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Opportunity:

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Terms in this set (206)

1. It creates significant value for customers by solving a significant problem or filling a significant unmet need for what the customer is willing to pay a premium price (Opportunity creation)

2. It offers significant profit potential to the entrepreneur and his or her investors-enough to meet their risk/reward expectations

3. It represents a good fit with the capabilities of the entrepreneur and the management team-that is, you have the experience and skills to pursue it

4. It offers sustainability over time - it is not based on a fad

5. It can obtain financing

Environmental scanning

includes not only examining trends/changes in the marketplace but also watching and talking to consumers

Social Change

Demographic and cultural
Eco-consciousness/going green
Ecopreneurs
Experiential (living a little)

Economic Change

Competitive challenges not just within your area but internationally

Shift from manufacturing economy to

services (even experience based), we are building less and we are "doing" more

Technological change

Information and communication technologies, including the internet have become widespread and entirely new business concepts have emerged as a result

When assessing technological change

1. Determine the magnitude of the change
2. Examine the generality of change
3. Assess the commercial viability of the change
In short the larger the technological change the greater the opportunity

Competitive change

Intense local and globalized competition in almost every industry sector

Open up or closing down opportunities for entrepreneurial firms

Intertype competition:

competition between seemingly dissimilar business

Bakery competing with supermarket or department stores if the product can be carried elsewhere

