ENTREPRENEURIAL MARKETING

An organizational function and a set of process for creating,

communicating, and delivering value to customers and for
managing customer relationships in ways that benefit the
organization and its stakeholders.

ENTREPRENEURIAL MARKETING
Why Marketing is critical for
Entrepreneurs
 Entrepreneur must create

1. Offer (design the product & set price)

2. Take the offer to the market
3. Tell the market about the product
Why Marketing is critical
for Entrepreneurs

 Entrepreneurs are often faced with designing

the entire “marketing system” from product
and price to distribution and communication.
Marketing challenges

 Limited resources-financial & managerial

 Hiring experienced marketing manager
 Little market share
 Confined geographic market presence
 Few economies of scale
 Restricted distributor network
 Low brand awareness
 Customer loyalty
Acquiring market information

 What product attributes are important to

customers?\
 How is customer willingness to buy
influenced by product design, pricing and
communication?
 Where do customers buy this kind of
products?
 How is the market likely to change in the
future?
Acquiring market information

 Two basic types of market data.

 Primary data
 Secondary data
Marketing strategy for
Entrepreneurs

 Segmentation, targeting and positioning are

key marketing decisions that set the strategic
framework.
Segmentation

 A segment is a group of customers defined by

certain common bases or characteristics that
may be demographic(age, gender, family size,
family life cycle, income, occupation,
education, religion & nationality)
psychographic (social class, lifestyle,
personality), or behavioral (occasions, benefit.
User status, user rate, loyalty status etc)
Targeting

 Targeting compares the defines segments

and then selects the most attractive one.

 The attractiveness of a segment is related to

its size, growth rate, and profit potential.
Differentiation

 Differentiation is a marketing strategy

whereby businesses attempt to make their
product unique to stand out from
competitors.
 Undifferentiated/Mass marketing
A market coverage strategy in which a firm
decides to ignore market segment differences
and go after the whole market with one offer.
 Differentiation Strategy

 Differentiated/ Segmented marketing

A market coverage strategy in which a firm
decides to target several market segments and
designs separate offer for each
 Concentrated/ Niche Marketing
 A niche market is the subset of the market on
which a specific product is focused. The market
niche defines as the product features aimed at
satisfying specific market needs, as well as the
price range, production quality and the
demographics that is intended to impact. It is also
a small market segment. For example, sports
channels like STAR Sports, ESPN, STAR Cricket,
and Fox Sports target a niche of sports enthusiasts.
 Micro Marketing
 The practice of tailoring the products and
marketing programs to the needs and wants
of specific individuals and local customer
group-
 Local Marketing
 Individual Marketing
Positioning

 Arranging for a product to occupy a clear,

distinctive, and desirable place relative to
competing products in minds of target
consumers.
Marketing mix

 set of controllable tactical tools – product,

price, place and promotion- that the firm
blends to produce the response it wants in
the target market
Product strategy
Product strategy

 Value proposition is the set of benefits or

values it promises to deliver to customers to
satisfy their needs.
 Example- BMW promises “the ultimate
driving machine.”
 Nokia- “ Connecting People-anyone,
anywhere.”
 Apple’s iPhone- “touching is believing.”
Product life cycle
Product diffusion curve
Pricing strategy

 Fixed cost- which do not change with the

production (such as facilities, equipment,
salaries etc.)

 Variable cost- which do change with the

volume of production ( such as raw materials,
hourly labor and sales commission)
Pricing Method
 Cost-based method- setting a price based on
the costs for producing, distributing and
selling the product plus a fair rate of return
for effort and risk.
 Value based pricing- setting price based on
buyers’ perceptions of value rather than on
the sellers cost.
 Good value pricing
 Value added pricing
New product Pricing strategy

 Price skimming- setting a high price for a

new products to skim maximum revenues
layer from the segments willing to pay the
high price, the company makes fewer but
profitable sales.
New product Pricing strategy

 Penetration pricing- setting a low for a new

product in order to attract a large number of
buyers and a large market share.
Product mix pricing strategy

 Product line pricing- setting the price steps

between various products in a product line
based on cost differences between the
products, customer evaluation of different
features, and competitors prices.
Product mix pricing strategy

 Optional product pricing- the pricing of

optional or accessory products along with a
main product.

 Captive-product pricing- setting a price for

products that must be used along with a main
products such as blades for a razor and film
for a camera.
Product mix pricing strategy

 By-product pricing- settings=g a price for by-

products in order to make the main product’s
price more competitive.

 Product bundle pricing- combining several

products and offering the bundle at a reduced
price.
Price-adjustment strategies

 Discount- a straight reduction in price on

purchasing during a stated period of time.

 Allowance- promotional money paid by

manufacturers to retailers in return for an
agreement to feature the manufacturer’s
products in some way.
Price-adjustment strategies

 Segmented pricing- selling a product or

service at two or more prices, where the
difference in prices is not based on
differences in cost.
1. Customer segment pricing
2. Product Form Pricing
3. Location Pricing
 Psychological pricing- a pricing approach
that considers the psychology of prices and
not simply the economies; the price is used to
say some something about the product
Price-adjustment strategies

 Reference prices- price that buyers carry in

their mind and refer to when they look at a
given product.

 Promotional pricing- temporarily pricing

products below the list price, and some times
even below cost, to increase short run sales.
Distribution strategy

 Intensive channel coverage-

 Selective channel coverage
 Exclusive channel coverage
Distribution strategy

 Channel conflict
 Disintermediation
 Multi channel distribution
Marketing communication
strategy
 Communications mix is defines as –
 Advertising
 Sales promotion
 Public relation
 Personal selling
 Direct marketing
Advertising

 Advertising- paid, non-personal , public

communication about causes, goods, and
services, ideas, organizations, people and
places through means such as direct mail,
telephone, print, radio, television and
internet.
Sales Promotion

 Sales promotion- sales promotion is any

initiative undertaken by an organization to
promote an increase in sales, usage or trial of
a product or service. it aims to provide a short
tern boost to sales.
Personal Selling

 Personal selling- is a promotional method in

which one party uses skills and techniques for
building relationships with another party that
results both parties obtaining value.
Public Relation

 Public relation- involves the cultivation of

favorable relations for organization and
products with its key publics through that use
of a variety of communications channels and
tools.
Direct Marketing

1. Direct mail
2. Catalogs
3. Telemarketing
4. Infomercials
5. Permission e-mail.
 IMC

 Carefully integrated and coordinating the

company’s many communications channels
to deliver a clear, consistent, and compelling
message about the organization and its
product
Push / Pull strategy
Push Strategy

 A promotion strategy that calls for using the

sales force and trade promotion to push the
product through channels. The producer
promotes the product to channel members
who in turn promote it to the final consumers.
Pull strategy

 A promotion strategy that calls for spending a

lot on advertising and consumer promotion
to induce the consumers to buy the product,
creating a demand vacuum that “pulls” the
product through the channel.
 Guerrilla Marketing

 Guerrilla Marketing- A marketing tactic in

which a company uses surprise and/or
unconventional interactions in order to
promote a product or service.
Guerrilla Marketing

 Guerrilla marketing is different than

traditional marketing in that it often relies on
personal interaction and has a smaller
budget, and it focuses on smaller groups
of promoters that are responsible for getting
the word out in a particular location rather
than on wide-spread media campaigns.
Marketing Skills for
Managing Growth

 Understanding and listening to the customer

 Building the brand
THANK YOU