Marketing for New

Ventures

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
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.

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.
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
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.

Entrepreneurial Marketing
Entrepreneurial Marketing
Marketing Strategy for Entrepreneurs/the Marketing Mix
Product
Strategy
place
promotion
Pricing Strategy

Entrepreneurial Marketing
Marketing Skills for Managing Growth
Understanding and Listening to the Customer


Building brand awareness and building brand equity
Entrepreneurial Marketing
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)
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
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
Its easier to sell into rapidly growing markets
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
5 stages of technological
adoption
Source: http://www.icsb.org/wiki/index.php?title=S_curve
5 stages of technological maturity
1. Bleeding edge - shows high potential but hasn't
demonstrated its value or generated consensus.
2. Leading edge - proven in marketplace but still
new enough that it may be difficult to find
knowledgeable personnel to implement or
support it.
3. State of the art - when everyone agrees that a
particular technology is the right solution.
4. Dated - still useful, sometimes implemented;
replacement leading edge is readily available.
5. Obsolete - superseded by state-of-the-art
technology, maintained but no longer
implemented by the specific firm.

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 companys overall
performance
Managers of established companies believe
they can always improve the performance of
their existing products to compete with new
products
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.
Entrepreneurial Marketing
Guerrilla marketing
Selections from Francesco
Mugnais Best Guerilla Marketing
Ideas
Use a different perspective
Useful plant life
Fitness
Good use of a parking garage
New type of golf bag
Improving
mens aim
Nikon thinks you rock
Shopping
cart with
a
message
Trueblood
advertisin
g
Barbeque breakdown
Kit Kat
Guerrilla marketing from an
unexpected source
http://www.youtube.com/watch?v=qMOuF8oskRU