Date post: | 14-Sep-2015 |
Category: |
Documents |
Upload: | habibi-gee |
View: | 216 times |
Download: | 1 times |
Marketing challenges for entrepreneurial ventures
Objectives 1. To review the importance of entrepreneurial marketing and associated research for
new ventures
2. To identify the key elements of an effective market survey
3. To distinguish entrepreneurial marketing and guerrilla marketing from ordinary marketing
4. To outline the processes of undertaking marketing research
5. To present factors that inhibit the use of marketing
6. To examine the entrepreneurial marketing concept philosophy, segmentation and consumer orientation
7. To establish the areas vital to a marketing plan
8. To characterise the marketing stages of growing ventures
9. To examine entrepreneurial marketing on the Internet
10. To differentiate green marketing from traditional marketing practice
11. To discuss the key features of a pricing strategy. 2
But first
Q. What is the point of marketing a new product or service? ?
3
Marketing is civilised warfare Marketing is as critical to new businesses as it is for
established ones
Start-ups must be intimately in touch with their customers
A market is a group of potential customers who have purchasing power and unsatisfied needs
A new venture will survive only if a market exists for its product or service
4
5
Entrepreneurial marketing
Proactive identification and exploitation of opportunities for acquiring and retaining profitable customers through innovative approaches to risk management, resource leveraging and value creation.
6
A small business is not a little big business
Entrepreneurs are not corporations
They are selfmaximising, profitseeking autonomous individuals leading small teams
They suffer from resource poverty
They need zero-budget marketing or guerrilla marketing
Principles of guerrilla marketing Based on human psychology
Primary investments are time, energy and imagination money
The primary statistic is profit
Concentrate on new relationships
Aim for more referrals, more transactions with existing customers and larger transactions
Forget the competition and concentrate on cooperating
Use current technology as a tool to empower your marketing
7
Guerrilla marketing
Q. What could you do to market a new MP3 watch using guerrilla marketing? ?
8
9
Guerrilla marketing tactics Webzine Email newsletters Send ecards to clients on
special dates Participate in online
newsgroups and forums Speeches to companies,
schools or organisations Trade sets of business
cards with other businesses
Make yourself newsworthy
Do something environmentally conscious
Work with local media
Give free samples, trials, consultations, etc.
Do whatever your competition isn't doing
Relationship marketing
Build longer term relationships with customers
Understand their life cycle needs
Provide a range of products/services to existing customers as they need them
Use it when:
You offer relatively high-value consumer products
The costs of switching are high
Customer involvement is high
10
Marketing research
Gather information about your market
Then analyse the information (make it meaningful)
Plan a comprehensive approach to research
11
Marketing research procedures
A. Define the research purpose and objectives Where do potential customers go to purchase your good/service?
Why do they choose to go there?
What is the size of the market? How much of it can you capture?
How do you compare with competitors?
What impact does your promotion have on customers?
What types of products/services do potential customers desire?
12
Marketing research procedures B. Gather secondary data
Exhaust all the available sources of secondary data
Internal data exists in the business
External data includes the Internet, trade journals, other entrepreneurs, etc.
Problems with secondary data:
Outdated
May not fit the current problem
Validity
13
Marketing research procedures C. Gather primary data
Observational methods avoid contact with respondents
Survey methods contact respondents in varying degrees
Experimentation model your marketing messages and try them out
Develop an information-gathering instrument (questionnaire)
14
Marketing research procedures
D. Interpret and report information A lot of data has no meaning until it has been examined, and
possibly depicted graphically
Tables, charts and other graphic methods are useful
Descriptive statistics mean, mode and median are useful too
15
Marketing research questions (Sales)
Do you know your competitors sales performance by type of product and territory?
Do you know which accounts are profitable and how to recognise a potentially profitable one?
Is your sales power deployed where it can do the most good?
16
Marketing research questions (Distribution)
Do you know all you should about distributors and dealers attitudes towards your product/service?
Are distributors/dealers salespeople saying the right things about your products/services?
Has your distribution pattern changed along with the geographical shifts of your markets?
17
Marketing research questions (Markets)
Do you know about differences in buying habits and tastes by territory and kind of product?
Do you have as much information as you need on brand/manufacturer loyalty and repeat purchasing?
Can you plot, from period to period, your market share of sales by products?
18
Marketing research questions (Advertising)
Is your advertising reaching the right people?
Do you know how effective your advertising is (in comparison with your competitors)?
Is your budget allocated appropriately for greater profit?
19
Marketing research questions (Products)
Do you have a reliable quantitative method for testing market acceptability?
Do you have a reliable method for testing the effect on sales of new or changed packaging?
Do you know whether adding higher or lower quality levels would make new profitable markets?
