Who is an Entrepreneur?

• An entrepreneur is a person who starts an enterprise. He searches for

change and responds to it.
• The word entrepreneur is derived from the French word ''entreprendre''
means to undertake
Definitions of Entrepreneur
• Richard Cantillon defines entrepreneur as, “An entrepreneur is a person who
pays a certain price for a product to resell it at an uncertain price, thereby
making decisions about obtaining and using the resources while consequently
admitting the risk of enterprise.
• Shapiro defined entrepreneur as, “Entrepreneurs take initiative, accept
risk of failure and have an internal locus of control.”
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Example-
• Jamshedji Nusserwanji Tata
• G.D Birla
• Jamnalal Bajaj
• Dhirubhai Ambani
 Characteristics of Entrepreneur
1. Risk bearer- Business is full of risk and uncertainties. The entrepreneur has to bear a number of risk in forming and
running the enterprise.
2. Innovative- Entrepreneurship is innovation process. But it does not mean 'invention’. It means introducing new
products, new technology, searching new market and discovering new sources of raw material etc.
3. Forecasts uncertainties- The business environment is largely uncertain as it is very difficult to predict future
happenings, especially when environmental changes are taking place too frequently as in the case of IT or
fashion industries.
4. Creative activity- Entrepreneurs always look for creative ways to solve problems or deliver a service, often
with limited resources. They look in many different places for inspiration. 
5. Business oriented- The entrepreneurs are business oriented as they always seek the opportunities to grow
their business and take it to the next level.
6. Result oriented- entrepreneurs are focused on getting the positive results
7. Passionate- passion is a characteristic trait of the entrepreneur. 
8. Curiosity- The best entrepreneurs always want to learn more. They ask many questions and look for
opportunities to grow themselves and their business. These people don’t dwell on what they think they
know. Rather,
10-02-2023 they change their opinions when new information is presented.
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Importance of entrepreneurship
• Establishment of viable units.
• Develop entrepreneurial tendencies.
• To promote innovations.
• Optimum utilization of resources.
• Increase employment opportunities.
• Balance economic development.
• Rapid economic development.
• Social satisfaction.
• Promote capital formation.
• Contribute towards Govt. policy execution.
• Means of social change.
• Minimize Socio-economic problem.
• Establish self sufficient economy.
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The Entrepreneurial
Process

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 Types of Entrepreneurs
Initiator
s entrepreneurs
• These have the ability to think newer, better and more
economical ideas of business organisation and management.

• They are the business leaders and contributors to the economic development
of a country.

• Inventions like the introduction of a small car ‘Nano’ by Ratan Tata, organised
retailing by Kishore Biyani, making mobile phones available to the common may
by Anil Ambani are the works of innovative entrepreneurs.
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 Followers/Imitators
• These entrepreneurs are people who follow the path shown by innovative entrepreneurs.

• They imitate innovative entrepreneurs because the environment in which they operate is such that it does not
permit them to have creative and innovative ideas on their own.

• Such entrepreneurs are found in countries and situations marked with weak
industrial and institutional base which creates difficulties in initiating innovative ideas.

• In our country also, a large number of such entrepreneurs are found in every field of
business activity and they fulfill their need for achievement by imitating the ideas which was introduced by
innovative entrepreneurs.

• For example- Development of small shopping complexes is the work of imitating entrepreneurs.

• All the small car manufacturers now are the imitating entrepreneurs.

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 Fabia
n
• The dictionary meaning of the term ‘fabian’ is ‘a person seeking victory by
delay rather than by a decisive battle’.

• Fabian entrepreneurs are those individuals who do not show initiative in

visualising and implementing new ideas and innovations.

• They wait for some development which would motivate them to initiate unless
there is an imminent threat to their very existence.

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 Dron
e
• The dictionary meaning of the term ‘drone’ is ‘a person who lives on the labor
of others’.

• Drone entrepreneurs are those individuals who are satisfied with the existing
mode and speed of business activity and show no inclination in gaining market
leadership.

• In other words, drone entrepreneurs are die-hard conservatives and even ready
to suffer the loss of business.

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Functions of Entrepreneur
• Innovation
• Assumption of Risk
• Research
• Development of Management Skills
• Catalyst of Economic Development

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Need for Entrepreneurship Development
• Required for development of economy
• Necessary for employment generation
• Important as innovations are done by him.
• Balanced regional economic growth.
• Harnessing local resources
• Improving standard of living
• Economic Independence
• Reducing unrest among unemployed youth.

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 Qualities of entrepreneur
1. They love challenges and are driven by a need to challenge one’s self
2. Self motivated
3. High tolerance for ambiguous, unstructured situations
4. Possess a desire for change and constant improvement.
5. Action oriented
6. Dedicated to work
7. Creative and Confident
8. Think positively and quickly get over failures.
9. Learn quickly
10. Enjoy feedback and are able to learn from mistakes.
11. Both listen and communicate well

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 What is entrepreneurial Marketing?
• It is both a process and mindset.

The question arises?

Why Mindset?
Why Process?

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 It is
mindset
• The entrepreneurial attitude is demonstrated by the person's constant search
for opportunities and gathering of the resources required to seize them.

It is
process
• A strategic vision of what the consumer will desire in the future is combined
with systematic and continuous trials that are designed to test that vision.

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 Thus, entrepreneurial marketing is
• All about gathering the precise data that convinces a specific group of
people—those people around that specific venture—to act and
respond, cooperating to take advantage of successes and overcome
failures.

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Traditional marketing Vs.
Entrepreneurial Marketing
 Framework of Entrepreneurial
Marketing
• Entrepreneurial Marketing Framework combines-
1. marketing's focus on the link between the product and the
customer with
2. entrepreneurial management's focus on the link between the
people and the partners associated with the venture as integrated
through the concept of "fit.“

• Finally, as the venture evolves, the "fit" between the product,

customer, people, and partners must be continually managed.

