Ch.5 Marketing
Ch.5 Marketing
MARKETING
THE MARKETING CONCEPT FOR
ENTREPRENEURS
Market
Market
Knowledge
Knowledge
Marketing
Marketing Marketing
MarketingConcept
Concept Market
Market
Plan
Plan for
forEntrepreneurs
Entrepreneurs Research
Research
Pricing
PricingStrategy
Strategy
Approach
Approach
****Marketing Skills of Great Entrepreneurs
1. They possess unique environmental insight, which they use to spot opportunities that others overlook or
view as problems.
2. They develop new marketing strategies that draw on their unique insights. They view the status quo and
conventional wisdom as something to be challenged.
3. They take risks that others, lacking their vision, consider foolish.
4. They live in fear of being preempted in the market.
5. They are fiercely competitive.
6. They are meticulous about details and are always in search of new competitive advantages in quality and
cost reduction, however small.
7. They lead from the front, executing their management strategies enthusiastically and autocratically.
They maintain close information control when they delegate.
8. They drive themselves and their subordinates.
9. They are prepared to adapt their strategies quickly and to keep adapting them until they work. They
persevere long after others have given up.
MARKETING RESEARCH FOR NEW-VENTURES
What is a Market?:- A group of consumers (potential customers) who have purchasing power and
unsatisfied needs. A new venture will survive only if a market exists for its product or service (market niche).
What is Marketing? :-"Marketing is the management process responsible for “Identifying, anticipating and
satisfying” customer requirements profitably”.
What is Market Research:- Market research is the study of customers and the market.
What is Marketing Research?:- Marketing research is the study of all aspects of marketing. It is about
gathering of information about a particular market, followed by analysis of that information.
What is marketing plan:- The marketing plan will help determine who the target market is, how best to
reach them, at what price point the product or service should be sold, and how the company will measure its
efforts.
***MARKETING RESEARCH FOR NEW VENTURES:
Q- Is Marketing Research relevant to Entrepreneurs?
Purpose and Objectives
1. Marketing research is the first step in developing marketing plan for
launching a new business to improve the odds of success.
2. Marketing research provides data about customers, competitors and
effectiveness of marketing strategies, so as to develop a framework for
the implementation of strategies that would yield expected results.
3. To determine the feasibility of a new business, test interest in new
products/services, improve the aspect of business etc.
4. Overall, the purpose is to chalk out some strategy to market the product
or services that would give rise to a competitive advantage.
BENEFITS OF MARKET RESEARCH?
(b) Secondary Data: It is the information that has already been compiled and available with Firm.
Advantage: Less expensive and available.
Disadvantages: Outdated, lacks specificity, questionable validity.
2. DEVELOPING AN INFORMATION-
• Make sure each question pertains to a specific objective in line with the
purpose of the study.
• Place simple questions first and difficult-to-answer questions later in the
questionnaire.
• Ask: “How could this question be misinterpreted?” Reword questions avoid
misunderstanding.
• Avoid leading and biased questions.
• Give concise but not complete directions in the questionnaire.
• Use scaled questions rather than simple yes/no questions.
3.INTERPRETING AND REPORTING THE INFORMATION
• Sales Forecasting
• The process of projecting future sales through historical
sales figures and the application of statistical techniques.
• Evaluation
• Evaluating marketing plan performance is important so
that flexibility and adjustment can be incorporated into
marketing planning.
THE MARKET PLAN: A STRUCTURED APPROACH
3. Premium Pricing?:(Ideal incase no competitors in the market and the product provides
significant advantages to the customer because of the location, time, intense need. Examples?
PRICING STRATEGIES (CONT’D)
What are the Psychological factors affecting the pricing decision?
• The quality of a product is interpreted by customers according to the level of the item’s price.
• Customer groups shy away from purchasing a product where no printed price schedule is
available.
• Emphasis on the monthly cost of purchasing an expensive item results in greater sales than
an emphasis on total selling price.
• Buyers expect to pay even-numbered prices for prestigious items and odd-numbered prices
for commonly available goods.
• The greater the number of customer benefits the seller can convey about a product, the less
will be the price resistance.