20
The marketing concept
Integrate your approach to:
Marketing philosophy
Market segmentation
Consumer behaviour
21
Marketing philosophy 1. Production-driven philosophy
Produce efficiently and worry about sales later
2. Sales-driven philosophy Personal selling to persuade customers to buy the companys
output
3. Consumer-driven philosophy Research to discover consumer preferences
Of the three philosophies, a consumerdriven orientation is often most effective for the entrepreneur
22
Marketing philosophy
The philosophy is influenced by:
Competitive pressure
Entrepreneurs background
Short-term focus (a risky aspect)
23
Market segmentation
The process of identifying a specific set of characteristics that differentiate one group of consumers from the rest
A total market is often made up of sub-markets (called segments)
24
Market segmentation
Q. What market segments do you belong to? ?
25
26
Market segmentation examples
People living in poverty Single-serve packs of shampoo, detergents and other consumer
items sell well to people who cannot afford to stockpile products Nokia have been successful in selling low-end mobile phones to
people living on a few dollars a day
Ecotourists in outback Australia have been segmented into: Hard Soft Structured
27
Various variables
Demographic variables include age, marital status, sex, occupation, income and location
Benefit variables identify unsatisfied needs within a market
Psychographics statistical analysis of psychological characteristics
Consumer behaviour
Defined by the types and patterns of consumer characteristics
Especially personal and psychological characteristics
Characteristics are linked to buying trends
28
Market segmentation
Q. If you were to write a marketing plan, what would it need to tell people? ?
29
Marketing plan A marketing plan is the process of determining a clear,
comprehensive approach to the creation of customers
It typically includes:
Current marketing research
Sales research and analysis
Marketing information system
Sales forecasting
Evaluation
30
Current marketing research Identify customers (target markets) and fulfil their desires,
by examining:
The companys major strengths and weaknesses
Market profile
Current and best customers
Potential customers
Competition
Outside factors
Legal changes
31
Low-cost marketing research
32
Current sales analysis Match customer profiles with sales priority Answer questions, such as:
Do salespeople call on their most qualified prospects on a proper priority and time-allocation basis?
Does the sales force contact decision makers? Are territories aligned according to sales potential and
salespeoples abilities? Are sales calls coordinated with other selling efforts? Do salespeople ask the right questions on sales calls?
33
Marketing information systems A computerised system to compile and organise
data, including cost, revenue and profit Key factors are:
Data reliability Data usefulness or intelligibility Reporting timeliness Data relevance System cost
34
35
Sales forecasting
Projecting future sales through historical sales figures and statistical techniques
Important, but potentially flawed due to the use of historical data
Product research
Focus on competitors: What products do competitors currently offer?
What is the extent of their product range?
Do they provide the consumer with a good range of choices?
Do they have a product range that provides different levels of pricing and quality?
Are fad items a feature of this industry?
36
Evaluation
The final critical factor
Performance of the plan must be evaluated
Factors include:
Customer retention
Customer preferences and reactions
Sales volume , gross sales and market share
37
Example five-step program 1. Appraise strengths and weaknesses, emphasising
competitive edge
2. Develop marketing objectives and specific sales plans
3. Develop product/service strategies
4. Develop marketing strategies
5. Determine a pricing structure
38
Marketing stages
There are distinct stages of maturation
Marketing strategy and marketing goals are closely aligned at each stage
Each stage requires a distinct marketing organisation
39
Marketing stages
40
Internet marketing
Q. What are the various methods used to market products using the Internet? ?
41
Marketing on the Internet Can assist the overall marketing strategy
Communicate:
Company/brand
Marketing mix
Cultivate new customers (globally)
Allows customers to serve themselves (not limited by opening hours and location)
A mechanism for low-cost information gathering
42
Internet segmentation Customers have different experiences at different
times Customised experiences through usage-based
segmentation A simple set of segments:
Browsers draw them into the site Buyers ease of access to the purchase Shoppers combination of browser and buyer
43
McKinsey Internet segmentation
Simplifiers like convenience
Surfers spend time browsing
Connectors are socialising
Bargainers are devoted to low-cost deals
Routiners return to the same sites
Sportsters are looking for information, and focus on sports and entertainment
44
Acquisition, conversion and retention
45
Green marketing
A movement and a controversy
Green objectives, not just green theming (or green washing)
Take a position!
But note: consumers prefer green product all other things being equal
46
Pricing strategies Factors affecting the pricing decision
Competitive pressure Availability of sufficient supply Seasonal or cyclical changes in demand Distribution costs Products life cycle stage Changes in production costs Prevailing economic conditions Customer services provided by the seller Amount of promotion The markets buying power
47
Pricing strategies
Price your products to maximise profit
Creating buzz is key
Distribution (bundling) is a perceived plus
Choose your reference accounts wisely
Unique promotional campaigns
Advertising experiments
Marketing may affect capital raising more than sales
48
Summary
(close your books)
Q. What are the main sections in a marketing plan?
Q. How would you market a rake that is also a mini-wheelbarrow?
? 49
Marketing research procedures: Define the research purpose and objectives Gather secondary data Gather primary data Interpret and report information
Marketing plan: Current marketing research Sales research and analysis Marketing information system Sales forecasting Evaluation
50