Regulatory ChangeDeregulation of industries often provides entrepreneurial opportunities Key area Internet vs. Cable Television market Clean-Tech (climate change)Veiled opportunity:hidden or not easily seen, is often uncovered/discovered by smart entrepreneurs who stay in touch with the marketplaceNiche Opportunity:smaller opportunities, too small for large companies to want to invest in them Many large corporations fail to see the window of opportunities in smaller ideasSustainable competitive advantageunique strength relative to your competitors Higher-quality products Higher-quality customer service Speed of performance Lowest-cost Customer intimacyBrandingName Phrase Design SymbolSymbolCombination of these and other intangible elements to identify the products or services of one marketer and to differentiate them from those of the competitionIntellectual property (IP)is defined as creations of the mind: inventions, literary and artistic works, and symbols, names, images, and designs used in commerce.IP is divided into two categories:1. industrial property, which includes patents, trademarks, industrial designs, and geographic indications of source 2. copyright, which includes literary and artistic works such as novels, poems and plays, films, musical works, artistic works such as drawings, paintings, photographs and sculptures, and architectural designsPatentan exclusive right granted for an invention, which can be a product or a process that provides a new way of doing something, or offers a new technical solution to a problem it must be of practical use; it must show an element of novelty (a new characteristic not previously known or discovered), it must show an inventive step which would not normally be deduced by the average person. provides protection for the invention to the owner of the patent and this protection is granted for a limited period, generally 20 yearsTrademarka distinctive sign which identifies certain goods or services as those produced or provided by a specific person or enterprise. May be one or a combination of words, letters, and numerals. They may consist of drawings, symbols, three-dimensional signs such as the shape and packaging of goods, audible signs such as music or vocal sounds, fragrances, or colors used as distinguishing features. you are given the exclusive right to use it to identify your products or services can be renewed indefinitely beyond the time limit on payment of additional feesTrademark protection is enforced bythe courts, which in most countries have the authority to block trademark infringementRed oceanis characterized by existing markets with established competition where the goal is simply to outperform rivals to steal share and grow. typically crowded, and profit and growth are difficult to achieve place of cutthroat competition, which turns the ocean bloody (red).Blue oceandemand is being created and not fought over is created by new value and innovationVoice of Consumer VOCResearch technique that is designed to uncover customer wants and needs uncover customer wants and needs assess customer satisfaction with existing product/service solutions obtain feedback on new venture concepts and the products/services offered by the ventures including likelihood of purchase and other key input regarding the nature, scope and configuration of proposed venture and/or its new products/services Qualitative and quantitative in nature Goal: costumer feedback to validate your ventureFramework to make money1. How will the enterprise make money? 2. How will the enterprise create value? 3. For whom will the enterprise create value? 4. What is the enterprise's internal source of sustainable competitive advantage? 5. How will the enterprise position itself in the marketplace?Also ask themselves1. Where is the money? 2. Who has the money? 3. How do I get the money 4. What do I need to provide to get the money? 5. How do I get it faster than anyone else? 6. How do I get it time and time again from the same customer 7. How can I add other revenue streams later?Pricing StrategiesCustomer Based Pricing Competition Based Pricing Cost-Based PricingCost-Based PricingFocus on the "cost" side of the business and not the demand side Ignores the customer and what the competitors are charging Have to remember that cost sometimes serves as an indicator of quality (i.e., low cost might signal low quality) Should perform a break-even analysis to determine break-even point (i.e., total cost/total revenue equal) Some costs to consider are fixed (i.e., rent, executive salaries) and variable costs (i.e., materials, labor)Cost-plus pricing = add markup to costPros of Cost-Based PricingCalculations to determine price are simple During price setting unknowns are taken into account Pricing ensures total profits for the businessCons of Cost-Based PricingIgnores how customer demand affects price It doesn't take into account actions by competition Price setting cannot be solely based on costsCompetition-Based PricingFocus on what competitors are charging their customers Must decide how to price given the range of competitor pricingPros of Competition-Based PricingIt keeps an eye on existing and emerging rivals in the industry and provides smart data to make more effective pricing decisions Setting the right price according to market state helps gain competitivenessCons of Competition-Based PricingYou risk loosing profits if you do not take into account information on your purchase price and margins You need to check on your price elasticity It needs an effective price monitoring system. Automation is key in this respect to avoid manual trackingCustomer-Based PricingFocus on the demand side of the business and perceived value Size up customers to determine how much each customer is willing to payPros and Cons of Customer-Based PricingThe price set supports product image The value added helps increase product sales Differentiation attracts