Presentation on theme: "Entrepreneurial Marketing"— Presentation transcript:
1 Entrepreneurial Marketing Marketing the “New”Entrepreneurial Marketing
2 Marketing vs. Entrepreneurial Marketing Marketing creates awareness and the opportunity for a sale.Entrepreneurial Marketing involves entering a market, creating awareness for a new product/service/business and then creating the opportunity to close those hard-to-get first sales.
3 Why Entrepreneurial Marketing is different from (regular) Marketing An entrepreneur……..May need to create a market (example: GPS)Henry Ford: “If I’d have asked the customer what they wanted, they’d have said a faster horse!”Must market to all new customersMust obtain that elusive first customerMust establish distribution channels and pricesMust persuade customers to try (not just continue to buy) a productMust build a new brandMust deal with resource scarcity
4 Who am I and why am I qualified to talk to you about this topic?
10 Why Entrepreneurial Marketing is different from (regular) Marketing An entrepreneur……..May need to create a market (example: GPS)Henry Ford: “If I’d have asked the customer what they wanted, they’d have said a faster horse!”Must market to all new customersMust obtain that elusive first customerMust establish distribution channels and pricesMust persuade customers to try (not just continue to buy) a productMust build a new brandMust deal with resource scarcity
12 SWOT Analysis of Competitors StrengthsInternal capabilities that can help achieve goals and objectivesWeaknessesInternal factors that can prevent achievement of goals and objectivesOpportunitiesExternal circumstances that the firm may be able to exploit for better performanceThreatsExternal circumstances that might hurt the firm’s performance now or in the future
13 LaunchInADay.com SWOT Analysis Strengths:100% online guide for how to start a business with links to needed resources, including online forms, documents and other websitesWebsite built by 3 experienced entrepreneurs who’ve all been through the business set-up, growth, sale and dissolution processes several timesOne of Launch In A Day’s partners owns his own website and mobile application development firm.Unique, relevant content not provided in entrepreneurial textbooksAbility to update content instantly (unlike textbooks)
14 LaunchInADay.com SWOT Analysis Weaknesses:Time constraints (each Launch In A Day partner is involved in at least one other major venture)
15 LaunchInADay.com SWOT Analysis Opportunities:Many entrepreneurship educators and mentors, while good at coaching, do not know (or do not fully understand) the business set-up technical and administrative detail included in Launch In A Day.Most of the educators and mentors who do understand this technical detail either do not want to or do not have time to run entrepreneurs through all the technical and administrative details of starting a business.Launch In A Day’s pre-paid subscription cards are attractive to those who want to mentor and coach entrepreneurs, but who either don’t know how to or don’t want to walk such entrepreneurs through the practical, legal, accounting, tax and other requirements of setting up of a business.
16 LaunchInADay.com SWOT Analysis Threats:Potential for others to duplicate our copyrighted contentPotential for customers to share a subscriptionEntrepreneurship educators and coaches may incorrectly view Launch In A Day as something that can replace them and therefore refuse to use it.A vast array of new tools and software aimed at entrepreneurs and those who educate and coach them results in a cluttered market.
17 SWOT analysis, once completed, effectively illustrates your company’s competitive advantage (or lack thereof) and how you are positioned relative to your competitors.
19 Customer Purchase Decision Process Problem RecognitionSources: dissatisfaction, new needs/wants, related purchases, and marketer-inducedInformation SearchInternal (memory) vs. external searchBrand awareness set – if your brand is not part of the customer’s awareness, there is no possibility the customer will buy from youAlternative EvaluationBrand consideration set – the brands the customer would actually consider purchasingPurchase decisionPost-purchase BehaviorSatisfaction or dissatisfaction with the purchase will affect whether the customer buys again (if applicable)
20 What do your potential customers really do versus what they say they do? (What are their real habits with regard to research and reading, LinkedIn, Twitter, Facebook, , etc.?)
22 Objectives and Resources Create awareness that our company/product/service exists.Create awareness of our company’s/product’s/services’ competitive advantage.Create the opportunity to make a sale.Resources are scarce.
