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Eurokid is an entrepreneur Eurokid is an entrepreneur Document Transcript

  • TRANSVERSAL COMPETENCES: TODAY’S SOLUTIONS FOR TOMORROW’S JOBS Eurokid is an enterpreneur Comenius Project Theory and Practice 2011-2013 CZECH REPUBLIC – ITALY – POLAND - TURKEY
  • COMENIUS PROJECT (2011-2013)TRANSVERSAL COMPETENCES: TODAY’S SOLUTIONS FORTOMORROW’S JOBSEurokid is EntrepreneurTable of ContentIntroduction........................................................................................................................21. What is Entrepreneurship and Why Become an Entrepreneur?......................................21.1. Characteristics of successful entrepreneurs.................................................................31.2. Entrepreneurship’s Importance....................................................................................51.3. The Entrepreneurial Process........................................................................................52. Developing Successful Business Idea............................................................................72.1. Selecting a Market and Establishing a Position...........................................................72.2. The 4P’s of Marketing for New Ventures...................................................................83. The Business Plan.........................................................................................................123.1. Why a Business Plan is Important..............................................................................123.2. Business Plan Outline................................................................................................133.3. What Makes a Good Plan?........................................................................................144. Establishing a Strong Ethical Culture for a Firm.........................................................164.1. Establishing a Code of Conduct ..............................................................................164.2. Avoiding Legal Disputes...........................................................................................164.3. Set Standards...........................................................................................................175. Marketing....................................................................................................................19 1
  • 5.1. Steps to Create a Marketing Plan ............................................................................195.2. E-Marketing ..............................................................................................................21References........................................................................................................................23IntroductionEntrepreneurship is the process by which individuals pursue opportunities without regardto resources they currently control. The essence of entrepreneurial behaviour isidentifying opportunities and putting useful ideas into practice. The tasks called for bythis behaviour can be accomplished by either an individual or a group and typicallyrequires creativity, drive, and willingness to take risks. Typically, established firms withan entrepreneurial emphasis are proactive, innovative, and risk taking. In the first part of the book, the characteristics of a successful entrepreneur andthe entrepreneurial process will be discussed. Then, we will be dealing with ways todevelop a successful business idea and the 4P’s of marketing for new ventures. In thefollowing part of the book, a detailed business plan outline will be given. Besides, wewill scrutinize the importance of establishing a strong ethical culture for an enterprise. Inthe final part of the book, many dimensions of e-marketing will be discussed. 1. What is Entrepreneurship and Why Become an Entrepreneur?Entrepreneurship is the process by which individuals pursue opportunities without regardto resources they currently control. The essence of entrepreneurial behaviour isidentifying opportunities and putting useful ideas into practice. The tree primary reasons 2
  • that people become entrepreneurs and start their own firms are to be their own boss,pursue their own ideas, and realize financial rewards.Be their own boss: The first of these reasons—being one’s own boss—is given mostcommonly. This does not mean, however, that entrepreneurs are difficult to work with orthat they trouble accepting authority. Instead, many entrepreneurs want to be their ownboss because either they have had a long-time ambition to own their own firm or becausethey have become frustrated working in traditional jobs.Pursue their own ideas: The second reason people start their own firms is to pursuetheir own ideas. Some people are naturally alert, and when they recognize ideas for newproducts or services, they have a desire to see those ideas realised.Pursue financial rewards: Finally, people start their own firms to pursue financialrewards. This motivation, however, is typically secondary to the first two and often failsto live up to its hype. The average entrepreneur does not make more money than someonewith a similar amount of responsibility in a traditional job.1.1. Characteristics of Successful EntrepreneursAlthough many behaviours have been ascribed to entrepreneurs, several are common tothose who are successful. Those in new ventures and those who are already part of anentrepreneurial firm share some qualities. These are:1.1.1. Passion for the business: The number-one characteristic shared by successfulentrepreneurs is a passion for their business, whether it is in the context of a new firm oran existing business. The passion typically stems from the entrepreneur’s belief that thebusiness will positively influence people’s lives. This passion explains why people leavesecure jobs to start their own firms and why billionaires such as Bill Gates of Microsoft,Michael Dell of Dell Inc., and Larry Page continue working after they are financially 3