new customersCons of Customer-Based PricingCalculations may ignore product costs It might forget about existing competitors It requires great selling techniquesImportance of BrandBrands signify intent Branding goes past the transaction Branding helps you outdo competition Branding builds trust Branding harnesses the power of emotionCharacteristics of a Good BrandEffectively communicates your distinctive value Is relevant to the customer Resonates with the customer Reinforces the intended position in the marketplace Is consistent and unifying Serves as an umbrella for current/future brands Allows for building of strong brand equity Enables you to command premium pricing Is easily understood by your customers and employees Can be sustained over timeBranding ProcessConduct a brand analysis Determine brand position Select brand name-identity Select a branding strategy Build a Communication strategyBranding ContinuumBranded House Branded HouseBranded Houseused to describe a company, that applies its brand name to multiple offerings in often unrelated fields Google Google Play Google Maps Google Ads Google Plus GmailAdvantages of a Branded HouseMaximizes brand clarity (i.e., customer knows exactly what is being offered) Easier for customers to understand and recall versus a dozen individual brands Participation in one market creates associations and visibility that can help in anotherDisadvantages of a Branded HouseAll brands tied to one reputation, which can be risky If parent brand is weak or underperforming, affects all brands Can cause confusion over what your brand actually does (i.e., computer company?, phone company?, etc.)House of Brandsthe corporate brands and its well-known sub brands Proctor & Gamble Pampers Tide Olay PanteneAdvantages of a House of BrandsAbility to define unique target audiences Can take risks with companies knowing other strong brands are a safety net Bad press only affects one brand and not all brandsDisadvantages of a House of BrandsManaging multiple marketing strategies across different brands can be difficult and costly Parent company cannot be relied upon to bolster reputation of individual brands Confusion over parent company possible (i.e., do they represent brands or do the brands represent the company?)Hybrid BrandingMicrosoft Windows Xbox Microsoft Surface ProAdvantages/DisadvantagesSame advantages and disadvantages that come with Branded House and House of Brand strategies Careful brand management will be crucialBrand Equity DefinedThe value added by the brand to the product The positive differential effect of brand awareness and brand meaning by customers The added value a brand provides to a product beyond its functional benefitsCreating Brand EquityIdentity Meaning Response RelationshipIdentityBuild brand awarenessMeaningCommunicate brand meansResponseShape customer thoughts and feelingsRelationshipBuild deep bond with customersTypes of New ProductsContinuous Innovations: New products that have little, if any, disruptive influence on existing consumption patterns New Flavor/New package Dynamically Continuous Innovations: New products that have some disruptive effect, but still will not alter buying patterns completely New electric toothbrush to replace regular toothbrush Discontinuous Innovations: New products that involve major breakthroughs that create fundamental changes in consumption patterns When cars of personal computers were introducedContinuous Innovations:New products that have little, if any, disruptive influence on existing consumption patterns New Flavor/New packageDynamically Continuous Innovations:New products that have some disruptive effect, but still will not alter buying patterns completely New electric toothbrush to replace regular toothbrushDiscontinuous Innovations:New products that involve major breakthroughs that create fundamental changes in consumption patterns When cars of personal computers were introducedNew Product Insights"New market creation" can be a path to long-term sustainable growth HOWEVER, most entrepreneurs compete against existing alternatives Need to focus on convincing customers to embrace the new offering despite competitionMajor service innovations (discontinuous innovations):Entirely new concepts Ex: FedEx overnight shipping- new marketMajor "process" innovations: New processes (new ways)to deliver existing services so that customers receive new value Ex: New "virtual" university to get a MBA without having to go on campusService line extensions:Additions to existing lines of services. Insurance company adding a new service like- pet insuranceSupplementary service innovations:Adding new elements to the core service or improving existing supplementary services that accompany the core service Reaching out to hospital to provide valet service to patients and family, adds to existing businessBasic service improvements (continuous innovations):Making modest changes to an existing service Faster fast foodCharacteristics of Successful New Products and ServicesSuperior advantage Compatibility Simplicity Observability Trialability Low perceived risk Intellectual-property protectionSuperior advantage:Be superior to alternatives Can be based on better price or performanceCompatibility:Aligned with values of customersSimplicity:Keep it simpleObservability:Innovative characteristics easily observedTrialability:Has a trial periodLow perceived risk:Warranties/guarantees good Low risk purchaseIntellectual-property protection:Have an intellectual property component (patent, trademark, copyright) that potentially offers competitive advantage from competitorsNew Product/Service ProcessIdea Generation Screening and Evaluation Business Analysis Development Market Testing LaunchIdea GenerationTypically the most difficult stage Develop a pool of ideas/concepts for new products or services Use research and environmental scanning to uncover opportunities Pattern recognition - recognize