D5 – Ready to StartD5 – Ready to Start

Entrepreneurial Marketing

D5 – Entrepreneurial MarketingD5 – Entrepreneurial Marketing

Aim:

• To appreciate the importance of marketing throughout the business start up process

Learning Outcomes:

• To develop a marketing strategy for an small business

• To identify key market segments for a Focus strategy

Mike Grandinetti MIT Sloan School of Mgt

Entrepreneurial MarketingEntrepreneurial Marketing

• Defines the business

• Aligns and counterbalances the internal and external requirements and forces

• Creates sustainable business value

• Highly responsive to market (close to customer)

Mike Grandinetti MIT Sloan School of Mgt

Entrepreneurial Marketing Entrepreneurial Marketing FrameworkFramework

• Market Discovery – (what is the customer’s ‘pain!’)

• Product Development

• Market Strategy

• Product / Company Launch

• Measurement and Refinement

Mike Grandinetti MIT Sloan School of Mgt

Market Discovery (1)Market Discovery (1)

• Market segmentation

• Identify customer’s pain

• Competitive environment

• Market size / growth

Mike Grandinetti MIT Sloan School of Mgt

Spin out?Spin out?

“Great devices are invented in the lab, great products are created in the market” Bill Davidow MIT Sloan Management School.

Mike Grandinetti MIT Sloan School of Mgt

Market Discovery (2)Market Discovery (2)

• Market segmentation– FOCUS IS KEY– Pick 1-3 well defined, accessible markets and

dominate

“Marketing must create complete product offerings and drive them into commanding positions in defensible market segments” – Bill Davidow

Mike Grandinetti MIT Sloan School of Mgt

Market Discovery (3)Market Discovery (3)

• Markets will support several players

• They are not as homogenous as they appear – define your segments

• ‘Pain’ (need) is best identified through rigorous and systematic primary research

• Articulate the voice of the customer to segment the market

Mike Grandinetti MIT Sloan School of Mgt

Unique Value PropositionUnique Value Proposition

• Compelling reason to purchase

• Provides profit margin

• Quantify these benefits (money saved; time not wasted; family happier; children well fed)

• Position your product through your USP

Most attractive marketsMost attractive markets

• Segments with lots of demand

• Accessible segments

• Markets in which you offer USP / able to differentiate from competitors

• Few substitutes

• Markets in which suppliers and distributors do not have power

FOCUS: on markets with lots of demand

Mike Grandinetti MIT Sloan School of Mgt

Positioning TemplatePositioning Template

• For (target customers)

• Who (has the problem/need/pain)

• Our product ….*(is new)

• Provides… *(results)

• Unlike…*(competitors or substitutes)

FundamentalsFundamentals

• Significant customer problem/need/desire to develop a sufficiently large market?

• Is the customer ready to buy ?

• Have you differentiated your value proposition?

Mike Grandinetti MIT Sloan School of Mgt

Distribution ChannelsDistribution Channels

• How does your product/service reach the customer?

– Shops (how /when)– Internet– Mail– Multi- channel?

Remember focused strategy to start with!

Marketing Planning ProcessMarketing Planning Process

• Mission

• Market Audit

• SWOT analysis

• Marketing Strategy

• Marketing Objectives

• Communication / advertising / P.R

• Monitor and Control