ENTREPRENEURIAL MARKETING

Rajeev Roy

Entrepreneurial Marketing by Rajeev Roy

Relationship marketing

• Identifying, establishing, maintaining and enhancing relationships with customers and other stakeholders, for profit

• Achieving objectives of both parties

• Driver – sophisticated customers want individualised attention

Entrepreneurial Marketing by Rajeev Roy

Expeditionary marketing

• Creating markets before competitors

• Continuous search for innovative product concepts

• Leading rather than following consumers

• Tolerance of failure

Entrepreneurial Marketing by Rajeev Roy

One-to-one marketing

• Individualised marketing mix

• Marketing based on knowing the customer through collaborative interactions

Entrepreneurial Marketing by Rajeev Roy

Real-time marketing

• Technology-facilitated, real-time dialogues with interactive services

Entrepreneurial Marketing by Rajeev Roy

Disruptive marketing

• Shattering culturally embedded biases and conventions

• Forging a radical new vision of a product

Entrepreneurial Marketing by Rajeev Roy

Viral marketing

• Self-replicating promotion

• Multiplies as like-minded people market to each other

• One has to be careful of mutation

Entrepreneurial Marketing by Rajeev Roy

Digital marketing

• IT-enabled interactivity

• New forms of interaction lead to deeper relationships

• Greater personalisation

Entrepreneurial Marketing by Rajeev Roy

Permission marketing

an approach to selling goods and services where a prospect explicitly agrees to receive marketing information

Entrepreneurial Marketing by Rajeev Roy

Radical marketing

• With limited financial resources

• Maximum exploitation of limited budget

• Redefine competitive rules

• Focus on growth and expansion rather than short term gains

Entrepreneurial Marketing by Rajeev Roy

Buzz marketing

• Consumer-generated information dispersed through individual networks by creating excitement

• Word of mouth

Entrepreneurial Marketing by Rajeev Roy

Customer-centric marketing

• Marketing seeks to fulfill needs of individual consumer

• Needs of consumer is the starting point of planning process

• Driven by increased market diversity

Entrepreneurial Marketing by Rajeev Roy

Convergence marketing

• Fusion of technologies or combination of channels

Entrepreneurial Marketing by Rajeev Roy

Dimensions of entrepreneurial marketing

• Proactive orientation

• Opportunity-driven

• Customer focus

• Innovation focus

• Risk / vulnerability management

• Resource leveraging

Entrepreneurial Marketing by Rajeev Roy

Leveraging resources

• Stretching resources further than others have done in the past

• Getting uses others have been unable to realise• Using other’s resources for one’s own purposes• Complementing one resource with another to

create greater value• Using some resources to obtain others

Entrepreneurial Marketing by Rajeev Roy

Brand building

• Let your brand strategy drive your business

do not outsource branding– Creates distance between brand and top

management– Agencies will focus on media, not brand

• Clarify your brand identity

Entrepreneurial Marketing by Rajeev Roy

Brand building

• Identity-building brand exposure

• Involve the customer in the brand building experience

• Borrow practices from across industries

• Pilot test novel ideas

• Have a ‘brand manager’

• Monitor results

Entrepreneurial Marketing by Rajeev Roy

Pricing

• Assess what value customers place on the product

• Look for variations in the way customers value the product

– Heavy users– Criticality of use– Different uses

Entrepreneurial Marketing by Rajeev Roy

Price sensitivity

• Less if 3rd party bears cost• Cost of item is significant to total

expenditure• If buyer is not end user (B2B)• Easy to compare products in category• Easy access to competing products• Low cost of switching• Long term relationship is not important

Entrepreneurial Marketing by Rajeev Roy

Pricing

• Identify a pricing structure

• Consider competitor’s reactions

• Monitor realised prices

• Assess customer’s emotional response to prices

• Analyse if returns are worth it

Entrepreneurial Marketing by Rajeev Roy

Skimming

a policy of relatively high prices

• Demand will be comparatively inelastic with respect to pricesconsumers may be ignorant of real value

• Segments the marketsystematic price reduction to tap other segments

Entrepreneurial Marketing by Rajeev Roy

Skimming

• Safer – it may be easier to reduce prices than to raise them

• High prices can finance high initial costs

• Can absorb future rise in component costs

Entrepreneurial Marketing by Rajeev Roy

Penetration pricing

• High price elasticity of demand

• High fixed costs – low variable costs

• Strong threat of potential competition

• Cost compression curve is steep

• Provides greater visibility to company early

Entrepreneurial Marketing by Rajeev Roy

Pricing precepts

• Pricing of a product should work towards maximising present worth

• The unit for making decisions and for measuring return is the entire economic life of the product

• Pricing begins before production commences and repricing continues for the entire life cycle

