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The entrepreneurial
marketing mix
The
entrepreneurial
marketing mix
Diane M. Martin
University of Portland, Portland, Oregon, USA
391
Abstract
Purpose This paper identifies and examine a divergence of philosophies and practice between
corporate/traditional marketing (CTM) and entrepreneurial marketing (EM). The paper examines the
case of an entrepreneur who also possesses a deep understanding of CTM practices. The purpose of
this paper is to learn which set of marketing practices entrepreneurs are likely to privilege.
Design/methodology/approach This paper is an ethnographic investigation of a marketing
entrepreneur: one who possesses a deep understanding of CTM and who is also a successful
entrepreneur. Data collection and analysis included participant observation, multiple interviews, and
interpretation of textual and video data.
Findings Entrepreneurs with CTM expertise privilege elements of EM. Rather than relying on the
traditional four Ps (product, price, place, and promotion), their marketing strategy and practice is
reminiscent of the entrepreneurial four Ps (purpose, practices, process, and people). Communication
competency is foundational to successful EM.
Practical implications Entrepreneurs are encouraged to assess their personal situations and
identify ways to improve their organizational and interpersonal communication skills and personal
contact network processes.
Originality/value This paper provides a provocative look at how CTM theory and practice are
superseded by the creativity, flexibility, and innovation of day-to-day entrepreneurship. The paper
validates a framework for analysis of marketing practices specific to entrepreneurs.
Keywords Entrepreneurialism, Marketing, Marketing mix, Communication
Paper type Research paper
Introduction
Periodic examination of traditional assumptions of marketing theory allows scholars
to remain relevant to emerging trends in business. Scholars note that both marketing
theories and entrepreneurship theory privilege the notion of value creation, that is, the
notion that elements are combined in a manner that results in the provision of value to
the user (Morris et al., 2002). Others creatively combine foundational theories of both
disciplines into a body of research concerned with marketing in the context of small
and medium-sized enterprises (SME) and with business practices called the marketing/
entrepreneurship interface (Gilmore and Coviello, 1999; Hoy, 2008). Scholars
acknowledge important differences between large and small business ventures and
call for greater presence of entrepreneurial elements in marketing theory education
(Carson, 1993; Stokes, 2000). This paper challenges the one size fits all assumptions
of marketing theory to qualitatively identify and examine philosophical and practical
differences between corporate/traditional marketing (CTM) and entrepreneurial
marketing (EM).
Criticisms of traditional marketing theory and education include:
[. . .] an over-reliance on established rules of thumb, encouragement of formula-based
thinking, lack of accountability for marketing expenditures, an emphasis on the promotion
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elements of the marketing mix, focus on superficial and transitory whims of customers, the
tendencies to imitate instead of innovate and serve existing markets instead of creating new
ones, a concentration on short-term, low-risk payoffs, and marketing as a silo with static and
reactive approaches (Morris et al., 2002, p. 2).
while Zontanos and Anderson (2004) offer the four Ps: person, process, purpose, and
practices, as a better frame for understanding marketing in entrepreneurial firms.
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organization: creation, innovation, uniqueness and growth (Hills and LaForge, 1992).
More to the point is the primacy of relationships as indicative of ones personal contact
network. According to Carson (1993), contact networks are a natural phenomenon, not
planned processes. However, there may be some difference in how they are used.
Marketing managers networks are consciously used, while entrepreneurs are
subconsciously used (Carson, 1993). There appears to be a distinction between the
way personal contact networks are used relative to the different roles and
responsibilities expected of marketing managers and entrepreneurs doing marketing.
Marketing entrepreneurs
Entrepreneurs are not typically marketing experts. As such, the vocabulary and
foundations of formal marketing theory are often unfamiliar to them (Stokes, 2000).
Dodge et al. (1994) argue that the most prevalent problem in small firms is a lack of
knowledge about the marketplace and planning. Indeed, most owner-managers do not
define their own marketing mix in terms of product, pricing, place and promotion, but
appear to prefer interactive marketing (Carson et al., 1995, p. 230). Small
entrepreneurial knowledge-based firms are characterized by entrepreneurs lack of
marketing development competencies coupled with their high technical and
professional skills (Capaldo et al., 2001). Although most entrepreneurs are unfamiliar
with formal marketing theory, they are often so personally embedded in the enterprise
that they can ill afford mismanagement of the personal contact network at the heart of
EM success. Entrepreneurs may not know the vocabulary and concepts but they are
keenly aware of the value of the results of good marketing.
Marketing scholars have identified the need to better understand strategic
relationships, alliances, and networks (Achrol and Kotler, 1999). Zontanos and
Anderson (2004, p. 231) note that a small firms marketing advantage, in contrast to a
large firm, is precisely these close relationships between the entrepreneur and
customers. Entrepreneurs must be excellent communicators; both effective at
conveying understanding and skilled at persuasion and influence. An entrepreneur
who specializes in marketing would seem to have his or her feet planted in both worlds.
