The document discusses entrepreneurial marketing, distinguishing it from traditional marketing by emphasizing a consumer-oriented philosophy and innovative approaches. It outlines essential components such as market segmentation, consumer behavior, and the significance of digital and social media in contemporary marketing tactics. The text also highlights the importance of understanding customer needs and the dynamic nature of markets in developing effective marketing plans for entrepreneurial ventures.

1. Internet marketing
• How do you get
‘marketed to’ on the
Internet?
• What methods do you
prefer?
• What do you hate?
?

3. Chapter 10
Marketing for entrepreneurial ventures

4. Objectives
1. To appreciate the context of entrepreneurial marketing as distinct to
traditional marketing
2. To examine the entrepreneurial marketing concept – philosophy and
consumer orientation
3. To establish the areas vital to a marketing plan
4. To establish the concept and need for customer segmentation
5. To identify the key elements of an effective market survey
6. To outline the processes and entrepreneurial tactics in marketing
research
7. To examine marketing on the internet and the emerging use of social
media and mobile marketing for entrepreneurial firms
8. To differentiate green marketing from traditional marketing practice
9. To discuss the key features of a pricing strategy and how
customisation influences the perception of price by the customer

5. But first
• Are there any companies that DON’T
market their products or services?
• Are there companies that use only the
Yellow Pages?
• Any companies that have turned off their
websites?
• Is there any reason to market your venture
when business is already good?
?

6. Marketing is essential
for entrepreneurs
• Marketing is as critical to new
businesses as it is for established
ones.
• Start-ups must be intimately in
touch with their customers and
with their needs.

7. What is a ‘market’
to an entrepreneur?
• A market is a group of potential customers
who have purchasing power and
unsatisfied needs.
• A new venture will survive only if a market
exists for its product or service.
• (And if it can meet the market’s need at a
profit)
Poster from US Works Progress
Administration, circa 1937

8. What is
entrepreneurial
marketing?
• Innovative, risk-oriented and
proactive.
• Achieve durable competitive
advantage
• Traditional marketing is ‘cost driven’;
entrepreneurial marketing is ‘revenue
driven’.
• Many new strategies, like co-creating
a product with the customer.

9. What is the difference between traditional
and entrepreneurial marketing?
Traditional marketing
• Concentrating on brand
recognition or market share
• ‘Cost driven’
• Marketing as objective,
dispassionate science
• Efficient use of existing
resources
• Four P’s: Product, Price,
Promotion, Place
Entrepreneurial marketing
• Concentrating on
leveraging deep customer
knowledge into sales
• ‘Revenue driven’
• Marketing passion, zeal,
persistence and creativity
• Creative use of the
resources of others
• Four C’s: co-creation,
communities, customisation
and choice.

10. Traditional marketing Entrepreneurial marketing
Basic premise Facilitation of transactions and market
control
Sustainable competitive advantage through value-creating
innovation
Orientation Marketing as objective, dispassionate
science
Central role of passion, zeal, persistence and creativity in
marketing
Context Establishes relatively stable markets Envisioned, emerging and fragmented markets with high
levels of turbulence
Marketer’s
role
Coordinator of marketing mix; builder of
the brand
Entrepreneur is responsible for marketing. Everyone in the
firm is a marketer
Market
approach
Reactive and adaptive approach with
incremental innovation
Proactive approach, leading the customer with dynamic
innovation.
Customer
needs
Articulated, assured, expressed by
customers through survey research
Unarticulated, discovered, identified through lead users
Risk
perspective
Minimise risk Marketing as a vehicle for calculated risk taking
Value
perspective
Drive down costs and reduce the price
to the customer
Uses innovation, product, process and strategy to create
new value propositions for customers
Resource
mgmt
Efficient use of existing resources,
scarcity mentality.
Social networking and relationships with customers. Doing
more with less.
NPD Marketing supports R&D Marketing is the home of innovation; customer is co-
active producer
Customer’s
role
External source of intelligence and
feedback
Entrepreneur actively defines product, price, distribution
and communication approaches

11. Components of effective marketing
1 Marketing philosophy
2 Market segmentation
3 Consumer behavior
4 Marketing concept

12. Component: Marketing philosophy
• Which of the three marketing
philosophies should you choose?
– Any one can be successful, consumer-driven
philosophy is the most successful.
• Factors that influence your choice:
– Competitive pressure
– Entrepreneur’s background
– Short-term focus

13. Component: Marketing plan
• Your marketing philosophy is
reflected in your marketing plan.
• Elements of your marketing plan:
– current marketing research – who the
customers are, what they want, how they buy
– sales research – promoting and distributing
products according to marketing research
findings
– You need a marketing information system for
collecting, screening, analysing, information
on which to base plans, decisions and actions
– sales forecasting – coordinating personal
judgement with reliable market information
– evaluation – identifying and assessing
deviations from marketing plans.19

