Chapter 8
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Chapter 8






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Chapter 8 Chapter 8 Presentation Transcript

  • Part III – Developing the Entrepreneurial Plan Chapter 7 – Environmental Assessment: Preparation for a New Venture Chapter 8 – Marketing Research for New Ventures Chapter 9 – Financial Preparation for Entrepreneurial Ventures Chapter 10 – Developing an Effective Business Plan Copyright (c) 2004 by South-Western, a division of Thomson Learning. All rights reserved.
  • Chapter 8 – Marketing Research For New Ventures
  • Definition of a Market
    • A market is a group of consumers (potential customers) who have purchasing power and unsatisfied needs. A new venture will survive only if a market exists for its product or service.
  • Marketing Research
    • Marketing Research involves the gathering of information about a particular market, followed by analysis of that information.
  • Defining the Research Purpose and Objectives
    • Gathering Secondary Data
    • Gathering Primary Data
  • Developing an Information-Gathering Instrument
    • Make sure each question pertains to a specific objective in line with the purpose of the study.
    • Place simple questions first and difficult-to-answer questions later in the questionnaire.
    • Avoid leading and biased questions.
    • Give concise but not complete directions in the questionnaire.
    • When possible, use scaled questions rather than simple yes/no questions to measure intensity of an attitude or frequency of the experience.
  • Interpreting and Reporting the Information
  • Inhibitors to Market Research
    • Cost
    • Complexity
    • Strategic Decisions
    • Irrelevancy
  • Developing the Marketing Concept
  • Marketing Philosophy
    • Production-driven philosophy
    • Sales-driven philosophy
    • Consumer-driven philosophy
  • Market Segmentation
    • Market segmentation is the process of identifying a specific set of characteristics that differentiate one group of consumers from the rest.
  • Consumer Behavior
    • Five Major Classifications:
    • Convenience goods
    • Shopping goods
    • Specialty goods
    • Unsought goods
    • New products
  • Marketing Stages for Growing Ventures Stage 1: Entrepreneurial Marketing Stage 2: Opportunistic Marketing Stage 3: Responsive Marketing Stage 4: Diversified Marketing Marketing Strategy Market Niche Market Penetration Product- Market Develop- ment New- Business Develop- ment
  • Marketing Planning
    • Marketing research
    • Sales research
    • Marketing information system
    • Sales forecasting
    • Marketing plans
    • Evaluation
  • Telemarketing
    • Advantages:
    • Receptiveness
    • Impressions
    • More presentations
    • Unlimited geographic coverage
    • Better time management
    • Immediate feedback
    • Better control
    • Less “piracy”
    • Lower salary and commissions
  • Telemarketing
    • Pitfalls:
    • Poor telephone techniques can defeat the telemarketing strategy.
    • Dissension between the field sales staff and the telephone sales personnel can arise.
    • Entrepreneurs must be aware of the ever-present problem of rapid turnover of telephone staff.
  • Marketing on the Internet
    • The Internet allows the firm to increase its presence and brand equity in the marketplace.
    • The Internet allows the company to cultivate new customers.
    • The Internet allows Web site visitors to match their needs with the offerings of the company.
    • The Internet can improve customer service by allowing customers to serve themselves.
    • The greatest potential for the future is probably in direct marketing, where catalogs can be offered online.
  • Pricing Strategies
  • Pricing for the Product Life Cycle Product Life-Cycle Stage Pricing Strategy
    • Introductory Stage
    • Unique product
    Skimming – deliberately setting a high price to maximize short-term profits
    • Nonunique product
    Penetration – setting prices at such a low level that products are sold at a loss Growth Stage Consumer Pricing – combining penetration and competitive pricing to gain market share; depends on consumer’s perceived value of product Maturity Stage Demand-Oriented Pricing – a flexible strategy that bases pricing decisions on the demand level for the product Decline Stage Loss Leader Pricing – pricing the product below cost in an attempt to attract customers to other products