Introduction to Entrepreneurship and entrepreneurial marketing

1. Introduction to
Entrepreneurship and
Entrepreneurial
Marketing
By
Maxwell Ranasinghe
MA(Interdisciplinary) York, BSc.(Business Admin) USJP, CPM( New Haven)

2. Who is an entrepreneur?
 Entrepreneur is the person responsible for setting up a business or
an enterprise.
 He takes the initiative, is innovative, and looks for high
achievements.
 He is a change agent who puts up new projects that create wealth,
open up employment opportunities and leads to the growth of the
sector.
 One who creates a new business in the face of risk and uncertainty
for the purpose of achieving profit and growth by identifying
opportunities and assembling the necessary resources to capitalize
on them.
Entrepreneurship

3. Definitions
 The entrepreneur is an individual who introduces something new in the economy-
a new production method, a new product, a new source of raw material, a new
market etc.
- Joseph Schumpeter.
 An entrepreneur is the one who always searches for change, responds to it and
exploits it as an opportunity. Innovation is a specific tool by which he exploits
change as an opportunity, for a business or service.
- Peter Drucker
 A true entrepreneur is the one who is endowed with more than average capacity in
the task of organising and coordinating the various other factors of production.
– Francis Walker
Entrepreneurship

4. What is marketing
Chartered Institute of Marketing – UK
“ Marketing is a management process, which is responsible in
identifying, anticipating and satisfying customer needs
and wants at a profit”
American Marketing Association
Organizational function and a set of processes for creating,
communicating and delivering value to customers and
managing customer relationships in ways that benefit the
organization and its stakeholders

5. What are the core ingredients of
marketing?
 Customer is the center of all Marketing activities.
 Marketing focuses on the needs and wants of customers.
 Identifying favorable emerging market opportunities
 It is concerned about satisfying customers through supply of goods and
services
 Marketing involves analysis planning and control
 Marketing is concerned about staying ahead with competition and
making profits
 Marketing has a heavy emphasis on relationships
 Creating value to both the customer and organization
Who is having the responsibility of doing the above?

6. What is Entrepreneurial Marketing
 For many years, research in entrepreneurship has focused
on the firm.
 Most notably successful firms, as both scholars and
practitioners attempt to understand what makes firms
successful
 They pointed out that the customer orientation of a firm
is the major element for successful firms
 The process of marketing ( understanding and satisfying
needs) became dominant in this view point and the part
played by shaping the company by its founder/
entrepreneur was not given prominence

7.  Now, there is growing recognition taking into
consideration of the role played by the entrepreneur in
developing a business
 This interpretation considers entrepreneur as a dominant
player in the marketing process.
 Entrepreneurial Marketing (EM) stems from this
analysis/notion
 It recognizes that Entrepreneur (E)is the person who
explores and exploits opportunities, establish the
organization, directs operational strategies as well as take
strategic decisions that effect the dynamics of the
market.

8.  EM is considered as a major factor in creating competitive advantage
in the market place as the E is the main driver of the strategic
decisions and director of operations
The culture of entrepreneurial marketing firms is largely influenced by
the attributes and values of the entrepreneur and driven by his/her
positive attitude toward risk and innovation that allows for more
flexibility as the firm explore and exploit attractive opportunities
Entrepreneurial individual breaks through using non-traditional means
and challenges the status quo
EM is more relevant to new small companies where the owner/founder is
directly involved in business

9.  EM as the “marketing carried out by entrepreneurs or
owner-managers of entrepreneurial ventures” using
tactics to attract new business
 They are quite different from traditional textbook-type
marketing otherwise known as administrative marketing
(AM).
 EM entrepreneurs tend to be innovation-oriented (that is
driven by ideas and intuition) rather than customer-
oriented (driven by assessments of market needs) and
tend to use informal networking rather than formalised
research and intelligence systems

10.  EM are market driving than market driven
 EM identifies the opportunity by not always following the
traditional process of identification, diagnosis, conception
and realization.
 EM experiment and adopt to changing environment
 EM generally do not follow the logical format of starting a
business such that they start with an identified market
need, conduct market research, raise the required capital
and resources and set some measurable goals.

