The lecture is coming, brace yourself

We start at 13:15 or so…

Entrepreneurship
Entrepreneurial Marketing and Sales
Tuan Nguyen, PhD
Krystian Wojtkiewicz, PhD
Steps in business setting

1. The first key to success in any manufacturing activity

is to select the right product. These must be
examined to assess:
…
a. The marketing aspects
b.Technical aspects
c. Financial aspects

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Steps in business setting

2. Having selected a product, a detailed project report is

to be prepared. This will cover the following aspects.
…
a. A detailed estimate of demand is to be made.
b. Technical specifications of the process should be carefully studied.
c. The equipment required and their sources are to be specified
d. Requirement of space.
e. The total cost of the project to be worked out, the means for financing
it identified
f. The economics of the entire scheme at projected operating level is to
be assessed.

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Steps in business setting

3. Implementation of the detailed project report. Includes:

a. Deciding on form of ownership and registration
b. Obtaining finance, Obtaining a license
c. Establishing necessary infrastructures
4. Once all the required authorizations and sanctions have been
obtained, simultaneous action will be taken for the following. Pre-
commissioning requirement
…
a. Ordering machinery from suppliers
b. Obtaining utilities like power and water connections after the construct
ion of the shed, if necessary.
c. Recruitment of staff,
d. Arranging supplies of materials
e. Arranging for distribution of the products

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Steps in business setting

5. Once these are complete, the plant is ready for commissioning, and a trial
run may be made. Commissioning of plant, Includes:

a.Trial run of machineries

b.Promotional activity for the product
c.Introduce the product to the market and obtain feedback

6. The unit is then ready for commercial production.

Commercial production

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Entrepreneurial Marketing

• Being a successful entrepreneur often means being able to balance the many different aspects
of a business, such as financing, accounting, and management. One of the most important of
those aspects is marketing.
• Marketing is an umbrella term given to those activities that companies use to identify
consumers and convert them into buyers for the purposes of achieving a profit.
• No matter the size of the enterprise, marketing lays the foundation for how a company reaches
and serves its target customers.
• Traditional Marketing:
• for large businesses, tends to focus on managing and growing existing programs and
brands.
• for small- and medium-sized businesses, is different because financial resources are
limited, and it is often the entrepreneur alone who is in charge of marketing efforts. If
they do have funds for marketing expenses, they might use a small agency on a fee-for-
project basis. But it allows new companies to be more flexible, agile, and creative than
their established competition. These qualities can allow new companies to disrupt
their industries and become major global players by employing entrepreneurial
marketing practices.
Entrepreneurial Marketing

• Entrepreneurial Marketing:
• a set of unconventional practices that can help start-ups and younger firms emerge and
have an edge in competitive markets.
• tends to focus on satisfying the customer and building trust by providing innovative pro
ducts and services that disrupt or appeal to a specific market.

Traditional Marketing Entrepreneurial Marketing

Greater amount of resources Few to no resources; founder drives efforts (sweat
equity)
Management of an established brand, reminder Must be ingenious, energetic, and persistent to
advertising develop story and brand; leads to trust
Financial and market share goals Satisfaction and awareness goals
Manage existing customers Capture first customers; develop a client base and
long-term relationships
Manage existing products, promotion, pricing, Develop new products, price points, channels
placement, people, physical environment, and (placement), communication, process, training, and
process (the “7 Ps”) design
Continue doing what works Trial and error; market pilots
Communication with customers standardized, one- Communication with customers is more fluid and
directional; more difficult to create one-on-one spontaneous; two-way relationships
relationships
Marketing Mix

• One of the biggest misconceptions people have about marketing is that it is all about
promotion, or how a company sells or advertises something.
• promotion is just one facet of the marketing mix, which describes the basic set of strategies and
approaches that marketers use to identify and reach their target market.
• A target market is the specific group of consumers for which a company seeks to provide a good
or service.
• the first four relate more to products: product, pricing, promotion, and place (and traditionally
have been called “the 4 Ps of marketing”). The remaining three relate more to services: physical
environment, process, and people.
Marketing Mix

• Product refers to a good or service that creates value by fulfilling a customer need or desire.
• Goods are tangible products that can be touched, smelled, heard, and seen
• In contrast, services are intangible products. They usually entail paying an expert to do
something for you
• Companies can bundle both goods and services together to create extra value for their
customers.
• For start-ups, defining the value of the products they are going to offer is an important step
toward identifying their competitive advantage within a marketplace. On a basic level, if you
don’t know what benefit your product provides or what need it fulfills, neither will your
customers.
• Kevin Plank, founder of Under Armour, knew that the value of his product would
benefit many athletes who were tired of having to frequently change their wet
sportswear.
• Jawbone, the company that manufactured Bluetooth speakers and other hardware,
changed its focus from audio to health devices, which placed it directly in competition
with FitBit and similar hardware companies. The company is now working on
reinventing itself and will use artificial intelligence and sensor hardware to provide
customers information about their health through a subscription. The wearable
sensors will record vital customer information that will be tracked on an online
platform that will then provide suggestions for medical action.
Marketing Mix

• Promotion: Communicating a product’s benefits to customers is a significant aspect of any

marketing mix. Even if a product is the best in its class, a company must communicate this value
to customers, or it will fail.
• It is the process of communicating value to customers in a way that encourages them to
purchase the good or service. Promotions must have a goal, a budget, a strategy, and an
outcome to measure.
• Companies must use their promotional budget wisely to create the best results, which can
include sales, profit, and awareness through the use of a cohesive message throughout the
campaign.
• Today the customers don't buy the product simply because they are available, but if they add
value to the customer.
• Some typical forms of promotion are advertising, social media, public relations, direct mail,
sales promotions, and personal selling.
• Advertising is a form of mass communication that allows companies to reach a broad a
udience through TV, radio, newspaper, Internet, magazines, and outdoor ads. Many of t
hese media can be quite expensive for small companies, forcing them to choose one st
rategy, or to opt for other less expensive tactics such as guerrilla marketing (a marketin
g tactic in which a company uses surprise and/or unconventional interactions in order t
o promote a product or service) or viral marketing (Viral marketing seeks to spread info
rmation about a product or service from person to person by word of mouth or sharing
via the internet or email)
Marketing Mix

