ENT422: The Role of Entrepreneurship in Value Creation in Large and Small Enterprises Lecture 7

Guest Speaker: Lauren Dixon CEO, Dixon Schwabl  What were the motivating factors in Lauren’s decision to start the agency?  What are the agency’s distinct competencies? Are they sustainable over time?  Evaluate the marketing program of the agency. What are its Strengths? Weaknesses?  What is your assessment of Lauren’s plan to increase the billings of the company? What would you suggest?

Developing a Winning Marketing Plan for a New Venture Reading: Baron, Chapter 9 Marketing in a New Firm

Third Step of Entrepreneurial Process Launching a New Venture

Assume that …  The “IDEA” is an “OPPORTUNITY” adding value to the user;  The “RESOURCES” have been assembled including the TEAM – and Risk/Rewards are in balance. Now – MARKETING becomes an important COMPONENT in developing a successful venture.

Recall the Marketing Promotion Mix Consists of …  Sales Promotion  Advertising  Sales Force – Personal Selling  Public Relations  Direct Marketing

Personal Selling is the Central Component of Entrepreneurial Marketing  Direct personal selling is the entrepreneur’s most important tool  More valuable than advertising and other marketing – mix devices used by established companies  They are developed later

Effective Personal Selling is Developed By Following These Steps:  First, generate interest in a product/service by meeting a need of a customer or prospect;  Second, identify the requirements for purchasing the offering;  Third, overcome objections to a purchase by answering questions;  Fourth, close the sale by asking for the order;  Fifth, service after the sale is completed – a most important step.

ScrubaDub Case is Due Class Discussion of the Following Questions  What type of marketing philosophy has ScrubaDub adopted? Do you think this is the best choice? Why or why not?  What methods of market research were used by ScrubaDub? What additional research could it do to better understand its customers?  Do you think the promotional activities of ScrubaDub could be improved and or extended? Explain.  What kind of forecasting method do you believe would be most appropriate to estimate ScrubaDub’s market potential?

Workshop  Exercise 6 should be handed in. Groups will be asked to report in class on results.  Work on exercises 7 & 8. Exercise 8 should be handed in at the next class.

Assignment for November 9  Lecture: Planning for a Competitive Advantage in a New Venture Reading: Baron Chap. 10 Strategic Planning for Competitive Advantages  Workshop Exercises 7 & 8 should be completed. Exercise will be due and will be discussed in class.