11.  EM Entrepreneurs start out with an idea and set out to
create the market and/or artifacts using a set of means
available to them at a given point in time.
 The entrepreneur begins by taking their situation as
- who they are (their values, aspirations and personality);
-what they know (their strengths such as knowledge, past
experience and skills); and
-who they know (their network of contacts) then focusing
on the various outcomes they can create with these
means.

12.  Facebook- Zuckerberg started out with an idea, using his
knowledge as a means to create a social networking site,
without the benefit of market research or market testing.
 EM are pioneers or early followers. They always get the
advantage of been the first

13. Dimensions of E-Orientation(EO)
 The EO construct consists of five dimensions:
 innovativeness
 proactiveness
 risk-taking
 competitive aggressiveness
 autonomy
(Lumpkin and Dess, 1996; Dess and Lumpkin, 2005).
 These dimensions encompass the most acknowledged entrepreneurial
skills.

14. Innovativeness
 Innovativeness involves the firm’s attitude to
developing the innovative processes that often
lead to new products, new services and
technological discoveries

15. Proactiveness
 Proactiveness concerns the firm’s ability to anticipate market changes, in
particular customer trends; it therefore relates to a proactive orientation to
seize market opportunities
 (Using a metaphor, in a chess competition, proactive companies are able to
anticipate the moves of other players and see new winning strategies, rather
than limiting themselves to defending the king for the whole match
 Proactive companies are trend-setters rather than followers

16. Risk taking
 Risk-taking deals with the firm’s inclination to undertake
risky activities with uncertain implications , such as
exposure to debts and risky investments

17. Competitiveness
 Competitiveness concerns the firm’s attitude toward
dealing with competitors.
 It consists of continuously monitoring and countering
rivals’ strategies (even by imitating other firms)
 with the aim of achieving a competitive advantage and a
better performance

18. Autonomy
 Autonomy deals with the predisposition toward
suitable conditions for development and the
subsequent implementation of innovative ideas.
 An organizational culture that promotes new
initiatives without hindering individual creativity
could be considered autonomous

19. Market orientation
 For a small business, achieving market orientation means
keeping customers -- and their needs -- uppermost in mind
in all the decisions the business owner makes.
 Market orientation shapes, for example, the products and
services the company brings to market.
 The business owner identifies a market need and then
creates products and services to meet that need.
 The market orientation encompasses, leveraging
resources, customer intensity and value creation

20. Leveraging resources ( how to get the
maximum out of limited resources)
 Many entrepreneurs are short on cash. If lack of liquidity
is one of your problems, there are ways to leverage your
resources to promote your business and sell more product.
 If you take a creative approach to using the resources at
your disposal, you may be surprised how much you can
accomplish
 Eg. Crowd funding, guerilla marketing, ambush marketing,
social media, net working

21. Customer Intensity
.
 Many studies suggested successful
organizations are those that place a greater emphasis on
customer intensity
 Entrepreneurs need to be aware that their public image may
reflect consumers’ perceptions of their firm.
 The dimension of customer intensity builds on what is often
viewed as a central driving force of marketing in the
organization—
 A “customer-centric” orientation employing innovative
approaches to create, build, and sustain customer
relationships.

22. Value creation
 Customer value refers to customers' perceptions of what they receive, in
return for what they sacrifice
 Providing better products and services for the prices paid by customers
enhances the value creation
 Value creation, central in the definition of entrepreneurial activity, is also
integral to the marketing orientation of a firm
 Traditional marketing has placed more focus on the transaction and customer
relationship, the focal point of entrepreneurial marketing is innovative and is
oriented toward value creation

24. Challenges for EM
 Lack of market knowledge
 Lack of technical skills
 Lack of seed capital/resources
 Lack of business know how
 Lack of sufficient infrastructure
 Complacency
 Restrictive effects of customs and traditions
 Legal constraints
 Monopoly
 Restrictions due to patents