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 dialogues with interactive services Entrepreneurial Marketing by Rajeev Roy .Real-time marketing ‡ Technology-facilitated.

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 other¶s resources for one¶s own purposes ‡ Complementing one resource with another to create greater value ‡ Using some resources to obtain others Entrepreneurial Marketing by Rajeev Roy .

not brand ‡ Clarify your brand identity 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.

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 µbrand 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 competitor¶s reactions Monitor realised prices Assess customer¶s 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 Competitor¶s 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 .

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

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 .

souvenirs Exhibit items Entrepreneurial Marketing by Rajeev Roy .What can you do at an event? ‡ ‡ ‡ ‡ ‡ ‡ ‡ Sponsorships Signage Sampling booths Celebrity appearances Hospitality tents Premiums.

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. network marketing ‡ Hotmail ± ³get your private. free email at www. word-of-mouth.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 .

act first and fast (coloured nailpolish) ‡ Media and advertising are needed to create buzz Entrepreneurial Marketing by Rajeev Roy .Myths ‡ The best buzz-starters are your best customers ‡ To profit from buzz.

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 Entrepreneurial Marketing by Rajeev Roy .