Entrepreneurial Marketing

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This discusses theoritcal and practical aspects of marketing for an entrepreneur

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Entrepreneurial Marketing

  1. 1. ENTREPRENEURIAL MARKETING Rajeev Roy
  2. 2. Relationship marketing <ul><li>Identifying, establishing, maintaining and enhancing relationships with customers and other stakeholders, for profit </li></ul><ul><li>Achieving objectives of both parties </li></ul><ul><li>Driver – sophisticated customers want individualised attention </li></ul>
  3. 3. Expeditionary marketing <ul><li>Creating markets before competitors </li></ul><ul><li>Continuous search for innovative product concepts </li></ul><ul><li>Leading rather than following consumers </li></ul><ul><li>Tolerance of failure </li></ul>
  4. 4. One-to-one marketing <ul><li>Individualised marketing mix </li></ul><ul><li>Marketing based on knowing the customer through collaborative interactions </li></ul>
  5. 5. Real-time marketing <ul><li>Technology-facilitated, real-time dialogues with interactive services </li></ul>
  6. 6. Disruptive marketing <ul><li>Shattering culturally embedded biases and conventions </li></ul><ul><li>Forging a radical new vision of a product </li></ul>
  7. 7. Viral marketing <ul><li>Self-replicating promotion </li></ul><ul><li>Multiplies as like-minded people market to each other </li></ul><ul><li>One has to be careful of mutation </li></ul>
  8. 8. Digital marketing <ul><li>IT-enabled interactivity </li></ul><ul><li>New forms of interaction lead to deeper relationships </li></ul><ul><li>Greater personalisation </li></ul>
  9. 9. Permission marketing <ul><li>an approach to selling goods and services where a prospect explicitly agrees to receive marketing information </li></ul>
  10. 10. Radical marketing <ul><li>With limited financial resources </li></ul><ul><li>Maximum exploitation of limited budget </li></ul><ul><li>Redefine competitive rules </li></ul><ul><li>Focus on growth and expansion rather than short term gains </li></ul>
  11. 11. Buzz marketing <ul><li>Consumer-generated information dispersed through individual networks by creating excitement </li></ul><ul><li>Word of mouth </li></ul>
  12. 12. Customer-centric marketing <ul><li>Marketing seeks to fulfill needs of individual consumer </li></ul><ul><li>Needs of consumer is the starting point of planning process </li></ul><ul><li>Driven by increased market diversity </li></ul>
  13. 13. Convergence marketing <ul><li>Fusion of technologies or combination of channels </li></ul>
  14. 14. Dimensions of entrepreneurial marketing <ul><li>Proactive orientation </li></ul><ul><li>Opportunity-driven </li></ul><ul><li>Customer focus </li></ul><ul><li>Innovation focus </li></ul><ul><li>Risk / vulnerability management </li></ul><ul><li>Resource leveraging </li></ul>
  15. 15. Leveraging resources <ul><li>Stretching resources further than others have done in the past </li></ul><ul><li>Getting uses others have been unable to realise </li></ul><ul><li>Using other’s resources for one’s own purposes </li></ul><ul><li>Complementing one resource with another to create greater value </li></ul><ul><li>Using some resources to obtain others </li></ul>
  16. 16. Brand building <ul><li>Let your brand strategy drive your business </li></ul><ul><li>do not outsource branding </li></ul><ul><ul><li>Creates distance between brand and top management </li></ul></ul><ul><ul><li>Agencies will focus on media, not brand </li></ul></ul><ul><li>Clarify your brand identity </li></ul>
  17. 17. Brand building <ul><li>Identity-building brand exposure </li></ul><ul><li>Involve the customer in the brand building experience </li></ul><ul><li>Borrow practices from across industries </li></ul><ul><li>Pilot test novel ideas </li></ul><ul><li>Have a ‘brand manager’ </li></ul><ul><li>Monitor results </li></ul>
  18. 18. Pricing <ul><li>Assess what value customers place on the product </li></ul><ul><li>Look for variations in the way customers value the product </li></ul><ul><ul><li>Heavy users </li></ul></ul><ul><ul><li>Criticality of use </li></ul></ul><ul><ul><li>Different uses </li></ul></ul>