  • secure. They strongly believe that the product or service they are selling makes adifference in people’s lives and makes the world a better place to live in. Passion is particularly important for entrepreneurs because although rewarding,the process of starting and building a new firm is demanding. Entrepreneurship isn’t forthe person who is only partially committed. Investors watch like hawks to try todetermine an entrepreneur’s passion for his or her business idea. Another reason that passion is important is that in many instances it motivatesextra-ordinary behaviour. Entrepreneurs who are passionate about their venture will ofteninvest huge amount of effort to ensure its healthy functioning. A note of caution is in order here: While entrepreneurs should have passion, theyshould not wear rose-colored glasses. It would be a mistake to believe that all one needsis passion and anything is possible. It is important to be enthusiastic about a businessidea, but it is also important to understand its potential flaws and risks. In addition,entrepreneurs should understand that the most effective business ideas take hold whentheir passion is consistent with their skills and is in an area that represents a legitimateopportunity.1.1.2. Product/customer focus: A second defining characteristic of successfulentrepreneurs is a product/customer focus. An entrepreneur’s keen focus on products andcustomers typically stems from the fact that the most successful entrepreneurs are, atheart, craftspeople. They are obsessed with making products that can satisfy a customer’sneed. This is an important point to remember, particularly in an era when it is tempting toenvision new business resulting from every advance in technology.1.1.3. Tenacity despite failure: Because entrepreneurs are typically trying somethingnew, the failure rate associated with their efforts is naturally high. In addition, the process 4
  • of developing a new business is somewhat similar to what a scientist experiences in thelaboratory. A chemist, for example, typically has to try multiple combinations ofchemicals before finding an optimal combination that can accomplish a certain objective.In a similar fashion, developing a new business idea may require a certain degree ofexperimentation before a success is attained. Setbacks and failures inevitably occurduring the process.1.1.4. Execution intelligence: The ability to fashion a solid idea into a viable business isa key characteristic of successful entrepreneurs. Rob Adams, a senior partner in AV Labs,calls this ability execution intelligence is the factor that determines whether a start-up issuccessful or fails. An ancient Chinese saying warns, “To open a business is very easy; tokeep it open is very difficult.” The ability to effectively execute a business idea means developing a businessmodel, putting together a new venture team, raising money, establishing partnerships,managing finances, leading and motivating employees, and so on. It also demands theability to translate thought, creativity, and imagination into action and measurable results.1.2. Entrepreneurship’s ImportanceEntrepreneurship has tremendously positive impact on the economy and on society. In2005 a report by the Global Entrepreneurship Monitor stated that Entrepreneurs are alert individuals who perceive and exploit profit opportunities. In addition to contributing toward market efficiency, entrepreneurs introduce innovations by offering new and unique products or services. As a result, innovative entrepreneurs are also one of the main links between entrepreneurship and economic growth. 5
  • Consistent with this set of sentiments, one scholar, commenting on the importance ofentrepreneurship at the local level, noted that “entrepreneurship is still the best privatevehicle we have to turn around and improve the economic health of s community.”1.3. The Entrepreneurial ProcessStep 1 - Decision to Become an EntrepreneurAs discussed earlier, people become entrepreneurs to be their own boss, to pursue theirown ideas, and to realize financial rewards. Usually, a trigger event prompts an individualto become an entrepreneur. For example, an individual may lose her job and decide thatthe time is right to start her own business. Or a person might receive an inheritance andfor the first time in her life have the money to start her own company. Lifestyle issuesmay also trigger entrepreneurial careers. For example, a woman may wait until heryoungest child is in school before she decides to launch her own entrepreneurial venture.Step 2 - Developing Successful Business IdeasMany new