• Social media is a must-use tool for entrepreneurs to connect with consumers,

especially younger demographics.
• Many customers can be found online in one social media platform or another. The goal
is to find the customers who fit your target market. The benefits of social media
include targeting customers more accurately using the platform of their choice and
being able to communicate directly with them.
• These platforms include networking sites such as Facebook, Twitter, and LinkedIn;
photo and video sites such as Snapchat, Instagram, and Pinterest; blogs; and news
sites.
• identifying your target customers and figuring out what kind of social media they
frequent
• search hashtags and stories that pertain to your type of business so you can join
their conversation.
• set up your profile, write relevant content and hashtags that make sense to your
consumer, and request to follow influencers who can help you create awareness
of your business and product
• The goal is to be part of the conversation and not sound like you are selling
something.
• benefit from buying ads that can be geographically targeted to your customer and that
are more affordable and effective because you’re directly targeting someone who is
specifically interested in your product.
Marketing Mix

• Public relations are the efforts and tools companies use to connect and develop
goodwill with their constituents.
• Constituents can include customers, investors, employees, business partners,
government entities, and the community at large.
• The goal is to highlight the company in a positive light by contributing as a community
player.
• Tools can include newsletters, press conferences, community service, events,
sponsorships, press releases, articles, and stories that help entrepreneurs create a
positive image about their company and get its name out there.
• If participating in an event, for example, the sponsor will display the logo and name of
the company in a place where everyone can see it.
• This shows the company as a supporter of the community and as a provider of not just
products and services, but of intangible contributions, such as supporting the dreams
of the event participants.
• The goal is not to make a sale at that point, but to impact the community and create
positive relationships in general because it’s the right thing to do—it may positively
influence the consumer when they make a purchase in the future.
Marketing Mix

• Direct mail, which is a way to connect to consumers via email or through printed,
mailed pieces, is also a necessary tool to keep in touch with customers, especially
when creating long-term relationships.
• Sales promotions are incentives that attract attention and push the customer to take
action. These incentives include discounts, samples, rebates, rewards programs, gifts,
and premiums. Sales promotions can attract new customers, but it may also reduce
profits because coupons and discounts are offered for trying a product.
• Personal selling is a tool that uses face-to-face interactions to communicate and
influence a customer to make a purchase. It is especially suited for luxury goods.
Usually, higher-priced products will need a longer selling process, and sales personnel
will need more training on the product to learn about its unique qualities. This is one of
the most expensive ways to reach and retain customers, but it can be worth the
investment.
Marketing Mix

Promotion Examples Advantages Disadvantages

Type
Advertising •TV ads •Can reach a mass audience •Can be expensive
•Radio spots •Great for creating brand •Access can be limited
•Newspaper and recognition •Some targeting is possible, but it is
magazine spreads •Increased sales impossible to fully control who sees the ad
•Internet ads
•Billboards
Public •Sponsoring •Develops positive brand •Big events and public relations campaigns
Relations community events recognition can be resource intensive
•Charitable and •Creates goodwill toward company •Not focused on generating sales
civic involvement and brand within the community
•Scholarships and
grants
•Press conferences
Social Media •Social networking •Pervasive and inexpensive access •Many companies use social media, so it is
sites such as to massive audiences hard to stand out from the crowd
SnapChat, Twitter, •Target markets are highly •Can be time-consuming
and Facebook customizable based on available •Success requires dedicated personnel
•Blogs and vlogs data with special expertise
•Influencers •Easy access to young people •It is often difficult to track conversion
(industry experts •Can be used to create goodwill (customers taking a desired action, such as
who act as and a loyal fan base a purchase) and sales numbers
advocates) •Requires the creation of unique/engaging
content
Marketing Mix

Direct Mail •Mailed letters, •Subscribers are already interested •Building an email list of interested
marketing flyers, in your product and thus more customers can take time
postcards, and likely to convert to paying •Direct mail campaigns can be expensive
coupons customers •Results cannot be precisely tracked
•Email newsletters •Keeps already interested •Consumers often discard physical and
consumers up-to-date on product digital “junk mail” without looking at it
news, sales, product releases
•Can target market based on
location, average income, and
other census-derived information
Sales •Sales •Incentivizes buying and •Reduces profits in exchange for
Promotion •Limited-time offers encourages consumers to take promotion
s •Coupons action •The promise of future sales and discounts
•Free samples •Appeals to consumers’ desire to can discourage regular buying
•Rewards programs “get a deal”
•A good way to attract new and
reluctant buyers
Personal •Sales meetings •Personalizes the relationship •Can be resource intensive
Selling between a salesperson between the business and the •Requires salespeople who are well-
and a potential customer trained and effective
customer •Effective salespeople can convert •Consumers are turned off by sales tactics
reluctant parties into paying they perceive as aggressive
customers •Requires constant lead generation
•Salespeople can customize
purchase options for each buyer
Case questions

Claire is a young artist who has decided to sell her paintings to make some money while
she finishes college. She doesn’t know much about promoting her work, primarily
through online channels. Since you are studying business, she has asked you for your
advice on promoting her work to a young professional demographic who would be
inspired by her message through the arts. Describe two promotional tools she can use
to connect with her ultimate customer.
Marketing Mix

• Price: One of the most important and challenging elements of the marketing mix is pricing. Price
is the value that must be exchanged for a customer to receive a product or service.
• This is usually monetary and has a direct impact on sales. Many entrepreneurs are intimidated
by financials and the prospect of using statements and other information to make projections.
• Correctly pricing your product enables your company to be competitive while maximizing your
product’s profit potential.
• several methods that entrepreneurs can use to effectively price products:
• Cost-led pricing is the easiest way to price a product. This involves taking the cost of
making the product and creating a profit margin, which is how much profit your
business stands to make after costs have been deducted.
• For example, if you add the direct costs for materials and labour to the indirect
costs of salaries, marketing, rent, and utilities, you determine that your product
costs £5 to make. Adding, say, a 30 percent profit margin would give you a sales
price of £6.50. The percentage added depends on the business’s goals.
• This type of pricing is helpful when start-ups do not have much information about
their target market and need more time to define their value proposition and
business identity.
Marketing Mix