  19. 19. Price sensitivity <ul><li>Less if 3 rd party bears cost </li></ul><ul><li>Cost of item is significant to total expenditure </li></ul><ul><li>If buyer is not end user (B2B) </li></ul><ul><li>Easy to compare products in category </li></ul><ul><li>Easy access to competing products </li></ul><ul><li>Low cost of switching </li></ul><ul><li>Long term relationship is not important </li></ul>
  20. 20. Pricing <ul><li>Identify a pricing structure </li></ul><ul><li>Consider competitor’s reactions </li></ul><ul><li>Monitor realised prices </li></ul><ul><li>Assess customer’s emotional response to prices </li></ul><ul><li>Analyse if returns are worth it </li></ul>
  21. 21. Skimming <ul><li>a policy of relatively high prices </li></ul><ul><li>Demand will be comparatively inelastic with respect to prices </li></ul><ul><li>consumers may be ignorant of real value </li></ul><ul><li>Segments the market </li></ul><ul><li>systematic price reduction to tap other segments </li></ul>
  22. 22. Skimming <ul><li>Safer – it may be easier to reduce prices than to raise them </li></ul><ul><li>High prices can finance high initial costs </li></ul><ul><li>Can absorb future rise in component costs </li></ul>
  23. 23. Penetration pricing <ul><li>High price elasticity of demand </li></ul><ul><li>High fixed costs – low variable costs </li></ul><ul><li>Strong threat of potential competition </li></ul><ul><li>Cost compression curve is steep </li></ul><ul><li>Provides greater visibility to company early </li></ul>
  24. 24. Pricing precepts <ul><li>Pricing of a product should work towards maximising present worth </li></ul><ul><li>The unit for making decisions and for measuring return is the entire economic life of the product </li></ul><ul><li>Pricing begins before production commences and repricing continues for the entire life cycle </li></ul>
  25. 25. Pricing precepts <ul><li>Producers costs indicate a floor price </li></ul><ul><li>Customers cost indicates price sensitivity </li></ul><ul><li>Competitor’s costs indicate their strength </li></ul><ul><li>Different pricing strategies can be used in different segments </li></ul>
  26. 26. Channel strategy <ul><li>Go directly to the consumer: bypass all </li></ul><ul><li>Go directly to the retailer: bypass distributor </li></ul><ul><li>Use sales agents </li></ul><ul><li>Set up your own intermediaries </li></ul><ul><li>Participate in establisher channel structure </li></ul>
  27. 27. Promotions: Objectives <ul><li>SALES </li></ul><ul><li>Increased distribution outlets </li></ul><ul><li>Increased shelf space </li></ul><ul><li>Increased in-store presence </li></ul><ul><li>Expanded selling season </li></ul><ul><li>Increased purchase frequency </li></ul><ul><li>Increased usage occasions </li></ul><ul><li>Increased transaction size </li></ul><ul><li>Trial </li></ul>
  28. 28. Planning a promo campaign <ul><li>Establish objectives </li></ul><ul><li>Plan on strategies and tactics </li></ul><ul><li>Establish criteria for success </li></ul><ul><li>Create back-up plan </li></ul><ul><li>Review and test </li></ul><ul><li>Put controls in place </li></ul><ul><li>Roll out </li></ul>
  29. 29. Contests <ul><li>Call attention to a product when there is nothing new </li></ul><ul><li>The product should tie in with the contest </li></ul><ul><li>Can be used to build data on customers </li></ul><ul><li>Instant win enjoys greater participation </li></ul><ul><li>Lots of prizes vs one big prize </li></ul>
  30. 30. Coupons <ul><li>Coupons entitle bearers to an immediate discount when presented to a participating business </li></ul><ul><li>Greatest influencer among promos </li></ul><ul><li>P&G vs the people </li></ul><ul><li>Manufacturer / retailer or both </li></ul><ul><li>On product / off site </li></ul>
  31. 31. Discounts <ul><li>Can result in: </li></ul><ul><ul><li>Increased consumption </li></ul></ul><ul><ul><li>New type of consumption eg gifting </li></ul></ul><ul><ul><li>Stockpiling </li></ul></ul><ul><li>EDLP vs High Low </li></ul><ul><li>Builds traffic </li></ul><ul><li>Price reductions are simplistic </li></ul>
  32. 32. Types of discounts <ul><li>Cash discounts </li></ul><ul><li>Trade-ins </li></ul><ul><li>Membership discounts </li></ul><ul><li>First few customers </li></ul><ul><li>Twofers / BOGO etc </li></ul><ul><li>Future purchase </li></ul><ul><li>Bundling </li></ul><ul><li>Added value (0% finance) </li></ul>