businesses fail not because the entrepreneur did not work hard but becausethere was no real opportunity to begin with. Developing a successful business ideaincludes opportunity recognition, feasibility analysis, writing a business plan, industryanalysis, and the development of an effective business model. A business plan is a writtendocument that describes all the aspects of a business venture in a concise manner. It isusually necessary to have a written business plan to raise money and attract high qualitybusiness partners. Some entrepreneurs are impatient and do not want to spend the time ittakes to write a business plan. This approach is usually a mistake. Writing a business planforces an entrepreneur to think carefully through all the aspects of a business venture. Italso helps a new venture establish a set of milestones that can be used to guide the earlyphases of the business rollout. A firm’s business model is its plan for how it competes, 6
  • uses its resources, structures its relationships, interfaces with costumers, and creates valueto sustain itself on the basis of the profits it generates.Step 3 - Moving from an Idea to an Entrepreneurial FirmThe first step in turning an idea into reality is to prepare a proper ethical and legalfoundation for a firm, including selecting an appropriate form of business ownership. Thesecond step is assessing a new venture’s financial strength and viability. The third step isrelated to building a new-venture team. The last step is concerned with getting financing.Step 4 - Managing and Growing an Entrepreneurial FirmGiven today’s competitive environment, all firms must be managed and grown properlyto ensure their ongoing success. This is the final stage of the entrepreneurial process. This stage focuses on the unique marketing issues facing entrepreneurial firms,including selecting an appropriate target market, building a brand, and the four Ps—product, price, promotion, and place(or distribution )—for new firms. 2. Developing Successful Business Idea2.1. Selecting a Market and Establishing a Position 7
  • In order to succeed, a new firm must address this important question: Who are our customers, and how will we appeal to them? A well-managed start-up uses a three-step approach to answer these questions: segmenting the market, selecting or developing a niche within a target market, and establishing a unique position in the target market. The Process of Selecting a Target Market and Positioning StrategySegmenting the Selecting a Target Crafting a UniqueMarket Market Positioning StrategyWhat groups of Which specific group of What Position will my firmcustomers in my customers have I decided occupy in the minds of mymarket are similar to target? customers (and potentialenough that the same customers) that willproduct or service differentiate it from all ofwill appeal to all of my competitors?them? Table 1. In each step, the entrepreneurial venture must answer an important question that will help it pinpoint its market and determine how to attract customers in that market. A firm’s target market is the limited group of individuals or businesses that it goes after or to which it tries to appeal. It is important that a firm first choose its target market and position itself within its target market because virtually all its marketing decisions hinge on these critical initial choices. If other marketing decisions are made first, such as choosing an advertising campaign, there is a danger the firm will not send a clear message to its target customers. 8
  • 2.1.1. Segmenting the MarketThe first step in selecting a target market is to study the industry in which the firmintends to compete and determine the different potential target markets in that industry.This process is called market segmentation. 2.1.2. Selecting a Target MarketOnce a firm has segmented the market, the next step is to select a target market. Themarket must be sufficiently attractive, and the firm must be able to serve it well.Typically, a firm (especially a start-up venture) doesn’t target an entire segment of amarket because many market segments are too large to target successfully. Instead, mostfirms target a niche or a vertical market within the segment. For example, one segment ofthe computer industry is handheld computers. Within this segment, there are severalsmaller niche markets that are targeted by different companies. A niche market is aplace within a market segment that represents a narrower group of customers with similarinterests. 2.1.3. Establishing a Unique PositionAfter selecting a target market, the firm’s next step is to establish a “position” within itthat differentiates it from its competitors. Position is concerned with how the firm issituated relative to competitors. In a sense, a position is the part of a market or of asegment of the market the firm is claiming as its own. A firm’s market position can beunderstood by studying the features of its goods or services. 2.2. The 4Ps of Marketing for New VenturesOnce a company decides on its target market, establishes a position within that market,and establishes a brand, it is ready to begin planning the details of its marketing mix. A 9
