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BPTW 4012ENTREPRENEURSHIP
TECHNOLOGY
Lecture 5:
ENTREPRENEURIAL
MARKETING
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Introduction
Marketing is basically an exchange activity thattakes place between a business entity and its
customers.
The customers can include individuals, otherbusiness entities (e.g. wholesalers and
retailers) and support organizations (e.g. banks
and government agencies).
Marketing is a critical activity in any businessbecause it forms the backbone to the total
business effort in achieving a profitable income.
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UNDERSTANDINGMARKETING
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Consumer Needs and Wants
Human needs are defined as
basic physiological requirements
in ones life.
Wants can be the different forms
of unfulfilled needs.
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Marketing Concept
Marketing concept rest on the
philosophy that all marketing
activities must satisfy customer
needs and wants, and at the same
time achieve the targeted profits.
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Marketing Definition
Marketing can be defined as the
activities that are carried out
systematically to encourage andincrease sales of products
/services as long as the activities
are in line with religious and
ethical practice. (Matyasin and
Zanariah, 2004)
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Elements of Marketing
1. Systematic (Activities) Effort
2. Encourage and Increase Sales3. Religious and Ethical
Considerations
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What is a Market?
Market is defined as any entity
that has the purchasing power to
acquire goods and service
to fulfill its needs and
wants.
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Market Category
Category ProfilesHuman Being Geographic
Demographic
Psycho graphic
Governments Local governmentState government
Federal government
NGOs Environment
Social
Cultural
Business Entities Manufacturer
Wholesaler
Agent/Dealer
RetailerIPTK - UTeM
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PREPARING A MARKETING
PLAN
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Eight Steps in Preparing a Marketing Plan
1. Define the product concept
2. Identify the target market
3. Determine market size
4. Identify competitors
5. Determine market share
6. Develop sales forecast7. Develop marketing strategy
8. Prepare a marketing budget
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Target Market
Definition of Target Market
Group of customers with needs
and wants that can be satisfied by
the business through the supply of
goods and/or services
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Importance of Identifying the Target Market
1. It is almost impossible for a business
to offer a product that can satisfy the
needs and wants of the entirepopulation.
2. Most businesses have limited
resources in terms of time,money and power.
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Steps in Identifying the Target Market
1. Identify the product or service to beoffered
2. Focus the marketing effort
i. Identify the market area and businesslocation
ii. Collect information and data
of customersiii. Segmenting the market
3. Determine target market from the
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Sales Forecast
The sales forecast is the
expected sales potential from
the selected target market. Thesales forecast is quoted in units
of sales or Ringgit for a period of
time.
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Sales Forecast (contd)
Four main steps in preparing a
sales forecast:
1. Determine Market Size2. Identify the Competitors
3. Estimate Market Share
4. Forecast Sales
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1. Determine Market Size
Market size is the total potentialpurchase that is expected from the
target market.
The potential purchase includespurchases of the competitors product
within the same market.
Market Size Estimation Estimation of market size requires
information regarding the particular market
the business intends to enter.
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2. Identify the Competitors
The business has to identify its maincompetitors in order to know whom thebusiness is sharing the market with and
to develop appropriate marketingstrategies to compete with its rivals.
It must also analyze the strengths and
weaknesses of the competitors in termsof size, experience, number of years inbusiness, financial capabilities andproduct line.
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3. Estimate Market Share
Market share refers to the portion of
the market that the business can
control after taking into consideration
market size and the competitorsposition in the
same market.
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4. Forecast Sales
1. Customer awareness of the
existence of the business
2. Seasonal factors
3. Pre-sales period
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Develop Marketing Strategies
The 4 Ps of marketing:
Product
Price
Place (distribution)
Promotion
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Product
Brand
Quality
Design
Packaging
Protection
Ease ofUse
ProductDifferentiation
Attractive
Customers Product Safety
Labeling
After SalesService
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Pricing Strategy
1. Cost-Based Pricing
2. Value-Based Pricing
3. Competitive-Based Pricing
4. Factor Affecting Pricing
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Distribution Strategy
1. Selling Direct to Customer
2. Selling Through Retailers
3. Selling Through Wholesalers4. Selling Through Wholesalers
and Retailers or Agents
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Promotion Strategy
1. Advertising
i. Printed media
ii. Broadcast media
iii. Internet
iv. Outdoor Advertising
2. Sales Promotion
3. Public Relations and Publicity
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Managing Marketing Activities
Managing by Objective
Gantt Chart
The Marketing Budget
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