coeur - bcm business creativity module “entrepreneurial marketing strategy” andrew turnbull ;...
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COEUR - BCMBusiness Creativity Module
“Entrepreneurial Marketing Strategy”
Andrew Turnbull ; George Snajdar
Entrepreneurial Marketing Strategy
Entrepreneurial Marketing Strategy – Outline –
1. Introduction:Entrepreneurship, Marketing and Strategy
2. Defining the Offer
3. Defining the Market
4. Timing the Entry Into the Market
Entrepreneurial Marketing Strategy
1.1) Introduction
What do you think about the following statement?
Every successful entrepreneurhas 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 entrepreneursonly 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.
Entrepreneurial Marketing Strategy
1.1) Introduction
c)Not true. The vast majority of entrepreneursonly have a vague idea of how things will work out.
Answer:
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.
Entrepreneurial Marketing Strategy
1.2) Definitions:Entre-/Europreneurship
Organisational level:
• Creativehumancapital
• Ability torecognizeopportunities
• Willingnessto take risks
Individual level:
• enthusiastic• committed
• professional• visionary• 'hungry‘
• open minded • ...
EuropeanDimension
Entrepreneurial Marketing Strategy
1.2) Definitions:Marketing ...
• … is the management process responsible for identifying, anticipating and satisfying customer requirements profitably. (UK)
• … is the discipline of conceiving offers as a function of consumer preferences,and promoting their commercialization. (France)
• …is market-oriented management. (Germany)
Entrepreneurial Marketing Strategy
1.2) The Importanceof Marketing: A Tale
New Economy (1995-2001):Shareholder Value Management
2002 Stock Market Crash
Only those dotcoms survivedthat had a sound customer base:
the True Economy .
Entrepreneurial Marketing Strategy
1.2) Individual QualitiesComparison
The Entrepreneur… The Marketer…
…is creative, innovative, open for the unconventional
…tries constantly to stay abreast of competitors
…is ready to take risks, deal with uncertainty
…creates or seizes market opportunities
…works for sustainable business growth
…works to increase market share or build better customer relationships
Entrepreneurial Marketing Strategy
1.2) Common Misconceptionsabout Marketing
Marketing is equivalent to advertising.
Marketing is just the icing on the cake.
Marketing is manipulation.
Entrepreneurial Marketing Strategy
1.2) Characteristicsof Strategy
Strategy...
• involves making long/medium/short term plans
• is contingent on top-level goals
• means mission-critical decisions
• provides a frame for individual actions
• can result in a planning document
Entrepreneurial Marketing Strategy
Strategic Balance
1.3) Combining Entrepreneurshipand Marketing Strategy
Entrepreneurial Challenge:How best to leverage limited resourcesto help the company grow?
MarketingChallenge:How to finda profitable and sustainablemarket position?
Entrepreneurial Marketing Strategy
1.3) Combining Entrepreneurshipand Marketing Strategy
... at different implementation levels:• Individual:
Be a personality, a character and a creative thinker and salesperson!
• Organization:Grow your company and keep connectedwith the customer!
• Environment:Develop all stakeholder relations and treat customers as your most important stakeholders!
Entrepreneurial Marketing Strategy
Com-petitors
Customers
1.3) Entrepreneurial Marketing: Strategic Challenges
• exceed customer expectations
• build trust, keep promises
Internal
• seize opportunities
• change the rules
• balance attack,defence and evasion
• manage processes
• show leadership
Entrepreneurial Marketing Strategy
2.1) Defining the Offer:The Ansoff Matrix
existing newMarkets
newProducts
existing Penetration
Diversification
MarketDevelopment
ProductDevelopment
Entrepreneurial Marketing Strategy
2.1) Defining the Offer:SWOT Analysis
favourable unfavourable
Strengths Weak-nesses
Opportu-nities
internal
externalThreats
Entrepreneurial Marketing Strategy
2.1) Defining the Offer:PESTLE Analysis
• Political
• Economic
• Social
• Technological
• Legal
• Ecological
Environment(s)
Influence onBusiness Idea ?
Entrepreneurial Marketing Strategy
2.2) Defining the Offer:The Basis For Differentiation
Product Price Promotion Place
Where is their basis
for differentiation ?
Entrepreneurial Marketing Strategy
2.2) Defining the Offer:The Basis For Differentiation
Study published by Babson College, Boston, Mass., USA
Entrepreneurial Marketing Strategy
2.3) “What’s In It For Me?”Customer Benefit Definition
product feature
generic benefit
meaningto customer
extended opening hours
convenience freedom
customer loyalty card
savings feelingmarket savvy
eco-certified products
good conscience
leading a meaningful life
Entrepreneurial Marketing Strategy
2.4) USP — Formulate a Unique Selling Proposition
• "When it absolutely, positivelyhas to be there overnight" – FedEx
• "Connecting people" – Nokia
• "Because I'm worth it" - L'Oreal(“Parce que je le vaux bien”)
• “United Colors of Benetton”
Entrepreneurial Marketing Strategy
3) 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
Entrepreneurial Marketing Strategy
3) Defining the Market – Customer Profiling
Transactional Marketing:• Who is
your typical customer?
Build a demographic portrait:• Age bracket, cohort• Family life cycle stage • Education, occupation• Disposable income/month• Usage pattern ...
Relational Marketing:• How does
your typical customerinteract with you?
Build a customer life cycle:• Non-customer• Prospect, lead• First timer• Repeat buyer• Testimonial
Entrepreneurial Marketing Strategy
3) Defining the Market – Market Forecast
Transactional Marketing:Estimate market size
top-down:
• Potential market?• Available market?• Target market?• Penetrated market after
first year in business?
Relational Marketing:Determine minimum market size bottom-up (Break-even analysis):
How many customers must be addressed to cover costs
of first year in business?
Entrepreneurial Marketing Strategy
Introduction Growth Maturity Decline
4) Timing the Entry Into the Market— Product/Market Life Cycle
marketvolume
Market Innovator
Product Innovator
time
Entrepreneurial Marketing Strategy
4) Timing the Entry Into the Market— Product/Market Life Cycle
Introduction Growth Maturity Decline
New customers
former non-buyers competitors’ customers
Main marketing problem
raising awareness, getting known
making product available
differentia-tion from competitors
retreat from market
Main instruments
Promotion Place Product,Promotion
Price
Spin on USP Newness Trendiness Distinctness Reliability
How can Marketing Strategy adaptto different Life Cycle Phases ?Q:
Entrepreneurial Marketing Strategy
4) Timing the Entry Into the Market— First Move Considerations
First Mover Advantages
Primacy effect: Making an early and lasting effect on customers
Investments into the market (e.g.: distribution network, consumer awareness) will pay off early.
First mover can start to build experience early, increase the lead and solidify the strategic position
First Mover Disadvantages
Recency effect: Followers have benefit of newness
Competitors’ free rider effect; investments may turn out to beexit barriers if/when market declinesCompetitors may catch up or outperform first mover if imitation barriers are low
Entrepreneurial Marketing Strategy
Finding New IdeasInnovationCreativity
Harvest ProfitPotentialEconomiesof Scale
PositioningagainstCompetitorsDifferentiation
Conclusion: The Innovation Cartwheel
MarketingNew Ideas
Making themacceptable to customers
EntrepreneurialMarketing Strategy
– a constant interplayof rulebreaking andmainstreaming ...