14. • In seven sentences!
1. Purpose of your marketing.
Make it quantifiable.
2. What are the characteristics
of the business that make it
uniquely positioned to offer
value to the public?
Component: Guerrilla marketing
3. Specifying exactly who will be exposed to the marketing
campaign.
4. What marketing weapons will you use?
5. What is the company’s market niche?
6. Establish the identity of your company.
7. What percentage of projected gross sales are you willing to
earmark as your marketing budget?
For complete details, see
Entrepreneurship in Practice, p. 335

15. • ‘The process of identifying a specific set of
characteristics that differentiate one group of
consumers from the rest’
• A total market is often made up of sub-
markets (called segments)
Component: Market segmentation

16. • A total market is often made up of sub-
markets (called segments)
• Example: Wine-related lifestyle
– ritual-oriented conspicuous wine enthusiasts
– purposeful inconspicuous premium wine drinkers
– fashion/image-oriented wine drinkers
– basic wine drinkers
– enjoyment-oriented social wine drinkers.
Component: Market segmentation

17. • Example: What segment of
Social Media Behavior do
you personally fit in?
– Are you a commenter or a climber?
• Can you give other examples
of market segmentation?
• What do you suppose this
artist at theconversationprism
sells?
?
Component: Marketing segmentation
theconversationprism

18. Component: Segmentation variables
• Demographics
– age group, gender, education level, ethnicity, income,
occupation, social class, marital status
• Geographics
– location (e.g. national, regional, urban/suburban/rural,
international), climate
• Current purchasing situation
– brands used, purchase frequency, current suppliers
• Purchase ready
– possess necessary equipment, property, knowledge and
skill sets
• Local environment
– cultural, political, legal
• Benefits sought
– price, overall value, specific feature, ease-of-use
• Product usage
– how used, situation when used
• Purchase conditions
– time of day/month/year when purchased, credit terms,
trade-in option
• Characteristics of individual buyer
– purchase experience, how purchase imade, influencers
on purchase decision
• Psychographics
– personality,
attitudes and
lifestyle combined
with demographics

19. Component: Consumer behaviour
• Defined by the types
and patterns of consumer
characteristics
• Especially personal and
psychological characteristics
• Characteristics are linked to buying trends

20. Where were you in the adoption lifecycle?
?

21. Consumer behavior in the family life cycle
Stage Priorities Major purchases
Fledgling – teens
and early 20s
Self, socialising,
education
Appearance products, clothing, cars, recreation,
hobbies, travel
Courting – 20s Self and other, pair
bonding, career
Furniture and furnishings, entertainment and
entertaining, savings
Nest building – 20s-
early 30s Babies and career Home, garden, do-it-yourself items, baby-care
products, insurance
Full nest – 30 to 50 Children and others,
career, mid-life crisis
Children’s food, clothing, education, transportation,
orthodontics, career and life counselling
Empty nest – 50 to
75
Self and others,
relaxation
Furniture and furnishings, entertainment, travel,
hobbies, luxury cars, boats, investments
Sole survivor – 70
to 90
Self, health,
loneliness
Healthcare services, diet, security and comfort
products, TV and books, long-distance telephone
services

22. Purpose & objectives
Secondary research
Primary research
Component: Marketing research

23. Component: Purpose of research
• Research purpose and objectives
– Where do potential customers go to purchase your
good/service?
– Why do they choose to go there?
– What is the size of the market? How much of it can you
capture?
– How does the business compare with competitors?
– What impact does the business’s promotion have on
customers?
– What types of products or services are desired by
potential customers?

24. • Information that has been compiled by
others.
• The entrepreneur should exhaust all the
available sources of secondary data.
• Several problems with using secondary
data.
– Data may be outdated and, therefore, less
useful.
– Units of measure may not fit the current
problem.
– Some sources of secondary data are less valid
than others.
Component: Secondary research

25. • Observational methods avoid
contact with respondents
• Survey methods contact respondents
in varying degrees
– Develop an information-gathering instrument
(questionnaire)
Component: Primary research
See TABLE 10.5 COMPARISON OF
MAJOR SURVEY RESEARCH TECHNIQUES

26. • These are the actual
GEM questions used
in eighty countries that
determine if you are
an entrepreneur?
Component: Primary research

27. Comparisonof
majorsurvey
techniques

28. • Experimentation – model your
marketing messages and try them out
• Consumer “research panels”
manipulate one variable, for example
taste, and attempt to hold other
variables constant and observe
changes in preference.
• Marketers can model marketing
messages accurately and efficiently –
and they can adjust their messages
accordingly.
Component: Primary research

29. 29
Component: Interpretation
• A lot of data has no meaning until it has
been examined, and possibly depicted
graphically
• Tables, charts and other graphic methods
are useful
• Descriptive statistics – mean, mode and
median are useful too

30. Typical marketing research questions – sales
• Sales
• 1 Do you know all you need to know about your competitors’ sales performance by type of product
and territory?
• 2 Do you know which accounts are profitable and how to recognise a potentially profitable one?
• 3 Is your sales power deployed where it can do the most good, maximising your investment in
selling costs?
• Distribution
• 1 If you are considering introducing a new product or line of products, do you know all you should
about distributors’ and dealers’ attitudes towards it?
• 2 Are your distributors’ and dealers’ salespeople saying the right things about your products or
services?
• 3 Has your distribution pattern changed along with the geographic shifts of your markets?