Those who are both competent communicators, the cornerstone of personal contact
network success, and knowledgeable marketers, possessing a deep understanding of
CTM theory, are in a uniquely qualified to assess skills and resources from both CTM
and EM. This study examines the work of just such an entrepreneur.
Methodology
Interpretive theorists argue that social reality is negotiated and constructed through
sense-making processes (Anderson, 1987; Lindlof, 1995). Assumptions of accuracy are
not bound by a search for the truth, but rather by the display and analysis of an
internally consistent and coherent system of evidence (Putnam, 1983). Qualitative
analyses enable sensitivity to contextual dynamics (Barley, 1986) because they focus
primarily on explaining the characteristic forms and variations of the phenomena
under consideration (Lofland, 1971).
This study continues a tradition of research that establishes a logical link between
the development and testing of EM theory and qualitative research methods (Gibb,
1990; Hill and Wright, 2000). Gibb (1990) argued that large sample questionnaires are
misplaced in researching small firms and that more inductive reasoning based on
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grounded theory (Glaser and Strauss, 1967) is a better method. Hill and Wright (2000)
also call for in-depth entrepreneurial research programs in the ethnographic tradition.
Finally, Cope (2005) demonstrates the value of phenomenological, in-depth,
unstructured interviews in entrepreneurial research.
Although not an ethnography in the strictest sense, this study benefited from my
prior experience as both an entrepreneur and a motorcyclist providing prolonged
engagement in the ethnographic tradition. My association with motor sports is very
loosely akin to what Corsaro (1980) described and strongly recommended as, prior
ethnography: becoming a participant observer in a situation for a lengthy period of
time before the study is actually undertaken (Lincoln and Guba, 1985, p. 251).
From 1990 to 1998, I owned and operated a marketing consulting business. Since
then, my time away from day-to-day entrepreneurial activities and education in
research methods has provided me with fresh eyes for participating in and observing
a relatively familiar scene. My hiatus from entrepreneurship enabled an appropriate
distancing, an opportunity to problematize the familiar.
Sampling and data collection
One of the cornerstones of interpretive research is theoretical sampling, i.e. data
gathering that is driven by concepts derived from the evolving theory, going to places,
people, or events that will maximize opportunities to discover variations among
concepts (Glaser and Strauss, 1967). This investigation focuses on one organization in
which the entrepreneur is also a marketing expert.
Data were collected as part of a larger study occurring over more than 18 months of
intermittent engagement. This longitudinal method corresponds with Gilmore and
Coviellos (1999) call for contextualized research methodologies at the marketing/
entrepreneurship interface. I conducted and video-tape recorded over 25 hours of
interviews. Field notes taken during observations were typed directly on a laptop
computer. Extended notes were added and typed up as soon as possible after each
observation, before the next observation, and usually within 24 hours. Initially, 50 pages of
field notes, meeting transcripts, and interview transcripts made up the corpus of the data.
Fieldwork consisted of observations and interviews at annual international
motorcycle competitions. I also analyzed artifacts (magazines, flyers, web sites, and
trade publications) and conducted in-depth interviews with the entrepreneur,
associates, customers, fans and suppliers. When appropriate a critical incident line
of questioning was used to elicit narratives from the entrepreneur about activities with
details of critical aspects (Curran et al., 1994). Multiple semi-structured interview
guides were designed to capture critical aspects of the dimensions of EM.
Entrepreneurial creations: the magazine and the mini-moto
The MiniMoto Supercross (SX) event and MiniMoto Magazine represent the
convergence of Tim Clarks two passions in life: motorcycles and marketing.
Supported by his wife and his business partner, Tim successfully carved out a new
market segment in the competitive motor sport market. Tims business combines
magazine publishing and competition promotion and demonstrates the creativity,
innovation, uniqueness, and growth that are the hallmarks of successful entrepreneurial
enterprises (Hills and LaForge, 1992).
Tim started riding motorcycles when he was just eight-years old and at the age of
15 had to fake some papers to show he was old enough to compete in off-road dirt
bike races near his California home. A run-in with a neighbor/art instructor who did
not appreciate young Tims noisy motorcycle on the neighborhood streets turned into
an opportunity to learn graphic design and uncovered an interest in marketing and
design. Tim later directed marketing projects for several multinational corporations.
Throughout his marketing career, Tim remained close to the motorcycle world. His
constant attention to innovations in design and after-market products led to the
identification of a new market segment: motocross competition for adults on mini-bikes
(MiniMoto SX). Tim explains how he got the idea for a new market segment:
I just watched and looked at everything. I watched how these companies were working very
hard to build products to build on to the Honda 50 and the KLX 110. Just looking in my daily
stuff. I spend a lot of time connecting myself to the industry. I watch the web a lot. I read the
magazines a lot. [. . .] I look and read and look and read and look and read. [. . .] A lot of
industry publications. We receive every industry publication. We look at everything that
comes in the door.