  33. 33. Continuity <ul><li>Basis: it costs more to get a new customer than to retain an old one </li></ul><ul><li>Collect and get </li></ul><ul><li>Loyalty </li></ul><ul><li>Collector series </li></ul><ul><li>Close-ended vs open-ended </li></ul>
  34. 34. POP <ul><li>Also known as POS </li></ul><ul><li>It is a display tactic </li></ul><ul><li>Display must convey message in 3 secs </li></ul><ul><li>More the better </li></ul><ul><li>Give benefit to retailer </li></ul><ul><li>Announce some other promotion </li></ul><ul><li>Self-shipper (easy set-up) </li></ul>
  35. 35. Sampling <ul><li>In store </li></ul><ul><li>On pack / in pack / near pack </li></ul><ul><li>Coupon </li></ul><ul><li>Delivered </li></ul><ul><li>Direct mail </li></ul><ul><li>Media delivery (incl. downloads) </li></ul><ul><li>Demos </li></ul><ul><li>Trial offers (short-term) </li></ul><ul><li>Venues (clubs, community halls) </li></ul><ul><li>Events </li></ul>
  36. 36. Sampling <ul><li>Kits </li></ul><ul><li>Booths </li></ul><ul><li>Literature </li></ul><ul><li>Hiring &Training </li></ul><ul><li>Follow up </li></ul><ul><li>measurement </li></ul>
  37. 37. Event <ul><li>Make / rent an event </li></ul><ul><li>Product placement </li></ul><ul><li>Product affiliation </li></ul><ul><li>Licensed premium offer (spidey toys) </li></ul><ul><li>Event tickets </li></ul><ul><li>Event extension (Merc-sit in F1 car) </li></ul>
  38. 38. What can you do at an event? <ul><li>Sponsorships </li></ul><ul><li>Signage </li></ul><ul><li>Sampling booths </li></ul><ul><li>Celebrity appearances </li></ul><ul><li>Hospitality tents </li></ul><ul><li>Premiums, souvenirs </li></ul><ul><li>Exhibit items </li></ul>
  39. 39. Free gifts <ul><li>Along with sale </li></ul><ul><li>The container itself </li></ul><ul><li>Charge cost </li></ul><ul><li>Free with commitment (subscription) </li></ul><ul><li>Collectibles </li></ul><ul><li>Collect and get </li></ul>
  40. 40. Tie-ins <ul><li>Product compatibility –pizza and cola </li></ul><ul><li>Market match </li></ul><ul><li>Distribution match </li></ul><ul><li>Seasonality </li></ul><ul><li>Regionality </li></ul><ul><li>Cross-merchandising </li></ul>
  41. 41. Trade promotions <ul><li>Get new distribution </li></ul><ul><li>Optimise product mix </li></ul><ul><li>Exploit seasonality </li></ul><ul><li>Get shelf space </li></ul><ul><li>Secure services (co-op) </li></ul><ul><li>Performance </li></ul>
  42. 42. VIRAL MARKETING <ul><li>Buzz, word-of-mouth, network marketing </li></ul><ul><li>Hotmail – “get your private, free email at www.Hotmail.com ” </li></ul><ul><li>Give away valuable products or services </li></ul><ul><li>Provides effortless transfer to others </li></ul><ul><li>Scalable </li></ul><ul><li>Utilize existing communication networks </li></ul><ul><li>Take advantage of others’ resources </li></ul>
  43. 43. Myths <ul><li>Only outrageous or edgy products are buzz-worthy </li></ul><ul><ul><li>Unique in some respect </li></ul></ul><ul><ul><li>Highly visible </li></ul></ul><ul><li>Buzz just happens </li></ul><ul><ul><li>identify opinion leaders </li></ul></ul><ul><ul><li>Ration supply </li></ul></ul><ul><ul><li>Celebrities </li></ul></ul><ul><ul><li>Use lists (IIPM) </li></ul></ul><ul><ul><li>Build community </li></ul></ul>
  44. 44. Myths <ul><li>The best buzz-starters are your best customers </li></ul><ul><li>To profit from buzz, act first and fast (coloured nailpolish) </li></ul><ul><li>Media and advertising are needed to create buzz </li></ul>
  45. 45. Drivers of buzz <ul><li>word-of-mouth is 10 times more effective than other media </li></ul><ul><li>Ad clutter is rising </li></ul><ul><li>Traditional forms of media are rising in cost </li></ul><ul><li>Trust in ads is coming down </li></ul><ul><li>Technology is acceleration buzz </li></ul>
  46. 46. 6 buttons of buzz <ul><li>Give people a story to tell </li></ul><ul><li>Taboo </li></ul><ul><li>Unusual </li></ul><ul><li>Outrageous </li></ul><ul><li>Hilarious </li></ul><ul><li>Remarkable </li></ul><ul><li>secrets </li></ul>

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