UNIT-V

ENTREPRENEURIAL
MARKETING
Entrepreneurship and Project Management
 Entrepreneurial Marketing
• Marketing and entrepreneurship have been regarded traditionally as two distinct
fields of study. A growing awareness of the importance of entrepreneurship and
innovation to marketing, and of marketing to successful entrepreneurship, has led to
attempts to combine the two disciplines as "entrepreneurial marketing''. The main
thrust of entrepreneurial marketing is an emphasis on adapting marketing to forms
that are appropriate to small and medium-sized enterprises (SMEs), acknowledging
the likely pivotal role of the entrepreneur in any marketing activities.
Entrepreneurial Marketing

• Entrepreneurial marketing is the unique set of marketing

practices and methods used by entrepreneurs, start-ups, and
small businesses to market and build sustainable businesses.’’

•
WHY MARKETING IS CRITICAL FOR
ENTREPRENEURS?
• Marketing is vital process for entrepreneurs because no venture can
become established and grow without a customer market.

• Entrepreneurs often are faced with designing the entire “ marketing

system” – from product and price to distribution and communication

•
 Entrepreneurial Marketing
• Entrepreneurial marketing includes innovation, risk taking, and being proactive.
Entrepreneurial marketing campaigns try to highlight the company's greatest
strengths while emphasizing their value to the customer. Focusing on innovative
products or exemplary customer service is a way to stand out from competitors. They
make this pitch using cheap and accessible tools including viral videos, Tweets,
Facebook pages, and email marketing. Any and all marketing strategies can be
considered as long as they produce results.

• Entrepreneurial marketing mostly addresses environments where products and

companies are rather new. Besides, the liability related to newness and the limited
resources of startups are the main problems in entrepreneurial marketing.
Importance of Marketing
Characteristics of Entrepreneurial Firms
• Limited Resources

• Small Size

• Not known to the customers

Features of Entrepreneurial Marketing
Proactive orientation

Innovativeness

Focus on the customer

Utilizing an opportunity

Risk Management

Value Creation
 New Product Development(NPD)
• Product Planning

• Product Planning’ is the process of determining in advance that line of products

which can secure maximum net returns from the markets targeted.

• Product planning is a “process of constantly reviewing and revising

product portfolio of a firm with an objective of security a balanced sales growth,
cash flow and risk.”
 New Product Development(NPD)
• Product Planning

• In other words, product planning is a process of deciding in advance

by the firm about what type of products it should develop and sell in
the market so that the product serve as an instrument to achieve
the marketing objective. It also monitors the product behaviours
and deciding whether it should continue in the product line or any
modification is required as to suit the changing consumer needs.
 New Product Development
• Accordingto PDMA i.e. Product Development and
Management Association, new product development
means, “improve the effectiveness of people engaged in
developing and managing new products both
manufactured goods and new services. This mission
includes facilitating the generation of new
information, helping to convert this information into
knowledge which is in a usable format, and making this
new knowledge broadly available to those who might
benefit from it”.
New Product Development Process
Types of New Products
• New-to-the world Products

• New Product Lines

• Additions to a Product Line

• Improvements and Revisions of Existing Products

• Repositioning

• Cost Reduction
New Product Development Process
• Idea Generation

• Idea Screening

• Concept Testing

• Business Analysis

• Product Development

• Test Marketing

• Commercialisation
Benefits of the New Product Development Process

• Helps check the technical feasibility of the idea

• Ensures faster time to market
• Effectively addresses the customer needs
• Multiplies the chances of success
• Reduces technical debt
• Better management of the feature creep
• Negates the opportunity cost
 Essentials of Marketing
• Marketing, Strategic planning for competitive advantage.

• Social responsibility, Ethics and the marketing environment, developing a global

vision.

• Analyzing Marketing Opportunities : consumer decision making, business marketing.

• Segmenting and targeting markets, Decision support systems and marketing research.

• Product concepts, developing and managing products, services and non profit

organization marketing
Essentials of Marketing
• Marketing channels and supply chain management, Retailing.

• Integrated marketing communications, Advertising and Public Relations.

• Sales promotion and personal selling.

• Pricing concepts, Setting the right price.

• Customer Relationship Management.