Tim kept a close eye on mini-bike after-market product innovations that allowed adults
to ride and compete on bikes originally designed for children. My interviews with
competitors at the second annual MiniMoto SX in Las Vegas in May 2005, revealed
several reasons for the success of MiniMoto competition. Adult riders find competing on
mini-bikes to be easier, safer, and more accessible than motocross racing on a full-size
motorcycle. Several riders moved to minis after getting hurt on their big bikes. If a rider
gets in trouble on the mini, he or she can just stand up and let the bike roll out on its own
rather than risk the danger of going down. The retro-fitted mini-bike provides adults a
chance to ride again, to be new entrants in a way that gives them confidence,
competence and pleasure. MiniMoto riders in the professional classifications even get
the chance to compete against top motocross racers, but doing so on mini-bikes.
Dimensions of culture, strategy, and tactics in entrepreneurship
MiniMoto SX was nurtured in a culture of creativity and innovation. True to Stokes
(2000) description of entrepreneurial culture, Tim first developed the magazine, then
the race, and then he looked for markets. Tim explains:
I decided we needed to have a race. What wins on Sunday sells on Monday. They had no
place to race; there was no organized event. Everything is about competition [. . .] the one little
part of the puzzle youre missing [. . .] a buddy of mine was the editor of (another) magazine.
[. . .] he had been there for years, came to me asking for creativity. I said I got this idea about
the mini-bike market. Ill create the magazine, Ill do all the art, you print it for free and they
did that. It was inserted into his magazine called Motorcycle Product News. At the time it was
half of their magazine, I then took the same artwork and I sent it to my printer in California
and he printed me my own with the same artwork. He printed 10,000. Once it got in
Motorcycle Product News, it just exploded. Every dealer in the United States gets that and
there are about 10,000 dealers.
Strategy
MiniMoto Magazine started as an insert to an established motor sport publication. As
interest in both the mini market segment and the magazine grew, Tim responded to
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The strategy works and customers know they are being heard. Tim claims that our
customer base absolutely does what we [want them to] do because we give them
everything they ask for. This bottom-up approach first serves the needs of a few
customers and privileges customer preferences (Stokes, 2000).
Tactics
The tactic of direct interchanges and building personal relationships (Stokes, 2000) is
the overarching tactic in the MiniMoto SX organization. Tim notes that he calls up
motocross superstar Jeremy McGrath and says Jeremy Im having a race and he
shows up. He dont go anywhere for under $10,000. And he shows up to our races
[for free]! The opportunity to compete with one of the top pros in the world brings
other competitors to the track to test their mettle. Even if they never make it past the
heat races, they can, as one competitor exclaimed, I tell the guys at home I raced
Jeremy McGrath!
Privileging the four Ps of EM
Development of the culture, strategies, and tactics used to identify and develop a new
motorcycle market segment can be best understood using the framework of Zontanos
and Andersons (2004) four Ps of EM: practices, purpose, person, and process.
Practices
Decisions about which practices to follow were based on innovative thinking and
making good use of meager financial resources. The MiniMoto SX is strategically
designed to take advantage of a major event in the motor sport industry. By holding
the annual MiniMoto SX on the night before the Las Vegas SX, a major international
motocross event, Tim takes advantage of the audience of motor sport enthusiasts
already in town for the SX:
Supercross is Saturday night [. . .] and I got into the mini-bike thing and I no sooner got into
the minibike magazine and I thought, theres nothing to sell. I need to create some sizzle, so
lets create a race [. . .] so lets do it the night before the biggest Supercross in the world [. . .]
cause theres 40,000 people that are going to come to this [Supercross] race.
Purpose
MiniMoto Magazine grew out of need to provide a place for after-market innovators to
advertise to a highly targeted market. Through constant monitoring of the industry,
Tim connected the dots and:
[. . .] realized that the mini market had tremendous potential because it was made up of a
number of cottage industries, several dozen [. . .] Ive always loved motorcycles, so I was
looking at the industry and I saw there was all these mom and pop start-up shops and they
needed a place to advertise. [. . .] Im a real graphics magazine guy. The biggest magazines for
off-road [motorcycle market] which minibikes would fall into are in my opinion [too expensive
for the after-market innovators]. So if you were a manufacturer that came up with a great idea
for a lever, or a swing arm or a grip, you couldnt afford to advertise in any of those
publications because a Dirt Rider full page ad is eight or nine grand. My whole concept was to
give these guys an arena they could participate in and [. . .] we still have passion. [. . .] so I said
lets make a magazine where a small guy could be a big fish. So we put the full page at $1500
now $1800, its the same magazine, you can buy full color more than black and white.
