D5 – Ready to Start Entrepreneurial Marketing

D5 – Entrepreneurial Marketing Aim: To appreciate the importance of marketing throughout the business start up process Learning Outcomes: To develop a marketing strategy for an small business To identify key market segments for a Focus strategy

Mike Grandinetti MIT Sloan School of Mgt Entrepreneurial Marketing Defines the business Aligns and counterbalances the internal and external requirements and forces Creates sustainable business value Highly responsive to market (close to customer)

Mike Grandinetti MIT Sloan School of Mgt Entrepreneurial Marketing Framework Market Discovery –(what is the customer’s ‘pain!’) Product Development Market Strategy Product / Company Launch Measurement and Refinement

Mike Grandinetti MIT Sloan School of Mgt Market Discovery (1) Market segmentation Identify customer’s pain Competitive environment Market size / growth

Mike Grandinetti MIT Sloan School of Mgt Spin out? “ Great devices are invented in the lab, great products are created in the market” Bill Davidow MIT Sloan Management School.

Mike Grandinetti MIT Sloan School of Mgt Market Discovery (2) Market segmentation –FOCUS IS KEY –Pick 1-3 well defined, accessible markets and dominate “Marketing must create complete product offerings and drive them into commanding positions in defensible market segments” – Bill Davidow

Mike Grandinetti MIT Sloan School of Mgt Market Discovery (3) Markets will support several players They are not as homogenous as they appear – define your segments ‘Pain’ (need) is best identified through rigorous and systematic primary research Articulate the voice of the customer to segment the market

Mike Grandinetti MIT Sloan School of Mgt Unique Value Proposition Compelling reason to purchase Provides profit margin Quantify these benefits (money saved; time not wasted; family happier; children well fed) Position your product through your USP

Most attractive markets Segments with lots of demand Accessible segments Markets in which you offer USP / able to differentiate from competitors Few substitutes Markets in which suppliers and distributors do not have power FOCUS: on markets with lots of demand

Mike Grandinetti MIT Sloan School of Mgt Positioning Template For (target customers) Who (has the problem/need/pain) Our product ….*(is new) Provides… *(results) Unlike…*(competitors or substitutes)

Fundamentals Significant customer problem/need/desire to develop a sufficiently large market? Is the customer ready to buy ? Have you differentiated your value proposition?

Mike Grandinetti MIT Sloan School of Mgt Distribution Channels How does your product/service reach the customer? –Shops (how /when) –Internet –Mail –Multi- channel? Remember focused strategy to start with!

Marketing Planning Process Mission Market Audit SWOT analysis Marketing Strategy Marketing Objectives Communication / advertising / P.R Monitor and Control