CHAPTER 4

ENTREPRENEUR
IAL
MARKETING
What is Marketing?
is the activity, set of institutions, and processes for creating,
communicating, delivering, and exchanging offerings that have
value for customers, clients, partners, and society at large.
-Marketing’s task is to identify and serve customers’ needs

Marketing is Critical for

Entrepreneurs
-No venture can established and grow without a customer
market.
-Entrepreneurs often are faced with designing the entire
marketing system- from the products, price, distribution and
advertising. Because it is difficult and expensive to bring new
products and services to the market.
ENTREPRENEURS FACE UNIQUE CHALLENGES
- Entrepreneurial Marketing is different from marketing done by
established companies.
- Entrepreneurial Marketing (EM) is the proactive identification
and exploitation of opportunities for acquiring and retaining
profitable customers through innovative approaches to risk
management, resource leveraging, and value creation.

MARKETING RESEARCH AND

OPPORTUNITIES
-Identifying and assessing opportunity are two critical steps
that an entrepreneur must take before starting a new venture.
-Using market research tools and techniques, entrepreneurs
can scan the broad macro environment for any shifts or
changes that may create new business opportunities
 
 ACQUIRING MARKET
INFORMATION
Define as the collection
and analysis of any
MARKET reliable information that
RESEARCH improves managerial
decisions
MARKET DATA
1. Secondary Data
-gathered from already
published sources
2. Primary Data
- is collected
specifically for a
particular purpose
through surveys, focus
groups, or experiments
Provider
• Create and capture value
-Product/service features
-Price
• Deliver and communicate value
- Availability
- - Advertising
- - Sales force
- - Public relations
- Guerrilla marketing SATISFACTION & LOYALTY
PREFERENCES
PERCEPTION CHOICE
AWARENESS
Developing and Implementing Marketing Strategy
 PRODUCT STRATEGY

• Product refers to the tangible good or intangible service offered by the business to the target customers.

• A product strategy outlines the company's strategic vision for its product offerings, including where the products

are going, how they'll get there, and why they'll succeed. 

Levels of Product: 
• COREPRODUCT 
➢ The most basic level. It is the essential good or service. 
➢ Address the question: what is the buyer really buying? 
➢ The benefit that the product brings to the customer 

• AUGMENTED PRODUCT
➢ The added feature or service, it helps the consumer to put the actual product. 
➢ Built around both core and actual product 
➢ It is the set of attributes peripherally related to the product
In using product strategy, entrepreneurs must consider the following:  

• CUSTOMER VALUE PROPOSITION (CVP) 

- Customer value proposition consists of the sum of the total of benefits
which a vendor promises a customer will receive in return for the
customer's associated payment. 
- It is a business or marketing statement that describes why a customer
should buy a product or use a service. 
• PRODUCT DIFFERENTIATION 
Product differentiation is a marketing strategy designed to
distinguish a company's products or services from the competition. It is
to build a distinctive image of the brand.
 •THE PRODUCT LIFE CYCLE
a framework that has been used to understand product
strategy. The stages of the product cycle are introduction,
growth, maturity, and decline. 

•PRODUCT DIFFUSSION THEORY

- it shows customer segments comprised of innovators, early adopters, early majority, late majority, and
laggards. A number of factors affect the rate of diffusion, or how fast customers adopt a new product.  If
a product represents risk or is complex, or is not completely compatible with existing products, then the
market usually will adopt it at a fairly slow rate.
QUALITY OF THE PRODUCT OR SERVICE
• It is most important product attribute for entrepreneurs. 
• Quality of product or service is an imperative, not only because it serves as a powerful differentiator,
but because it is needed to gain the recommendation of customers and generate positive word of
mouth

THE
 
NEW PRODUCT DEVELOPMENT PROCESS
Booz, Allen, and Hamilton identified 
  key stages of the new product
 development process;
 PRICING
Developing an optimalSTRATEGY
pricing strategy is a daunting challenge for even the most sophisticated
entrepreneurial company shows various price-setting option.
Pricing methods:
PRICING DECISION FOR AN • cost-based method 
ENTREPRENEUR marking up a product based on its cost and a desired profit margin
•competitive pricing
consists of setting the price at the same level as one's competitors.
•Perceived value pricing
•is especially viable for pricing a new or innovative product or
service. In this method, customers are willing to pay for a particular
product or service based on their perception about the product.

Pricing Strategies:
• Price skimming
-  involves high margins and expects to gain limited
market share because prices are relatively high.
• Penetration pricing
- aims to gain high market share with lower margins and
relatively lower prices
PRICE PROMOTION
- a valuable tool by which marketers can achieve
specific goals, such as introducing a product to a new
customer market. Price promotions are short-term and
use regular prices as a base to discount from; they
provide a way to offer customers good deals. PRICE DISCRIMINATION
allows a company to increase sales, reward distributors, - a common pricing strategy where different prices are
gain awareness for a new product, and clear excess charged to different customer segments
inventory.
- couponing is a widely used form of price discrimination
 
.
 