a recurring situation Check with "voice of the customer" on wants, frustrations, etc. Lead users - kind of like beta testers Research and Development-Screening and EvaluationProcess to eliminate bad ideas Compare internally against successful characteristics Get feedback from target customers (primary research)Business AnalysisUndergo detailed product, marketing and financial scrutiny Examine cost to develop, forecast demand and revenue and determine profitabilityDevelopmentIdea comes to life through a prototype For products, test to ensure that it meets standards For services, map out the process of creating and delivering the service Product/service name, branding and marketing mix elements are developedMarket TestingTake the product/service to market to test under realistic purchase conditions Simulated market testing- full scale market test in a limited way, are run (in shopping malls) to expose customers and they are often given money to buy the new product/service or the competitors Still have the opportunity to refine and retest the concept Can get good indication of potential sales and check marketing mix approaches (price, promotion and channel approaches)LaunchRoll out the product/service on a full commercial scale Most costly stage of the process. Can ease cost by ramping up rollout (i.e., geographic, regional, etc.) While speed from idea generation to launch is important, the quality of the execution matters tooAdoptionFive basic stages Awareness Interest Evaluation Trial Adoption/RejectionDiffusionManner in which customers accept new products/service and the speed of adoption by various groups5 stages of diffusionInnovators Early adopters Early Majority Late majority LaggardsInnovatorsfirst to try new products/servicesEarly adopterslikely to be "opinion leaders"Early Majority -need more time and information but like to be the first to buyLate majorityadopts based on social pressure "keeping up with the Joneses"Laggardsonly buy because they have to usually new product/service supersedes or replaces existing product/serviceIntroductionProduct is first available for sale Sales grow slowly and profit is minimal Distribution can be challengingGrowthIncrease in sales/profit Promotion is high while price is decreasing to gain or hold or share Distribution is expanded Competition is growingMaturitySales are high/stable > profits are decreasing Objective is to maintain brand loyalty Prices are dropping and investment in promotionDeclineMarket objective is to "harvest" or delete the product and replace it with something new Price and promotion are low Distribution is reduced Competition is dropping, leaving behind strongest playersLife CycleModify the product/service (making good, better) Find new customers Find new uses for your product/serviceDefining Market SegmentationThe grouping of customers based on some sort of criteria Idea is that those grouped together are likely to respond similarly to marketing actions based on their similar characteristics, behaviors or needs. Possible to segment the same population in different waysQuestions Segmentation Analysis must answerWhat is purchased Who is purchasing Where is it purchased How is the product/service purchased How much is purchased When is it purchased Why is the product/service purchasedBone Fide SegmentsCustomers within segments have similar needs There must be differences in needs across segments The segments must be measurable The segments must be big enough to serve economically There must be a way to reach the segmentsWhy is Market Segmentation Important?Understanding your market helps you better serve your customer's wants and needs Can use insights from segments to alter or make additions to your products or services Allows for targeted communication highlighting criteria that is important to each segmentWays to Segment MarketsGeographic Demographic Psychographic BehavioralGeographic SegmentationBased on where customers live or work Can include countries, regions, states, counties, cities or even neighborhoodsDemographic SegmentationSegmenting by population characteristics, Can include age, gender, income, education, marital status (among other things) Multiple combinations can start to become too complex. Need to find the right combination.Psychographic SegmentationUsing "lifestyles" of an individual Based on activities, interest and opinions Examples: Health conscious, night owls, budget-savvyBehavioral SegmentationBased on the different benefit that customers get from a product or service Uncovers the "why" behind customer behavior (benefits sought) Also reveals product/service usage (heavy, moderate, light)Composite Approach ExampleMarket Segment vs. Target Market○Defining Target MarketThe specific group of people that you want to target Must balance several criteria in order to select the right target marketCriteria to Select Target Market(s)1. Size of segment 2. Expected Growth 3. Competitive Position 4. Cost of Reach ;Compatibility with your ventures objectives and resourcesCriteria Questions to AskIs segment large enough to bring me value? Does this segment have the potential to bring profits? What competition will I face with this segment? How much will it cost for me to reach this segment?Selecting Target MarketsUndifferentiated Marketing: Do not distinguish between any segments and use one marketing mix Differentiated Marketing: Target one or more segments and use specific marketing mixes for each segment Concentrated Marketing: Select one segment and tailor marketing elements to that segmentUndifferentiated MarketingDo not distinguish between any segments and use one marketing mixdifferentiated marketingTarget one or more segments and use specific marketing mixes for each segmentConcentrated MarketingSelect one segment and tailor marketing elements to that segmentDefining PositioningThe place the product or service will occupy in the hearts or minds of the customers in