COURSE TITLE: ENTREPRENEURSHIP AND MARKETING

Course Code: MS434

Week 2 : Lecture 1

Course Instructor: Dr. Abid Ullah

Department of Management Sciences
Ghulam Ishaq Khan Institute Of Engineering Sciences and Technology
 CHAPTER 1
INTRODUCTION TO ENTREPRENEURSHIP

Introduction to Entrepreneurship- Theorising Entrepreneurship

 LEARNING OBJECTIVES

Approaches to Entrepreneurship.
o Understand the key economic theories that have been developed over the years in relation to entrepreneurship.

o Understand the psychological traits approach to the individual entrepreneur.

o Understand the main issues related to personal, family and social status in relation to entrepreneurship.

o Understand other macroeconomic factors that influence entrepreneurship.

o Differentiate between the theoretical approaches to entrepreneurship and critically assess their contribution to
the field.
THE EVOLUTION OF MARKETING
Robert Keith, an executive at Pillsbury, in 1960.
▪ The Simple Trade Era

▪ The Production Era ( Economies of Scale)

▪ The Sales Era

▪ The Marketing Department Era

▪ The Relationship Marketing Era

▪ Societal marketing Era

MARKETING

Marketing is an organizational function and a set of processes for

creating, communicating, and delivering value to customers.
ENTREPRENEURSHIP

The word “entrepreneur” originates from the French word

entrependre, which means “undertaker”.
 THEORISING ENTREPRENEURSHIP

Theories

❑ Economics
❑ Psychology
❑ Sociology
 THEORISING ENTREPRENEURSHIP

Theory

❑ Theories are formulated to explain, predict, and understand phenomena and, in many
cases, to challenge and extend existing knowledge, within the limits of the critical bounding
assumptions.
Hypothesis
❑ In science, a hypothesis is an idea or explanation that you then test through study and
experimentation.
 THEORISING ENTREPRENEURSHIP

Economics

❑ Arbitrage and uncertainty

▪ Richard Cantillon French scholar (1755).

▪ Kirzner (1973, 1985) middleman role of the entrepreneur.
▪ Knight (1921) focused on Cantillon’s entrepreneur in respect to uncertainty
 THEORISING ENTREPRENEURSHIP

Economics

❑ Co-ordination of the production factors

▪Jean-Baptiste Say (1828) ( Material, People, information and Capital)
▪ Hebert and Link (1988). ( Skill worker with managerial Skills)
 THEORISING ENTREPRENEURSHIP

Economics

❑Innovation
▪ Josef Schumpeter (1934, 1939). (“creative destruction”)
• new product creation,
• new production method,
• new market opening,
• new source of supply capturing, or
• new industry organising.
 THEORISING ENTREPRENEURSHIP

Economics

❑Skill Differentiation
▪ Casson (1982)
 THEORISING ENTREPRENEURSHIP

Economics

❑ Career Mobility
▪ Appelbaum and Katz (1986),
▪ Kanbur (1979)
▪ Sheshinski and Dreze (1976)
 THEORISING ENTREPRENEURSHIP

A final view of Economic Theories

 THEORISING ENTREPRENEURSHIP

Psychology

❑ Research Focus
Focus on understanding and describing the person that chooses to become one.
 THEORISING ENTREPRENEURSHIP

Psychology

❑ The need for achievement

▪ David McClelland (1961).
 THEORISING ENTREPRENEURSHIP

Psychology

❑ Risk Taking Propensity

Entrepreneurs are considered to be individuals with less risk aversion than the ones that
choose employment.
 THEORISING ENTREPRENEURSHIP

Psychology

❑ Tolerance of Ambiguity
Can better handle complex and unstable working environments.
 THEORISING ENTREPRENEURSHIP

Psychology

❑ Type “ A” Behaviour
▪ Boyd (1984)
▪ Type A behaviour is exhibited by being ambitious, organised, impatient, and like to be
punctual.
▪ Type B personalities are relaxed, not competitive and generally not as ambitious as
their Type A peers.
 THEORISING ENTREPRENEURSHIP

Psychology

❑ Independence and Job Satisfaction

▪ Taylor, (1996)
 THEORISING ENTREPRENEURSHIP

Psychology

❑ Over Optimism
▪ Taylor, (1996)
 THEORISING ENTREPRENEURSHIP

Criticism on Psychology

▪ Market factors
▪ Universal circumstances
Thank You
REFERENCES