enterprise marketing what is enterprise marketing ? definition: marketing the process of creating,...
TRANSCRIPT
Enterprise Enterprise MarketingMarketing
What is Enterprise Marketing ?
Definition: Marketing The process of creating, distributing, promoting
and pricing goods, services and ideas to facilitate satisfying exchange relationships with customers.
Definition: Enterprise A business organization An undertaking, especially one of some scope,
complication and risk.
Enterprise Marketing
Creating, distributing, promoting and pricing goods, services and ideas to business organizations.
Why do we market?
Brand awareness Generate demand Satisfy customer needs Generate value for customers Establish beneficial customer/buyer
relationships
The Marketing Mix
Product Distribution Promotion Price
Product
A good, service or idea
Developing a product that is a part of everyday life, that satisfies customer needs and expectations
Examples of successful products: Coco-
Cola,
Distribution
Getting the product to the customer Making the product available when the
customer needs it
Promotion
Increase customer awareness Offer buying incentives Generate demand
Price
Setting a reasonable price based on: Customer expectations Competition Perceived value
Customer value = Customer benefit - Cost
Good Ideas and Good Good Ideas and Good Products are “a Dime a Products are “a Dime a Dozen”Dozen”
Good People are Rare!
Marketing is…
Resource intensive Expensive Time consuming
The Solution: Target your market: Identify your market
segment and focus your marketing efforts towards it.
Marketing Plan: The systematic process of accessing marketing opportunities and resources, determining marketing objectives, defining marketing strategies and planning implementation of the marketing activities.
The Marketing Plan, components
Executive Summary Environmental Analysis: identifying the target
market Analysis tools: Porter’s five forces, S.W.O.T.
and P.E.S.T. Marketing Objectives: Numbers, projections
and financials Marketing Strategy: Activities, resources,
timetable
The Marketing Plan, continued
Marketing Implementation: the plan to meet the objectives
Evaluation and control: the means to measure the success or failure of the marketing plan, the contingency plan in case it fails.
P.E.S.T.
Political forces: Economic forces Socio-cultural forces Technological forces
Why Institutions are Why Institutions are Important to Business Important to Business Students and Otherwise Students and Otherwise Disinterested PartiesDisinterested Parties
Institutions and Technology
Legal Structure Bills of Exchange Insurance Taxation Association Double Entry Bookkeeping Diversity
Legal Structure
Late 1800’s Royal Courts in London began using precedent to enforce legal contracts. Allowed suits of foreigners. Reputation for fairness
Allowed growth of transactions Made London a world financial center to
be copied
Legal Structure
Weber states West inherited Roman formal law - logical and reasoned, free of ritual and magic
How does a legal structure create and promote technological advancement today? How will it directly impact your role as managers and entrepreneurs?
Bills of Exchange
Checks (or letters to the effect) created the first international banking system
Important to provide short term capital (loans) avoiding Catholic church’s usury prohibition
Deposits and trading of these checks developed into banks that provided deposits and loans - churning wealth
Insurance
Lloyds of London founded in late 1600’s Risks of piracy, sea hazards, etc... Allowed individuals to take greater risks
for greater potential gain Promoted more investment What are the implications for insurance
today in the technology arena?
Taxation
Arbitrary assessments paid for military protection People hid their wealth from confiscation -
everything in China owned by the Emperor Expansion of professional armies promoted
technological development, but required consistent revenue
Exchange from right to pillage to a stable activity
Taxation
Magna Carta first time individual property was protected from confiscation by the crown
Provided for town customs resulted in strength of new merchants -
Holland and England developed parliaments limiting royal power
Taxation
Problem of concealment of wealth prevented investment
Consistent and predictable taxation allowed businessmen to plan long term
New environments attracted capital, as wealthy merchants moved to protected locations
Much wealth was portable - not situated
Taxation
What are the implications of Tax policy on contemporary technological firms?
Social Institutions
Merchant families were a result of kinship ties
Larger investments of capital, such as shipbuilding, was done by the state
How do individuals organize themselves into productive units?
Investors began to have faith in “corporations” managed by others
Social Institutions
Limitations of family run empires Importance of larger organizations to
technological innovation How do social institutions promote
contemporary technological innovation?
Double Entry Bookkeeping
The hands in the till problem Bookkeeping creates an abstract entity Allowed to objectively evaluate
performance of a business How does bookkeeping alter our decision
making process regarding technological innovation today?