relation to your competitors Value proposition Marketing promise Head to head positioning = direct competition Differentiating positioning = you are avoiding direct completion through differentiationHow to Position Your Product/ServiceDistinguish how your product or service is different from your competitors Determine what your customer is really buying from you Identify what makes your product or service uniquePerceptual MappingThe purchase criteria deemed important by the customer (or segments of customers ) when selecting products/services Customer rating of existing brands on those criteria What an "ideal" brand would offer Looking at your products/services in relation to your competitors through the eyes of your customer (or potential customers) Identify key characteristics to compare competitors and work to identify potential opportunities for your businessPerceptual Mapping ExerciseStep 1: Identify a product/service category Step 2: Identify characteristics to compare competitors against Step 3: Map competitors against characteristics Step 4: Identify potential opportunities for your product/serviceUnderstanding the customerBehind every purchase is a customer Must know who the customers are, what they buy, how they buy and why they buy Need to understand the pre-purchase, purchase, and post-purchase behaviorPurchase Decision ProcessProblem recognition Information search Alternative Evaluation Purchase decision Post purchase decisionProblem RecognitionCustomer recognizes that he/she has a need Need leads to a decision to make a purchase Should understand that you can "trigger: recognition through advertising or other means • Ex) customer is hungry....Information SearchAfter recognizing the problem, customer undertakes a search for information Search can be internal or external Important: Goal is to be in brand awareness set Example: (Hungry)...Customer recalls food eaten recently. Not enough information, so pulls out phone and searches for restaurant recommendations...Alternative EvaluationAfter searching for information, customer assesses brands based on specific criteria Criteria can be objective (i.e., nutritional) or subjective (i.e., prestige of brand) Important: Need to move from brand awareness set to brand consideration set Example: (Hungry)...(Online Search)...Customer considers two restaurants and compares amount of food for pricePurchase DecisionAfter evaluating criteria, customer will make the purchase decision and complete the purchase Example: (Hungry)...(Online Search)...(Compare Options)...Customer decides on Laynes and orders a box with extra Laynes SaucePostpurchase DecisionAfter the purchase, the customer compares it against expectations Either satisfied or dissatisfied May confirm or alter the customer's view of the brand purchased Example: (Hungry)...(Online Search)...(Compare Options)...(Purchase Laynes)...Customer ends up not satisfied and decides to go with Cane's next timeFactors Affecting Purchase Decision ProcessIn addition to understanding the customer purchase decision process, must understand other factors that affect decisions Psychological influences Sociocultural influences Social Class Situational influences Marketing mix influencesPsychological InfluencesAffect why and how the customer behaves in terms of purchase behavior Must be aware of lifestyle, motivation, learning, perception, attitudes and involvementPsychological Influences LifestyleHow people spend their time and resources, what they consider important in their environment and what they think of themselves and the world around them Must understand that lifestyle affects the purchase decision process People with different personalities or lifestyles will have different needs and different buying behaviorsPsychological Influences MotivationMotivation causes us to act and satisfy a need Customers can have physiological (i.e., food, water, etc.) and psychological needs (i.e., esteem and achievement) Need to find ways to satisfy higher level psychological needsPsychological Influences LearningThe process in which behavior capabilities are changed as a result of experience Behavioral learning = automatic responses to a situation built up through repeated exposure Cognitive learning = making connections between ideas or observing outcomes and changing your behavior (i.e., advertising) Want customers to develop brand loyaltyPsychological Influences PerceptionWhat we perceive based on the filters of our own experiences Customers may not perceive things the way intended Goal is to make sure the customer is exposed to the information, pays attention to the information and understands and remembers itPsychological Influences AttitudesLearned predispositions to respond to in a favorable or unfavorable way It is possible to change attitudes over time Not directly observable Attitudes are related to behavior Goal = get customers to develop a positive attitude through attitude change strategiesPsychological Influences (Involvement)The degree to which you get involved in making a purchase decision Extended problem solving = high involvement (i.e., car purchase) Limited problem solving = moderate involvement (i.e., choosing a restaurant) Routine problem solving = low involvement (i.e., buying toothpaste)Sociocultural InfluencesThe customer's formal and informal relationships with others Demographics, culture/subculture, social class, reference groups and personal influencesSociocultural Influences (Demographics)Population according to characteristics such as age, gender, income, education, occupation, marital status, population size and population growth rate Must understand the demographics in which you intend to operate Should study existing and future demographics Sociocultural Influences (Culture/Subculture) Set of values, customs, traditions, ideas and attitudes that is transmitted from one generation to another Subgroups within the larger culture are referred