Entrepreneurial Marketing 1 BB30903

Table of Content Particular

1.0 2.0 3.0 Introduction Why we need entrepreneurs in our society How entrepreneurial marketing strategy improve the Firm performance 4.0 5.0 Conclusion Reference 14 15

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Entrepreneurial Marketing 2 BB30903 1.0 Introduction Definition of Entrepreneur The concept of an entrepreneur is a further refined when principles and terms from business, managerial and personal perspective are considered. The origin of the word entrepreneur has evolved over the past year, just as the economic activities and society have become complex too. During the industrial revolution, entrepreneurs were sort of intermediaries or middleman. They were characterized as a moderate risk taker and predict the future event .Then, they become the cornerstone of economic development, starting to produce and innovate, while still talking the risk. During middle ages, entrepreneur comes from the world French which mean designated a person who perform a task and also refereed as a bold individual keep on talking economic risk. Entrepreneurship is the process of creating something new with value by devoting the necessary time and effort, assuming the accompanying financial, and psychic and social visit, receiving the resulting reward of monetary and personal satisfaction and independence. Ted turner a CNN founder says my son is now entrepreneur. That is what you are called when you don t have a job. When we mention the word entrepreneur, most of the people will equate it with businesspeople. A sundry shop owner to an independent commission broker to corporate CEO may claim that they are entrepreneurs. This is especially true when they are dealing with in business transactions in their daily work. In actual fact, an entrepreneur is more than just doing business .Niccolo Machiavelli is an Italian historian during the Renaissance revolution and also the founder of political science says Entrepreneurs are simply those who understand that there is little difference between obstacles and opportunity and are able to turn both to their advantages .

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Entrepreneurial Marketing 3 BB30903 1.2 Why Become an Entrepreneurs Basically there are five reasons why people choose to be entrepreneurs. It is because they want to start their own firms as they become the boss, pursue their own ideas, escape from bad situation, enjoy the satisfaction life and received financial reward from the business. 1.2.1 Become the Boss The first reason is to be they own boss. Everyone wants to be a big boss either in small, medium and big companies. Mostly, those entrepreneurs have difficulties to work with or they have trouble accepting authority from the organization. Instead many entrepreneurs want to be their own boss because either they had a long time ambition own their own firm or because they have become boring and frustrated working in traditional jobs. 1.2.2 Pursue Their Own Idea The second reason is to pursue they own ideas. Some people are naturally alert of an opportunity around them, and when they recognize ideas for new products or services, they have a desire to see those ideas are realized. When this happen ,employees are left with good ideas that go unsatisfied .Because of their passion and commitment on pursuing the ideas ,some employees choose to leave the firm employing them in order to start their own business as the business set up by developing their own ideas. For example, Tony Fernandez have been working with Virgin Group low budget airlines in London, he resigned from the company and start the idea of low budget airfares and set up a company called Airasia. It is the first low budget airlines in Malaysia.

Entrepreneurial Marketing 4 BB30903 1.2.3 Financial Reward Pursue financial reward is the final reason. When people start their own firms to pursue financial reward .This motivation, however is a typical secondary to first two and often fail to live up. The average entrepreneur does not make more money than some with a similar amount of responsibility in traditional jobs. For example, the founder of Google Company Larry Page and Sergey Brin made a fortune and millions of dollar by building their firms. 1.2.4 Escape a Bad Situation (Freedom) People are sometime use entrepreneurship as an starting point or escapes tools, to free themselves from an undesirable situation .Some may wish to leave an unpleasant job situation, while others may seek change out the necessity .After layoffs, for example, unemployed personnel with experience in professional, managerial, and technical often consider the possibility of venturing out on their own. For example, Chef Wan become the famous celebrity chef in Malaysia. Before he became a celebrity chef, he was an accountant. He pursues his dream to become a chef and quit his jobs as an accountant. 1.2.5 Enjoy a Satisfying Life Entrepreneurs always speak of satisfaction they experience in their own businesses, some refer their work is fun. Part of their enjoyment may drive from their independence, but some of it reflects an owner personal fulfillment from working with firm products and services. An entrepreneurs may also enjoy becomes boss and most small business owners report satisfaction in their career.

