1. Chapter 5 Entrepreneurial Marketing
Bygrave & Zacharakis, Entrepreneurship, New York: Wiley. ©

2. Entrepreneurial Marketing
Definition of marketing by the American Marketing Association:
an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stake holders.
Marketing practices vary depending on the type of company and the products and services it sells.
Bygrave & Zacharakis, Entrepreneurship, New York: Wiley. ©

3. Entrepreneurial Marketing
Why Marketing is Critical for Entrepreneurs
Because no venture can become established and grow without a customer market;
Because it is difficult and expensive to bring new products and services to market;
To differentiate product or service to customers makes the company distinctive and valuable;
Companies must be able to switch marketing gears quickly to attract new customer segments.
Bygrave & Zacharakis, Entrepreneurship, New York: Wiley. ©

4. Entrepreneurial Marketing
Entrepreneurs Face Unique Marketing Challenges
limited resources in financial, managerial, and time;
limited market information;
decision-making inclined to be muddled by personal biases and beliefs;
poorly established relations with multiple audiences.
Bygrave & Zacharakis, Entrepreneurship, New York: Wiley. ©

5. Market research techniques
Existing market
New market
Philosophy of market research
Deductive data analysis
Intuition
Techniques for gathering customer information
Focus groups, surveys, mail studies
Industry experts, trend extrapolation, future scenarios
Examples
New types of toothpaste, new car models
Social media exchange markets
Bygrave & Zacharakis, Entrepreneurship, New York: Wiley. ©

6. Disadvantages to existing companies entering new markets
Core rigidities: companies are only good at things they are used to doing
Tyranny of the current market: companies listen to their customers, who are not a source of ideas for new products in new markets
Use myopia: customers of existing firms see needs or solutions very narrowly (i.e., not the needs of others)
Bygrave & Zacharakis, Entrepreneurship, New York: Wiley. ©

7. Disadvantages to existing companies entering new markets
Because large companies have these disadvantages with new markets, new ventures should focus on new markets instead of established ones
Bygrave & Zacharakis, Entrepreneurship, New York: Wiley. ©

8. Entrepreneurial Marketing
Acquiring Market Information
Marketing research could cover information such as:
-Product attributes important to customers;
-Possibility of customers’ buying willingness by marketing behaviors;
-Market trend;
-The location of the customers’ preference.
Bygrave & Zacharakis, Entrepreneurship, New York: Wiley. ©

9. Entrepreneurial Marketing Acquiring Market Information
Two basic types of market data
Primary data
Data you collect yourself
Limitations of primary data
Secondary data
Economical and usually used to collect baseline information
Bygrave & Zacharakis, Entrepreneurship, New York: Wiley. ©

10. Bygrave & Zacharakis, 2007. Entrepreneurship, New York: Wiley. ©
Conjoint analysis
Asks individuals to express their preferences for various product that are especially chosen to offer a systematic array of features
Price, size, weight, battery life, color
Two choices for each feature leads to 32 different products (2x2x2x2x2)
Important to determine most important features
Bygrave & Zacharakis, Entrepreneurship, New York: Wiley. ©

11. Bygrave & Zacharakis, 2007. Entrepreneurship, New York: Wiley. ©
Conjoint analysis
Conjoint analysis is a useful technique for determining the relative importance, in the customer’s preferences and decisions, of the dimensions they consider important
Effective use of conjoint analysis helps entrepreneurs design products that have high appeal to potential customers and maximize chances of venture success
Bygrave & Zacharakis, Entrepreneurship, New York: Wiley. ©

12. Bygrave & Zacharakis, 2007. Entrepreneurship, New York: Wiley. ©
Market dynamics
Entrepreneurs are more successful in large and growing markets
Large markets amortize the fixed costs of getting started over a larger number of units
It’s easier to sell into rapidly growing markets
Bygrave & Zacharakis, Entrepreneurship, New York: Wiley. ©

13. Bygrave & Zacharakis, 2007. Entrepreneurship, New York: Wiley. ©
Market dynamics
The performance of product adoption follows an S shape
Initially, need a large amount of effort to achieve small improvements in product performance
Then performance improvements accelerate and small efforts can lead to large improvements
Later, must make large efforts to achieve small improvements
Bygrave & Zacharakis, Entrepreneurship, New York: Wiley. ©

14. Bygrave & Zacharakis, 2007. Entrepreneurship, New York: Wiley. ©
Market dynamics
Established firms rarely compete with entrepreneurs to develop new products on the early part of the S curve
The new product usually begins with inferior performance that hurts the company’s overall performance
Managers of established companies believe they can always improve the performance of their existing products to compete with new products
Bygrave & Zacharakis, Entrepreneurship, New York: Wiley. ©

15. Entrepreneurial Marketing
Marketing Strategy for Entrepreneurs
A company’s marketing strategy must closely align with its resources and capabilities;
Segmentation, targeting, and positioning are key marketing dimensions that set the strategic framework.
Bygrave & Zacharakis, Entrepreneurship, New York: Wiley. ©

16. Entrepreneurial Marketing
Marketing Strategy for Entrepreneurs/the Marketing Mix
promotion
Product
Strategy
place
Pricing Strategy
Bygrave & Zacharakis, Entrepreneurship, New York: Wiley. ©

17. Entrepreneurial Marketing
Guerilla Marketing
Guerilla marketing acts as non-traditional, grassroots, and captivating – that gain consumers’ attention and build awareness of the company.
Word-of-Mouth marketing, Buzz marketing, and Viral Marketing.
Other issues in Guerrilla Marketing.
Bygrave & Zacharakis, Entrepreneurship, New York: Wiley. ©

18. Entrepreneurial Marketing
Marketing Skills for Managing Growth
Understanding and Listening to the Customer
Building brand awareness and building brand equity
Bygrave & Zacharakis, Entrepreneurship, New York: Wiley. ©

19. Entrepreneurial Marketing
Conclusion
Marketing is a delicate balance of art and science.
It is necessary for entrepreneurs to scale up or change focus.
Bygrave & Zacharakis, Entrepreneurship, New York: Wiley. ©