into rapidly growing markets
Market dynamics • The performance of product adoption follows an S shape • Initially, need a large amount of effort to achieve small improvements in product performance • Then performance improvements accelerate and small efforts can lead to large improvements • Later, must make large efforts to achieve small improvements
5 stages of technological adoption Source: http://www.icsb.org/wiki/index.php?title=S_curve
5 stages of technological maturity • Bleeding edge - shows high potential but hasn't demonstrated its value or generated consensus. • Leading edge - proven in marketplace but still new enough that it may be difficult to find knowledgeable personnel to implement or support it. • State of the art - when everyone agrees that a particular technology is the right solution. • Dated - still useful, sometimes implemented; replacement leading edge is readily available. • Obsolete - superseded by state-of-the-art technology, maintained but no longer implemented by the specific firm.
Market dynamics • Established firms rarely compete with entrepreneurs to develop new products on the early part of the S curve • The new product usually begins with inferior performance that hurts the company’s overall performance • Managers of established companies believe they can always improve the performance of their existing products to compete with new products
Entrepreneurial Marketing Entrepreneurial Marketing Guerilla Marketing • Guerilla marketing acts as non-traditional, grassroots, and captivating – that gain consumers’ attention and build awareness of the company. • Word-of-Mouth marketing, Buzz marketing, and Viral Marketing. • Other issues in Guerrilla Marketing.
Guerrilla marketing Selections from Francesco Mugnai’s “Best Guerilla Marketing Ideas”
Guerrilla marketing from an unexpected source http://www.youtube.com/watch?v=qMOuF8oskRU
