Lining up for sales and marketing strategy

1. STRATEGIC ENTREPRENEURSHIP
TOPIC 9
DR ANIS AMIRA AB RAHMAN
TAHIRAH BINTI ABDULLAH
FACULTY OF ENTREPRENEURSHIP AND BUSINESS
UNIVERSITI MALAYSIA KELANTAN
anisamira@umk.edu.my
Dr Anis Amira Ab Rahman 14

2. LINING UP FOR SALES AND
MARKETING STRATEGY
Dr Anis Amira Ab Rahman 14

3. Sales Strategies
 A sales strategy sets out in detail on how entrepreneurs
get their product or service in front of people who need
it.
 It can be based on business and marketing plans.
 The questions on sales strategies: How to deliver
objectives set out in marketing plan?, how to segments
your target market?, and how to fund your marketing
activities?
 Must allocates sales resources efficiently so the selling
costs will drive down and revenues up
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4. Sales Strategies
 Assess performance environment
 Evaluate organizational design
 Conduct competitive analysis
 Develop buyer personas (i.e.: understand who is your
customer, how they buy)
 Develop roadmap (i.e.: Change management plan,
sequencing of improvement initiatives)
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5. Best practices in Sales Strategy
 Ensure active and visible CEO/Business Unit Leader
participation
 Plan and execute robust communications
 Link to Corporate strategy
 Continually refresh strategy as need
http://www.slideshare.net
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6. What is Marketing?
 Thinking about business in terms of customer needs
and satisfaction.
“You may have a very good product or service but unless
people know about it”
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7. Marketing Research for the New Venture
Step one -
Defining the
purpose or
objectives
Step two -
Gathering data
from secondary
sources
Step three -
Gathering
information from
primary sources
Step four -
Analyzing and
interpreting the
results
Source : Hisrich, R. D. Peters, 2009
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8. Sales and Marketing Strategy
Source : Hisrich, R. D. Peters, 2009
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9. Marketing Strategies
Price
(Customer cost)
Place
(Convenience)
Product
(Customer/consumer)
Promotion
(communication)
Source: Goi (2009)
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10. Product
 Product differentiation is concerned with the bending
of demand to the will of supply.
 It is an attempt to shift or to change the slope of the
demand curve for the market offering of an individual
supplier.
 Price and product components to be the most
important (Kellerman, Gordon and Hekmat, 1995)
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11. Product
 Variety
 Quality
 Design
 Features
 Brand name
 Service
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12. Place
 Represents the location where a product can be purchased.
 Often referred as the distribution channel.
 The ease to buy a product, find a product, find information
about a product.
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13. Place
 Reasons for diversify in specific markets (Smith, 1995):
i) Variations in the production equipment and methods or
processes used by different manufacturers of products
designed for the same or similar uses;
ii) Specialized or superior resources enjoyed by favourably
situated manufacturers;
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14. Place
 Reasons for diversify in specific markets (Smith, 1995):
i) Variations in the production equipment and methods or
processes used by different manufacturers of products
designed for the same or similar uses;
ii) Specialized or superior resources enjoyed by favourably
situated manufacturers;
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15. Place
iii) Unequal progress among competitors in design,
development, and improvement of products;
iv) The inability of manufacturers in some industries to
eliminate product variations even through the application of
quality control techniques;
v) Variations in producers' estimates of the nature of market
demand with reference to such matters as price sensitivity,
color, material, or package size.
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16. Promotion
 The activities involve to communicate and persuade
the target market to buy the company’s products or
services.
 Advertising, public relations, personal selling, viral
advertising and any form of communication between
the firm and the consumer.
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17. Promotion
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18. Price
 The amount a customers pays for the product
 Determined by market share, competition, material
costs and customer’s perceived value.
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19. Strategies to commercialize at start
up stage
 Rapid skimming: new product to be launched at a
high price and high promotion level
 Slow skimming: new product to be launched at a high
price but with low promotion level
 Rapid penetration: new product to be launched at a
low price and high promotion
 Slow penetration: new product to be launched at a
low price and low promotion
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20. Porters 5 Forces
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21.  Competitive rivalry is a good starting point to when
analysing a particular industry. If entry to an industry
is easy then competitive rivalry is likely to be high. If it
is easy for customers to move to substitute products
for example from coke to water then again rivalry will
be high. Generally competitive rivalry will be high if:
 • There is little differentiation between the products
sold by competitors.
• Competitors are approximately the same size of
each other.
• If competitors have similar strategies.
• It is costly to leave the industry (exit barriers)
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Competitive Rivalry
Sources:http://www.learnmarketing.net/porters.htm

22.  Suppliers are also essential for the success of an
organisation as they provide businesses with the
resources they need to produce their products and
services. Supplier power can come from:
 • If there is one or just a few suppliers that can
provide the resources a business needs.
• If it is expensive to move from one supplier to
another (known also as switching cost)
• If there is no other substitute for the product
provided by the supplier.
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Power of Suppliers
Sources:http://www.learnmarketing.net/porters.htm

23.  Buyers or customers can exert influence and control
over an industry in certain circumstances. This
happens when:
 • There is little differentiation over the product and
substitutes can be found easily by customers/buyers.
• Buyers/customers are sensitive to price
fluctuations.
• Switching to another product is not costly for
customers/buyers.
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Power of Buyers
Sources:http://www.learnmarketing.net/porters.htm

24.  Are there alternative products that customers can
purchase instead of yours? alternative products that
offer the same benefit as your products? The threat
from substitute (competitor) products is high when:
 • The price of the substitute (competitor) product
falls.
• It is easy for consumers to switch from one
substitute product to another.
• Buyers are willing to substitute products from
different competitors.
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Threat of Substitutes
Sources:http://www.learnmarketing.net/porters.htm

25.  The threat of new organisations entering the industry
is high when it is easy for an organisation to enter the
industry i.e. entry barriers are low. When a new
business is deciding whether to enter an industry it
will look at:
 How loyal customers are to existing products,
 How quickly it can achieve economy of scales
 Would it have access to suppliers and
 Would government legislation prevent them or
encourage them to enter the industry.
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Threat of New Entrant
Sources:http://www.learnmarketing.net/porters.htm

26. References
• Aashish Mehra, G. S. (2011). Managing rapid growth : How mid caps can leap into the billion
dollar club .
• Dollinger, M, J. (2008). “ENTREPRENEURSHIP: Strategies and Resources Fourth Edition”,
Kelley School of Business, Indiana University. MARSH publications, pp. 33-40.
• Drucker, P. F., & Drucker, P. F. (2007). Innovation and entrepreneurship: Practice and
principles. Routledge.
• Hisrich, R. D., Peters, M. P., & Shepherd, D. A. (2009). Entrepreneurship. New York:
McGraw-Hill Higher Education.
• Lieberman, M. B., & Montgomery, D. B. (1988). First‐mover advantages. Strategic
management journal, 9(S1), 41-58.
• R. Barringer, Duane,(2009).Successfully Launching New Ventures: McGraw-Hill Higher
Education.
• Zimmerer, T., Scarborough, N. M., & Wilson, D. (2002). Essentials of entrepreneurship and
small business management (Vol. 2). Upper Saddle River, NJ: Prentice Hall.
• http://www.learnmarketing.net/porters.htm
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