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Introduction to
Entrepreneurship

6. Marketing Strategy

Mohd Hanis bin A Aziz

Contents

6.1 Selecting and establishing a market

position

6.2 The marketing components

MPU2222 / Introduction to
Entrepreneurship
 6.1 Selecting and establishing a market position

A new company must also answer the

following questions:

Who are our customers?

Where are they?
How will we appeal to them?

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 Answer Qs?
 Market Segmentation
 A process of grouping customers which are
similar enough that the same product or
service will appeal to all of them
 Market Targeting
 Determining which market segments will
become the company’s specific target
 Market Positioning
 Establishing the company’s position in the
minds of customers which will differentiate its
products or services from competitors
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3 Steps Process Selecting a Market Postion

MARKET
Segmentation

MARKET
Targeting

MARKET
Positioning

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 Target Market
A group of potential customers which
consists of individuals or businesses
that a firm tries to appeal to. It is
imperative for a firm to first choose its
potential target market and position
itself within the target market. A firm
may risk wasting its business resources
if other marketing decisions are made
first.

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 6.2 The marketing componentsn 4Ps

 A firm’s marketing mix is a marketing

tool that is used to produce the
response the firm wants from the
target market. Most firms structure
their marketing mix into 4 categories:
 Product
 Price
 Promotion
 Place (distribution)

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 Product
 A product is the goods or services a firm offers
to its target market. A product is something
that takes a physical form, such as an Apple
iPod, a HP ProBook, or a video game.
 A service is an activity or benefit that is
intangible and does not take a physical form,
such as public transportation, legal
consultancy, or medical services.
 Adds value in the minds of its target customers
 Core product – function of product
 Actual product – characteristics : quality level,
features, design, a brand name and packaging
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 Price

 Price is the amount of money that

consumers pay to purchase a product. It is
the only element in the marketing mix
that produces revenue; all other elements
represent cost.
 Ultimately determines how much money
firm can earn.
 The price that a firm charges for its
products also sends a clear message to its
target market.
 Cost-based and Value-based pricing
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 Promotion
 The activity the firm takes to
communicate and disseminate the merits
of its target market is called promotion.
 The goal of promotion activities is to
persuade the firm’s target market to
purchase the product.
 Promotion activities:
 Advertising
 Public Relations
 Other Promotion-related Activities – free samples,
free trials, event sponsorships and viral marketing

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 Place (distribution)
 Place, or distribution channel, refers
to an activity that moves a firm’s
products from the place it is made to
the end users.
 Selling direct – firm can control and
monitor the movement of their
products from their place to the end
user without relying on third parties
 Selling through intermediaries
(distribution channels) – the firm
does not need to rent or own dc.

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Digital Marketing

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ETP062 / Entrepreneurship
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