  • firm’s marketing mix is the set of controllable, tactical marketing tools that it uses toproduce the response it wants in the target market. Most marketers organize theirmarketing mix into four categories: product, price, promotion, and place (or distribution). 2.2.1. ProductA firm’s product, in the context of its marketing mix, is the good or service it offers to itstarget market. Technically, a product is something that takes on physical form, such as anApple iPod, an electronic game, or a laptop computer. A service is an activity or benefitthat is intangible and does not take on a physical form, such as an airplane trip or advicefrom an attorney. But when discussing a firm’s marketing mix, both products andservices are lumped together under the label “product.” 2.2.2. PricePrice is the amount of money consumers pay to buy a product. It is the only element inthe marketing mix that produces revenue; all other elements represent costs. Price is anextremely important element of the marketing mix because it ultimately determines howmuch money a company can earn. The price a company charges for its products alsosends a clear message to its target market. 2.2.3. PromotionPromotion refers to the activities the firm takes to communicate the merits of its productto its target market. Ultimately, the goal of these activities is to persuade people to buythe product. There are a number of these activities, but most start-ups have limitedresources, meaning that they must carefully study promotion activities before choosingthe one or ones they’ll use. 10
  • Advertising is making people aware of a product in hopes of persuading them to buy it. Advertising’s major goals are to do the following:  Raise customer awareness of a product  Explain a product’s comparative features and benefits  Create associations between a product and a certain lifestyle These goals can be accomplished through a number of media, including direct mail, magazines, newspapers, radio, the Internet, television, and billboard advertising. Steps Involved in Putting Together an Advertisement Step1: Identify Step 3: Select a Step 2: the purpose of Determine the medium the ad target audience Select a medium Clearly identify Identify who you for the ad, such one or more want to see the as television, ad radio, newspaper purposes that or social media you expect the advertisement to achieve Step 5: Select aStep 4: Create place and time Step 6: Fulfillthe Ad for the ad to ExpectationsCreate an ad that appear Make sure to haveis appropriate for Select the enough productyour audience, specific place on hand (orproduct, and and the specific people to takebudget time of day (or orders) if the ad is location in a 11 successful newspaper) for an ad to appear
  • Table 2.Public RelationsOne of the most cost-effective ways to increase the awareness of the Products a companysells is through public relations. Public relations refer to efforts to establish and maintaina company’s image with the public. The major difference between public relations andadvertising is that public relations is not paid for—directly. The cost of public relations toa firm is the effort it makes to network with journalists and other people to try to interestthem in saying or writing good things about the company and its products. 2.2.4. Place (or Distribution)Place, or distribution, encompasses all the activities that move a firm’s product from itsplace of origin to the consumer. A distribution channel is the route a product takes fromthe place it is made to the customer who is the end user. 12
  • The first choice a firm has to make regarding distribution is whether to sell itsproducts directly to consumers or through intermediaries (such as wholesalers andretailers). Within most industries, both choices are available, so the decision typicallydepends on how a firm believes its target market wants to buy its product. For example, itwould make sense for a recording company that is targeting the teen market to producedigital recordings and sell the recordings directly over the Web. 3. The Business PlanThe time to write a business plan is midway through the stage of the entrepreneurialprocess titled Developing Successful Business Ideas. It is a mistake to write a fullbusiness plan too early. The business plan must be substantive enough and have sufficientdetails about the merits of the new venture to convince the reader that the new business isexciting and should receive support. Much of this detail is accumulated in the feasibilityanalysis stage of investigating the merits of a potential new venture. Entrepreneurs should understand what a business plan is and what it isnt. It isnt 13
  • a contract, an agreement, or a budget. Instead, it is a narrative description of a newbusiness. Steve Jurvetson, the founder of Hotmail and now a prominent venture capitalist,captures this sentiment: The business plan is not a contract in the way a budget is. Its astory. Its a story about an opportunity, about the migration path, and how (a business) isgoing to create and capture value. 3.1. Why a Business Plan is ImportantA business plan is important for two major reasons. First, a business plan is an internaldocument that helps a new venture flesh out its business model and solidifies its goals. Itshould convince the reader that the business idea has a bright future. When preparedcarefully, the business plan acts as an important road for the ventures initial managementteam and employees. The second reason a business is important is because it is a selling document fora company. It provides a mechanism for a young company to present itself to potentialinvestors, suppliers, business partners, and key job candidates by showing how all thepieces of a new venture fit together to create an organisation capable of meeting its goalsand objectives.3.2. Business Plan Outline1. Execute Summary B. The Description of the BusinessA. The Opportunity - How the proposed business solves the - Problem to solve or need to be filled problem or fills the need 14
