Memorandum

Entrepreneurial Marketing
10/26/14
Ayanna Hampton

Hello Boss, I have reviewed the subjects and I have described them. Here it is.

Entrepreneurial marketing is an organizational function and a set of processes for creating,

communicating, and delivering value to customers. It is also for managing customer relationships
in ways that benefit the organization and its stakeholders. While traditional marketing is finding
what the customers needs are and matching them so that they will buy your product. As
entrepreneurs we utilize traditional marketing efforts, except we think in terms of innovation and
limited resources. The following will be different ways to market our products and services in an
entrepreneurial way.
Lets start with environmental scanning. Environmental scanning is a good way of finding
problems. It is a process of gathering information about the outside marketing environment to
find and/or reproduce potential trends that can lead to entrepreneurial business opportunities.
Beware of problems because they lead to opportunities. As entrepreneurs, we aim for trends so
that our product/service has the possibility of being long-term.
When we are searching for that trend we are searching for opportunities. In that, we have to
recognize, discover, and/or create the right opportunity, then take advantage of it. While

searching for opportunities we have to identify what is a good opportunity. Characteristics of a

good opportunity consists of whether the product or service creates significant value for
customers, if it offers significant profit potential to the entrepreneur/company and our investors,
if it represents a good fit with the capabilities of the entrepreneur/company and our management
team, if it offers sustainability over time and if it can obtain financing. A good marketing
opportunity also has support from the intended customer.
The most successful entrepreneurs tend to be the most informed. They know their industry, their
customers and their competitors, and they know this by doing market research. Marketing
research is the process of defining a marketing problem or opportunity, collecting and
interpreting information, and acting on the information to improve the chances of enterprise
success. There are two types of marketing research data, secondary and primary data. Secondary
data is data that already exists from ventures that other entrepreneurs explored and either failed
or succeeded. Primary data is data that you gather on your own, therefore you will be the first
one to achieve that information. You usually turn to primary data only when you have searched
through loads of secondary data but you still have unanswered questions.
In order to successfully launch your venture, you must fully understand your competitors and
customers. As an entrepreneur, who has and wants to keep customers you must know who your
customers are, what they buy, how they buy and why they buy. Customer behavior involves the
physical and mental behavior of people in the marketplace. Customers go through stages that
help them make choices and that is called the purchase decision process. There are five stages to
this process;
1. Problem recognition, the customer realizes they have a need and that leads to a decision to
make a purchase.

2. Information search, the customer uses their own experiences (internal search) with that
product to determine whether to purchase it or not. Or they find information elsewhere (external
search) about that product to help them make a decision. Brand awareness has a strong effect on
the purchase decision.
3. Alternative evaluation, when the customer assesses brands based on specific criteria that they
feel are important.
4. Purchase decision, is made after the customer does the information search and does and
alternative evaluation. The brand awareness and consideration sets help the customer make their
purchase decision. Whichever brand meets most if not all of the customers needs then that will
be the brand that is purchased.
5. Post-purchase behavior, will determine if the customer is loyal or not. It will either alter or
confirm the customers view of the brand.
STP is based on the fact that every customer is different because they have different needs and
behave in different ways. As an entrepreneur you must determine the segments of the market you
wish to seek, find out why you are seeking those segments, how you will seek them, what will
the cost be to do so, and what your return on investment will be. Separately STP stands for
market segment, target and position. Market segmentation involves separating customers into
groups that have either common needs or will respond similarly to a specific marketing offer.
From these groups the target market is formed, these are segments that you will direct your
marketing efforts towards. After segments have been analyzed and target segments have been
selected you then determine how to position your product or service to the target segments.

Positioning is the place the product or service will occupy in the hearts or minds of the customers
in relation to your competitors. Consider it as your value proposition or your marketing promise.
Idea generation for goods/services is a fresh start to a business, a product, or both. With a new
product you would most likely need to edit or update your business plan and with an already set
business plan with a business aiming to launch a new product you would do the same. There are
three types of new products: continuous, dynamically continuous and discontinuous innovations.
Continuous innovations are new products that will have little to no influence on existing
consumption patterns. Dynamically continuous innovations are new products that will have some
disruptive effect but still dont alter existing buying patterns completely. Discontinuous
innovations are the new products that involve major technological breakthroughs and create
fundamental changes in consumer consumption patterns. New services differ from new products
in terms of labor, interactive services, and the actual providers.
There are three basic pricing parameters for a venture; the price floor, the price range and the
price ceiling. The price floor is generated by your business cost, your competitors set the price
range and the customers willingness and ability to pay sets the price ceiling.
Distribution channels consist of the organizations and individuals involved in the process of
getting the products or services that you produce to your customers. You must make sure that
your channel system will drive sales growth and deliver customer value. The three channel
options are direct, indirect or multichannel. You would want to distribute directly to your target
customer because it does not involve any other members of a channel and it offers the most
control. Distributing indirectly involves reaching your target customer through intermediaries or
channel members positioned between you and your target customer. And multichannel deals with
using both indirect and direct channels to distribute to your target customer reaching similar

customers with the same basic product, different customers with the same basic product or
different customers with different products. On the other hand there is supply chain management
where the planning and management of all activities involving sourcing and procurement,
conversion, and all logistics management activities are involved. Coordination and collaboration
with channel partners are also involved, and those people can be suppliers, intermediaries, thirdparty service providers and/or customers.
Promotion cannot be ignored when opening or starting a new venture. You have to get people
interested in your venture, without interest there will be no progress. Promotion is the means of
communication between you and your customer, it is marketer-initiated communications
activities directed to target customers to influence their attitude and behaviors. Promotion is used
to create brand awareness, build favorable brand attitudes and encourage brand action; meaning
get the customer to buy. Promotion is a continuous task, you have to remind your customers to
continue to buy from you. In promotion theres advertising, public relation, sales promotions,
personal selling and direct marketing. These are all ways to bring in and keep customers,
therefore it is important that you do these well.

In order to have a successful business venture we have to make sure we consider, research and
implement all these parts of marketing.