• Another way to price a product or service is to consider what the competition is

charging and determine whether to go above, below, or match their prices.
• If going above or using premium pricing (also called perceived value pricing), you
need a clear reason why customers would want to spend more on your product.
• While using penetration pricing, or pricing below competitors, can give you a
competitive advantage, it may also lead to “price wars” in which competitors keep
dropping prices in an attempt to beat each other.
• Obviously, the disadvantage is diminished profits for all. While pricing the same as
your competitors seems like a logical choice, if your product offers no added
value, this strategy is unlikely to entice customers to switch to your brand.
• Customer-led pricing is just as described: pricing led by the customer. You ask what the
consumer is willing to pay and charge that. You can find this by doing research and
asking customers what they would be willing to pay for a product. Many technology
products are priced that way. Companies survey customers about what they are willing
to pay, and they create products that deliver the value at the market price.
• Loss leader pricing uses a below-standard price to attract business in the hope that
customers will stay and shop for other, more profitable products. It is called a loss
leader because companies lose money on the lower-priced product. Grocery store ads
usually contain several loss leaders that are designed to lure you into their store in the
hopes that you do the rest of your food shopping there.
Marketing Mix

• Introductory offers use lower initial prices to attract new customers and build a customer base
before prices return to “normal.” This method is a form of penetration pricing, as its goal is to help
new products penetrate markets with established competitors and brands. Many subscription-
based products such as gyms are introduced this way to gain market share and revenue.
• Skimming is a pricing strategy that leverages the newness of a product to justify the highest price
possible in order to “skim” the most profits off the top, meaning in the first phase of sales. As time
passes, the price is lowered to accommodate for more price-sensitive customers. Apple often
introduces its products with this particular method, charging the highest price for them until it has
exhausted the market willing to buy at that price and when newer and more technologically
advanced products are introduced. Then, Apple slowly lowers its pricing.
• Bundling, a discount price is set for a bundle of products to encourage customers to buy in bulk.
While they pay more than if they were buying just one good or service, they do so because the
overall price for a bundle reduces the individual price of that product, giving them a better deal
than if they were to purchase items separately.
• example of this strategy is used by TalkTalk, which bundles its phone, Internet, and satellite
services for a monthly fee. If a customer were to purchase these services separately, they
would be more expensive.
• The benefits of bundling include gaining more revenue per customer, as they would not have
paid for some services separately, and making the order-taking task simpler. Take fast-food
chains, for example. Instead of asking the customer to list everything separately from the
menu, they give you the name or number of the bundle. They make more profit by including
the drink and sides to the main entrée, and the customer saves money and time ordering.
Marketing Mix

• Odd numbers strategy is a psychological pricing strategy often used in conjunction with other
pricing methods to make a product’s price point more attractive to consumers. Using odd numbers
takes advantage of the idea that such numbers have a positive psychological effect on customers.
For example, instead of pricing something at £20, the price would be set at £19.99, which
consumers perceive as closer to 19 than 20.
• While pricing must be established when starting a new business, pricing strategies should be reviewed on an
ongoing basis. These occasions in particular merit consideration:
• When adding a new product or service to your offerings
• When demand shifts (due to market, consumer, or other factors)
• When entering a new market
• When competitors are making changes
• When your costs are changing
• When adjusting products/services or strategies
Marketing Mix

• Place refers to the channels or locations—physical or digital—where customers can purchase

your products; it is sometimes called distribution.
• For the entrepreneur, the choice of place lies in figuring out which channels will create
the most profit. In other words, which channels will reach the majority of the target
market at the most efficient cost.
• Choosing the right distribution channels is one way to create a competitive advantage
and generate more success for your business. Certain channels have specific
capabilities such as reaching more customers, providing promotions, and providing
credit.
• Distribution channels fall into two main groups: direct and indirect. Direct channels,
such as physical or online storefronts, require no intermediaries and allow you to sell
directly to consumers. For example, if you own a bakery, you would likely have a retail
storefront that sells directly to consumers.
• Indirect channels require intermediaries such as distributors
or sales agents to sell your products to the end customer or
to other physical or online retail outlets. Indirect channels
often have more than one intermediary.
• Example, to acquire more customers, your bakery would
use indirect channels such as wholesalers or agents to
get your products into local markets, grocery stores.
These companies would help with logistics, including
transportation, warehousing, and handling of products.
Marketing Mix

• Taking advantage of multiple distribution channels is one strategy companies use to

expand their brand and grow their profits. This can include having a physical storefront,
developing an e-commerce website to sell goods online, and distributing goods
through wholesalers and retailers. Including multiple touchpoints with the customer
can increase the likelihood that they will choose your product.
• The longer your distribution channels, the longer it takes for your product to reach the
end consumer, and the less control you have over the product and the price. As an
entrepreneur, you must decide which channels best fit your product and pricing
requirements.
Marketing Mix

• People or a company’s human resources, will always be a key factor in any successful business.
In a service-oriented business, the people who interact with customers are especially important.
Because the service is the product, they are the face of the brand and a direct link between the
company and the customer.
• When an employee delivers an acceptable or outstanding service, customers are
encouraged to return to purchase the service again and also share their positive
experience with others.
• It is important to hire experienced people and have a good training system in place
with rewards that will help employees deliver the best service to customers.
Companies should take into consideration that no matter the size of a business, they
must market not only to their customers but also to their employees, as they are the
face of the company and the ones who interact with customers. Employees can make
or break the brand.
Marketing Mix