24 Segment, Target, Position Not every customer is alike. Some customers need your product more than others. Some are more likely to become repeat customers. Some customers are easier to reach and sell to than others. Some are simply too expensive or too difficult to reach. Segmentation identifies which customers are which.Choosing to target only certain customer segments allows you to focus your resources on the most promising opportunities. (Example: ATM 1000 product and its first customers;Segmenting and targeting leads to a better understanding of the customer. This allows you to position your product, develop a message to support that positioning (your brand), and select marketing tactics that are appropriate for each chosen segment. (Example: LaunchInADay.com;
27 Paid AdvertisingMy advice is to not engage in paid advertising until you’ve experimented with and gotten to know your target market via the four other indicated avenues of promotion. Starting with paid advertising can be an expensive lesson about not reaching the appropriate potential customer – or reaching them with the wrong message.
28 Public Relations and Publicity Public Relations (PR) is communication designed to create a positive image about a company, its products/services, or its people via the use of non-paid forms of communication. It involves letting your actions speak for themselves. (Example: Providing free product for a not-for-profit event. Being voted a “top employer.” Winning awards.) Publicity is the practice of creating and disseminating information about a company, its products/services, people, or its company activities to secure favorable news coverage in the media reaching target audiences. You craft a story and encourage the media to tell it. (Example: Writing and peddling to the media a press release about how your new product helps others). How many of us are truly pursuing either of these two avenues for exposure effectively?
29 Sales PromotionA sales promotion is a short-term inducement of value offered to arouse customer interest in buying a product or service.Techniques:CouponsDealsContests/SweepstakesFree samplesLoyalty programsRebates
30 Sales PromotionSales promotion success is easier to measure than the success of many other marketing initiatives.Consumers are becoming more value conscious so sales promotions are enjoying a better response now than what has been historically true.Do not use sales promotion as a stand-alone technique.Do not overuse!(Examples: Auto manufacturers. “Groupon” effect.)
31 Direct MarketingDirect communication with customers to generate a “measurable” response in the form of an order, a request for further information, or a visit to a retail outlet.Direct mail (expensive; effective?)Catalogues (expensive)Telephone solicitations (increasingly challenging)Direct-response advertising (i.e xxx-xxxx)Online marketing (including social media marketing)marketing (still “most effective”?)Mobile marketing (i.e., text message marketing)Personal selling
32 Personal SellingPersonal selling is the two-way flow of communication between a buyer and a seller designed to influence a person’s or group’s purchase decision.Least expensive methods include utilizing social networking sites (LinkedIn, Twitter, Pintrist, Facebook), and marketing.More expensive but more effective methods include the type of one-on-one selling that takes place at tradeshows, exhibitions, retail locations, etc.Most entrepreneurial marketing involves a high level of direct marketing and personal selling.
34 Measure Effectiveness Before embarking on any marketing strategy, first lay out a plan for how you will measure the effectiveness of that strategy. Before repeating any marketing strategy, first analyze the effectiveness of that plan, as you just executed it.
35 What My Students Say About Entrepreneurial Marketing “If you’re not having fun, neither is your customer.” Shirts for Greeks: “Going to chapter meetings was by far our most effective marketing. People bought from us because they liked us!”E Marketing almost always involves a significant element of personal selling. Snapcessories: “We sold $158 of product in 23 minutes!”“If you cannot be diligent with regard to social media marketing, don’t bother doing it.”“Research who your true target market is before you develop a marketing plan. Then, don’t forget who they are when developing your marketing plan.”(LIAF solution: Plan an event for students during which they “give up” their parents’ addresses.) (Snapcessories: “Easy to sell to sororities.”)“People today are overwhelmed with marketing messages and will, by force of habit, tune you out. Very hard to cut through the clutter – unless you are offering something truly unique.” (Dunya Jean)“If you have a quality product , show it to the customer and they will buy it. (Dunya Jean and Shirts for Greeks)Hot cards – ineffective. “People take them to be polite, but then toss them.”
36 What My Students Say About Entrepreneurial Marketing Most common comment: “Marketing a brand new company and a brand new product is a lot harder than I thought it was going to be.”
37 Final ThoughtsIf you aren’t already an extrovert, you’ll have to become one (at least part of the time) to successfully market your new venture.Be brave! Step outside the box and try new things!That said, try new things on a small scale first (and get feedback) before unleashing your marketing and promotion tactics on all of your potential customers.Last, be cautious that your tactics and message don’t accidentally offend any sub-set of your potential customers. Your customers will forgive a lot, but not that which is truly offensive or rude.