Entrepreneurial Marketing BB30903 2.0 Why Needs Entrepreneurs in Society The Importance of Entrepreneurships According to Joseph Schumpeter an Austrian economist entrepreneurship is important to the economy and the society on his first articulated in 1934. In his book The Theory of economic development, argued that entrepreneurs develop new product and technologies that over time make current product and technologies. Schumpeter called this process a creative destruction. Because new product and technologies are usually better than those they replace and the availability of improved products and technologies increases consumer demand, creative destruction stimulates the economy activity. The new product and technologies may also increase the productivity of all elements in society. 2.2 Job creation In the past two decades, economic activity has moved increases in direction of smaller entrepreneurial firms, possibly because of their unique ability to innovate and creative that focuses on specialized tasks or jobs. The small businesses provide the first job for most new entrants to the labor force. In addition, Entrepreneur needs more employees to do run the daily business activity. For example, if a big entrepreneurial firm established a power plant to an urban area. Of course, it will open the jobs opportunity to the people around those areas. Another example, Google Company is the most successful company in the world, their created job opportunity to the public, hiring people with a great talent and creative to join the Google team management.

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Entrepreneurial Marketing 6 BB30903 2.3 Economic Value In the entrepreneurship term, economic value refers to economic benefits obtained from operating a new business. Whether to craftsmen entrepreneurs or opportunistic entrepreneurs commercialize the products or services for profits of a new venture are an important factor to the decision of entrepreneur. For instant, profit will bring them money to live on for the long term period, the higher the profits, the more worth seizing the entrepreneurial opportunity. For example ,like Airasia company ,their generated a lot of revenue from selling value pricing ticket or low cost air ticket to customer and it also increase the fly aviation business in Malaysia and contributed to country growth. 2.4 Innovation Product and Service The innovation of entrepreneurs firms have a dramatic impact on the society .Think of all the new products and services that make our live easier ,enhance our productivity at work ,improve our live health and entertain us. The creation of the product and services is based consumer needs and demand. In addition, entrepreneurs create the innovation of product and services to solve our daily life problem and make us easy to enjoy our life. For example, Apple Company had created Ipad 2 a portable computer and very light weight device. So, consumer can surf internet anyway, anytime and easy to carry around rather than bringing ordinary laptop which is heavy. Ogawa is the massage machine; this machine helps us to released stress and tension and also maintains healthy life. Herbalife a healthy and nutrient supplements that help us live a healthy life by reducing body weight and release all the toxic in the human body.

Entrepreneurial Marketing 7 BB30903 2.5 Giving Entrepreneurial Education Entrepreneurs are important to society because successful entrepreneurs will give entrepreneurship education to young entrepreneur to open their businesses. Entrepreneurship education is significant important to economic growth in develop and developing countries across the world .Given the high probability of failure ,universities around the world have been challenged to sparkle the entrepreneurial spirit of their graduates ,training ,giving them the skill sets and abilities needed for dealing with risky and uncertain real business environment . Because entrepreneur are perceived to have a heightened readiness for change ,possess a high level of self confidence and creativity ,and utilize innovative approaches to decision making and problem solving entrepreneurship education programs provide practical platform for economic growth and should be of highest priority in curriculum development. In Malaysia, the government giving education and training in entrepreneurship to young graduate to harvest the experience and practices to be successful entrepreneurs in the real world. 2.6 Entrepreneurs Giving Social responsibility and moral values to Society Social responsibility and moral value are important for entrepreneurs in society .Because their running the business ventures ethically and morally. Wealthy entrepreneurs with high successful companies will launch a Welfare programs .Most businessman or woman financially contributes to various welfare programs, like helping the blind, orphans, and hunger program. In times of crisis, they help by donating items such as blankets, clothes, medicines and foods. Even they generated more revenue from the society but their also giving back benefit and solve society problem as a social responsibility and moral values.

Entrepreneurial Marketing 8 BB30903 3.0 3.1 How Entrepreneurial Marketing Strategy Improve the Firm Performance Introduction of Entrepreneurs Marketing Strategy Marketing means different things to different people. For entrepreneur view, marketing mean selling a product or service. Other people see marketing as those activities directing the flow or transaction of goods and services from producer to consumer or user. Entrepreneurial marketing had its share of difficult during the early stages of its development. It is a tribute to the dedicated by the scholars that entrepreneurs marketing are now widely accepted as a legitimate field of inquiry. Entrepreneurial marketing is a strategy to gain competitive advantage. The perception of firm primary objective is to generated profit at the same time fulfilling the needs and wants of consumers in the market place. From many year ,there are research in entrepreneurship has focused on the firm most notably successful firms ,as both scholars and practitioners attempt to understand what makes firm successful. In marketing view, the focus has been on the customer and how firms can satisfy and meet their needs of their potential customers .Indeed for many decades ago customers orientation is regarded as the key point of successful organization. Customer orientation is not applies on business itself but also applies into non-profit organizations and even government agencies. It needs customer to maintain the business. There is a wider recognition of the role entrepreneurs play a major player in the marketing field. For large corporation with resources that smaller businesses can only dream of, entrepreneurs often relies in creativity and innovative ways to successfully compete in the marketplace. Entrepreneurial marketing gives the entrepreneurs a opportunity to highlight the importance of the entrepreneurial process in the creation of markets. After all, it is the entrepreneurs that recognizes, explores and exploits opportunity.