• The physical environment where a service is provided is an important part of the marketing
mix. It can influence the company’s image and convey a lot of information about the quality of a
product, service, company, or brand.
• “get only one chance to make a first impression” is especially true for new businesses.
• Tangible cues—décor, smell, music, temperature, colours—send an immediate
message to customers about quality and professionalism.
• For example, if you walked into two dentists’ offices (remember, they are also
entrepreneurs), and one office smelled and looked clean, and one did not, which one
would you choose? The same goes for restaurants, retail stores, and any other physical
environment. Since a service cannot be inspected before it is received, these cues help
customers make their decisions.
• Process is the chain of procedures or activities required to provide a service to the customer. It
is all of the activities that take place between the service provider and the customer, from
beginning to end.
• In the case of services that are provided online, process includes the website’s design
and functionality, and all of the steps customers take from browsing through check out.
• A strong website design helps the entrepreneur say what the company is about, what it
does and for whom, and what actions the customer can take.
• Actions can range from clicking for more information, the ability to purchase a product,
or checking whether there is availability for a service and being able to book it or make
an appointment.
Market research

• Identifying Entrepreneurial Opportunity: research focused on whether an entrepreneur has

what is needed to move forward with an idea.
• Market research is more market focused, and it’s done after the entrepreneur has decided to
move forward and start the enterprise or launch the product. Essentially it is about the product,
not the entrepreneur’s readiness.
• Market research is essential during the planning phases of any start-up;
• Market research is the collection and analysis of data related to a business’s target market.
Market research can entail everything from information on competitors’ products to the
interpretation of demographic data related to potential customers.
• The main purpose of market research is to gain an understanding of customer needs and wants
in an effort to reveal potential business opportunities.
• When you have a clear picture of what your target market is and what it wants, you can more
effectively design your marketing mix to engage that demographic.
Market research

• A good exercise for better understanding your target market is to detail the everyday life of your
ideal customer.
• You can do this by describing in detail a set of possible customers who would buy your product.
• Details could include demographic information such as gender, age, income, education,
ethnicity, social class, location, and life cycle.
• Other information that would be helpful would include psychographics (activities, hobbies,
interests, and lifestyles) as well as behavior (how often they use a product or how they feel
about it).
• The better you know your ideal customer, the better you can focus on capturing their attention
by matching their preferences with your offerings.
• Market research also helps you understand who your competitors are and how they serve the
target market you want to engage. The more you know about your competition, the easier it
will be to determine and differentiate your offerings.
Primary Market Research

• Collecting new data for the purpose of answering a specific question or set of questions.
• The best way to get answers specific to your business and products, especially if you want to
penetrate niche markets that have not been studied.
• By asking the right questions, you can determine people’s feelings and attitudes toward your
brand, whether they like your product design, whether they value its proposed benefits, and
whether they think it is priced fairly.
Primary Market Research

• Define the Research Goal: What are you trying to find out? Do you want to know more about
your target market, their preferences, lifestyle choices, and culture, or do you want to know
more about your competitors and why your target market buys from them? What are your
criteria for validation of the research goal or goals?
• The more time you take to clarify your research questions, the more likely you will be
to achieve your research goals.
• Determine Research Design: which research techniques will most effectively help you answer
your questions.
• Qualitative research uses open-ended techniques such as observation, focus groups,
and interviews to gain an understanding of customers’ basic reasons, opinions, and
motivations. Simply observing potential customers, whether at a store or in daily
activities, and noting their behaviours are a simple, effective form of ethnographic
research that can help you better understand the lifestyles and habits of potential
customers.
• Ethnographic research includes the personal observations of the subject by being
immersed in the subject’s environment. Research like this helps companies see
how people use their product over the course of a day.
• For example, if you manufactured a water bottle and wanted to design a “better”
water bottle, you could watch how people use their water bottles while working,
exercising, during their commute, and so on to better understand their needs and
habits.
Primary Market Research

• Employing a mystery shopper, or pretending to be one yourself, is another way to

learn how customers and employees act within a specific retail environment. A
mystery shopper is a person who has been hired by the company or a third party
to pose as a real shopper and has gone undercover with a specific goal of testing
certain aspects of a business. This can take the form of purchasing a product,
browsing and asking questions of an employee, interacting with other customers,
or simply observing what is happening inside the store. After the experience, this
person will provide feedback to the company.
• Focus groups and one-on-one interviews can be useful to obtain more thoughtful
answers and explore debatable topics. Both are good methods for digging deeper
into the specific motivations and concerns of people, especially as they pertain to
personal, privately held beliefs.
Primary Market Research

• Quantitative research focuses on the generation of numerical data that can be turned into
usable statistics. This kind of research most often takes the form of surveys or questionnaires
that pose multiple-choice questions with predefined answers.
• While these surveys do not allow for much free expression on the part of the
participant, the focused nature of the answers means marketers can identify trends,
such as which social media platforms are preferred by customers or potential
customers.
• Another way to generate quantitative results is through causal research and test
marketing. In both cases, you present participants with a cause and record the effect.
An example of this might be a taste test in which people’s reactions to and preferences
for different juice flavours are recorded.
• An even more sophisticated—and expensive—method is conjoint analysis, in which
respondents must rank, choose, or a rate a number of “conjoint,” or linked, features or
benefits. This real-life scenario approach will give you very useful results from potential
buyers, often with features or benefits ranked relative to perceived value or
importance.
• For example, customers could be given a set of very similar water bottles, each with a
set of features the company would like to test. Features can include a locking lid so the
water doesn’t leak, different bottle shapes for easier hold and water retrieval, and
different colours and sizes. Each of the choices could have its own price point and the
customer can choose, rank, or rate each of the choices based on those attributes and
prices.
Primary Market Research