Entrepreneurial Marketing by Rajeev Roy

Pricing precepts

• Producers costs indicate a floor price

• Customers cost indicates price sensitivity

• Competitor’s costs indicate their strength

• Different pricing strategies can be used in different segments

Entrepreneurial Marketing by Rajeev Roy

Channel strategy

• Go directly to the consumer: bypass all

• Go directly to the retailer: bypass distributor

• Use sales agents

• Set up your own intermediaries

• Participate in establisher channel structure

Entrepreneurial Marketing by Rajeev Roy

Promotions: Objectives

• SALES• Increased distribution outlets• Increased shelf space• Increased in-store presence• Expanded selling season• Increased purchase frequency• Increased usage occasions• Increased transaction size• Trial

Entrepreneurial Marketing by Rajeev Roy

Planning a promo campaign

• Establish objectives

• Plan on strategies and tactics

• Establish criteria for success

• Create back-up plan

• Review and test

• Put controls in place

• Roll out

Entrepreneurial Marketing by Rajeev Roy

Contests

• Call attention to a product when there is nothing new

• The product should tie in with the contest

• Can be used to build data on customers

• Instant win enjoys greater participation

• Lots of prizes vs one big prize

Entrepreneurial Marketing by Rajeev Roy

Coupons

• Coupons entitle bearers to an immediate discount when presented to a participating business

• Greatest influencer among promos

• P&G vs the people

• Manufacturer / retailer or both

• On product / off site

Entrepreneurial Marketing by Rajeev Roy

Discounts

• Can result in:– Increased consumption– New type of consumption eg gifting– Stockpiling

• EDLP vs High Low

• Builds traffic

• Price reductions are simplistic

Entrepreneurial Marketing by Rajeev Roy

Types of discounts

• Cash discounts• Trade-ins• Membership discounts• First few customers• Twofers / BOGO etc• Future purchase• Bundling• Added value (0% finance)

Entrepreneurial Marketing by Rajeev Roy

Continuity

• Basis: it costs more to get a new customer than to retain an old one

• Collect and get

• Loyalty

• Collector series

• Close-ended vs open-ended

Entrepreneurial Marketing by Rajeev Roy

POP

• Also known as POS

• It is a display tactic

• Display must convey message in 3 secs

• More the better

• Give benefit to retailer

• Announce some other promotion

• Self-shipper (easy set-up)

Entrepreneurial Marketing by Rajeev Roy

Sampling

• In store• On pack / in pack / near pack• Coupon• Delivered• Direct mail• Media delivery (incl. downloads)• Demos• Trial offers (short-term)• Venues (clubs, community halls)• Events

Entrepreneurial Marketing by Rajeev Roy

Sampling

• Kits

• Booths

• Literature

• Hiring &Training

• Follow up

• measurement

Entrepreneurial Marketing by Rajeev Roy

Event

• Make / rent an event

• Product placement

• Product affiliation

• Licensed premium offer (spidey toys)

• Event tickets

• Event extension (Merc-sit in F1 car)

Entrepreneurial Marketing by Rajeev Roy

What can you do at an event?

• Sponsorships

• Signage

• Sampling booths

• Celebrity appearances

• Hospitality tents

• Premiums, souvenirs

• Exhibit items

Entrepreneurial Marketing by Rajeev Roy

Free gifts

• Along with sale

• The container itself

• Charge cost

• Free with commitment (subscription)

• Collectibles

• Collect and get

Entrepreneurial Marketing by Rajeev Roy

Tie-ins

• Product compatibility –pizza and cola

• Market match

• Distribution match

• Seasonality

• Regionality

• Cross-merchandising

Entrepreneurial Marketing by Rajeev Roy

Trade promotions

• Get new distribution

• Optimise product mix

• Exploit seasonality

• Get shelf space

• Secure services (co-op)

• Performance

Entrepreneurial Marketing by Rajeev Roy

VIRAL MARKETING

• Buzz, word-of-mouth, network marketing• Hotmail – “get your private, free email at

www.Hotmail.com”• Give away valuable products or services• Provides effortless transfer to others• Scalable• Utilize existing communication networks• Take advantage of others’ resources

Entrepreneurial Marketing by Rajeev Roy

Myths

• Only outrageous or edgy products are buzz-worthy– Unique in some respect– Highly visible

• Buzz just happens– identify opinion leaders– Ration supply– Celebrities– Use lists (IIPM)– Build community

Entrepreneurial Marketing by Rajeev Roy

Myths

• The best buzz-starters are your best customers

• To profit from buzz, act first and fast (coloured nailpolish)

• Media and advertising are needed to create buzz

Entrepreneurial Marketing by Rajeev Roy

Drivers of buzz

• word-of-mouth is 10 times more effective than other media

• Ad clutter is rising

• Traditional forms of media are rising in cost

• Trust in ads is coming down

• Technology is acceleration buzz

Entrepreneurial Marketing by Rajeev Roy

6 buttons of buzz

Give people a story to tell

• Taboo

• Unusual

• Outrageous

• Hilarious

• Remarkable

• secrets