PowerPoint Presentation by Charlie Cook Part III Formulation of the Entrepreneurial Plan C h a p t e r 10 Introduction to Entrepreneurship, Ninth Edition The Marketing Aspects of New Ventures © 2014 Cengage Learning. All rights reserved. This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.

The New Marketing Concept for Entrepreneurs Shift from the 4Ps to the 4Cs: Shift from the 4Ps to the 4Cs:  From Product……..to Cocreated  From Promotion….to Communities  From Price………..to Customizable  From Place………..to Choice The Era of Generation C (as in Content) The Era of Generation C (as in Content)  Connected, creative, collaborative, and contextual.  The customer is central to all effective marketing activity. © 2014 Cengage Learning. All rights reserved. This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part. 10–2

© 2014 Cengage Learning. All rights reserved. This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part. 10–3 The New Marketing Concept for Entrepreneurs Knowledge of the market Understanding of marketing research Development of the marketing plan Understanding and application of social media Proper approach to a pricing strategy

© 2014 Cengage Learning. All rights reserved. This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part. 10–4 Marketing Terms Market Market  A group of consumers (potential customers) who have purchasing power and unsatisfied needs.  A new venture will survive only if a market exists for its product or service. Marketing Research Marketing Research  The gathering of information about a particular market, followed by analysis of that information.

© 2014 Cengage Learning. All rights reserved. This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part. 10–5 Gathering Information Secondary Data Secondary Data  Information that has already been compiled. Advantage: Less expensive and availableAdvantage: Less expensive and available Disadvantages: outdated, lacks specificity, questionable validityDisadvantages: outdated, lacks specificity, questionable validity Sources: internal and/or external sourcesSources: internal and/or external sources Primary Data Primary Data  Information that is gathered specifically for the research at hand. SurveysSurveys ExperimentationExperimentation

© 2014 Cengage Learning. All rights reserved. This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part. 10–6 Interpreting and Reporting the Information Data organized and interpreted is information. Data organized and interpreted is information.  Tables, charts, graphs  Descriptive statistics—mean, mode, median Market research subject areas: Market research subject areas:  Sales  Distribution  Markets  Advertising  Products

© 2014 Cengage Learning. All rights reserved. This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part. 10–7 Inhibitors to Market Research Mistaken beliefs that inhibit the use of marketing research: Mistaken beliefs that inhibit the use of marketing research:  Cost: research is too expensive.  Complexity: research techniques rely on overly complex sampling, surveying, and statistical analysis.  Strategic Decisions: only major strategic decisions need to be supported through marketing research.  Irrelevancy: research data will contain either information that merely supports what is already known or irrelevant information.

Social Media Marketing Social Media Marketing Social Media Marketing  The use of social networks, online communities, blogs, wikis, and other online collaborative media tools for marketing purposes. Effective Social Media Marketing Effective Social Media Marketing  Create value with an event, a video, a tweet, or a blog entry, that attracts attention and becomes viral.  Enable customers to promote a message themselves with multiple online social media venues.  Encourage user participation and dialogue that fully engages customers with online conversations. © 2014 Cengage Learning. All rights reserved. This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part. 10–8

Developing a Social Media Marketing Plan Listen Identify Categorize Appraise Implement Collaborate Contribute Convert Monitor © 2014 Cengage Learning. All rights reserved. This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part. 10–9

Entrepreneurial Tactics in Market Research © 2014 Cengage Learning. All rights reserved. This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part. 10–10 Guerrilla Marketing Insights in Ordinary Patterns Technological Tools Customer Observation Web-Based Surveys Focus Groups Lead User Research Blog Monitoring Archival Research

© 2014 Cengage Learning. All rights reserved. This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part. 10–11 Developing the Marketing Concept Marketing Philosophies Marketing Philosophies  Production-driven philosophy  Sales-driven philosophy  Consumer-driven philosophy Factors in Choosing a Marketing Philosophy Factors in Choosing a Marketing Philosophy  Competitive pressure  Entrepreneur’s background  Short-term focus

© 2014 Cengage Learning. All rights reserved. This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part. 10–12 Developing the Marketing Concept (cont’d) Market Segmentation Market Segmentation  The process of identifying a specific set of characteristics that differentiate one group of consumers from the rest.  Demographic variables Age, marital status, sex, occupation, income, and locationAge, marital status, sex, occupation, income, and location  Benefit variables Convenience, cost, style, trends (depending on the nature of the particular new venture)Convenience, cost, style, trends (depending on the nature of the particular new venture)

© 2014 Cengage Learning. All rights reserved. This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part. 10–13 Consumer Behavior Consumer Behavior Consumer Behavior  The types and patterns of consumer characteristics: Personal characteristicsPersonal characteristics Psychological characteristicsPsychological characteristics Major Consumer Goods Classifications: Major Consumer Goods Classifications: 1.Convenience goods 2.Shopping goods 3.Specialty goods 4.Unsought goods 5.New products

© 2014 Cengage Learning. All rights reserved. This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part. 10–14 Developing a Marketing Plan Marketing Plan Marketing Plan  The process of determining a clear, comprehensive approach to the creation of customers. Elements of the Marketing Plan Elements of the Marketing Plan  Current marketing research  Current sales analysis  Marketing information system  Sales forecasting  Evaluation

© 2014 Cengage Learning. All rights reserved. This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part. 10–15 Developing a Marketing Plan (cont’d) Current Marketing Research Current Marketing Research  The purpose of marketing research is to identify customers—target markets—and to fulfill their desires. Areas of Market Research Areas of Market Research  The company’s major strengths and weaknesses  Market profile  Current and best customers  Potential customers  Competition  Outside factors  Legal changes

© 2014 Cengage Learning. All rights reserved. This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part. 10–16 Current Sales Analysis Sales Research Questions: Sales Research Questions:  Do salespeople call on their most qualified prospects on a proper priority and time-allocation basis?  Does the sales force contact decision makers?  Are territories aligned according to sales potential and salespeople’s abilities?  Are sales calls coordinated with other selling efforts, such as trade publication advertising, trade shows, and direct mail?  Do salespeople ask the right questions on sales calls? Do sales reports contain appropriate information? Does the sales force understand potential customers’ needs?  How does the growth or decline of a customer’s or a prospect’s business affect the company’s own sales?

© 2014 Cengage Learning. All rights reserved. This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part. 10–17 Market Planning Sales Forecasting Sales Forecasting  The process of projecting future sales through historical sales figures and the application of statistical techniques. Evaluation Evaluation  Evaluating marketing plan performance is important so that flexibility and adjustment can be incorporated into marketing planning.