• Choose a Sample: refers to who you will survey and how many people you will include. In most
cases, you will want a sample that reflects your target market, especially if you are trying to
figure out your ideal customer’s interests and how to get them to buy your product.
• Untargeted samples can be useful when trying to figure out who your target market
might be, but they aren’t an efficient way to get to know your ideal customer.
• Surveying all of your population could be time consuming and expensive, so choosing a
subset of the right people can yield good results.
• Collect Data: The data may be collected through observation and taking notes.
• For example, if you are trying to figure out if your store layout is yielding the most
productive sales, you can observe traffic flow and note what people look at and what
they actually purchase.
• Recording the wrong answers, failing to convey the right instructions to participants, or
having to translate on the fly can all create biases that skew the answers and give you
inaccurate results.
• Analyse Data: How you analyse the data depends largely on what you want to get out of it.
Typically, you will be looking for patterns and trends among the answers. Data analysis is a field
unto itself, and when complex analysis is required, seeking the assistance of experts is often
worth the extra cost.
Primary Market Research

• Results and Next Steps: the entrepreneur seeks to reconcile the results of their examination
with the goals of their research.
• it is important to be open to what the data say, even if they indicates results that are co
ntrary to what you were hoping for. Research should be an opportunity for growth and
a roadmap for the refinement of your idea.
Secondary Market Research

• Research that uses existing data that another entity has collected. Often, these data are
collected by governmental agencies to answer a wide range of questions or issues that are
common to many organizations and people.
• Secondary research often answers more general questions that an entrepreneur may have, such
as population information, average purchases, or trends.
• If there is a specific question that cannot be answered, such as how many people would be
interested in a new product with certain attributes, then primary research will have to answer
that.
• While some of this kind of research must be purchased, much of it is free to the public and a
good option for entrepreneurs with limited financial resources.
• Other useful resources are trade organizations that provide information about specific
industries, as well as newspapers, magazines, journals, chambers of commerce, and other
organizations that collect local, state, national, and international data.
• While free sources can provide a lot of information, their research tends to be less specific than
that by sources that charge for their data.
Target market

• As an entrepreneur, you want to segment the market and figure out if there are possible
pockets of people that you can serve.
• Segmenting, targeting, and positioning (STP) will help you determine your best customer and
allow you to allocate your resources to serve that customer more effectively.
• Segmenting means that you separate the total population by homogeneous groups of people
that have similar tastes, backgrounds, lifestyles, demographics, and even culture. You may
segment along lines such as age ranges, gender, ethnicity, line of work, earnings, or activities.
There are many ways to separate these groups to choose the right one for your business.
• The next step is targeting. You select a target based on their ability and willingness to buy. As
stated earlier, a target market serves to specify which group of the total market you will serve
and how you will position yourself to distinguish your company or product from your
competitor.
• Positioning (value proposition) is a statement of how you want the customer to perceive your
company, good, or service.
Case questions

• As a dog owner, Wag! CEO and co-founder Joshua Viner struggled to find the time to walk his beloved
dog after a long day at work. He knew it was unfair to keep her cooped up all day. He even considered
finding her a new home. This canine conundrum led him to create Wag! in 2015 as a way to help
people like him who loved their dogs but didn’t always have the time to make sure they were properly
exercised.
• To start, Viner got together with Jason Meltzer, who, like himself, had experience creating consumer
tech companies. Meltzer was the founder of pet services company Surfdog LA, which already had a
proven track record of success. Together, they developed an app and website with the goal of making
dog ownership easy and guilt free. Wag! gave customers access to trusted, pre-screened walkers who
could take their dogs out on short notice without them having to be present. Customers could even
see their dog being walked via the app.
• Since its inception, Wag! has been growing and entering new markets at a steady pace. After launching
its service in Los Angeles and San Francisco in 2015, it continues to add cities across the United States.
• Because the app’s dog-walkers have access to their client’s houses, one of the challenges Wag! faced
was making sure customers trusted them and their dog walkers. Another challenge was the safety of
the dog itself. What happens if a dog gets hurt or lost? It wouldn’t take much for issues like these to
turn into significant problems.
• Describe the target market for this service.
• Are there other potential customers who can be a good target for this service?
• How can Viner position his business to assure pet owners that their dogs will be well taken c
are of?
Marketing techniques

• Guerilla Marketing Marketing Technique Description Example

Guerilla marketing Aims to gain maximum Events, such as flash mobs
• Relationship Marketing exposure through
• Expeditionary Marketing unconventional means

• Real-Time Marketing Relationship marketing Creates customer loyalty Personalized communication to

through personal interaction individual customer
• Viral Marketing
• Digital Marketing Expeditionary marketing Strives to move established Pivots that create new products or
companies and products into attract new markets
• Word-of-Mouth Marketing new markets
Real-time marketing Seeks to turn immediately Analysing clicks or “likes” and
available sales data into modifying posts/offerings in response
actionable and timely
strategies that target the
shifting landscape of consumer
tastes and trends
Viral marketing Uses engaging content in the Subtle branding embedded in stories
hopes that viewers will share it users want to share
on personal and social media
networks
Digital marketing Uses online marketing Online ads and use of search engine o
strategies ptimization (SEO)

Word-of-mouth (WOM) Relies on satisfied customers Online customer reviews

marketing telling others about their
positive experience
Guerilla Marketing

• Refers to creative approaches to marketing that seek to gain maximum exposure through
unconventional means.
• Guerilla marketing often means staging some sort of event or interaction that is designed to
attract attention to a brand or product.
• The goal is to intrigue consumers by standing out from normal sales messages and the
thousands of advertisements they are exposed to every day.
• These approaches usually have a component that encourages potential customers to interact
with a company or product in a fun way.
Relationship Marketing

• Seeks to create customer loyalty through personal interactions and long-term engagement
strategies.
• A small company can try to have a closer relationship with clients by writing personal notes by
hand or sending an email thanking them for their business, by acknowledging their presence by
their first or last name when they come into the establishment, by offering beverages, and by
offering other personalized services.
• Another way companies maintain relationships with their customers is through regular email
newsletters. By using sales history and other market data, companies are able to customize the
content of these usually free newsletters to the needs, concerns, and desires of their target
market. This allows them to stay connected to their customers while developing strong
connections and brand loyalty.
Expeditionary Marketing

