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 companys 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
promotio
n

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
 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)
 Because large companies have these
disadvantages with new markets, new
ventures should focus on new markets
instead of established ones
 Entrepreneurs are more successful in large
and growing markets
Large markets amortize the fixed costs of getting
started over a larger number of units
Its easier to sell into rapidly growing markets
 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