Entrepreneurship Canadian Edition William D Entrepreneurship Canadian Edition William D. Bygrave, Andrew Zacharakis, Sean Wise

ENTREPRENEURIAL MARKETING Chapter 5

Learning Objectives Why Marketing Is Critical for Entrepreneurs Learning Objective 5.1 Explain why marketing is critical for entrepreneurs. Entrepreneurs Face Unique Marketing Challenges Learning Objective 5.2 Identify the unique marketing challenges entrepreneurs face. Acquiring Market Information Learning Objective 5.3 Describe how entrepreneurs acquire market information. Marketing Strategy for Entrepreneurs Learning Objective 5.4 Describe the key dimensions and elements of a marketing strategy. Guerrilla Marketing Learning Objective 5.5 Describe guerilla marketing. Marketing Skills for Managing Growth Learning Objective 5.6 Describe two key marketing capabilities necessary for strong growth.

Today’s Key Concepts Marketing vs Sales Why marketing is hard for startups How customer development feeds marketing The Purchasing Process Guerrilla Marketing Social Media Marketing The 4 Ps

- American Marketing Association Marketing Defined… 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. - American Marketing Association Marketing practices vary depending on the type of company and the products and services it sells.

Establishes a customer market Marketing Is Critical Establishes a customer market Differentiates product or service to customers Gains customer acceptance, trust and loyalty Incites trial and usage Companies must be able to switch marketing gears quickly to attract new customer segments

Entrepreneurs Face Unique Marketing Challenges Limited by: Financial and managerial resources Time Market information Muddling decision-making with personal biases and beliefs Establishes poor relations with multiple audiences

Entrepreneurs must acquire market data and information (Pre-marketing) Four main categories: Product attributes important to customers Customer behavior indicating a willingness to pay Trends Customer preference locations Two main types: Secondary – economical, already published Primary – collected directly for specific purposes Groups, survey’s, & experiments

Customer Development Steve Blank

Customer Development Questions Do you have problem x? Have you tried to solved it? how? what was the result? How much does problem x cost you? What does the perfect solution look like? Does this new product / feature solve your problem x? How does it solve problem x? How much would you pay to solve it? Does this create any new problems? How does purchasing work in your What are you currently paying to solve this problem? What does this product do for you that you cannot live without? What is your main problem/ pain in this area? What doesn't this product do for you that you must have? What part of the problem, if solved, will make the rest of it more bearable? What is your greatest problem/pain that this product should solve? What does our product do for you? How much time/$ do you waste on it?

Understand the Customer Choice Process ***new slide

Understand the Purchasing Process

Marketing strategy means aligning ends, ways, & means Marketing Strategy Gap or Risk Strategic Variables An entrepreneurs’ resources & capabilities (means), and objectives (ends) differ from those of established companies, therefore they must employ different strategies (ways)

Consumer Adoption Behaviour ***new slide Particularly applies to innovative products Adoption rate can vary (i.e. slower for complex products)

Segmentation, Targeting, and Positioning Frame Strategic ‘Ends’ Detect customer segments in your market Decide which profitable segments to target Position your offering in the minds of your target segments

Segmentation, Targeting, and Positioning Frame Strategic ‘Ends’ Detect customer segments in your market Decide which profitable segments to target Position your offering in the minds of your target segments

Segmentation, Targeting, and Positioning Frame Strategic ‘Ends’ Detect customer segments in your market Decide which profitable segments to target Position your offering in the minds of your target segments

The 4 Ps of Marketing

Marketing mix = Ways you employ Means to achieve Ends The 4-P’s are derived from your choice of target segment & positioning All 4 variables are interdependent…a change to one, may require a change to the others.

Guerilla Marketing Is Often Used by Entrepreneurs It is non-traditional, grassroots, captivating, and viral It creates word-of mouth and buzz Why? - Fewer resources require each effort to yield out-sized impact.

Types of Guerrilla Marketing Word-of-mouth marketing: Giving people a reason to talk about your products and services and making it easier for that conversation to take place. Buzz marketing: Using high-profile entertainment or news to get people to talk about your brand. Viral marketing: Creating entertaining or informative messages that are designed to be passed along in an exponential fashion, often electronically or by email.

Social Media Marketing

Social Media Plan Listen – locate customers, assess their social activities, look for small focused audiences Plan – define business objectives, decide how your brand’s strength’s be extended online Strategy – identify how and where you will do it, how relationships with customers will change, and who will be leading it Tools – decide what social tools you will use and how you will monitor activities and measure success

Case: Eu Yan Sang International, Ltd. Which Way Forward for Eu Yan Sang? As a high-quality producer with a solid distribution base and brand recognition in its home territories, Eu Yan Sang is in a position that many product companies must surely envy. But it cannot rest on its past accomplishments. Management finds itself facing many strategic questions: Can it successfully leverage its current strengths to the untested markets of China and the United States? Given its limited resources, how should EYS prioritize its growth initiatives? What product, branding, pricing, and promotional strategies will make it successful in these very different markets?

Recap: Marketing Is A Delicate Balance of Art and Science. Have a solid, consistent strategy Adapt your tactics as conditions change (scale) Focus on the fundamentals Startups must go guerilla or social due to resource constraints

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