PART 1:

INTRODUCTION TO MARKET LED APPROACH

TO ENTREPRENEURSHIP:

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Twenty-First Century Characteristics of
Entrepreneurs

• Recognize and take advantage of

opportunities
• Resourceful
• Creative
• Visionary
• Independent thinker
• Hard worker
• Optimistic
• Innovator
• Risk taker

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 MARKETING @ WORK
Tata is a major Indian Industrial conglomerate. Tata
Motors was until recently a lorry manufacturing company.
When the company decided to enter the car market, it
developed the INDICA within three years. The product
“failed” due to suspension, air conditioning and after
sales service problems. The CEO sent five hundred
engineers out to the marketplace to talk to buyers. The
next generation INDICA was ready three years later and
quickly became a big seller in the small car segment.

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Market-Oriented
Philosophies of Entrepreneurship

• Market-oriented entrepreneurs commit to

understand current/ latent customer desires plus
competitors’ plans, capabilities
– Scan market more broadly, have longer-term
focus
– Work closely with lead users (windows to future
vs. anchors to past)
– Combine traditional research with
experimentation, observation

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CHARACTERISTICS OF MARKET-LED APPROACH

Market-
Led Approach

Leveraging of
Superior
Distinctive
Performance
Capabilities
Customer
Value/
Capabilities
Match

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Market Sensing
Capabilities
MARKET-
DRIVEN
ENTREPRENEURSHIP

Customer Linking
Capabilities

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The way forward!

Market
Vision, Structure,
and Analysis

Continuous
Segmenting
Learning
Markets
About
Markets

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 PART 2:
MARKET LED MARKETING PROCESS
AND THE ROLE OF RESEARCH

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 MARKETING PLANNING PROCESS

Situation
Analysis

Implementing
Designing
and Managing
Marketing
Marketing
Strategy
Strategy

Marketing
Program
Development

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 MARKETING STRATEGY DEVELOPMENT

Product
strategy

Positioning
Promotion strategy
Distribution
strategy Target Market strategy

Price
strategy

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 Identifying and Describing Buyers

Building How
DESCRIBING
Customer Buyers
Profiles AND Make
ANALYZING Choices
END-USERS

Environmental
Influences

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ANALYZING COMPETITION

Define the competitive arena for the generic,

1 specific, and variant product markets

2 Identify and describe key competitors

3 Evaluate key competitors

4 Anticipate actions by competitors

5 Identify potential competitors

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 Types of Marketing Information

 Marketing research studies

 Standardized information services
 Management information systems
 Database systems
 Decision support systems
 Customer relationship management (CRM) systems
 Competitor intelligence systems

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Marketing Intelligence Systems
and Knowledge Management

 Market sensing does not rely on hard data alone

– intelligence from publications, sales calls, customer visits,
social contacts, Internet, rumor
 Knowledge management
 Role of the Chief Knowledge Officer
 Leveraging customer knowledge
– creating “customer knowledge development dialogues”
– operating enterprise-wide “customer knowledge communities”
– capturing customer knowledge at the point of customer
contact
– management commitment to customer knowledge

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 PART 3
DEVELOPING AN EFFECTIVE BUSINESS
MODEL AND SUSTAINABLE
COMPETITIVE ADVANTAGE

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What is a Business Model?
A business model is a firm’s plan or
diagram for how it competes, uses its
resources, structures its relationships,
interfaces with customers, and creates
value to sustain itself on the basis of the
profits it earns.

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 Search for Competitive Advantage it Requires
Differentiation and Focus

• Intensifying competition in threatens firms with no distinctive competence

and undifferentiated offerings
• Slowing market growth in mature industries means that only way for a firm
to grow is to take share from competitors
• Rather than attempting to compete in an entire market, firm must focus
efforts on those customers it can serve best

• Must decide how many product/service offerings with what distinctive (and
desired) characteristics

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Standing Apart from the
Competition

A business must set itself apart from its competition.

To be successful it must identify and promote itself
as the best provider of attributes that are
important to target customers

GEORGE S. DAY

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 PART 4
MARKET LED MARKETING STRATEGIES

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Segmenting Markets

 Segmentation and market-driven strategy

 Identifying market segments
 Forming segments
 Finer segmentation strategies
 Selecting the segmentation strategy

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Market Segmentation Activities and
Decisions

Market to be
Segmented
Strategic Decide How
Analysis to Segment
of Segments

Finer Form
Segmentation Segments
Strategies
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 Segmentation Variables

Purchase
Behavior

Buyers’ Needs/ Characteristics

Preferences of People/
Organizations

Use
Situation

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 Illustrative Consumer Perception
Map

Expensive
GROUP
• Brand E II • Brand A
• Brand B
GROUP
V High
Low GROUP
Quality I Quality
GROUP
III • Brand C
• Brand D
Inexpensive GROUP
IV

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 Four Principles of Positioning
Strategy

1. Must establish position for firm or product in minds of customers

2. Position should be distinctive, providing one simple, consistent message
3. Position must set firm/product apart from competitors
4. Firm cannot be all things to all people--must focus
Jack Trout

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PRODUCT ATTRIBUTES
Developing a Product or Service Involves Defining
the Benefits that it Will Offer Such as:

Ability
Ability of
of aa Product
Product to
to Perform
Perform
Product
Product Quality
Quality Its
Its Functions;
Functions; Includes
Includes Level
Level &
&
Consistency
Consistency
Help
Help to
to Differentiate
Differentiate the
the Product
Product
Product
Product Features
Features from
from Those
Those ofof the
the Competition
Competition

Product
Product Style
Style Process
Process of
of Designing
Designing aa Product’s
Product’s
&& Design
Design Style
Style &
& Function
Function
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 Interactive/Internet
Marketing
Direct Advertising
Marketing
Promotion
Components
Personal Sales
Selling Promotion

Public
Relations

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CONCLUSION

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 Mapping the Path to Entrepreneurial
Marketing Success

Market-Oriented
Culture and
Process

Superior
Entrepreneurial Relationship Customer
Organizational Value
Strategies
Proposition

Positioning
with Distinctive
Competencies
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Your Success is Our Mission