  • B. Board of DirectorsC. Competitive Advantage - Number of directors - Description of the business model - Composition of the boardD. The Target Market C. Board of Advisers - Number of advisersE. The Management Team - Composition of the advisory board - How the advisory board will be usedF. Brief Summary of the Financial Projections - The amount of capital needed and what the D. Key Professional Service Providerscapital will be used for, if the plan is going to a - Law firmpotential investor - Accounting firm - Business consultantsG. Description of What the Business Needs 4. Company structure Intellectual PropertyH. Exit Strategy for Investors ( if the plan is and Ownershipgoing to investors) A. Organisational Structure2. The Business - Organisational chart - Description of organisationalA. The Opportunities structure -Problem to solve or need to be filled B. Legal structureB. The Description of the Business - Legal form of organisation - How the proposed business solves the - Ownership structure of the problem or fills the need business - Brief company history or background - Company mission and objectives C. Intellectual Property - Patents, trademarks, and copyrightsC. Competitive Advantage applied for or approved. - Description of the business model - How the business will create a 5. Industry Analysis sustainable competitive advantage A. Industry DescriptionD. Current Status and Requirements - Industry trends - Description of where the business stands - Industry size today - Industry attractiveness - Description of what the business needs (growing, mature, or in to move forward decline) - Profit potential Table 3.3. Management TeamA. Management Team - Management experience - Management ability - Technical expertise 15
  • 3.3. What Makes a Good Plan?What factors are involved in creating a good business plan? Is it the length of the plan?The information it covers? How well it is written, or the brilliance of its strategy. No. The following illustration shows a business plan as part of a process. You can thinkabout the good or bad of a plan as the plan itself, measuring its value by its contents.There are some qualities in a plan that make it more likely to create results, and these areimportant. However, it is even better to see the plan as part of the whole process ofresults, because even a great plan is wasted if nobody follows it. Scheme 1.Successful implementation starts with a good plan. There are elements that will make aplan more likely to be successfully implemented. Some of the clues to implementationinclude: 1. Is the plan simple? Is it easy to understand and to act on? Does it communicate its contents easily and practically? 2. Is the plan specific? Are its objectives concrete and measurable? Does it include 16
  • specific actions and activities, each with specific date of completion, specific persons responsible and specific budgets?3. Is the plan realistic? Are the sales goals, expense budgets, and milestone dates realistic? Nothing stifles implementation like unrealistic goals.4. Is the plan complete? Does it include all the necessary elements? Requirements of a business plan vary, depending on the context. There is no guarantee, however, that the plan will work if it doesn’t cover the main bases. 17
  • 4. Establishing a Strong Ethical Culture for a Firm The single most important thing the founders of an entrepreneurial venture can do isestablish a strong ethical culture for their firms. 4.1. Establish a Code of ConductA code of conduct (or code of ethics) is a formal statement of an organisations values oncertain ethical and social issues. The advantage of having a code of conduct is that itprovides specific guidance of managers and employees regarding what is expected ofthem in terms of ethical behaviour. Consider what Google has done in this area. Thecompanys informal corporate motto is Dont be evil, but it also has a formal code ofconduct, which explicitly states what is and isnt permissible in the organisation. 4.2. Avoiding Legal DisputesMost legal disputes are the result of misunderstandings, sloppiness, or a simple lack ofknowledge of the law. Getting bogged down in legal disputes is something that anentrepreneur should work hard to avoid. It is important early in the life of a new businessto establish practises and procedures to help avoid legal disputes. Legal disputes, 18
