Transcript D5 Entrepreneurial Marketing

D5 – Ready to Start
Entrepreneurial Marketing
D5 – Entrepreneurial Marketing
Aim:
• To appreciate the importance of marketing
throughout the business start up process
Learning Outcomes:
• To develop a marketing strategy for an
small business
• To identify key market segments for a
Focus strategy
Entrepreneurial Marketing
• Defines the business
• Aligns and counterbalances the internal
and external requirements and forces
• Creates sustainable business value
• Highly responsive to market (close to
customer)
Mike Grandinetti MIT Sloan
School of Mgt
Entrepreneurial Marketing
Framework
• Market Discovery
– (what is the customer’s ‘pain!’)
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Product Development
Market Strategy
Product / Company Launch
Measurement and Refinement
Mike Grandinetti MIT Sloan
School of Mgt
Market Discovery (1)
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Market segmentation
Identify customer’s pain
Competitive environment
Market size / growth
Mike Grandinetti MIT Sloan
School of Mgt
Spin out?
“Great
devices are invented in the
lab, great products are created in
the market”
Bill Davidow MIT Sloan Management School.
Mike Grandinetti MIT Sloan
School of Mgt
Market Discovery (2)
• Market segmentation
– FOCUS IS KEY
– Pick 1-3 well defined, accessible markets and
dominate
“Marketing must create complete product
offerings and drive them into commanding
positions in defensible market segments” –
Bill Davidow
Mike Grandinetti MIT Sloan
School of Mgt
Market Discovery (3)
• Markets will support several players
• They are not as homogenous as they
appear – define your segments
• ‘Pain’ (need) is best identified through
rigorous and systematic primary research
• Articulate the voice of the customer to
segment the market
Mike Grandinetti MIT Sloan
School of Mgt
Unique Value Proposition
• Compelling reason to purchase
• Provides profit margin
• Quantify these benefits (money saved;
time not wasted; family happier; children
well fed)
• Position your product through your USP
Mike Grandinetti MIT Sloan
School of Mgt
Most attractive markets
• Segments with lots of demand
• Accessible segments
• Markets in which you offer USP / able to
differentiate from competitors
• Few substitutes
• Markets in which suppliers and distributors
do not have power
FOCUS: on markets with lots of demand
Positioning Template
• For (target customers)
• Who (has the problem/need/pain)
• Our product ….*(is new)
• Provides… *(results)
• Unlike…*(competitors or substitutes)
Mike Grandinetti MIT Sloan
School of Mgt
Fundamentals
• Significant customer problem/need/desire
to develop a sufficiently large market?
• Is the customer ready to buy ?
• Have you differentiated your value
proposition?
Distribution Channels
• How does your product/service reach the
customer?
– Shops (how /when)
– Internet
– Mail
– Multi- channel?
Remember focused strategy to start with!
Mike Grandinetti MIT Sloan
School of Mgt
Marketing Planning Process
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Mission
Market Audit
SWOT analysis
Marketing Strategy
Marketing Objectives
Communication / advertising / P.R
Monitor and Control