ENTREPRENEURIAL MARKETING

Rajeev Roy

Relationship marketing
Identifying, establishing, maintaining and enhancing relationships with customers and other stakeholders, for profit Achieving objectives of both parties Driver sophisticated customers want individualised attention

Entrepreneurial Marketing by Rajeev Roy

Expeditionary marketing
Creating markets before competitors Continuous search for innovative product concepts Leading rather than following consumers Tolerance of failure

Entrepreneurial Marketing by Rajeev Roy

One-to-one marketing
Individualised marketing mix Marketing based on knowing the customer through collaborative interactions

Entrepreneurial Marketing by Rajeev Roy

Real-time marketing
Technology-facilitated, real-time dialogues with interactive services

Entrepreneurial Marketing by Rajeev Roy

Disruptive marketing
Shattering culturally embedded biases and conventions Forging a radical new vision of a product

Entrepreneurial Marketing by Rajeev Roy

Viral marketing
Self-replicating promotion Multiplies as like-minded people market to each other One has to be careful of mutation

Entrepreneurial Marketing by Rajeev Roy

Digital marketing
IT-enabled interactivity New forms of interaction lead to deeper relationships Greater personalisation

Entrepreneurial Marketing by Rajeev Roy

Permission marketing
an approach to selling goods and services where a prospect explicitly agrees to receive marketing information

Entrepreneurial Marketing by Rajeev Roy

Radical marketing
With limited financial resources Maximum exploitation of limited budget Redefine competitive rules Focus on growth and expansion rather than short term gains

Entrepreneurial Marketing by Rajeev Roy

Buzz marketing
Consumer-generated information dispersed through individual networks by creating excitement Word of mouth

Entrepreneurial Marketing by Rajeev Roy

Customer-centric marketing
Marketing seeks to fulfill needs of individual consumer Needs of consumer is the starting point of planning process Driven by increased market diversity

Entrepreneurial Marketing by Rajeev Roy

Convergence marketing
Fusion of technologies or combination of channels

Entrepreneurial Marketing by Rajeev Roy

Dimensions of entrepreneurial marketing

Proactive orientation Opportunity-driven Customer focus Innovation focus Risk / vulnerability management Resource leveraging

Entrepreneurial Marketing by Rajeev Roy

Leveraging resources
Stretching resources further than others have done in the past Getting uses others have been unable to realise Using others resources for ones own purposes Complementing one resource with another to create greater value Using some resources to obtain others

Entrepreneurial Marketing by Rajeev Roy

Brand building
Let your brand strategy drive your business do not outsource branding
Creates distance between brand and top management Agencies will focus on media, not brand

Clarify your brand identity

Entrepreneurial Marketing by Rajeev Roy

Brand building
Identity-building brand exposure Involve the customer in the brand building experience Borrow practices from across industries Pilot test novel ideas Have a brand manager Monitor results
Entrepreneurial Marketing by Rajeev Roy

Pricing

Assess what value customers place on the product Look for variations in the way customers value the product
Heavy users Criticality of use Different uses

Entrepreneurial Marketing by Rajeev Roy

Price sensitivity
Less if 3rd party bears cost Cost of item is significant to total expenditure If buyer is not end user (B2B) Easy to compare products in category Easy access to competing products Low cost of switching Long term relationship is not important
Entrepreneurial Marketing by Rajeev Roy

Pricing
Identify a pricing structure Consider competitors reactions Monitor realised prices Assess customers emotional response to prices Analyse if returns are worth it

Entrepreneurial Marketing by Rajeev Roy

Skimming
a policy of relatively high prices
Demand will be comparatively inelastic with respect to prices consumers may be ignorant of real value Segments the market systematic price reduction to tap other segments
Entrepreneurial Marketing by Rajeev Roy

Skimming

Safer it may be easier to reduce prices than to raise them High prices can finance high initial costs Can absorb future rise in component costs

Entrepreneurial Marketing by Rajeev Roy

Penetration pricing
High price elasticity of demand High fixed costs low variable costs Strong threat of potential competition Cost compression curve is steep Provides greater visibility to company early

Entrepreneurial Marketing by Rajeev Roy

Pricing precepts
Pricing of a product should work towards maximising present worth The unit for making decisions and for measuring return is the entire economic life of the product Pricing begins before production commences and repricing continues for the entire life cycle
Entrepreneurial Marketing by Rajeev Roy

