Intro to Entreprenuarship - Module 15
Intro to Entreprenuarship - Module 15 ENTR-27056-003
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This 7 page Class Notes was uploaded by Megan Angelo on Thursday April 14, 2016. The Class Notes belongs to ENTR-27056-003 at Kent State University taught by Kipp A. Krukowski (P) in Spring 2016. Since its upload, it has received 31 views. For similar materials see Intro to Entrepreneurship in Entrepreneurship at Kent State University.
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Date Created: 04/14/16
Planning Market Entry: The Entrepreneurial Marketing Plan Module 15 Developing an Entrepreneurial Marketing Plan Marketing includes: • All strategies, tactics and techniques used to raise customer awareness; to promote a product, service or business; or to build long-term customer relationships. Marketing in times of global change means that traditional methods may no longer work. • Products and services have much shorter competitive lives. • Impact of internet on price transparency and product variety. Challenges: • Rising above the crowd and building a competitive brand that is sustainable. • Determine how to effectively enter a market: • new company • new product/service • possible need to educate the customer New Product Adoption/Diffusion Curve Groups Customers Based on How Quickly They Adopt a New Product The Product Adoption/Diffusion Curve Innovators • First adopters, a very small customer base always interested in trying the latest, greatest thing; gatekeepers in that they decide whether a product will move forward to the mass market. Early Adopters • Eager to adopt new technology to solve problems; have $ to spend. Early Majority • Wait to buy until a product is proven and lots of people are using it. Late Majority • Usually an older group, buy proven products only after a low price point is hit and the product is a commodity. Laggards • Don’t buy the product until they absolutely have to; i.e., skeptical they need the product at all. Marketing Plan Benefits • Details the strategies and tactics that will create customer awareness • Builds a brand and a develops a loyal customer base • Provides a consistent message to the customer and creates an opportunity for the entrepreneur to make a sale The Marketing Plan Steps prior to writing the Marketing Plan: • Define the approach to the market • Message (is it one you can live with for a long time?) • Differentiation tactics (be specific) • Channel strategies • Performance goals • Define the value proposition (why is the customer going to buy this product from me) • Analyze and rank the marketing options • Establish (SMART) sales and marketing goals (sensible, measurable, achievable, realistic and time specific) 4 Major Items to be addressed in a Marketing Plan • Launch objectives and milestones (a timeline) • Brand strategy (how to build a customer’s emotional attachment) • Strategic alignment (if you emphasize reliability and customer satisfaction, your marketing plan should spell out strategies to achieve that goal, such as customer feedback mechanisms and training in the use of the product) • Assessing effectiveness (ask customers how they heard about the company/product/service) 5 P’s of Marketing • People (the customer) • Product • Price • Place (the channels through which customer can find the product) • Promotion (the strategies for creating awareness and reaching the customer) Advertising and Promotion Advertising • Is employed to pull the product through the distribution channel (Pull strategy) • Good to build brand loyalty and inform customer Promotion • Tends to be more price-focused or incentive-focused (Push strategy) • Good to reach price-sensitive customers with a low- differentiation product or in a declining industry Advertising Media • “Print” • Newspapers • Magazines • Direct marketing (direct mail) • Yellow Pages • Signs • Broadcast Media • Radio • Television • Internet • Advertising • Search Engine Optimization • Pod-casts • Blogs…..and so much more……. Taking Advantage of Publicity • Publicity and word-of-mouth (referrals) are two of the most effective entrepreneurial marketing tools around because they don’t cost the company any money • Requires a compelling story • Network with the media (give them free content for articles or free product to try/review) • Issue a press release • Must deliver good product/service to generate positive word-of-mouth Constructing an Effective Press Release Contents: • Date • Name of contact person • Phone number • Release date • Descriptive headline • Release information • The who, what, where, when, and why • Photo/Illustration • Explanatory note regarding why the release was sent • Company history Getting Customer Referrals • Ask satisfied current customers • Take customers to lunch to get ideas • Administer an open-ended online survey of your customers • Host an online discussion • Create a customer advisory board Giving It Away – When Is It Worthwhile? • When the customer is likely to return (ex.: Viagra) • When the cost for each additional item is low and margins are high (ex.: software) • When customers need to try the product/service before risking the money to buy it (ex.: satellite radio) • When samples of the product/service can be offered at a large event (ex.: food) Internet Marketing and New Media • Internet advertising was an over $26 billion market in 2009 vs. an estimated $121 billion in 2014 • Traditional media boundaries are disappearing • Barriers to content creation have been breached • New challenges and opportunities for entrepreneurs • Social Media (i.e., Facebook, LinkedIn) • Search Engine Optimization (i.e., coming up first on a Google/Yahoo search) • Search Engine Marketing (paid advertisers that show up on a Google/Yahoo search) Personal Selling • Become a value-added company by tailoring products to meet customers’ needs • Improve personal selling skills • Determine (on a one-on-one basis) what customers want from the sale • Give them what they want • Trade shows and exhibits • Expose products • Network on site and after the show • Rent a hospitality suite Identifying and Rewarding the Best Customers • For the average company, 24 percent of its customers account for 95 percent of its revenues • Calculate lifetime customer value as a series of transactions over the life of the relationship • Statistical Method • Calculate the value, in present dollars, of future purchases from a customer minus the cost, in present dollars, of keeping that customer Complaint Marketing • Research indicates that a dissatisfied customer will probably tell at least nine other people about the problem. • Complaints should be viewed as opportunities for continual improvement. • If a customer has a relationship with the company, their loyalty is often strengthened when a problem-solving session with the company results in a satisfying solution. (Another benefit to building relationships with your customers.) • Satisfaction surveys (provide valuable information if performed well).
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