to as subcultures Have to uncover how culture influences customer purchase behaviorSociocultural Influences (Social Class)Divisions in society into which people sharing similar values, interests and behaviors can be grouped Three major social classes: upper, middle and lower Need to determine how social class influences purchase behaviorSociocultural Influences (Reference Groups)People whom an individual looks as a basis for self-appraisal or as a source of personal standards Membership group = one in which a person belongs (i.e., fraternity, sorority, etc.) Aspiration group = one that a person wishes to be a member (i.e., professional society) Dissociative group = want to maintain a distance FamilySociocultural Influences (Personal Influences)Customer's purchases are often influenced by the views, opinions or behaviors of others Opinion leaders = individuals who exert direct or indirect influence over others Word-of-mouth = influencing of people during conversations (buzz marketing and viral marketing)Situational InfluencesPurchase task = the reason for engaging in the purchase decision in the first place Social surroundings = other people present when a purchase decision is made Physical surroundings = décor, music and crowding in storesUnderstanding Business CustomersMay decide to compete in business-to-business space Includes all buyers except the final customers Manufacturers, retailers and government agenciesKey Differences Between B2C and B2BBusiness customers generally use their purchases for further production, for maintaining their business or for resale to other customers Business customers tend to have more specific buying criteria Business customers may be more geographically concentrated and more able to make their own goods/servicesSimilarities Between B2C and B2BUse similar purchase decision process (i.e., problem recognition, information search, alternative evaluation, purchase decision and postpurchase behavior)Understanding CompetitionWhen considering marketing opportunities, must know your competitors Must know their strengths, weaknesses and competitive strategies Need to remember that competition runs on a continuum ranging from indirect to direct competitionCompetition ContinuumTotal Budget>Generic>Product>BrandCompetition ContinuumTotal Budget = any competitor looking to attract dollars from your potential customer Generic = any competitor that offers an alternative to your product Product = any competitor that offers products somewhat similar to yours Brand = any competitor that offers products identical to yoursCompetition MonitoringShould identify and monitor all competitors who will compete for your intended customer baseQuestions to considerWho are the most direct competitors? What is the sales volume of each of the direct competitors? What market share does each of the competitors hold? Which competitors are similar to your venture? What attracts customers to your competitors? What are key strengths and weaknesses of your competitors?Marketing ResearchIs the process of defining a marketing problem or opportunity, collecting, and interpreting information, and acting on the information to improve the chances of enterprise successTwo major types of marketing dataSecondary data Primary dataSecondary dataExisting data already collected and available Obtained quickly and at lower cost Provides answers to possible marketing opportunitiesProblems of Secondary dataInformation may not exist or might not apply to youSources of Secondary dataUSA.gov Census.gov American Fact Finder Business directories Periodicals, Newspapers, Magazine,Primary DataNew data gathered by yourself VOC Focus groups Observation Fuzzy Front-end methods Surveys Experiments Conjoint Researchin-depth interview (IDI)When it's easier to reach target customers When there is a better cost-benefit compared to other methods When it is preferable to collect responses without group influence When probing is part of the information collection process When a product, service or process is being tested for usabilityfocus groupsCan be effective when Consensus or debate is required to explore possible disparate views of target customers and/or experts Point-counterpoint among target customers can generate an opportunity to resolve differences Broad exploratory topics are covered and allow target customers to generate and share ideas When interactions between respondents can draw our latent issues not just obviously perceived ones When group dynamics can aid in discovery processObservationMechanical or electronic observation Ethnographic research; seek subtle emotional reactions as consumers encounter products in their "natural use environments" such as homes, cars, or hotels Reveal customer insight that cannot be obtained through other traditional research methods such as survey researchFuzzy Front-End Methodsattempt early identification of elusive consumer tastes or trends Next best thingSurveysFace to face mail Telephone OnlineExperimentsAn experiment involves the manipulation of an independent variable (cause) and the measurement of its effect on the dependent variable (effect) under controlled conditions.Conjoint researchcustomer preferences for particular brand or product features and their willingness to "trade off" one feature for more of another feature customers might be grouped into particular market segments, and specific brands/products with specific features can be designed for such segmentsSamplingProbability Non-Probabilityprobability samplinginvolves precise rules to select the sample such that each element of the population has a specific known chance of being selectedNonprobability samplinginvolves the use of arbitrary judgment by the entrepreneur to select the sample so that the chance of selecting a particular element of the population is either unknown or zero often used when time and budgets are limited and are most often used for exploratory