Transcript Marketing for new ventures

Marketing for New
Ventures
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 company’s 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
promotion
Product
Strategy
Pricing Strategy
place
Entrepreneurial Marketing
Entrepreneurial Marketing
Marketing Skills for Managing Growth
Understanding and Listening to the Customer
Building brand awareness and building brand equity
Disadvantages to existing
companies entering new markets
• 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)
Disadvantages to existing
companies entering new markets
• Because large companies have these
disadvantages with new markets, new
ventures should focus on new markets
instead of established ones
Market dynamics
• Entrepreneurs are more successful in
large and growing markets
– Large markets amortize the fixed costs of
getting started over a larger number of units
– It’s easier to sell into rapidly growing markets
Market dynamics
• 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
5 stages of technological
adoption
Source: http://www.icsb.org/wiki/index.php?title=S_curve
5 stages of technological maturity
1. Bleeding edge - shows high potential but hasn't
demonstrated its value or generated consensus.
2. Leading edge - proven in marketplace but still
new enough that it may be difficult to find
knowledgeable personnel to implement or
support it.
3. State of the art - when everyone agrees that a
particular technology is the right solution.
4. Dated - still useful, sometimes implemented;
replacement leading edge is readily available.
5. Obsolete - superseded by state-of-the-art
technology, maintained but no longer
implemented by the specific firm.
Market dynamics
• Established firms rarely compete with
entrepreneurs to develop new products on
the early part of the S curve
– The new product usually begins with inferior
performance that hurts the company’s overall
performance
– Managers of established companies believe
they can always improve the performance of
their existing products to compete with new
products
Entrepreneurial Marketing
Entrepreneurial Marketing
Guerilla Marketing
Guerilla marketing acts as non-traditional, grassroots, and
captivating – that gain consumers’ attention and build
awareness of the company.
Word-of-Mouth marketing, Buzz marketing, and Viral
Marketing.
Other issues in Guerrilla Marketing.
Guerrilla marketing
Selections from Francesco
Mugnai’s “Best Guerilla Marketing
Ideas”
Use a different perspective
Useful plant life
Fitness
Good use of a parking garage
New type of golf bag
Improving
men’s aim
Nikon thinks you rock
Shopping
cart with
a
message
Trueblood
advertisin
g
Barbeque breakdown
Kit Kat
Guerrilla marketing from an
unexpected source
http://www.youtube.com/watch?v=qMOuF8oskRU