10 Entrepreneurial Marketing Strategy

8/13/2019 10 Entrepreneurial Marketing Strategy

http://slidepdf.com/reader/full/10-entrepreneurial-marketing-strategy 1/27

COEUR - BCM

Business Creativity Module

“Entrepreneurial Marketing Strategy”

Andrew Turnbull



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




1.1) Introduction

What do you think about the following statement?

Every successful entrepreneurhas 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.

c) Not true. The vast majority of entrepreneurs

only have a vague idea of how things will work out.

d) Not true. An entrepreneur is someone with a great vision,

but totally incapable of organized thinking.




1.1) Introduction

c) Not true. The vast majority of entrepreneursonly have a vague idea of how things will work out.

Answer:

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.




1.2) Definitions:

Entre-/Europreneurship

Organisational level:

• Creativehuman

capital• Ability to

recognize

opportunities• Willingnessto take risks

Individual level:

• enthusiastic

• committed

• professional

• visionary

• 'hungry„

• open minded

• ...

European

Dimension




1.2) Definitions:

Marketing ...

• … is the management process responsiblefor identifying, anticipating and satisfyingcustomer requirements profitably. (UK)

• … is the discipline of conceiving offersas a function of consumer preferences,and promoting their commercialization.

(France)

• …is market-oriented management.(Germany)




1.2) The Importance

of Marketing: A Tale

New Economy (1995-2001):

Shareholder Value Management

2002 Stock Market Crash

Only those dotcoms survived

that had a sound customer base:

the True Economy .




1.2) Individual Qualities

Comparison

The Entrepreneur… The Marketer…

…is creative, innovative,

open for theunconventional

…tries constantly to stay

abreast of competitors

…is ready to take risks, deal

with uncertainty

…creates or seizes market

opportunities

…works for sustainable

business growth

…works to increase market

share or build better

customer relationships




1.2) Common Misconceptions

about Marketing

Marketing is equivalent

to advertising.

Marketing is just the

icing on the cake.

Marketing is

manipulation.




1.2) 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




Strategic Balance

1.3) 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?




1.3) 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 connectedwith the customer!

• Environment: Develop all stakeholder relations and treatcustomers as your most important stakeholders!




Competitors

Customers

1.3) Entrepreneurial Marketing:

Strategic Challenges

• exceed customer expectations

• build trust, keep promises

Internal

• seize opportunities

• change the rules

• balance attack,

defence and evasion

• manage processes

• show leadership




2.1) Defining the Offer:

The Ansoff Matrix

existing new Markets

new

Products existing Penetration

Diversification

Market Development

Product

Development





SWOT Analysis

favourable unfavourable

Strengths Weak-

nesses Opportu- nities

internal

external

Threats





PESTLE Analysis

• Political

• Economic

• Social

• Technological

• Legal• Ecological

Environment(s)

Influence on

Business Idea ?





The Basis For Differentiation

Product Price Promotion Place

Where is their basis

for differentiation ?





The Basis For Differentiation

Study published by Babson College, Boston, Mass., USA




2.3) “What’s In It For Me?”

Customer Benefit Definition

product

feature

generic

benefit

meaning

to customer

extendedopening hours convenience freedom

customer

loyalty card

savings feeling

market savvyeco-certifiedproducts

goodconscience

leading ameaningful life




2.4) 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”




3) Defining the Market

– Marketing Style

Transactional Marketing Relationship Marketing

“make-and-sell” “sense-and-respond”

sales volume maximization customer value maximizationbranding, advertising,

distribution partners

personal selling, direct and

database marketing

packaged goods individual services

one-time customer lifetime customer

high market share stable relationships





– Customer Profiling

Transactional Marketing:

• Who is your typical customer?

Build a demographic portrait:

• Age bracket, cohort

• Family life cycle stage

• Education, occupation

• Disposable income/month

• Usage pattern ...

Relational Marketing:

• How does your typical customer

interact with you?Build a customer life cycle:

• Non-customer

• Prospect, lead

• First timer

• Repeat buyer

• Testimonial





– Market Forecast

Transactional Marketing:

Estimate market size top-down:

• Potential market?

• Available market?

• Target market?

• Penetrated market afterfirst year in business?

Relational Marketing:

Determine minimum marketsize bottom-up

(Break-even analysis):How many customers mustbe addressed to cover costs

of first year in business?




Introduction Growth Maturity Decline

4) Timing the Entry Into the Market

— Product/Market Life Cycle

market

volume

Market Innovator

Product Innovator

time





— Product/Market Life Cycle

Introduction Growth Maturity Decline

New

customers

former non-buyers competitors’ customers

Main

marketing

problem

raising

awareness,

getting

known

making

product

available

differentia-

tion from

competitors

retreat from

market

Main

instruments

Promotion Place Product,

Promotion

Price

Spin on USP Newness Trendiness Distinctness Reliability

How can Marketing Strategy adapt

to different Life Cycle Phases ?

Q:





— First Move Considerations

First Mover Advantages

Primacy effect: Making an early

and lasting effect on customers

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

First Mover Disadvantages

Recency effect: Followers have

benefit of newness

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




Finding New IdeasInnovation

Creativity

Harvest ProfitPotential

Economies

of Scale

Positioning

againstCompetitors

Differentiation

Conclusion: The Innovation Cartwheel

Marketing

New IdeasMaking them

acceptable to customers

Entrepreneurial

Marketing Strategy

– a constant interplay

of rulebreaking and

mainstreaming ...

10 Entrepreneurial Marketing Strategy

Documents

Transcript of 10 Entrepreneurial Marketing Strategy