  • particularly if they are coupled with management mistakes, can be extremely damagingto a new firm.There are several steps entrepreneurs can take to avoid legal disputes and complications,as discussed below. 4.2.1. Meet All Contractual ObligationsIt is important to meet all contractual obligations on time. This includes paying vendors,contractors, and employees as agreed and delivering goods or services as promised. If anobligation cannot be met on time, the problem should be communicated to the affectedparties as soon as possible. It is irritating to a vendor, for example, not only not to getpaid on time but also to have no explanation for the delay. 4.2.2. Avoid UndercapitalizationIf a new business is starved for money, it is much more likely to experience financialproblems that will lead to litigation. A new business should raise the money it needs toeffectively conduct business or should stem its growth to conserve cash. Manyentrepreneurs face a dilemma regarding this issue. It is not the goal of most entrepreneursto retain as much of the equity in their firms as possible, but equity must often be sharedwith investors to obtain sufficient investment capital to support the firms growth. 4.2.3. Get Everything in WritingMany business disputes arise because of the lack o a written agreement or becausepoorly prepared written agreements do not anticipate potential areas of dispute. Althoughit is tempting to try to show business partners or employees that they are trusted bydownplaying the need for a written agreement, this approach is usually a mistake.Disputes are much easier to resolve if the rights and obligations of the parties involvedare in writing. For example, what if a new business agreed to pay a Web design firm 19
  • $5,000 to design its Web site? The new business should know what its getting for itsmoney, and the Web design firm should know when the project is due and when it willreceive payment for its services. In this case, a dispute could easily arise if the partiessimply shook hands on the deal and the Web design firm promised to have a good-looking Web site done as soon as possible. The two parties could easily later disagreeover the quality and functionality of the finished Web site and the projects completiondate. 4.3. Set StandardsOrganisations should also set standards that govern employees behaviour beyond whatcan be expressed via a code of conduct. For example, four of the most common ethicalproblem areas that occur in an organisation are human resource ethical problems,conflicts of interest, customer confidence, and inappropriate use of corporate resources.Policies and procedures should be established to deal with these issues. In addition, firmsare increasingly partnering with others to achieve their objectives. Because of this,entrepreneurial ventures should be vigilant when selecting their alliance partners. A firmfalls short in terms of establishing high ethical standards if it is willing to partner withfirms that behave in a contrary manner. 20
  • 5. MarketingThere are many definitions of marketing but one of the simplest suggests that:"Marketing is getting the right product or service in the right quantity, to the right place,at the right time and making a profit in the process". Marketing is about identifying and understanding your customer and giving themwhat they want. It is not just about advertising and promoting your business. Effective 21
  • marketing is a result of examining every aspect of your business and how it affects theconsumers end experience. It covers everything you will need to do in order to deliveryour products and services to the consumer including research, planning, pricing,packaging, promotion, selling and distribution. 5.1. Five Steps to Create a Marketing PlanHow business owners can put together a detailed marketing guide for business growth.While your business plan generally outlines your entire business, a standalone marketingplan focuses specifically, and in more detail, on just that one function. When businessowners want to dive deeper into their marketing strategy they will likely put together adetailed plan that outlines their marketing goals –as well as the steps needed toaccomplish them. The standard components of an effective marketing plan can vary depending onwho you ask. Here is my recommended five-step process for developing a marketing planthat will help you achieve your goals for business growth.5.1.1. Step One: Look inward.Think of your company as if it were a person with its own unique personality andidentity. With that in mind, create separate lists that identify your businesss strengths,weaknesses and goals. Put everything down and create big lists. Dont edit or rejectanything. Then, find priorities among the bullet points. If you have done this right, you willhave more than you can use, and some more important than others. Remove some of theless important bullets off the list and move the ones that are important to the top. This sometimes requires input from your managers as well. For example, yourmanagement team thinks being conservative on spending is a weakness but you do not. 22
  • That might be something to drop off the list.5.1.2. Step Two: Look outward.The next list you will need to make outlines your businesss opportunities and threats.Think of both as external to your business -- factors that you cannot control but can try topredict. Opportunities can include new markets, new products and trends that favour yourbusiness. Threats include competition and advances in technology that put you at adisadvantage. Also make a list of invented people or organizations who serve as ideal buyers oryour ideal target market. You can consider each one a persona, such as a grandmotherdiscovering email or a college student getting his or her first credit card. These people areiconic and ideal, and stand for the best possible buyer. Put yourself in the place of each of these ideal buyers and then think about whatmedia he or she uses and what message would communicate you are offering mosteffectively. Keep your identity in the back of your mind as you flesh out your targetmarkets. Scheme 2 23