• Refers to strategies that are aimed at moving established companies and their products into
new markets and territories.
• As the name implies, there is an element of risk and discovery involved in expeditionary
marketing strategies as they help a company grow into new areas.
• Determining where and how to enter these new markets often begins with analyzing a
company’s current market and financial and human resources.
• This type of marketing is very similar to entrepreneurial marketing, and the terms are often
used interchangeably, except that expeditionary marketing involves existing companies
continuing to innovate whereas entrepreneurial marketing also involves new companies.
Real-Time Marketing

• attempts to turn immediately available sales data (often collected from social media, websites,
point-of-sale systems, and the like) into actionable and timely strategies that target the shifting
landscape of consumer tastes and trends.
• Some of the tools entrepreneurs can use to secure information include analytics from Facebook,
Twitter, and Google, as well as internal sales data.
• The information can include preferences for one brand over another, lifestyles, behaviour,
purchase frequency, and amount spent. This helps entrepreneurs set up strategies that focus on
providing the customer what it needs in today’s instant gratification society.
• For example, creates a post on Facebook or Twitter regarding a new promotion. It can then
confirm the number of “clicks” the post gets and determine the depth of engagement for each
of the posts. Clicks can be likes, shares, comments, and purchases that can be tracked
immediately, minute by minute, hour by hour, or day by day, depending on the length of the
promotion. Real time allows the marketer to assess the action followers take immediately after
this happens.
• If a post is not getting the desired results in likes, shares, comments, or conversions in the
desired timeframe, then the company can make changes to the communication sent to provide
a different incentive, such as providing a deeper discount, or using different language, a new
picture, and a better call to action.
• In addition, real-time tracking also allows for the company to answer tweets and comments
from its followers immediately. This enables direct communication from customer to company
without any interference or time constraints.
Viral Marketing

• A technique that uses engaging content in the hopes that viewers will share it on their personal
and social media networks. Successful content then spreads like a virus, creating exponential
exposure to a company’s message.
• The most important element of any viral marketing campaign is developing content that is not
only engaging but that people also feel must be shared.
• The benefit of this kind of marketing is that it can lead to massive exposure for little or no effort
or investment once the content is developed. The challenge, though, is that it is difficult to
predict what will be successful viral content. Viral marketers often create a lot of content that
does not go viral before finding content that does.
Digital Marketing

• Refers collectively to all digital (online) marketing efforts, which can include social media, email
communications, websites, blogs and vlogs, and search engine optimization (SEO). This is an
important area for entrepreneurs to explore because learning how to leverage digital channels
and online analytics is key to remaining competitive in this technological era.
• Digital ads include display ads, search ads, and social media ads.
• These can be very successful at targeting specific people in your target market and are usually
more affordable than a TV ad. They are cheaper to make and to place than TV ads, which can
cost millions of dollars for production and air time to reach a wide number of people.
• Digital ads are important for entrepreneurs because they are an effective way to redirect traffic
to their websites and gain conversions on a budget.
• Display ads are those that resemble banners and showcase a product or company on a website
in a noticeable way. They come in various sizes, and the entrepreneur may buy them on third-
party websites or search engines that provide space for ads. These ads are usually paid using a
pay-per-click model, which means that you only pay for the times that someone clicks on your
ad, or you can pay for impressions, which means that you only pay for the number of times the
ad appears on readers’ screens.
Digital Marketing

• Search ads, conversely, are those text ads you see while you are looking for something on a
search engine, whether it’s on your laptop, tablet, or mobile device. Google, Bing, and Yahoo!
are the three biggest search engines
• These ads are created using keywords that are strategically chosen to target people typing those
specific words in the search engine and are paid through a bid system that allows the business
to specify how much they will pay for an ad to be displayed in a better position on the engine’s
display pages.
• Social media platforms also have the capability for users to create similar ads on their systems
to target people based on their behaviour, likes, profiles, and searches for products online. Their
popularity has increased as more people join the platforms and more information is gathered
from them.
• Blogging has become an important tool for business owners. It allows them to share
information about their companies, products, and their experiences in written or video form.
Blogging enables entrepreneurs to create a name for themselves, especially when the content is
useful and people are interested in what the blogger has to say.
• Content marketing is an important topic for digital marketing, as content has become more
important in recent years. Content can be displayed as a story, a blog, a website, social media
posts, a newsletter, an article, videos, or anything else that has the ability to convey a message
to the consumer.
Digital Marketing

• Entrepreneurs can also tap influencer marketers to disseminate information about their brands.
This includes tapping into social media celebrities, who usually have millions of followers on
YouTube, Facebook, Instagram, or similar platforms.
• Email marketing is a form of direct mail that connects to consumers in a personal way. Emails
can contain useful content for consumers, promotions, and tips that entice them to try or be
aware of a product.
Word-of-Mouth (WoM) Marketing

• Occurs when a satisfied customer tells others about their positive experience with a good or
service. Although similar to viral marketing, WOM does not involve active participation from the
marketer and almost exclusively involves only customers, whereas viral marketing attempts to
build awareness and buzz mostly via videos or email.
• When consumers are very happy with their purchases, they will let people know, whether it is in
person or on social media. The company has less control over this type of marketing because it
happens organically. While effective WOM marketing can have a huge impact on a brand’s sales
and visibility, creating WOM is tricky—people have to want to talk about your product.
• One way to encourage WOM is to ask satisfied customers to help you spread the word by talking
to their circle of friends and family, or by sharing comments online on the website, through
portals, or through social media. Companies often include call-to-action cards in their shipments
that direct customers to post reviews on their website, the website where they purchased the
item (Ebay and Amazon), or on public review sites such as Yelp.
• Entrepreneurs who do this need to make sure they monitor what is being said about their
businesses so that poor reviews don’t undermine their marketing efforts.
Entrepreneurial Branding

• a brand name is the name of a product or service offered by a company.

