BPTW 4012 ENTREPRENEURSHIP TECHNOLOGY

Lecture 5:

ENTREPRENEURIAL MARKETING
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Introduction
Marketing is basically an exchange activity that takes place between a business entity and its customers. The customers can include individuals, other business entities (e.g. wholesalers and retailers) and support organizations (e.g. banks and government agencies). Marketing is a critical activity in any business because it forms the backbone to the total business effort in achieving a profitable income.
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UNDERSTANDING MARKETING

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Consumer Needs and Wants

Human needs are defined as basic physiological requirements in ones life. Wants can be the different forms of unfulfilled needs.

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Marketing Concept
Marketing concept rest on the philosophy that all marketing activities must satisfy customer needs and wants, and at the same time achieve the targeted profits.

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Marketing Definition
Marketing can be defined as the activities that are carried out systematically to encourage and increase sales of products /services as long as the activities are in line with religious and ethical practice. (Matyasin and Zanariah, 2004)
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Elements of Marketing
1. Systematic (Activities) Effort 2. Encourage and Increase Sales 3. Religious and Ethical Considerations

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What is a Market?
Market is defined as any entity that has the purchasing power to acquire goods and service to fulfill its needs and wants.

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Market Category
Category
Human Being

Profiles
Geographic Demographic Psycho graphic Local government State government Federal government Environment Social Cultural Manufacturer Wholesaler Agent/Dealer Retailer

Governments

NGOs

Business Entities

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PREPARING A MARKETING PLAN

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Eight Steps in Preparing a Marketing Plan

1. 2. 3. 4. 5. 6. 7. 8. Define the product concept Identify the target market Determine market size Identify competitors Determine market share Develop sales forecast Develop marketing strategy Prepare a marketing budget
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Target Market
Definition of Target Market
Group of customers with needs and wants that can be satisfied by the business through the supply of goods and/or services

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Importance of Identifying the Target Market

1. It is almost impossible for a business to offer a product that can satisfy the needs and wants of the entire population. 2. Most businesses have limited resources in terms of time, money and power.

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Steps in Identifying the Target Market

1. Identify the product or service to be offered 2. Focus the marketing effort
i. Identify the market area and business location ii. Collect information and data of customers iii. Segmenting the market

3. Determine target market from the market segments identified

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Sales Forecast
The sales forecast is the expected sales potential from the selected target market. The sales forecast is quoted in units of sales or Ringgit for a period of time.

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Sales Forecast (contd)

Four main steps in preparing a sales forecast:
1. Determine Market Size 2. Identify the Competitors 3. Estimate Market Share 4. Forecast Sales

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1. Determine Market Size

Market size is the total potential purchase that is expected from the target market. The potential purchase includes purchases of the competitors product within the same market. Market Size Estimation
Estimation of market size requires information regarding the particular market the business intends to enter.
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2. Identify the Competitors

The business has to identify its main competitors in order to know whom the business is sharing the market with and to develop appropriate marketing strategies to compete with its rivals. It must also analyze the strengths and weaknesses of the competitors in terms of size, experience, number of years in business, financial capabilities and product line.
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3. Estimate Market Share

Market share refers to the portion of the market that the business can control after taking into consideration market size and the competitors position in the same market.

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4. Forecast Sales
1. Customer awareness of the existence of the business 2. Seasonal factors 3. Pre-sales period

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Develop Marketing Strategies

The 4 Ps of marketing: Product Price Place (distribution) Promotion

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Product
Brand Quality Design Packaging Protection Ease of Use Product Differentiation Attractive Customers Product Safety Labeling After Sales Service
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Pricing Strategy
1. 2. 3. 4. Cost-Based Pricing Value-Based Pricing Competitive-Based Pricing Factor Affecting Pricing

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Distribution Strategy
1. 2. 3. 4. Selling Direct to Customer Selling Through Retailers Selling Through Wholesalers Selling Through Wholesalers and Retailers or Agents

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Promotion Strategy
1. Advertising
i. ii. iii. iv. Printed media Broadcast media Internet Outdoor Advertising

2. Sales Promotion 3. Public Relations and Publicity

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Managing Marketing Activities

Managing by Objective Gantt Chart
The Marketing Budget

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