Entrepreneurial Marketing Strategy

What do you think about the following statement?

Every successful entrepreneur

has a detailed master plan
right from the start.
a) Of course, this is true.
b) Generally, yes. More than 2 out of 3 entrepreneurs will have
some sort of documented business plan.
c) Not true. The vast majority of entrepreneurs
only have a vague idea of how things will work out.
d) Not true. An entrepreneur is someone with a great vision,
but totally incapable of organized thinking.

1.1) Introduction
Answer:
c) Not true. The vast majority of entrepreneurs
only vhae a vague idea of how things will work out.

Reasons:
Rapid change, high uncertainty
Reluctance to commit to one single plan
Implicit planning emerges over time
(muddling through)
Implications:
Strategic planning is a process.
Plan as much as you can, adapt as you proceed.

Why is SME Research Important?

Micro, small and medium-sized enterprises

(SMEs) are socially and economically important,
they represent over 95 % enterprises in the
Nigeria They provide around 60-70% jobs
representing two-thirds of all employment.
SMEs contribute up to 80% of employment in
some industrial sectors, such as manufacturing,
construction or furniture.
Important for the development of the nationsocially & economically.

Definitions: Entrepreneurship
Organisational level:

Individual level:

Creative
human
capital
Ability to
recognize
opportunities
Willingness
to take risks

enthusiastic
committed
professional
visionary
'hungry
open minded

Global
Dimension

...

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.

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)

Small Business Constraints

Lack of time to manage Lack of business resources- finance,
employees, marketing experience
Difficulty in predicting future market
changes-market research costs-marketing
& business planning- especially in
fragmented/highly competitive markets
Limited geographic scope in large markets
because of size

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.

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.

Individual Qualities Comparison

The Entrepreneur

The Marketer

is creative, innovative,
open for the
unconventional

tries constantly to stay

abreast of competitors

is ready to take risks, deal creates or seizes market

with uncertainty
opportunities
works for sustainable
business growth

works to increase market

share or build better
customer relationships

Common Misconceptions about Marketing

Marketing is equivalent to
advertising/selling.

Marketing is just the icing

on the cake.

Marketing is
manipulation.

Combining Entrepreneurship and Marketing

Strategy

Entrepreneurial
Challenge:

Marketing
Challenge:

How best to leverage

limited resources
to help the company
grow?

How to find
a profitable and
sustainable
market position?

Strategic Balance

Entrepreneurial Marketing

Marketing Strategy for Entrepreneurs

A companys marketing strategy must closely

align with its resources and capabilities;
Segmentation, targeting, and positioning are
key marketing dimensions that set the
strategic framework.

Combining Entrepreneurship and Marketing

Strategy
... at different implementation levels:
Individual:
Be a personality, a character and a creative
thinker and salesperson!
Organization:
Grow your company and keep connected
with the customer!
Environment:
Develop all stakeholder relations and treat
customers as your most important stakeholders!

Entrepreneurial & SME Marketing

Relationship Marketing
Getting close to your customer/markets
Leading customers- co-creation- incremental/ radical innovations
Networks- business, innovation, marketing, industry, personal
contact networks (PCNs)
Opportunity seeking- new markets, extended product/service
lines, shared opportunities, partnering, alliances
Reputation effects- branding for small business

Entrepreneurial Marketing: Strategic Challenges

exceed customer expectations

build trust, keep promises
achieved with relationship marketing

Customers
Internal
manage processes
show leadership
achieved with Ansoff
matrix

Competitors
seize opportunities
change the rules
balance attack,
defence and evasion
Acquire market
information via SWOT
analysis

Defining the Offer: The Ansoff Matrix

Markets
existing
existing Penetration

Products

new
Market
Development

Product
new Development Diversification

The Basis For Differentiation

Product

Price

Promotion Place

Where is your basis

for differentiation ?

Entrepreneurial Marketing
Marketing Strategy for Entrepreneurs/the Marketing Mix

promotion
Product
Strategy

Pricing Strategy

position

place

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.

Two basic types of market data

Secondary data; economical and usually used to collect baseline
information;
Primary data; and the limitations of such data.

Defining the Offer: SWOT Analysis

favourable unfavourable

Strengths

Weaknesses

Opportunities

Threats

Defining the Offer: PESTLE Analysis

Political
Economic
Social
Technological
Legal
Ecological

Influence on
Business Idea ?

Defining the Market Marketing Style

Transactional Marketing

Relationship Marketing

make-and-sell

sense-and-respond

sales volume maximization

customer value maximization

branding, advertising,
distribution partners

personal selling, direct and

database marketing

packaged goods

individual services

one-time customer

lifetime customer

high market share

stable relationships

Defining the Market Customer

Profiling
Transactional Marketing:

Relational Marketing:

Who is
your typical customer?

How does
your typical customer
interact with you?

Build a demographic portrait:

Age bracket, cohort
Family life cycle stage
Education, occupation
Disposable income/month
Usage pattern ...

Build a customer life cycle:

Non-customer
Prospect, lead
First timer
Repeat buyer
Testimonial

Enough for
today. . .
Thanks for
listening