  • 5.1.3. Step Three: Focus on Strategy.Now it is time to pull your lists together. Look for the intersection of your unique identityand your target market. In terms of your business offerings, what could you drop off thelist because it is not strategic? Then think about dropping those who arent in your targetmarket. For example, a restaurant business focused on healthy, organic and fine diningwould probably cater to people more in tune with green trends and with higher-than-average disposable income. So, it might rule out people who prefer eating fast-food likehamburgers and pizza, and who look for bargains. The result of step three is strategy: Narrow your focus to whats most in alignmentwith your identity and most attractive to your target market.5.1.4. Step Four: Set Measurable Steps.Get down to the details that are concrete and measurable. Your marketing strategy shouldbecome a plan that includes monthly review, tracking and measurement, sales forecasts,expense budgets and non-monetary metrics for tracking progress. These can includeleads, presentations, phone calls, links, blog posts, page views, conversion rates,proposals and trips, among others. Match important tasks to people on your team and hold them accountable for theirsuccesses and failures.5.1.5. Step Five: Review Often and Revise.Just as with your business plan, your marketing plan should continue to evolve alongwith your business. Your assumptions will change, so adapt to the changing businesslandscape. Some parts of the plan also will work better than others, so review and reviseto accommodate what you learn as you go. 24
  • 5.2. E-MarketingElectronic marketing is a form of product promotion and customer relations conductedwith the use of electronic media. With the development of the telegraph, a new era inmarketing was created. Marketers have been quick to jump on subsequent technologicaldevelopments from radio to the Internet. Companies may market exclusively viaelectronic media or use a mixture of marketing media in order to reach a broad targetaudience. Marketing has a number of goals, including familiarizing people with companiesand products, encouraging consumers to adopt specific products, and promoting apositive public opinion of a company, product, or service. Electronic marketing is highlyflexible and allows companies to create targeted campaigns with broad reach. This formof marketing can also be very cost effective, making it possible for companies to reachlots of consumers at a fraction of the cost for other types of advertising. In addition to media like television, radio, and the Internet, electronic marketerscan use media such as phones for conveying advertisements. Talking ads mounted on busstations and other public installations are another example. Electronic kiosks in locationslike malls can be used for marketing purposes. Marketers can create video brochures,insert ads in front of feature films, and find a number of other ways to reach an audiencevia electronic means. Internet marketing in particular is rich ground for marketers. This form ofelectronic marketing can be generic, as in the case of banner ads placed on websites. Itcan also be remarkably specific, tailored to Internet use habits with the goal of reachingout to specific consumers. Marketers can serve different kinds of ads, customize emailmarketing campaigns, and use other techniques to reach potential consumers on theInternet. Some advertising firms specialize in electronic marketing services. They can helptheir customers devise effective campaigns and may also be involved in the 25
  • implementation of marketing campaigns. These firms keep up with the latest trends in marketing so that they can stay ahead of the curve with advertisements that will appeal and attract. Companies must use electronic marketing with care. Some consumers may find such marketing intrusive, forcing companies to find creative ways to advertise that will pique interest instead of irritating. It is also necessary to think about how advertising fits in with a company image and the ideals that a company wants to project. A company that prides itself on discretion, for example, would probably not want to deliver an intrusive email marketing campaign based on browsing habits. References Barringer, Bruce R.2008) Entrepreneurship: successfully launching new ventures. Duane Ireland. Imprint Upper Saddle River, NJ: Pearson/Prentice Hall. http://www.wisegeek.com/what-is-electronic-marketing.htm http://articles.bplans.com/writing-a-business-plan/what-makes-a-good-plan/37 http://www.entrepreneur.com/article/220148 http://www.smallbusiness.wa.gov.au/marketing/#what This project has been funded with support from the European Commission. This publication [communication] reflects the views only of the author, and the Commissioncannot be held responsible for any use which may be made of the information contained therein. 26