12/03/2022 ENTREPRENEURIAL MARKETING 1

SCOPE

• Understand the relevance of industry and competitive analysis to the

market planning process.

• Define the role of marketing research in determining marketing

strategy for the marketing plan.

• Explain the steps in preparing the marketing plan.

• Define the key components of a marketing system

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RECAP

• Understand what is a business model

• Explain the elements of a business model
• Analyse a business using a Business Model Canvas (BMC)
• Classify and analyse various types of business models
• Discuss the Blue Ocean Strategy
• Define a Prototype
• Discuss the principles of Minimum Viable Product (MVP)
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INDUSTRY ANALYSIS

Prior to the preparation of the marketing plan, the entrepreneur will

need to complete the industry analysis section of the business plan.
• It provides sufficient knowledge of the environment that can affect marketing
strategy decision making.
• Information can be gathered through secondary sources and market research.
• The entrepreneur can begin to understand competitors’ strengths and
weaknesses; provides insight into how to position products or services.
Source: Entrepreneurship by Hisrich R.D., Peters P. and Shepherd D.A.
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MARKET RESEARCH

Market research refers to the use of information to identify and define market
opportunities and problems.

It is used to generate, refine and evaluate marketing related activities within

a firm and to help determine future marketing strategies and sales forecast
for a new business venture.

ENTREPRENEURIAL MARKET RESEARCH AND

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STRATEGY FORMULATION
WHAT TO RESEARCH?

The Market

The Industry

The Macro-environment

ENTREPRENEURIAL MARKET RESEARCH AND

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STRATEGY FORMULATION
THE MARKET

Some specific information requirement about the market are:

• The customer profile/s and segment/s

• The product or service

• Price

• Sales and distribution channels

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STRATEGY FORMULATION
 THE INDUSTRY

Porter defines five forces

that determine the
attractiveness of an industry
and he regards these as
micro-environment.
These forces consist of those
influences close to the
company that affect it’s
ability to serve customers and
make a profit.

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STRATEGY FORMULATION
THE MACRO ENVIRONMENT

PEST Analysis involves the analysis

of four external factors that may
impact your business: 
Political, 
Economic, 
Social and 
Technological.

Source: https://venturefounders.com/pest-analysis/

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STRATEGY FORMULATION
CONSTRAINTS ON RESEARCH
•Cost

•Research experience

•Reliability of data

•Personal prejudices

•Uniqueness

•Time

ENTREPRENEURIAL MARKET RESEARCH AND

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STRATEGY FORMULATION
 DATA FOR RESEARCH

Source: https://blog.marketresearch.com/not-all-market-research-data-is-equal

ENTREPRENEURIAL MARKET RESEARCH AND

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STRATEGY FORMULATION
 MARKETING RESEARCH FOR THE NEW VENTURE

Step 1:

• Defining the Purpose or Objectives

• Make a list of the information

that will be needed to prepare

the marketing plan.

Source: https://hingemarketing.com/

Source: Entrepreneurship by Hisrich R.D., Peters P. and Shepherd D.A.

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 MARKETING RESEARCH FOR THE NEW VENTURE

Step 2: Gathering Data from Secondary Sources

• Secondary sources can include trade magazines, newspaper articles, libraries,
government agencies, the Internet, and commercial data.

Step 3: Gathering Information from Primary Sources

• Data collection procedures - Observation, networking, interviewing, focus groups,
and experimentation.
• Data collection instrument - Questionnaire.

Source: Entrepreneurship by Hisrich R.D., Peters P. and Shepherd D.A.

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 MARKETING RESEARCH FOR THE NEW VENTURE

Step 4: Analyzing and Interpreting the Results

• Results can be tabulated by hand or on a computer.

• Evaluated and interpreted should be based on research objectives.

• Cross-tabulated data can provide more focused results.

Source: Entrepreneurship by Hisrich R.D., Peters P. and Shepherd D.A.

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 UNDERSTANDING THE MARKETING PLAN

• Marketing plan - A written statement of marketing objectives, strategies,

and activities to be followed in business plan.

• It is designed to provide answers to three basic questions:

• Where have we been?

• Where do we want to go (in the short term)?

• How do we get there?

Source: Entrepreneurship by Hisrich R.D., Peters P. and Shepherd D.A.

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 CHARACTERISTICS OF A MARKETING PLAN

A marketing plan should:

• Provide a strategy.

• Be based on facts/assumptions.

• Describe an organization for implementation.

• Be simple and short.

• Be flexible.

• Specify criteria for control.

Source: Entrepreneurship by Hisrich R.D., Peters P. and Shepherd D.A.
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THE MARKETING SYSTEM

Source: Entrepreneurship by Hisrich R.D., Peters P. and Shepherd D.A.

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THE MARKETING MIX

A combination of product, price, promotion, and distribution and other

marketing activities needed to meet marketing objectives.

Source: Entrepreneurship by Hisrich R.D., Peters P. and Shepherd D.A.

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FLOWCHART OF A MARKETING PLAN

The flowchart of the marketing

plan shows various stages. Each
of
these stages, when completed,
will provide the necessary
information to formally prepare
the marketing plan.

