SYOB

1

• PART 1
• INTRODUCTION TO MARKET LED APPROACH TO
  ENTREPRENEURSHIP

2
Twenty-First Century Characteristics of
Entrepreneurs

• Recognize and take advantage of opportunities
• Resourceful
• Creative
• Visionary
• Independent thinker
• Hard worker
• Optimistic
• Innovator
• Risk taker

3
MARKETING _at_ WORK

• Tata is a major Indian Industrial conglomerate.
  Tata Motors was until recently a lorry
  manufacturing company. When the company decided
  to enter the car market, it developed the INDICA
  within three years. The product failed due to
  suspension, air conditioning and after sales
  service problems. The CEO sent five hundred
  engineers out to the marketplace to talk to
  buyers. The next generation INDICA was ready
  three years later and quickly became a big seller
  in the small car segment.

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Market-OrientedPhilosophies of Entrepreneurship

• Market-oriented entrepreneurs commit to
  understand current/ latent customer desires plus
  competitors plans, capabilities
• Scan market more broadly, have longer-term focus
• Work closely with lead users (windows to future
  vs. anchors to past)
• Combine traditional research with
  experimentation, observation

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CHARACTERISTICS OF MARKET-LED APPROACH
Market- Led Approach
Leveraging of Distinctive Capabilities
Superior Performance
Customer Value/ Capabilities Match
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Market Sensing Capabilities
MARKET- DRIVEN ENTREPRENEURSHIP
Customer Linking Capabilities
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The way forward!
Market Vision, Structure, and Analysis
Continuous Learning About Markets
Segmenting Markets
8

• PART 2
• MARKET LED MARKETING PROCESS
• AND THE ROLE OF RESEARCH

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MARKETING PLANNING PROCESS
Situation Analysis
Implementing and Managing Marketing Strategy
Designing Marketing Strategy
Marketing Program Development
TM 2-5
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MARKETING STRATEGY DEVELOPMENT
Product strategy
Positioning strategy
Promotion strategy
Distribution strategy
Target Market
Price strategy
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Identifying and Describing Buyers
Building Customer Profiles
How Buyers Make Choices
DESCRIBING AND ANALYZING END-USERS
Environmental Influences
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ANALYZING COMPETITION
Define the competitive arena for the generic,
specific, and variant product markets
Identify and describe key competitors
Evaluate key competitors
Anticipate actions by competitors
Identify potential competitors
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Types of Marketing Information

• Marketing research studies
• Standardized information services
• Management information systems
• Database systems
• Decision support systems
• Customer relationship management (CRM) systems
• Competitor intelligence systems

14
Marketing Intelligence Systems and Knowledge
Management

• Market sensing does not rely on hard data alone
• intelligence from publications, sales calls,
  customer visits, social contacts, Internet, rumor
• Knowledge management
• Role of the Chief Knowledge Officer
• Leveraging customer knowledge
• creating customer knowledge development
  dialogues
• operating enterprise-wide customer knowledge
  communities
• capturing customer knowledge at the point of
  customer contact
• management commitment to customer knowledge

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• PART 3
• DEVELOPING AN EFFECTIVE BUSINESS MODEL AND
  SUSTAINABLE COMPETITIVE ADVANTAGE

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What is a Business Model?

• A business model is a firms plan or diagram for
  how it competes, uses its resources, structures
  its relationships, interfaces with customers, and
  creates value to sustain itself on the basis of
  the profits it earns.

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Search for Competitive Advantage it Requires
Differentiation and Focus

• Intensifying competition in threatens firms with
  no distinctive competence and undifferentiated
  offerings
• Slowing market growth in mature industries means
  that only way for a firm to grow is to take share
  from competitors
• Rather than attempting to compete in an entire
  market, firm must focus efforts on those
  customers it can serve best
• Must decide how many product/service offerings
  with what distinctive (and desired)
  characteristics

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Standing Apart from the Competition

• A business must set itself apart from its
  competition.
• To be successful it must identify and
  promote itself
• as the best provider of attributes
  that are
• important to target
  customers
• GEORGE S. DAY

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• PART 4
• MARKET LED MARKETING STRATEGIES

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Segmenting Markets

• Segmentation and market-driven strategy
• Identifying market segments
• Forming segments
• Finer segmentation strategies
• Selecting the segmentation strategy

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Market Segmentation Activities and Decisions
Market to be Segmented
Strategic Analysis of Segments
Decide How to Segment
Finer Segmentation Strategies
Form Segments
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Segmentation Variables
Purchase Behavior
Characteristics of People/ Organizations
Buyers Needs/ Preferences
Use Situation

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Illustrative Consumer Perception Map
Expensive
GROUP II

• Brand A

• Brand E

• Brand B

GROUP V
High Quality
Low Quality
GROUP I
GROUP III

• Brand C

• Brand D

Inexpensive
GROUP IV
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Four Principles of Positioning Strategy

• 1. Must establish position for firm or product in
  minds of customers
• 2. Position should be distinctive, providing one
  simple, consistent message
• 3. Position must set firm/product apart from
  competitors
• 4. Firm cannot be all things to all people--must
  focus
• Jack Trout

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PRODUCT ATTRIBUTES
Developing a Product or Service Involves Defining
the Benefits that it Will Offer Such as
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Interactive/Internet Marketing
Direct Marketing
Advertising
Promotion Components
Sales Promotion
Personal Selling
Public Relations
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CONCLUSION
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Mapping the Path to Entrepreneurial Marketing
Success
Market-Oriented Culture and Process
Superior Customer Value Proposition
Entrepreneurial Organizational
Relationship Strategies
Positioning with Distinctive Competencies
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• Thank you