DISTRIBUTION STRATEGY
•Distribution strategy is about how effectively a firm gets
its product to consumers and end users. 
•Firms can sell their products directly to the consumer
(direct distribution) or through intermediaries (indirect
distributions). 
•The best marketing mix distribution method will depend
on the product needing to be distributed and the "wants
and needs" of the firm's customers.
 CHANNELS OF DISTRIBUTION
•Indirect Distribution
- involves distributing your product by the use of an intermediary, for example a manufacturer selling to a
wholesaler and then on to the retailer.
•Direct Distribution
- involves distributing direct from the manufacturer to the consumer. For example Dell Computers
providing directly to its target customers. The advantage of direct distribution is that it gives a
manufacturer complete control over their product

CHANNELS DYNAMICS SELECTIVE

INCLUSIVE
DISTRIBUTION
- Used commonly to distribute
low priced products or impulse
purchases. For example,
snacks such as chocolates, soft
drinks and crisps
EXCLUSIVE DISTRIBUTION
- Involves limiting distribution to a single
outlet. The product is usually highly
priced, and requires the intermediary to
place much detail in its sell. An
example of would be the sale of
vehicles through exclusive dealers.
DISTRIBUTION
-involves selecting specific
distributors, often limiting selection
geographically by establishing a
dealer network. Selective
distribution is common with
products such as computers,
televisions household appliances,
where consumers are willing to
shop around and where
manufacturers want a large
geographical spread.
 Marketing Communication
Strategy
MARKETING
COMMUNICATION
involves conveying message about the company’s
product/services and the company itself to the market.

Two commonly used terms to describe communications

strategies are push and pull.

Pull strategy is implementing strategies that naturally draws

customers interest in your product.

Push strategy involves pushing your brand or product in front

of the customers.
COMMUNICATION MIX
Are tools used by marketers to send their message to their
market.

PERSONAL SELLING ADVERTISING

DIFFERENT
COMMUNICAT
DIRECT MARKETING ION MIX SALES PROMOTION

INTERACTIVE & INTERNET PUBLIC RELATIONS

MARKETING

ADVERTISING
Examples a marketing communication that employs an openly
sponsored, non-personal message to promote or sell a
Print Advertising product, service or idea.
Broadcast Advertising 
Out-of-Home Advertising 
 Sales Promotion
marketing strategy where a business will use short-term
campaigns to spark interest and create demand for a product,
service or other offers. Three Primary types
•Consumer Promotion- deals that directly offered to
customers and are used to support a pull strategy. 
•
Trade Promotions – deals that are offered to
company’s trade or Channel partners (distributors
/retailers) used to support a push strategy. 
Public Relations •
Marketing tool of communicating Sales Force Promotion – used to motivate and reward
expertly drafted messages using non- the sales force. 
paid/earned media to build mutually
beneficial relationships with the
public.
Personal selling
Also know as face-to-face selling in which a salesman tries to convince
the market to buy the product. 
Example 
Selling cars, office equipment 
 Direct Marketing
Is a form of communicating an offer where the organization
communicate directly to a pre-selected customer or clients
using direct marketing methods (e. g. infomercial,
telemarketing, direct mail) 

Interactive & Internet Marketing

A marketing communication that uses new media channels

brought by technology and Internet. These include chat rooms,
blogs, and social networking and messaging sites such as
Twitter.com, MySpace.com, Facebook.com, and LinkedIn.com.

Guerrilla marketing is the creating use of novel or

unconventional methods in order to boost sales or attract
interest in a brand or business.
 Marketing Skills  For Managing
Growth
1. Understanding and listening customers – keeping in touch with their      customers on a regular basis
perhaps since Intuition base wouldn’t be enough. 

2. Building the brand – It is now the part on how the business would become remarkable. This is the
time where Creating brand awareness and shaping brand image is crucial. 

In order to understand market better, they can use customer interviews a medium  

Customer Interviews  General Outline

The following could be your guide as to how to
Interviewer should start do the interview. 
from how would he
•Open discussion-start by formally introducing yourself and
construct the interview explain what is the interview all about and assure
questions. Interview confidentiality. 
questions would be the soul •Opening questions
and the foundation of our •Current practice 
interview. •Familiarity/awareness about product/service
•Important attributes 
•Perception of respondents 
•Overall Satisfaction Or liking towards that product.
Product Demo/Introduction/Description
The purpose of this part of the interview is to get reactions to the new
product concept and elicit a response that may identify additional decision
drivers.

Demographic and Other Information, and Wrap-up

Demographic and personal information should be requested at the end of
the interview city of residence, age, income, occupation, gender, education,
and so on.