Entrepreneurial Marketing 9 BB30903 3.2 Applying Marketing Strategy A well prepared market analysis and competition analysis are important for the formal marketing plan. But the information on the marketing strategy form is the most detail parts of the marketing plan. It is for potential investor view to evaluate either the product or services are success in the market. Such strategy plan is the course of the marketing actions that will make or break the entrepreneur vision. The marketing strategy is important for firm planning. To increase the performance of the firm, their area four areas of marketing strategy should be address. The first one is the product decision that will transform the basic product or services idea in the bundle of satisfaction. Second, distribution activities regarding the delivery cost of the product to customer. Third , pricing activities that will set an acceptable exchange value on the total product or service. Finally , promotion activities that will communicate the necessary information to target market. 3.3 Adapting Standard Textbook Frameworks Entrepreneurial marketing is developed by the individual person, who will applying traditional marketing frameworks to suit the specific situation of the firm .They will have a product or services to offer to the market place, a standard price and they will promote and deliver the product of services using an affordable method and medium .This will be done in a practical way that suits the firm situation and will be structured around the existing function and activities of the firm itself. Below are the outlines of a typical ways for standard marketing frameworks are adapted by entrepreneurs to increase the performance of the firms.

Entrepreneurial Marketing 10 BB30903 3.3.1 Pricing To determine the price of the product, entrepreneurs should have costing the budget to cover and need to maintain cash flow. In addition, the firm should focus on value of the product, because of the customers spend their money for the product and may try to balance price with other aspect such as the quality of the product and the customer service connected with the offering. 3.3.2 Distribution and Promotion For the firms in handling the delivery problems can arise where operational plans are over operate or where there is a poor production of control. Delivery or distribution is an area where a firm reputation can be substantially enhanced and develop. Firm with small budget have the limited resources to spend on promotion, so, they need to promote their business by word of mouth and other alternative line activity. 3.3.3 E-technology The E- technology can be very useful for firms to expand their marketing activities .It can be cost effective option and allowing the firms to research a wider or specific target market. It can be used in combination with other business activities. Using the latest E-marketing activities allow the firms to advertise their products and services more efficiency ,more widely with less expense ,answering customer queries in several languages, sending email marketing as a tool to give the firm products and services to customers awareness.

Entrepreneurial Marketing 11 BB30903 3.4 Marketing by Networking If entrepreneurs do not do the conventional marketing but adapt marketing frameworks to suit their own situation as described at marketing strategy, the entrepreneur will often use his friend, social contact and business contacts to give the business ideas and gather information. Entrepreneurs will gather around useful information and resources from certain individuals. Entrepreneurs will be dependent upon different networks at different stages of company development. However networks and networking are fundamental to how the entrepreneurs do business. Networking fits around the individual entrepreneur s ways of doing business. It can be informal, interactive, spontaneous and individualistic Marketing by networking is both natural and an acquired competence. Entrepreneurs have different approaches to doing networking. By applying network, the firm will expand its business globally through networking. Networking also help the firm to gather information that is useful in supporting decision and evaluation any market situation, also help in maintaining awareness of market related issues. If the firms know the market condition, this will help the management team to decide which product and services need to be commercial. At set up stage, networking will be used to establish contacts from prior experience and past industry contacts by the entrepreneur. When it state the business development stage ,networking will focus on getting the business established and form a network within the industry such as setting up contact with other relevant firm and organization.

Entrepreneurial Marketing 12 BB30903 3.5 Innovative marketing Most successful firms are usually focused on trying to be innovative and creative, especially in relation to offering something in the market place and differentiating their company and products or service from the other competitor. Innovative marketing is driven by several factors surrounding the firm. Entrepreneurial in small business characteristic and limitations means that they cannot paid higher price in marketing programs so they need to be innovative in how they do the marketing with lower cost. For example, recently, Mc Donald fast food restaurant established an innovative marketing by publishing coupons discount through Facebook; then, consumers can print the coupons and get a discount when they visit the restaurant. 3.6 Establishing a Brand Marketing entrepreneurial also helps firm to increase its performance by creating or establishing a brand. Brand is a set of attributes either in positive or negative ways. It is based on people perceptive to determine the brand itself that representing the firms. Some firms supervise the integrity of their brands through brand management, which is a program used to protect the image and value of an organization brand in consumers minds. Brand on other the hand, allow a firms to charge a price for its products that is consistent with its image. A successful brand can also increase the market value of a company. The increasing of the valuation can be very important to a firms if it is required, mergers with other firm to generate revenue and increasing the brand name that keep in consumers mind. Brand equity is the term that denotes the set of assets and liabilities that are linked to a brand and enable it to raise a firm valuation. Example of brand is the Mc Donald fast food restaurant with the capital letter M in yellow color. When consumers see the sign, they know it is Mc Donald.