Pricing precepts
Producers costs indicate a floor price Customers cost indicates price sensitivity Competitors costs indicate their strength Different pricing strategies can be used in different segments

Entrepreneurial Marketing by Rajeev Roy

Channel strategy
Go directly to the consumer: bypass all Go directly to the retailer: bypass distributor Use sales agents Set up your own intermediaries Participate in establisher channel structure

Entrepreneurial Marketing by Rajeev Roy

Promotions: Objectives
SALES Increased distribution outlets Increased shelf space Increased in-store presence Expanded selling season Increased purchase frequency Increased usage occasions Increased transaction size Trial
Entrepreneurial Marketing by Rajeev Roy

Planning a promo campaign

Establish objectives Plan on strategies and tactics Establish criteria for success Create back-up plan Review and test Put controls in place Roll out
Entrepreneurial Marketing by Rajeev Roy

Contests
Call attention to a product when there is nothing new The product should tie in with the contest Can be used to build data on customers Instant win enjoys greater participation Lots of prizes vs one big prize

Entrepreneurial Marketing by Rajeev Roy

Coupons
Coupons entitle bearers to an immediate discount when presented to a participating business Greatest influencer among promos P&G vs the people Manufacturer / retailer or both On product / off site
Entrepreneurial Marketing by Rajeev Roy

Discounts
Can result in:
Increased consumption New type of consumption eg gifting Stockpiling

EDLP vs High Low Builds traffic Price reductions are simplistic

Entrepreneurial Marketing by Rajeev Roy

Types of discounts
Cash discounts Trade-ins Membership discounts First few customers Twofers / BOGO etc Future purchase Bundling Added value (0% finance)
Entrepreneurial Marketing by Rajeev Roy

Continuity
Basis: it costs more to get a new customer than to retain an old one Collect and get Loyalty Collector series Close-ended vs open-ended

Entrepreneurial Marketing by Rajeev Roy

POP
Also known as POS It is a display tactic Display must convey message in 3 secs More the better Give benefit to retailer Announce some other promotion Self-shipper (easy set-up)
Entrepreneurial Marketing by Rajeev Roy

Sampling
In store On pack / in pack / near pack Coupon Delivered Direct mail Media delivery (incl. downloads) Demos Trial offers (short-term) Venues (clubs, community halls) Events
Entrepreneurial Marketing by Rajeev Roy

Sampling
Kits Booths Literature Hiring &Training Follow up measurement

Entrepreneurial Marketing by Rajeev Roy

Event
Make / rent an event Product placement Product affiliation Licensed premium offer (spidey toys) Event tickets Event extension (Merc-sit in F1 car)

Entrepreneurial Marketing by Rajeev Roy

What can you do at an event?

Sponsorships Signage Sampling booths Celebrity appearances Hospitality tents Premiums, souvenirs Exhibit items
Entrepreneurial Marketing by Rajeev Roy

Free gifts
Along with sale The container itself Charge cost Free with commitment (subscription) Collectibles Collect and get

Entrepreneurial Marketing by Rajeev Roy

Tie-ins
Product compatibility pizza and cola Market match Distribution match Seasonality Regionality Cross-merchandising

Entrepreneurial Marketing by Rajeev Roy

Trade promotions
Get new distribution Optimise product mix Exploit seasonality
Get shelf space Secure services (co-op) Performance
Entrepreneurial Marketing by Rajeev Roy

VIRAL MARKETING
Buzz, word-of-mouth, network marketing Hotmail get your private, free email at www.Hotmail.com Give away valuable products or services Provides effortless transfer to others Scalable Utilize existing communication networks Take advantage of others resources
Entrepreneurial Marketing by Rajeev Roy

Myths
Only outrageous or edgy products are buzzworthy
Unique in some respect Highly visible

Buzz just happens

identify opinion leaders Ration supply Celebrities Use lists (IIPM) Build community
Entrepreneurial Marketing by Rajeev Roy

Myths
The best buzz-starters are your best customers To profit from buzz, act first and fast (coloured nailpolish) Media and advertising are needed to create buzz

Entrepreneurial Marketing by Rajeev Roy

Drivers of buzz
word-of-mouth is 10 times more effective than other media Ad clutter is rising Traditional forms of media are rising in cost Trust in ads is coming down Technology is acceleration buzz

Entrepreneurial Marketing by Rajeev Roy

6 buttons of buzz
Give people a story to tell Taboo Unusual Outrageous Hilarious Remarkable secrets