• The implied dynamic Entrepreneurial Marketing Framework can be

used to proactively identify the key sales/marketing tasks required in
new ventures and integrates with Sahlman's Dynamic FIT
(Lassiter III, 2007) Management Framework

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Dynamic Framework for
Entrepreneurial Marketing

(Salhman, 1996)
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Evolution of marketing
function

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Marketing concept in Entrepreneurship
• Innovation oriented
• Idea-driven
• Intuitive assessment of market needs

(Stokes, 2000)

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 Importance of Marketing
in Entrepreneurship
1. Marketing is important in entrepreneurship because it helps to attract customers, build brand awareness,
and establish credibility.

2. By creating effective marketing strategies and campaigns, entrepreneurs can effectively communicate the
value of their products or services, reach new audiences, and generate interest in their businesses.

3. Additionally, marketing can help entrepreneurs stay ahead of the competition by providing valuable insights
into consumer behavior and preferences.

4. Ultimately, successful marketing is critical for the growth and success of any entrepreneurial venture.

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 Market research
• Market research is the process of gathering, analyzing and interpreting
information-
1. about a market,
2. about a product or service to be offered for sale in that market, and
3. about the past, present and potential customers for the product or service;
4. research into the characteristics,
5. spending habits,
6. location and needs of the business's target market,
7. the industry as a whole, and
8. the particular competitors faced.
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Types of Market
Research

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 Marketing
Tools
• Social media marketing: Using platforms like Facebook, Instagram, Twitter, and LinkedIn to reach customers and
build brand awareness.
• Email marketing: Sending newsletters, promotional offers, and other marketing materials directly to
customers through email.
• Content marketing: Creating and sharing valuable, relevant, and consistent content to attract and retain a
clearly defined audience and ultimately drive profitable customer action.
• Influencer marketing: Partnering with influencers on social media to promote products or services to their
followers.
• Affiliate marketing: Paying affiliates to promote products or services on their websites or social media
accounts.
• Search engine optimization (SEO): Improving a website's visibility and ranking on search engines like Google.
• Pay-per-click (PPC) advertising: Running ads on search engines or social media platforms and paying only
when someone clicks on the ad.
• Trade shows and events: Participating in industry trade shows and events to connect with potential
customers and partners.
• Public relations (PR): Building relationships with journalists and media outlets to generate coverage
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exposure for a business.
 E-
Marketing
• Electronic marketing, also known as digital marketing, refers to the use of
digital channels, such as search engines, social media, email, and websites, to
promote a product or service.

• The goal of e- marketing is to reach and engage with customers through the
use of digital technologies.

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 Benefits of E-
Marketing
• Reach: It allows businesses to reach a large, global audience through a variety of channels, including websites,
social media, email, and search engines.
• Targeting: It enables businesses to target specific audiences based on demographics, interests,
and behavior.
• Measurable results: It provides real-time data and analytics.
• Cost-effective: Compared to traditional marketing methods, it can be more cost- effective, as businesses only
pay for the channels.
• Increased brand awareness: It helps businesses increase brand awareness and reach new customers.
• Improved customer engagement: It offers various ways to engage with customers, including through social
media, email, and mobile apps, allowing businesses to build relationships and foster loyalty.
• Better ROI: By tracking and measuring results, businesses can optimize their digital marketing efforts to achieve
a better return on investment (ROI).
• Flexibility: It is flexible and can be easily adapted to changing market conditions and customer needs.

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 Marketing
1. Strategy
Segmentation, targeting, and positioning (STP): This involves
a) Segmenting the market into different groups of consumers,
b) Selecting the most attractive segments, and
c) then positioning the product to meet the needs of those segments.

2. Customer-centric approach: This approach focuses on creating customer value and satisfaction as the key driver of
marketing strategy.
3. The 4 Ps of marketing: This framework consists of product, price, place, and promotion, and suggests that a successful
marketing strategy must address each of these elements.

4. Social marketing: This involves using marketing principles to promote a socially responsible cause or behavior change.

5. Relationship marketing: This focuses on building long-term relationships with customers through ongoing
communication and engagement.

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Marketing
Plan
• A marketing plan is a written document that outlines the strategies
and tactics a business will use to achieve its marketing and sales
objectives.
• It provides a roadmap for executing marketing activities and
communicating the value of a product or service to the target market.

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Steps in market plan preparation
• Developing a marketing plan for an entrepreneurial venture requires a systematic approach that
involves the following steps:

1. Conduct market research: Gather information about your target market, including their
demographics, needs, preferences, and buying behavior. This information will help you determine the
viability of your product or service and identify potential customers.

2. Define your target market: Based on your research, clearly define the specific group of
consumers you will be targeting with your marketing efforts.

3. Identify your unique value proposition: Determine what sets your product or service apart
from your competitors and what benefits it offers to your target market.

4. Determine your marketing mix: Decide on the 4 Ps of marketing - product, price, place, and
promotion - that will be most effective in reaching your target market.
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5. Set marketing goals and objectives: Clearly define what you hope to achieve with your
marketing efforts and set measurable goals and objectives that align with your overall
business objectives.

6. Develop your marketing budget: Determine the resources you will need to effectively
implement your marketing plan, including personnel, advertising, promotions, and other
marketing expenses.

7. Create a marketing action plan: Develop a detailed plan for executing your marketing
strategy, including specific tactics, timelines, and accountability measures.

8. Monitor and evaluate results: Regularly track the results of your marketing efforts and make
adjustments as needed to ensure that you are achieving your goals and objectives.
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