Entrepreneurial Marketing

AJAY NAGRE
What are the central challenges facing
any organization today?
Competition
Markets
Resources – Skilled People, RMs
Rising expectation of customers
Pressure from stake-holders
Governments
Employees
Activists
• Environmentalists
• Feminists etc.
Why increase in competition?
Lower Entry Barriers
Access to Capital
Access to Technology
Access to information has reduced
arbitrage opportunities
Customers have become smart
Better informed
More risk taking
Evolution of Industry
Village w/o power – driven Monopoly/
Economy by man/animal Oligopoly

Industrial Power Driven – Perfect Competition

Revolution steam/electricity

Mass Assembly line/ Consolidation of

Production specialization Industry- reduction
of variety
Differentiated Platform Oligopoly – limited
Marketing I Technology variety

Differentiated Flexible Mfg. – Increased variety –

Marketing II Mass Customization niche products
Turning Points for Industry
Process/Mfg. Technology
Product Technology
Business Models
Emergence of new players with new
style
New marketing strategy –
segmentation/positioning
Product/Technology moving over PLC
Types of Change

Types of change

Gradual or Organic Change

Transformational or Radical Change

Impact of Radical Change
Products
Processes
Brands
Structures
Vision
Style may become obsolete
Impact of Change
Capital intensity (CAPEX) has gone up
PLC is shrinking
All resources are becoming freely available –
Time is the main constraint
Organizations need to be swift footed
Effective & Efficient at the same time
How?
Strategic Alliances
Loose-Tight organization
Process + Product Technology
Learning Organization – ability to re-invent
Ability to manage coalitions / partnerships
Delayering / Flattening of the organization
Stick to knitting + outsourcing
Technology for control
Problems faced Entrepreneurs
No / Slow reforms in factor markets
Labor Reforms
Land related issues
Financial / Capital Markets
Poor Legal Infrastructure
Poor Physical Infrastructure
Chalta hai culture
Inability to work in team
Strategies for Entering New Markets
Cost Leadership –lower costs than
competitors
Higher Delivered Value – more
desirable product than competitors
Focus – Niche markets
Strategies for Entering New Markets…

New products serving new needs

require deep pockets and are more
likely to fail
Have a professional & sophisticated
approach towards marketing
Markets are not homogeneous – there
is always a profitable niche
Strategies for Entering New Markets…
Do not offer me – too products
Innovation is the key – offer new
products to new markets
Introduce products at new price points
New attractive designs of old products
New products serving existing needs
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
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)
Entrepreneurial Marketing Framework

Market Discovery
(what is the customer’s ‘pain!’)
Product Development
Market Strategy
Product / Company Launch
Measurement and Refinement
Market Discovery (1)

Market segmentation
Identify customer’s pain
Competitive environment
Market size / growth
Spin out?
“Great devices are invented in the
lab, great products are created
in the market”
Bill Davidow MIT Sloan Management School.
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
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
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
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?
Marketing Planning Process
Mission
Market Audit
SWOT analysis
Marketing Strategy
Marketing Objectives
Communication / advertising / P.R
Monitor and Control