• the brand also means the image a company promotes and the connotations it fosters of itself
and its products.
• Branding is often less about a product’s actual benefits or value, and more about how it
positions itself within its target market and connects with its loyal customers.
• Customer-Focused Branding: The image a company conveys to its customers is managed
through what is called brand strategy, which can include advertising, public relations, customer
service, and sales promotions. One common branding strategy is the use of taglines, which are
short and catchy positioning statements that quickly communicate some core aspect of the
brand to the consumer. Taglines can be a powerful tool, and in some cases can become as
recognizable as the brand names themselves.

New Companies Tagline

Hello Fresh Simply Delicious Meals
Airbnb Belong Anywhere
Uber Get There
BirchBox Open to Beautiful
Snapchat Life Is More Fun When You Live in the Moment
LuminAID Makers of Brilliant Things
Uptown Cheapskate Buy. Sell. Trade.
Entrepreneurial Branding

• Other components in a brand include the website, social media, customer service, and
packaging. These are important components of a branding strategy that use technology
to convey the message. A website allows a company to create an image of its business
pages that are linked to each other. These pages convey branding information about a c
ompany that sends a message to the consumer through the use of the business logo, c
olours, copy, ease of use, product information, and e-commerce capabilities.
• Social media platforms such as Facebook, Twitter, Instagram, and YouTube allow compa
nies to invite customers to join the conversation by posting pictures of their use of pro
ducts, making recommendations, participating in contests and giveaways, and obtainin
g coupons and other perks.
• Customer service is another tool that can create a strong company image. Training sale
speople and cashiers to be courteous, resourceful, and knowledgeable creates an imag
e in the customer’s mind about the product and the business. Wearing uniforms can al
so create a positive image. Customer service is particularly helpful when dealing with s
ervices because it gives some tangibility to the product that the customer cannot see.
• Packaging is an important component of branding. The design of the package, the color
, the information that is conveyed on the package, and the practicality of the package a
ll create an image of what is to be expected from the product.
Entrepreneurial Branding

• Defining and Developing a Brand: A brand should have a clear purpose derived from the
company’s mission.
• In addition, the brand should have a well-designed logo, the company/product name,
merchandise, promotional items, location of the business (that also provides an image
or tells a story), and any other tools that communicate with buyers.
• When starting a business, it is likely that you will brand your entire business with one lo
go, one name, and matching promotional items, business cards, and product packaging
. As your number of products grows, you would likely develop different packaging and
different images for other product categories.
• Promotion through Brand Advocacy: promote your brand is to identify loyal customers who are
willing to share positive feedback about it.
• A brand advocate is someone who is a fan of your products and passes on the word to
others. Brand advocacy is a potentially inexpensive means of building a brand and one
that entrepreneurs should explore. One simple way to motivate brand advocacy is by
asking your best customers and fans to refer other customers to you, leave online
reviews, and/or to blog or comment about your company and products online.
Companies often offer discounts and promotional codes to encourage brand advocates
to spread the word.
• The key to effective brand advocacy is to know the goal of your advocacy campaign,
look for ambassadors (there are many online and in-person events), ask them to
perform a task, and reward them for doing so.
Marketing strategy

• Describes how a company will reach consumers and convert them into paying customers.
• Having a solid-yet-flexible marketing strategy is a good business practice, no matter what kind of
business you are in.
• A marketing plan is a formal business document that is used as a blueprint or guide for how a
company will achieve its marketing goals.
• Marketing plans are important tools because they act as roadmaps for everyone involved in an
enterprise. Writing a marketing plan forces you to specify goals and develop strategies to reach
them, and encourages you to research markets and competition.

https://www.investopedia.com/terms/m/marketing-strategy.asp
Marketing strategy

Marketing Plan Section Description and Purpose

Executive Summary Provides a snapshot of the whole plan, including profit potential and major
strategic ideas
Situation Analysis Overviews internal and external environments related to the business and
product; internal environments include company background and mission;
external environments can include market needs, competition, market
research, and an analysis of strengths, weaknesses, opportunities, and
threats (SWOT)
Marketing Opportunity Validates the market opportunity being exploited by the business and articul
(Unmet Need, Proposed ates the potential gain for stakeholders
Solution, Value Proposition)
Business Model Presents the framework for generation of sales and the business’s competiti
ve advantage
Marketing Objectives Specifies goals for sales (in units or dollars), market share growth, brand
awareness, secured distribution channels, inventory, and pricing

Marketing Strategies Explains target market, projected positioning, and strategies as they relate
to the marketing mix (7Ps)
Action Program Defines who will do what and when
Financials Discloses sales estimates, projected budgets, and financials that will help
readers understand the present and future economic condition of the
company
Control Procedures Describes procedures for measuring results, monitoring goals, and adapting
the plan as needed
Marketing strategy

• Executive Summary: a clear and concise summary of the major points of your marketing plan.
Though it is placed first, it is generally written last because it is based on the information
presented in other subsequent sections.
• The executive summary is typically one or two pages long and includes key indicators
of success for the business and its stakeholders, which may include company owners,
managers, consultants, investors, and banks.
• Situation Analysis: an examination of the internal and external circumstances relevant to your
business and product.
• For example, the research you conduct here explains why you will develop a certain
product, how you will price it, and what you will do to reach your target market.
• Good situation analyses often include a SWOT analysis, which looks at a company’s
strengths, weaknesses, opportunities, and threats.
• They also look at future and current competitors, and include market validation
research that has surveyed potential customers. This information is critical because it
proves that you have done your due diligence on your product and market.
Marketing strategy

• Marketing Opportunity: this is where you explain what and where that opportunity is. Here you
use your research as evidence to prove to your reader that there is a market gap and that you
know how to fill it.
• Business Model: marry the opportunity you saw with the solution you have created. Here you
articulate how your competitive advantage and points of differentiation (nature of the solution
and its key features and benefits) will provide value to customers and earn profits that will
sustain your business into the foreseeable future. What will you do to create value that attracts
customers? How will you generate sales? Who is your target market?