Entrepreneurial Marketing 13 BB30903 3.7 Selecting a Market and Establishing a Position

3.7.1 Segmentation of the Market The first step in selecting a target market is to study the industries in which the firm intends to compete and determine the different potential target markets in that industry. The process is called market segmentation which is important because a firm typical has limited resources to target one market segment. The market can be segmented in many ways such as product type, price point, distribution channel and customers served. A firm needs to selects the segment that represents the best prospects for entry and which is the most compatible with its core competencies. For example, Apple Company products sell handled computer, laptop, minicomputer, personal computer, Ipad, and Iphone. 3.7.2 Selecting a Target Market When a firm segmented the market, the next step is to select the target market. The market must be sufficiently attractive, and the firm must be able to serve it well. A niche market is place within the market segment that represents a narrows group of customers with similar interest. The task for firm is selecting a target market that can attract consumers to buy the products or services .For example, restaurant business can target people who are vegetarian, so that their can product vegetarian food. 3.7.3 Establishing a Unique Position After selecting the market, the next step is to establish a position within it that differentiates it from other competitor. Position is part of a market or a segment of the market that the firm claims. A firm s market position can be understood by studying the features of its goods or services. For example, BMW position is luxury in automobile market.

Entrepreneurial Marketing 14 BB30903 3.8 Marketing Management Competencies Using and develop a management competencies for marketing are important for entrepreneurs through the firms life. Marketing decisions are often inseparable from any decision relating to the firms. Management skill and competence is an ability that can be harvest and developed. There are many lists of managerial competencies including vision, innovation, being creative, lateral thinking, leadership, communication, motivation, knowledge and judgment. Using these managerial competencies, it can improve the firm performance. The most relevant competencies for entrepreneurs are running and operate the business industry context, including knowledge, experience, communication and judgment. The main point is to learn quickly as possible and with a less mistake as possible. The firms can demonstrate their experiential knowledge by providing a better or different product and services, good promotion and selling techniques and taking a focused approach to use limited resources.

Entrepreneurial Marketing 15 BB30903 4.0 Conclusion As a conclusion, entrepreneurs play an important role in our society. Without them, we cannot live in our currently life. They create products and services for our basic needs, wants and demand. They see the problem that we facing in everyday life as an opportunity for them to do business by create the products and services. Entrepreneur firms also help the nation to economic growth. They also contribute in our society by giving donation to poor and other welfare program. If the entrepreneurs is very successful in their business just like Datuk Tony Fernandez the Airasia owners ,other potential young entrepreneurs will thinks them as a roles model for them to create new entrepreneurial firms. So, more entrepreneurial firms will emerge in future. Marketing entrepreneurial can helps the firm performance thought the marketing strategy. Giving the advantages for the firm to analysis what is the products and services that consumer needs and wants in the market. In addition, it helps the firm to promote, distribute and channeling the products and services to consumers hand.

Entrepreneurial Marketing 16 BB30903 Reference Barringer B.R and Ireland R.D. (2010) Entrepreneurship, Successfully Launching New Ventures, 3 Edition, New Jersey: Pearson Hall Gilmore A, (2011) Entrepreneurial and SME marketing , Journal of research in marketing and Entrepreneurship, Volume 13, No. 2, Page 137-145 Hisrich R.D, Peters M.P, and Shepherd D.A .(2005) Entrepreneurship ,Sixth Edition ,New Yok, McGraw-Hill Longenecker J.G, Moore C.W, Petty J.W and Palich L.E. (2006) Small Business Management: An Entrepreneurial Emphasis, International Edition: South Western Peltier J.W and Scovotti .C ,(2010) Enhancing entrepreneurial marketing education : The student perspective , Journal of small business and enterprise development Volume 17, No.4, page 514-536 Morrish S.C ,(2011) Entrepreneurial marketing a strategy for the twenty-first century , Journal of research in marketing and entrepreneurship, Volume 13, No. 2, Page 110-119 Miles M.P, Crispin S, and Kasouf C.J. (2011) Entrepreneurship relevance to marketing , Journal of research in marketing and entrepreneurship, Volume 13, No.2, Page 126-136 Nurul A.K ,(2009)