Product Life Cycle
v Definitions
•  Acc to Philip kotler:
    “The PLC is an attempt to recognize the distinct
stages in the sales history of   the product.”
•  Acc to William J. Stanton:
  “The Product life cycle concept is the explanation
of the product from its birth to death as a product
exists in different stages & in different competitive
environments”
Importance of Product Life Cycle
• Helpful in sales forecasting.
• Helpful as a predictive tool.
• Helpful as a planning tool.
• Helpful as a control tool.
• Helpful in framing marketing programme.
• Helpful in price determination.
• Development of new product.
• Comparison of different products.
Stages in Product Life Cycle

v Introduction
v Growth
v Maturity
v Saturation
v Decline
Stages in Product Life Cycle
 Introduction Stage
• Itis the 1st stage, where in the product
is launched in the market with full
scale production &
marketing programme.
• The product is a new one. It means “
a product that opens up an entirely
new market, replaces an existing
product or significantly broadens the
market for an existing product.”
• Inthis stage sales grow at a very lower
rate because it is not an effective
demand.
Introduction Stage
Characteristics 
• Low & slow sales.
• High product price.
• Heavy promotional expenses.
• Lack of knowledge.
• Low profits.
• Narrow product lines.
Marketing Strategies during PLC
Introduction Stage
• Makeproper advertising before the product is launched in
the market.
• Shorten the period of introduction as far as possible.
• Heavy advertising & promotional expenses( attractive gifts).
• Selective distribution & attractive discount to dealers.
• Ifproduct is technical then adopt skimming pricing policy &
if product is simple then adopt penetration pricing policy.
Growth Stage
• Once the market has accepted the
product, sales begin to rise & product
enter its 2nd stage.
• The product achieves considerable &
widespread approval in the market. The
sales & profits increases at an
accelerated rate.
• In
this effective distribution, advertising
& sales promotion are considered as the
key factors.
Growth Stage
Characteristics
•Rapid increase in sales.
•Product improvements.
•Increase in competition.
•Increase in profits.
•Reduction in price.
•Strengthening the distribution
channel.
Marketing Strategies during PLC
Growth Stage
•Improve the product quality.
•Add new product features & improve the product
style.
•Enter into new market areas
•Reduce the price to attract a greater number of
buyers.
Marketing Strategies during PLC
Growth Stage
• Increase in promotional activities.
• Strengthen the distribution channels by increasing the
number of retailers.
• New version/models, in different sizes &
price range are introduced to cater the requirements of different
types of buyers.
• Create brand image of the product through
promotional activities.
• Emphasis on customer satisfaction.
Maturity Stage
• Market becomes saturated because the h
ousehold  demand is satisfied &
distribution channels are full. 
• The Product has to face keen competition
which brings pressure on prices. Though
the sales of the
product rises But at a lower rate. Profit 
margin however decline  due   to keen
competition.
 Maturity Stage
Characteristics
•Sales increases at decreasing rate.
•Normal promotional expenses.
•Uniform & lower prices.
•Product modifications.
•Dealer’s support.
•Profit margin decreases
Marketing Strategies during PLC
Maturity Stage
• Improve the quality of the product & introduce some new models.
• Give proper attention to increase the usage among the current
customers & also pursue some new uses of the product.
• Try to convert non-users into users of the product.
• Introduce new packaging & wrapper change policy.
• Lowering the price to attract more consumer. Middlemen’s margin is
increased, to create the interest.
• Give proper emphasis on advertising & promotional programmes.
• Change in the style & design of the product.
Saturation
• During the product saturation stage, competitors have begun to take a portion of
the market and products will experience neither growth nor decline in sales.

• Typically, this is the point when most consumers are using a product, but there are
many competing companies. At this point, you want your product to become the
brand preference so you don't enter the decline stage.

•
 Marketing Strategies during PLC
Saturation
• When the market has become saturated, you’ll need to focus on
differentiation in features, brand awareness, price, and customer service.
Competition is highest at this stage, so it’s critical to leave no doubt
regarding the superiority of your product.

• If innovation at the product-level isn’t possible (because the product only

needs minor tweaks at this point), then invest in your customer service
and use customer testimonials in your marketing.
Decline Stage
• This is the final stage, sooner or later actual
sales begin to fall under the impact of new
product competition & changing consumer
behavior. The sales & profits fall down
sharply & the promotional expenditure has to
be cut down drastically.
Decline Stage
Characteristics
•Rapid decrease in sales.
•Further decrease in prices
•No promotional expenses.
•Suspension of production
work.
Marketing Strategies during PLC
Decline Stage
• Improve the product in a functional sense.

• Review the marketing & production programs.

• Emphasis on cost control techniques to generate profits means cut all costs
to minimum level.
• Economy packs or models may be introduced to revive the market.

