Transcript The Marketer…

Entrepreneurial Marketing
Strategy
L4
Ing. J. Šnajdar
2016
Entrepreneurial Marketing Strategy
Outline
1. Introduction:
Entrepreneurship, Marketing and Strategy
2. Defining the Offer
3. Defining the Market
4. Timing the Entry Into the Market
Introduction
What do you think about the following statement?
Every successful entrepreneur
has a detailed master plan
right from the start.
a)Of course, this is true.
b)Generally, yes. More than 2 out of 3 entrepreneurs
will have some sort of documented business plan.
Not true. The vast majority of entrepreneurs
only have a vague idea of how things will work out.
Not true. An entrepreneur is someone with a great
vision, but totally incapable of organized thinking.
Introduction
Answer:
Not true. The vast majority of entrepreneurs
only have a vague idea of how things will work out.
Reasons:
• Rapid change, high uncertainty
• Reluctance to commit to one single plan
• Implicit planning emerges over time
(muddling through)
Implications:
• Strategic planning is a process.
• Plan as much as you can, adapt as you proceed.
Definitions:
Entre-/Europreneurship
Organisational level:
Creative
human
capital
Ability to
recognize
opportunities
Willingness
to take risk
European
Dimension
Definitions:
Entre-/Europreneurship
European
Dimension
Individual level:
enthusiastic
committed
professional
visionary
'hungry‘
open minded
...
Definitions:
Marketing ...
… is the management process responsible for
identifying, anticipating and satisfying customer
requirements profitably. (UK)
… is the discipline of conceiving offers
as a function of consumer preferences,
and promoting their commercialization. (France)
…is market-oriented management.
(Germany)
Individual Qualities
Comparison
The Entrepreneur…
…is creative, innovative, open for the unconventional
…is ready to take risks, deal with uncertainty
…works for sustainable business growth
The Marketer…
…tries constantly to stay abreast of competitors
…creates or seizes market opportunities
…works to increase market share or build better
customer relationships
Common Misconceptions about Marketing
Marketing is equivalent to
advertising.
Marketing is just the
icing on the cake.
Marketing is
manipulation.
Characteristics of Strategy
Strategy...
•
•
•
•
•
involves making long/medium/short term plans
is contingent on top-level goals
means mission-critical decisions
provides a frame for individual actions
can result in a planning document
Combining Entrepreneurship
and Marketing Strategy
Entrepreneurial Challenge:
How best to leverage limited resources
to help the company grow?
Marketing Challenge:
How to find a profitable and sustainable market
position?
Strategic Balance
Combining Entrepreneurship and Marketing Strategy
... at different implementation levels:
Individual:
Be a personality, a character and a creative thinker
and salesperson!
Organization:
Grow your company and keep connected
with the customer!
Environment:
Develop all stakeholder relations and treat customers
as your most important stakeholders!
Entrepreneurial Marketing: Strategic Challenges
exceed customer expectations
build trust, keep promises
Customers
manage processes
Competitors
seize opportunities
show leadership
change the rules
Internal
balance attack,
defence and evasion
Defining the Offer:
The Ansoff Matrix
Markets
existing
existing
Penetration
Products
new
Market
Development
new
Product
Development
Diversification
Defining the Offer:
Strengths
internal
Opportunities
external
SWOT Analysis
Weaknesses
Threats
Defining the Offer:
PESTLE Analysis
Political
Economic
Social
Technological
Legal
Ecological
Environment(s)
Influence on
Business Idea ?
USP — Formulate a Unique Selling Proposition
"When it absolutely, positively
has to be there overnight" – FedEx
"Connecting people" – Nokia
"Because I'm worth it" - L'Oreal
(“Parce que je le vaux bien”)
“United Colors of Benetton”
Defining the Market – Customer Profiling
Transactional Marketing:
Relational Marketing:
• Who is
your typical customer?
• How does
your typical customer
interact with you?
Build a demographic portrait:
• Age bracket, cohort
• Family life cycle stage
• Education, occupation
• Disposable income/month
• Usage pattern ...
Build a customer life cycle:
• Non-customer
• Prospect, lead
• First timer
• Repeat buyer
• Testimonial
Defining the Market – Market Forecast
Transactional Marketing:
Estimate market size
top-down:
•
•
•
•
Potential market?
Available market?
Target market?
Penetrated market after
first year in business?
Relational Marketing:
Determine minimum market
size bottom-up
(Break-even analysis):
How many customers must
be addressed to cover costs
of first year in business?
Timing the Entry Into the Market
Product/Market Life Cycle
market
volume
Product Innovator
Market Innovator
In tro d u c tio n
G r o w th
M a tu rity
D e c lin e
time
Timing the Entry Into the Market
Product/Market Life Cycle
New
customers
Main
marketing
problem
Main
instruments
Introduction Growth
Maturity
former non-buyers
competitors’ customers
raising
awareness,
getting
known
Promotion
making
product
available
differentiation from
competitors
retreat from
market
Place
Product,
Promotion
Price
Trendiness
Distinctness Reliability
Spin on USP Newness
Decline
Timing the Entry Into the Market
First Move Considerations
First Mover Advantages
First Mover Disadvantages
Primacy effect: Making an early Recency effect: Followers have
and lasting effect on customers benefit of newness
Investments into the market
(e.g.: distribution network,
consumer awareness) will pay off
early.
First mover can start to build
experience early, increase the
lead and solidify the strategic
position
Competitors’ free rider effect;
investments may turn out to be
exit barriers if/when market declines
Competitors may catch up or
outperform first mover if imitation
barriers are low
Conclusion: The Innovation Cartwheel
Harvest
Finding New Ideas
Profit
Innovation
Potential
Entrepreneurial Creativity
EconomiesMarketing Strategy
of Scale – a constant interplay
of rulebreaking and
Marketing
Positioningmainstreaming ...
against
Competitors
Differentiation
New Ideas
Making them
acceptable to
customers