Person
A deep understanding of promotions and the role of public relations in launching a new
venture allowed Tim to leverage his personality and extend his limited resources.
Careful handling of the requests from the general motor sport media outlets allowed
MiniMoto SX to have a major impact in enthusiast and trade press:
We always cater to the media [. . .] We invite everybody in. We do a little safety talk [about
being on the racetrack and in the pits] because we think its important and let you [the media]
do your job. The biggest Supercross in the world was in Las Vegas the night after us, and in
every magazine in the world we have more pages about the MiniMoto than the Supercross. It
makes us feel like we accomplished what we were after. We really get more press than [. . .]
a billion dollar company.
Process
Tims understanding of CTM extends to his careful analysis of price point and the
process of developing a new market segment:
The genus of MiniMoto in Las Vegas [. . .] you know why it was so successful. Its because
I realized that there were 42,000 people that went to Sam Boyd [arena and casino] on Saturday
night to watch Supercross, to watch Chad Reed, Ricky Carmicheal, Bubba Stewart and they
all show up on Thursday or Friday because they love to be there, they love to gamble, they
need something to do. So we created Friday night for the 42,000 people. The first year we did
it, 5000 people showed up. Then the buzz hit. Do you realize that next year we could double
the prices and we could still sell out? Were not going to do that, were going to keep the prices
the same. Its going to explode.
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said I should meet his partner and if you showed up to this meeting in Vegas maybe we can
do something with you. [. . .] so I showed up in Vegas. And after an 8 hour meeting I ran
everything. Eric made the calls but I took over everything.
This conscious decision to extend his impact and network in the motor sport industry
led to the partnership that gave rise to MiniMoto SX and MiniMoto Magazine. Gilmore
et al. (2001, p. 142) note that entrepreneurs develop networks for useful personal
contacts [. . .] used to gather information about developing and adapting appropriate
marketing activities [. . .]. The MiniMoto SX race sold out in its third year. Vendors,
riders and racing fans enthusiastically refer to MiniMoto Magazine as their main
source for how-to tips, product reviews and industry news. A new market segment of
motor sports has been born.
Implications for practice and theory
This study examined the practices of a marketing entrepreneur; a man with deep
knowledge of and engagement in marketing and promotion services. With all the
experience and knowledge of CTM theory and practice at his fingertips, he proclaims
and exemplifies the effective leverage of personal contact networks and exceptional
communicative skills as the most salient aspect of his enterprises success. The MiniMoto
enterprise is just one of the situations in which organizations are not practicing the
classic, traditional strategic approach posited within standard marketing texts
(Chaston, 1997, p. 62). These results support the findings of a growing group of theorists
who privilege the role of personal contact networks in the marketing mix of successful
entrepreneurial enterprises (Hill and Wright, 2000; Morris et al., 2002; Zontanos and
Anderson, 2004). Zontanos and Anderson are quick to point out that entrepreneurs
exhibit relationship and EM without necessarily having a knowledge of the terminology
or formal construct. The study at hand examines the behaviors of one who has both the
training and experience of CTM but privileges the philosophy and practices of EM. The
analysis shows a strong preference for relationship marketing described by Zontanos
and Anderson as the new four Ps at the heart of the EM paradigm over the traditional
four Ps that constitute traditional marketing theory.
In answering the question in the title of his article, The need for a new paradigm for
small business marketing? What is wrong with the old one? Reynolds (2002) argued
that traditional marketing education is useful for enterepreneurs. The study at hand
indicates entreprenuers would be better advised to spend their time using and honing
communicaiton skills that help them build relationships. While the traditional four Ps (i.e.
product, price, promotion, and place) still lie at the heart of CTM theory, education, and
practice, entrepreneurs are advised to consider their communication competency in light
the new four Ps (i.e. person, process, purpose, and practices; Zontanos and Anderson,
2004). Each of these new four Ps is grounded in relationships and networks. Training
geared to improve one or more of the new Ps may prove to be more useful than the basics of
corporate marketing management and strategy found in traditional marketing education.
As Chaston (1997) argued, competency-based process model development can bridge the
gap between theory and practice for working entrepreneurs. Entrepreneurs are
encouraged to assess their own situations and identify ways to:
.
increase the reach of their personal contact networks; and
.
improve their communication skills.
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Passion sustains entrepreneurs through the uncertainties of daily decisions, the thrill of
new innovations and the challenges and setbacks that line the road to success.
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About the author
Diane M. Martin is an Assistant Professor of Marketing at the University of Portland in Portland,
Oregon, USA. She earned her PhD from the University of Utah in 2001. Her research interests
include entrepreneurial marketing, the communicative constitution of communities and markets,
sustainable marketing practices, and gendered consumption. Diane M. Martin can be contacted
at: martind@up.edu
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