Weber and the Protestant Ethic
Calvinist doctrine promoted a calling or devotion to work
Wealth no longer looked at as inherited right, but god-given reward
Accumulation of capital was a service to god Devotion to work, dependability, diligence, self-
denial, austerity Reformation removed church from business
The Importance of Diversity
Newly emerging Nation-States were in competition with each other to amass wealth and conduct trade
Unlike in China, were a rational bureaucracy diffused power, Europe was fragmented
China adopted a policy of status quo - limiting the range of technological innovation and diffusion
The Importance of Diversity
In the West, technology could provide important advantages and diversity flourished
Factory Production
The Shift toward factory production Energy and the Industrial Revolution The Steam Engine Steel Textiles Ceramics Capital The Labor Market
The Shift Toward Factory Production 1750-1880 Required surplus in agriculture Guild was the rule until late 1800’s - family
firms with apprentices Factories were less personalized - company
towns provided living accommodations Growth of urbanization (enclosure laws
cited by Polyani)
Energy
Watermills, animals, and humans limits size of factories
Steam engine and improvements in harnessing water improved efficiency (1725 Newcomen engine)
Watt improved the engine fully by 1790, using 1/3 as much coal
Required production to be near coal, larger factories, away from the home
Iron and Steel
Improvement in 1700’s to 1800’s allowed output increase from 12 tons a week to 1600 tons a week.
Steam powered blowers to furnaces (technological linkages).
More ore, near coal, required transportation improvements (more linkages)
Mills created demand for their own product Compare with computer revolution
Technological Linkages
Steam engine allowed larger steel mills Steel Mills required advanced steel and
steam technologies Larger trains and ships now viable out of
steel - as are newer engines Military power depended on new types of
steel for canons and rifles
Textiles
Led the industrial revolution by 1788, 143 looms run by waterwheel
spinning cotton to 55,500 steamers in 1829 Technology of production went with
change in ORGANIZATION of production– From Cottage to Factory– Costs of textiles reduced - success meant the
cheapest product of comparable quality
Ceramics
Organizational change occurred before steam engine due to Taylorist nature
Organizational advantages of unified control, step by step production, specialization, and central power source
What are the organizational changes occurring now with the information revolution? How might they effect your activities?
Capital
Larger firms produced more goods - driving prices downwards as a result of technological improvements
R suggests that increases in factory output were sufficient to provide quick returns
Funding of capital by English country (deposit) banking system
Consumption was not lowered to fuel rev.
The Labor Market
Displacement of agricultural workers to urban environments. Conditions at the start of the industrial revolution were bleak. From 90% t 5% agricultural workers represents a major structural shift. Enclosure laws (Polyani again)
Factories drew from poor landless population
The Labor Market
In Paris, 1776, 91,000 homeless Replaced a social institution - the
apprentice system- resulting in less educational investment (but is was a severe system)
Factory perceived as exploitation of the poor- longer work hours, hazardous work
Franchise at the end of the revolution,1897
The Labor Market
Factories allowed employment of unskilled women and children, less theft, and more consistent working hours, in exchange for building the plant (capital investment)
Move from craftsmen satisfaction to “modern times”
What are the implications of new technologies on today’s labor market?
Class 1c
Managing Resources for Managing Resources for EntrepreneurshipEntrepreneurship
Review of Resource Based Approach
Personality Characteristics of E’s
Sociological Characteristics of E
Organizational Characteristics of E
Technology
Creativity
Review of Resource Based Theory SCA Created when firms possess resources
that are:– Valuable– Rare– Imperfectly imitable– Nonsubstitutable
Resource Types
Financial Physical Human Technological Reputational Organizational
Individual Resources
Psychologists look at personality– Need for Achievement– Locus of Control: Externals who believe in
fate, and Internals who believe in control – Risk Taking: not upheld by research
Weak results - Jamaican research: are entrepreneurs surviving or creating?
Sociological Approach SES- social and economic status Human Capital Social Capital
– religiosity– group membership– marital status
Financial Capital Other factors include age, immigrant, gender,
market structure,environmental factors
Process Models
Initiative Consolidation of resources Management of the organization Autonomous action (strategy) Risk taking
Commitment and Control of Resources Goal of acquiring resources for SCA
– aware of liquidity and time requirements– too soon and the wrong resources might be
obtained
While managers seek to control and own resources (for status and power) E’s are willing to borrow and rent non strategic resources
Management Structure
Usually prefer a flat organization with informal networks– coordination important because nonstrategic
resources are uncontrolled and must be shared
Incentives are usually deferred compensation, stock options, equity
Knowledge
Critical to a start up - often a result of a spin off
Tacit knowledge most important - the way of doing - uncodified– much harder to duplicate