12/03/2022 ENTREPRENEURIAL Source:

MARKETING
Entrepreneurship by Hisrich R.D., Peters P. and Shepherd D.A.
19
 STEPS IN PREPARING A MARKETING PLAN

1. Defining the Business Situation

• Situation analysis - Describes past performance of the product and the company.
• In case of a new venture, information should relate to how and why the product
or service was developed.
• After a new venture has started up information should relate to:
• Present market conditions.

• Performance of the company’s goods and services.

• Future opportunities or prospects.

Source: Entrepreneurship by Hisrich R.D., Peters P. and Shepherd D.A.
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 STEPS IN PREPARING A MARKETING PLAN

2. Defining the Target Market/ Opportunities and Threats

• The target market is specific group

of potential customers toward which

the venture aims its marketing plan.

• Market segmentation - Dividing a market

into definable and measurable groups for

purposes of targeting marketing strategy.

Source: https://www.thebalancesmb.com/target-marketing-2948355

Source: Entrepreneurship by Hisrich R.D., Peters P. and Shepherd D.A.

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STEPS IN PREPARING A MARKETING PLAN

Process of segmenting and targeting customers

• Decide on general market or industry to pursue.
• Divide market into smaller groups based on:
• Characteristics of the customer – Geographic, demographic, and psychographic.
• Buying situation – Desired benefits, usage, buying conditions, and awareness of buying intention.
• Select segment or segments to target.
• Develop a marketing plan integrating product, price, distribution, and promotion.

Source: Entrepreneurship by Hisrich R.D., Peters P. and Shepherd D.A.

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 STEPS IN PREPARING A MARKETING PLAN

3. Considering the strengths and weaknesses in the target market

Analyse the strengths
Analyse the weaknesses (see what you lack)

Source: Entrepreneurship by Hisrich R.D., Peters P. and Shepherd D.A.

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 STEPS IN PREPARING A MARKETING PLAN

4. Establishing Goals and Objectives

• These are statements of level of performance desired by new venture.

• Realistic and specific marketing goals and objectives respond to the question:
“Where do we want to go?”.
• Not all goals are quantifiable.

• Limit the number of goals or objectives to between six and eight.

• Goals should represent key areas to ensure marketing success.

Source: Entrepreneurship by Hisrich R.D., Peters P. and Shepherd D.A.
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 STEPS IN PREPARING A MARKETING PLAN

5. Defining Marketing Strategy and Action Programs

Product or service
• May consider more than the physical characteristics.

• Involves packaging, brand name, price, warranty, image,

service, delivery time, features, style, and even the Web site.

Pricing
• Costs - Material costs, labor costs, cost of goods

from suppliers, labor and overhead expenses, etc. Source: https://gust.com/launch/blog/startup-pricing-strategy-concepts

• Margins or markups - Expected to cover overhead costs and some profit.

https://www.shopify.com/blog/pricing-strategies
Source: Entrepreneurship by Hisrich R.D., Peters P. and Shepherd D.A.

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STEPS IN PREPARING A MARKETING PLAN

• Distribution
• Provides utility to the consumer.
• Must also be consistent with other marketing mix variables.

• Promotion
• To inform potential consumers about the product’s availability or to educate the consumer.
• Methods include print, radio, or television advertising, Internet, direct mail, trade
magazines, or newspapers.
• The entrepreneur should considering both costs and effectiveness of the medium in meeting
the market objectives.
Source: Entrepreneurship by Hisrich R.D., Peters P. and Shepherd D.A.

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MAJOR CONSIDERATIONS IN CHANNEL
SELECTION

Source: Entrepreneurship by Hisrich R.D., Peters P. and Shepherd D.A.

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 STEPS IN PREPARING A MARKETING PLAN

6. Marketing Strategy: Consumer versus Business-to-Business

Markets
• Business-to-business markets involves selling of products or services to another
business.
• Usually aims at selling a large volume in one transaction.

• Involves a more direct channel of distribution.

• Use trade magazine advertising, direct sales, and trade shows.

• Consumer markets involve sales to households for personal consumption.

Source: Entrepreneurship by Hisrich R.D., Peters P. and Shepherd D.A.
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 BUDGETING AND IMPLEMENTATION

Budgeting
• Costs should be reasonably clear.

• Assumptions, if necessary, should be clearly stated.

• Useful in preparing the financial plan.

Source: https://www.consumercredit.com/blog/budgeting-improve-life/

Implementation
• The plan is meant to be a commitment by the entrepreneur to a specific strategy.

• Entrepreneur should ensure coordination and implementation of the plan.

Source: Entrepreneurship by Hisrich R.D., Peters P. and Shepherd D.A.
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MONITORING THR PROGRESS OF MARKETING
ACTIONS
Monitoring the Progress of Marketing Actions
• Involves tracking results of the marketing effort.

• Entrepreneur should prepare for contingencies.

• Minor adjustments in the plan are normal; significant changes indicate a poorly prepared plan.

• Weaknesses in market planning may be due to:

• Poor analysis of the market and competitive strategy.

• Unrealistic goals and objectives.

• Poor implementation of the outlined plan actions.

• Unforeseen hazards like weather or war.

Source: Entrepreneurship by Hisrich R.D., Peters P. and Shepherd D.A.
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 CASE STUDY

Source: Entrepreneurship by Hisrich R.D., Peters P. and Shepherd D.A.

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