Transcript Part I – Entrepreneurship in the Twenty

Part III – Developing the
Entrepreneurial Plan
Chapter 7 – Environmental Assessment:
Preparation for a New Venture
Chapter 8 – Marketing Research for
New Ventures
Chapter 9 – Financial Preparation for
Entrepreneurial Ventures
Chapter 10 – Developing an Effective
Business Plan
Copyright (c) 2004 by South-Western, a division of Thomson Learning. All rights reserved.
Chapter 8 – Marketing Research
For New Ventures
Definition of a Market
A market is a group of consumers
(potential customers) who have
purchasing power and unsatisfied
needs. A new venture will survive
only if a market exists for its product
or service.
Marketing Research
Marketing Research involves the
gathering of information about a
particular market, followed by
analysis of that information.
Defining the Research
Purpose and Objectives
• Gathering Secondary Data
• Gathering Primary Data
Developing an Information-Gathering
Instrument
• Make sure each question pertains to a specific
objective in line with the purpose of the study.
• Place simple questions first and difficult-to-answer
questions later in the questionnaire.
• Avoid leading and biased questions.
• Give concise but not complete directions in the
questionnaire.
• When possible, use scaled questions rather than
simple yes/no questions to measure intensity of an
attitude or frequency of the experience.
Interpreting and
Reporting the
Information
Inhibitors to Market Research
• Cost
• Complexity
• Strategic Decisions
• Irrelevancy
Developing the
Marketing Concept
Marketing Philosophy
• Production-driven philosophy
• Sales-driven philosophy
• Consumer-driven philosophy
Market Segmentation
Market segmentation is the
process of identifying a specific
set of characteristics that
differentiate one group of
consumers from the rest.
Consumer Behavior
Five Major Classifications:
1. Convenience goods
2. Shopping goods
3. Specialty goods
4. Unsought goods
5. New products
Marketing Stages for Growing
Ventures
Stage 4:
Stage 2:
Stage 3:
Stage 1:
Entrepreneurial Opportunistic Responsive Diversified
Marketing
Marketing
Marketing
Marketing
Marketing
Strategy
Market
Niche
Market
Penetration
ProductMarket
Development
NewBusiness
Development
Marketing Planning
•
•
•
•
•
•
Marketing research
Sales research
Marketing information system
Sales forecasting
Marketing plans
Evaluation
Telemarketing
Advantages:
• Receptiveness
• Impressions
• More presentations
• Unlimited geographic coverage
• Better time management
• Immediate feedback
• Better control
• Less “piracy”
• Lower salary and commissions
Telemarketing
Pitfalls:
• Poor telephone techniques can defeat the
telemarketing strategy.
• Dissension between the field sales staff and
the telephone sales personnel can arise.
• Entrepreneurs must be aware of the everpresent problem of rapid turnover of
telephone staff.
Marketing on the Internet
• The Internet allows the firm to increase its presence
and brand equity in the marketplace.
• The Internet allows the company to cultivate new
customers.
• The Internet allows Web site visitors to match their
needs with the offerings of the company.
• The Internet can improve customer service by
allowing customers to serve themselves.
• The greatest potential for the future is probably in
direct marketing, where catalogs can be offered
online.
Pricing Strategies
Pricing for the Product Life Cycle
Product Life-Cycle Stage
Pricing Strategy
Introductory Stage
•Unique product
Skimming – deliberately setting a high price
to maximize short-term profits
•Nonunique product
Penetration – setting prices at such a low level
that products are sold at a loss
Growth Stage
Consumer Pricing – combining penetration and
competitive pricing to gain market share;
depends on consumer’s perceived value
of product
Maturity Stage
Demand-Oriented Pricing – a flexible strategy
that bases pricing decisions on the demand
level for the product
Decline Stage
Loss Leader Pricing – pricing the product below
cost in an attempt to attract customers to
other products