31. Typical marketing research questions – sales
• Markets
• Do you know about the differences in buying habits and tastes by territory and kind of product?
• Do you have as much information as you need on brand or manufacturer loyalty and repeat purchasing?
• Can you now plot, from period to period, your market share of sales by products?
• Advertising
• Is your advertising reaching the right people?
• Do you know how effective your advertising is in comparison to that of your competitors?
• Is your budget allocated appropriately for greater profit?
• Products
• Do you have a reliable quantitative method for testing market acceptability?
• Do you have a reliable method for testing the effect on sales of new or changed packaging?
• Do you know whether adding higher or lower quality levels would make new profitable markets for your
products?

32. Internet marketing
• How do you get
‘marketed to’ on the
Internet?
• What methods do you
prefer?
• What do you hate?
?

33. Internet marketing
• Increase presence and brand equity in
the marketplace
• Cultivate new customers around the
world
(be prepared for global customers)
• Improve customer service by allowing
customers to serve themselves
• Gather information about customers
Marketing mix: Actions a marketer can take to
promote brand or product. Usually referred as The
4Ps - Price, Product, Promotion and Place, they could
today be replaced with Four C’s: co-creation,
communities, customisation and choice. See Slide 8.
Replace
at
3rd pages

34. Internet segmentation and customer behaviour
• Customers have different experiences at
different times.
• On the Internet, people can construct
their own occasions and return to a given
website repeatedly, constructing different
interactions each time.
• This allows the clever Internet-based
entrepreneur to customise visitor
experiences by performing usage-based
market segmentation.

35. What kind of smart-
phone user are you?
• Talkers: Use their phone mainly for verbal conversations.
Not much social media use.
• Occasional: Make calls, play games and check the weather.
Most features go unused. Reachable through their PCs and
through print ads.
• Browsers: The largest group of smartphone owners are still
learning about all the things they can do with their phone.
Rarely use phone to purchase.
• Pragmatist: Mobile professionals use their phone to balance
their work and personal lives.
• Tribal: Hyperconnected. Into Pinterest, Instagram and Flickr.
Mobile-savvy, love their phone. Prefer direct messaging.
• Prodigy: Constantly connected, mobile-centric, tech
trendsetters. True social media influencers.
?
Group of customers united by
behavior patterns, goals, skills,
attitudes, and a few fictional details
the make the persona a realistic
character.
Replace
at
3rd pages

36. Relationship marketing

37. • a
• Creates something of value that attracts
attention and becomes viral in nature.
• Enables customers to promote a message
themselves
• Encourages user participation and dialogue.

38. Traditional marketing Social media marketing
• Emphasises audience
contribution and
relinquishes control over
large parts of the content.
• Important to be completely
honest.
• ‘Two-way communication’
to an audience that is
interested in responding.
• Seeks to control the
content seen by the
audience and attempts
to dominate the territory
by excluding their
competitors’ message.
• Consumers expect
some exaggeration
• ‘One-way’ from the firm
to the customers.
Key distinctions of social media marketing

39. How to build a
social media marketing plan?
• a
• Listen
• Identify
• Appraise
• Implement
• Collaborate
• Contribute
• Convert
• Monitor

40. Mobile social media marketing

41. Green
entrepreneurial marketing
• Consumers – particularly the youngest
ones – pay attention not only to price and
quality but also to social and environmental
values, as witnessed in the remarkable
growth of the global market for organic and
environmentally friendly products.
• Recyclability, reusability,
biodegradableness and positive health
effects are definitely in.

42. What is greenwashing?
• Many green consumers are
increasingly savvy about
greenwashing.
• Consumers prefer to choose a green
product all other things being equal.
• But those ‘other things’ just don’t add
up.
Twelve ounces of phosphate-tinged,
caffeine-impregnated, caramel-flavoured
sugar water. See ‘Natural Capital in a can
of cola’ Chapter 14, p. 523.

43. Consumers not yet reached
the tipping point?
• Consumers have not reached the ‘tipping point’
• Not willing to compromise on convenience, price
and performance
• Two market segments: Ecological fatalism &
Ecological concern

44. Key concepts
(close your books)
1. What are the main
learnings from this
chapter?
?