research purposesWhat is entrepreneurship?The pursuit of opportunity without regardThe perception of opportunity in the absence of resources helps explain much of what differentiates entrepreneurial leadership from that ofcorporate administratorsthe emphasis on team rather thanhierarchy, fast decisions rather than deliberation, and equity rather than cash compensation.Smart entrepreneurshipFinding "market pain" and creating a "unique" way to cure itWhat is MarketingAdvertising, Selling, Common sense, Creating, communicating, delivering, and exchanging offerings that benefit the organizations, stakeholders, and society7 Steps in the Marketing Process1. Identify and understand customer needs 2. Develop products, services, or experience to meet those needs 3. Price the products, services, or experiences differently 4. Inform customers that these products services, or experiences exist 5. Deliver the products, services, or experiences efficiently and conveniently for the customer 6. Ensure customer satisfaction during and after the exchange process 7. Build long-term relationships with the customerWhy Marketing in New Ventures is differentNeed to identify new products, services, or experiences to market to new customers and not simply use it to sell existing products and services to existing customers Need to obtain "first customer" and not simply manage an existing customer base Need to build a new brand and not simply manage an existing brand Establish effective marketing channels of distribution and not simply manage existing distribution methods Need to establish initial price points for offerings and not simply remind customers to continue to buy Find creative ways to leverage marketing efforts when resources are scarce, especially in the venture startup phaseFailure is the Rule, not the exception, But Marketing can:Help improve the odds of success Provide a solid understanding of customers and markets Identify and validate the right opportunity Provide focus (not try to be all things to all people) Help identify your target marketHow to discover and satisfy customer needsTalk & ListenTarget Market:specific group of customers toward which you direct your marketing efforts or marketing programTarget market should considerDemographics Geographic's Psychographics BehavioralEstablishing your MarketingMarket Segmentation Marketing MixMarket SegmentationPlacing customers into groups that have Common needs Will respond to a specific marketing offerMarketing MixWhat gets integrated into a tangible marketing program that your business will use to gain and keep customersProduct-Based PsProduct Price Promotion Place PeopleProductthe product to satisfy your customer's needsPrice:the cost to your customersPromotion:the means of communication between you and the customerPlace:the means of getting the product into the customers handsPeople:the individuals who will work with you and your ventureService based P'sProduct Price Promotion Place People Physical Evidence Process ProductivityPhysical Evidence:The "tangibles" that surround your serviceProcess:the way the service is created and deliveredProductivity:balancing service output with service qualityExisting MarketSometimes enter an "existing market", sometimes create a market that did not exist Important to listen to customer, BUT sometimes need to think beyond the imagination of the customerMarket Creationcreating a new market that did not currently exist Consumers generally have no idea about a need for the new product, service, or experience5 Environmental ForcesSocial Economic Technological Competitive RegulatorySocialdemographics, culture, time poverty (reducing time poverty by creating delivery services, online shopping, cutting consumers time crunch)Economiccustomer value consciousnessTechnologicalincludes the internet, online stores, online trading websitesRegulatoryrestrictions that local, stat, and federal laws place on businessesSocial ForcesSocial Media Social Platforms Social Content Characteristics of the population Values and behavior of the population CultureSocial Platformssocial networks/communities created by individuals and/or organizations like FacebookSocial Content:the blogs, photos, audio, and video sharing offered on these platformsSocial media can be exclusivelyonline consumer generated efforts by customers who talk about, promote, or hurt brandsEconomic ForcesNature of our Economy Socialnomics Social NetworksNature of our EconomyNeed to understand the state of the economy and consumer confidenceSocialnomics:where customers no longer search for products or services but rather find them via social media Changes the rules of business and the way they shopSocial NetworksEntrepreneur Connect Partnerup Startup Nation LinkedIn Biznik The Funded Young EntrepreneurTechnological ForcesTechnological change New technologies are changing the way consumers shop and what they buy Internet has opened up global marketing opportunitiesCompetitive forcesshould be considered broadly as any alternative that could satisfy a specific customer's needs Ranges from direct competition to total budget competition (customer considers spending their money on something else in a different categoryRegulatory forcesRestrictions that local, state and federal laws place on businessesRestrictions that local, state and federal laws place on businessesExists to protect companies and customers and ensure a competitive marketplace Can provide opportunitiesEnvironmental Scanning:The process of continually acquiring information in the external marketing environment to identify and interpret potential trends that may lead to entrepreneurial business opportunitiesTrendspottingthe next big thingAdjust your reading listening and viewing habits (look for clues)1. Network with the right people 2. Be self-observant 3. Challenge your assumptions (don't be afraid to challenge the norm) 4. Spend time watching and talking with customers