Enterprise Marketing

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Enterprise Marketing
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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.

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Enterprise Marketing

• Creating, distributing, promoting and pricing
  goods, services and ideas to business
  organizations.

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Why do we market?

• Brand awareness
• Generate demand
• Satisfy customer needs
• Generate value for customers
• Establish beneficial customer/buyer relationships

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The Marketing Mix

• Product
• Distribution
• Promotion
• Price

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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,

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Distribution

• Getting the product to the customer
• Making the product available when the customer
  needs it

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Promotion

• Increase customer awareness
• Offer buying incentives
• Generate demand

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Price

• Setting a reasonable price based on
• Customer expectations
• Competition
• Perceived value
• Customer value Customer benefit - Cost

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Good Ideas and Good Products are a Dime a Dozen

• Good People are Rare!

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Marketing is

• Resource intensive
• Expensive
• Time consuming

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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.

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The Marketing Plan, components

• Executive Summary
• Environmental Analysis identifying the target
  market
• Analysis tools Porters five forces, S.W.O.T.
  and P.E.S.T.
• Marketing Objectives Numbers, projections and
  financials
• Marketing Strategy Activities, resources,
  timetable

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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.

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P.E.S.T.

• Political forces
• Economic forces
• Socio-cultural forces
• Technological forces

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Why Institutions are Important to Business
Students and Otherwise Disinterested Parties
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Institutions and Technology

• Legal Structure
• Bills of Exchange
• Insurance
• Taxation
• Association
• Double Entry Bookkeeping
• Diversity

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Legal Structure

• Late 1800s 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

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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?

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Bills of Exchange

• Checks (or letters to the effect) created the
  first international banking system
• Important to provide short term capital (loans)
  avoiding Catholic churchs usury prohibition
• Deposits and trading of these checks developed
  into banks that provided deposits and loans -
  churning wealth

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Insurance

• Lloyds of London founded in late 1600s
• 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?

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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

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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

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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

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Taxation

• What are the implications of Tax policy on
  contemporary technological firms?

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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

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Social Institutions

• Limitations of family run empires
• Importance of larger organizations to
  technological innovation
• How do social institutions promote contemporary
  technological innovation?

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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?

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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

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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

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The Importance of Diversity

• In the West, technology could provide important
  advantages and diversity flourished

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Factory Production

• The Shift toward factory production
• Energy and the Industrial Revolution
• The Steam Engine
• Steel
• Textiles
• Ceramics
• Capital
• The Labor Market

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The Shift Toward Factory Production 1750-1880

• Required surplus in agriculture
• Guild was the rule until late 1800s - family
  firms with apprentices
• Factories were less personalized - company towns
  provided living accommodations
• Growth of urbanization (enclosure laws cited by
  Polyani)

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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

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Iron and Steel

• Improvement in 1700s to 1800s 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

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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

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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

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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?

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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.

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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

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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

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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
  todays labor market?

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Class 1c
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Managing Resources for Entrepreneurship

• Review of Resource Based Approach
• Personality Characteristics of Es
• Sociological Characteristics of E
• Organizational Characteristics of E
• Technology
• Creativity

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Review of Resource Based Theory

• SCA Created when firms possess resources that
  are
• Valuable
• Rare
• Imperfectly imitable
• Nonsubstitutable

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Resource Types

• Financial
• Physical
• Human
• Technological
• Reputational
• Organizational

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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?

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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

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Process Models

• Initiative
• Consolidation of resources
• Management of the organization
• Autonomous action (strategy)
• Risk taking

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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) Es are willing to borrow
  and rent non strategic resources

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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

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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