• Marketing Objectives: present your specific goals and their tangible outcomes. The point of this
section is to quantify your goals as units sold, sales/revenue, market share, or some other
practical metric. Goals can also include creating measurable brand awareness and developing a
certain number of distribution channels.
Marketing strategy

• Marketing Strategies: having a good marketing mix will help your business succeed.
• As an entrepreneur, you want to segment the market and figure out if there are
possible pockets of people whom you can serve. The process of segmenting, targeting,
and positioning (STP) will help you figure out who is your best customer and allow you
to allocate your resources effectively to serve that market.
• Action Plan: detail how things will get done in your business on a day-to-day basis, when they
will get done, and who will be doing them.
• ensuring that having the necessary human resources in place to execute your goals is
important.
• Financials: include budgets, forecasts, and any other information that will give readers and
potential investors a clear picture of your business’s financial situation.
• help you determine how profitable your business might be.
• it is best to develop financial projections for best- and worst-case scenarios, as well as
a projection for an average case scenario.
• Key Performance Indicators: how you will evaluate the effectiveness of your strategies,
• include the quantitative milestones that will tell you if you are on the right track, help
you analyse your decision-making process and focus on specific strategies, and make
changes if these don’t work.
Sales strategy

• a plan that the entrepreneur uses to identify and engage a consumer, from prospecting to
securing the sale.
• should keep in mind the core benefit or competitive advantage that the product or service has
and make sure this information filters through the entire sales execution process.
• The strategy should include a six-step process that is an integrated sales system for how to
prospect, pitch, handle rejections, and the like.
• Setting objectives is important before reaching out to prospects and current customers because
they allow the salesperson to detail the strategy, have an end goal, and measure the results.
Sales strategy

• Prospecting and Preparing: Prospecting focuses on finding potential new customers for the
product or service. This helps acquire new customers, replace customers lost to attrition, and
expand sales from current customers.
• prospecting allows salespeople to collect information about potential customers and
identify any who are not a good fit for the company. It is important to get as many
prospects as possible to secure a few customers, as the pool of prospects diminishes
through successive steps of the sales process.
• Making the Sales Call: prepare for a sales call, contact, or meeting with a prospect.
• Effective sales people usually prepare well in advance of contacting a prospect. A
salesperson can look for information regarding the company’s demographics, its
competition, clients, and other companies they purchase from. Information can be
gathered from online sources or referrals.
• It is also helpful to set objectives before contacting the prospect. Some of those
objectives can include securing an appointment for a presentation, understanding the
prospect better, scheduling a second call/contact, or perhaps starting a sale.
Sales strategy

• Presenting the Proposal: meet with the prospect for a sales presentation.
• A presentation is a great way to expand the prospect’s understanding about the
offering. Strong presentations include good communication skills with strong visuals
and testimonials.
• the salesperson can make a better case for the value proposition, citing the strengths
of the product and how those strengths would help the prospect in their life or how it
would help a company’s objectives.
• The presentation can also include the cost of the investment and a projection of the
return on investment.
• Handling Objections: During or after the presentation, a salesperson will likely encounter
objections or questions from the prospect.
• This is a good way for the salesperson to gain feedback and respond to concerns from
the prospect. Objections can arise during the appointment setting, during the
presentation, or while trying to close the sale. The salesperson must be proficient at
dealing with these in a truthful manner so the relationship that is established is based
on trust.
Sales strategy

• Closing the Sale: the next step is to close, or ask for the sale. It’s important since it signals to the
prospect that the product is a good fit and the relationship can be created. A good closing
includes a trustworthy and logical process.
• Doing a trial close by asking “How is this so far?” or “Can I answer anything else?” can
help the customer feel more at ease with making a decision.
• The salesperson can set up the next steps or ask the following questions: “Can I place
the order for you?” “Can we open the life insurance account for you?” “Can you come
see the demonstration at our office?” “Can we meet next week for the financial
terms?”
• Fulfilling Orders, Fostering Relationships, and Asking for Referrals: fulfill the order and make sure
that the customer is satisfied with the product or service.
• The order needs to be closely monitored in case there are any delays or issues with it,
so the customer can be immediately notified.
• important to assess customer satisfaction and to build the relationship bridge to ask for
referrals.
Customer Service

• One of the most important aspects of making the sale, and one that often wins or loses
customers
• If you have ever stepped into a business where you have been greeted with a smile and treated
kindly throughout the purchase process, you will probably want to come back and purchase
from that store or salesperson again.
• For start-ups, customer service can be an advantage, as the business can focus on a few
customers at a time in a more personal manner. The bigger a company is, the harder it is to
manage many customers and sales associates on a personal level.
• 70 percent of the customer experience or journey depends on how they are being treated. The
majority of customers fall in love with a brand and are willing to pay a premium for amazing
customer service, and they feel that great customer service is more important than price.
• They will also share positive experiences with other people
• When a customer has a negative experience, or feels unappreciated, they are more likely to
switch brands, and a company has to work harder to counteract a negative experience.
• It takes twelve positive reviews to counteract just one negative, unresolved customer issue.
• As an entrepreneur, focusing on customer service before and after the purchase is an effective
reminder that the company is trying to build trust and have a relationship with its customers.
This also helps with the process of branding, as you’ve learned.
Customer Service

• One effective way to ensure great customer service is to create an operating manual for your
employees that includes proper techniques for customer service. These techniques can include
how to greet a customer, how to listen and help them get what they need, the philosophy of
your company, how far to go when ensuring great service, and how to be creative with
customer service.
• Training programs before starting work and during the year can be facilitated by the
entrepreneur or a consultant to sharpen the skills of the employees.
• Customer service doesn’t happen just in person or on the phone. Technology has enabled
people and companies to connect through email and social media, taking the conversation and
interaction online.
Exercises

• Your task is to create a marketing mix that focuses on your selected business idea and
has a clear competitive advantage over other competitors. Develop a marketing mix
that includes all 7Ps and define them as they relate to your business.
THANK YOU