• Adopt selective promotion of the product to reduce distribution costs.

• Packaging may be made more attractive & reusable packages.

• R&D efforts are increased to innovate the new product.

• Sales incentive schemes are introduced to get dealer’s support.

4 A's of Marketing
 Marketing Mix
• Marketing mix means blending or combining of the four elements of
marketing, viz., the product, the price, promotion and place into a
marketing plan by a business firm to influence the desired buyers’
response by satisfying their needs and wants in the most effective and
economical manner.

• According to Philip Kotler, marketing mix defined as “the set of

controllable marketing variables that the firm blends to produce the
response it wants in the target market.”
MARKETING
MIX
Marketing Mix
• The marketing mix was first used by James Culliton in the 1940’s and was
originally the four P’s (Product, Place, Price, Promotion). Then in the
1960’s a marketing professor called Edmund Jerome Mc Carthy added
another three, to make it more applicable to service industries. In the
1990’s the 4 C’s were introduced and today we have the 7’C’s which form
the latest Marketing Mix.
MARKETING
MIX
 Market Segmentation
• Market Segmentation is the strategy of ‘divide’ and ‘conquer.’ i.e. dividing the market

in order to conquer them. So, it is refers to the division of total market into a
sub-market is called as market segmentation.

• According to Philip Kotler, Market Segmentation refers to “the subdividing of a

market into homogeneous subsets of customers where any subset may conceivably
be selected on a market target to be reached with a distinct marketing mix".

• According to W J Stanton, Market Segmentation consists of “taking the total

heterogeneous market for a product and dividing it into several sub-markets
or segments each of which tends to be homogeneous in all significant aspects.”
Importance of Market Segmentation
• Adjustment of product and marketing appeals

• Better position to spot marketing opportunities

• Allocation of marketing budget

• Effective competition with rivals

• Effective marketing programme

• Evaluation of marketing activities

Objectives of Market Segmentation
• Better Service

• Market Specialization

• Optimum utilization of resources

• Increase efficiency

• Easy updates of changes in the marketplace

• Effective planning and Implementation

Basis of Market Segmentation
Geographic Segmentation
• Region: Continent, Country, State

• Size of metropolitan area: Segmented according to population

size

• Population Density

• Climate
Basis of Market Segmentation
Demographic Segmentation
• Age • Education

• Gender • Generation

• Family Size • Ethnicity

• Family Life Cycle • Nationality

• Income • Religion

• Occupation • Social Class

Basis of Market Segmentation
Psychographic Segmentation
• Interests

• Activities

• Opinions

• Values

• Attitudes
Basis of Market Segmentation
Behavioural Segmentation
• Benefits Sought

• Usage Rate

• Brand Loyalty

• User Status

• Readiness to buy

• Occasions
STRATEGIES OR STRATEGIES OPTIONS OF MARKET SEGMENTATION

Concentrated Marketing
• A firm may decide to concentrate all available

resources on one chosen segment within the total

market. It selects a market area where there is no
strong competition, and it can do best in that area.

• It is an “all-the-eggs-in-one-basket” strategy. It

demands innovation in order to ensure customer

patronage continuously.
STRATEGIES OR STRATEGIES OPTIONS OF MARKET SEGMENTATION

• Differentiated Marketing

• An organization under differentiated marketing strategy,

enters many marketing segments but has a unique

marketing mix appropriate for each segment. It wants to
do business successfully in several segments.

• However, differentiated marketing has one disadvantage

viz., higher production and higher marketing costs.

STRATEGIES OR STRATEGIES OPTIONS OF MARKET SEGMENTATION
• Undifferentiated Marketing
• Marketing firm does not prefer to segment the
market but just makes an attempt to design a
product and a marketing programme that appeals
to the broadest number of buyers. In this strategy
market is concerned with mass marketing.

• It uses the “Scatter Shot Philosophy” i.e. production

of product in large in disorganized way rather than
focusing on particular segment.
Steps in Market Segmentation
• Assess the differences between groups in terms of their needs
and requirements and their perception about the product to be
offered.

• Find out the descriptive characteristics that can be used to

tag on a particular segment of customers.

• Segregate the customers based on above criteria.

 Steps in Market Segmentation
• Analyse and decide separate marketing programmes and
marketing mixes, if possible, for the different segments of markets.

• Identify the segment which would be satisfied with the offering of

the business. Estimate the volumes of purchase by different segments.

• Finally, select those segments which would offer the

highest potential and which would be amenable to the offerings of the
firm.