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Entrepreneurship exam 2

Terms in this set (32)

Define marketing
Communicating and delivering value of a product to service customers with the 4 p's
What in entrepreneurship
The process by which individuals identify and pursue opportunities without regard to the resources they currently control.
Define is entrepreneurial marketing?
the proactive identification and exploitation of opportunities for acquiring and retaining profitable customers through innovative approaches to risk management, resource leveraging and value creation.
What are three criticisms of traditional marketing?
Over-reliance on est. rules of thumb, Formula-based thinking, Lack of accountability for marketing expenditures, emphasis on the promotion element the tendencies to irritate instead of innovate Focus on superficial whims of customers, focus on existing markets, a concentration on short-term, low risk payoffs, used in a static and reactive approach, marketing as a functional silo
Contrast between traditional and entrepreneurial marketing in three ways.
BASIC PREMISE, orientation, context, marketer's role, market approach, customer needs,
List and explain the four steps in the entrepreneurial marketing process.
Propositions → exploration→ prototype
Prototype → examination → Product
Product → Exploitation → Purchase
Purchase → expansion
Exploration
It is the art of identifying the exact problem or need in the marketplace and confirming the potential of your idea to fill the need.
Examination
This is demonstrating the viability of your idea which is achieved by allowing potentials experience your offering.
Exploitation
This is to business operation with minimum capacity required to do so
Expansion
Communicating the benefits of your offering to other entities that fit your customer profile in order to acquire them as customers.
Skipping Exploring
When to skip: (1) if you have already identified the customer's problem while on the job, (2) if your idea will bring about a sea change, (3) if you have already skipped exploration and jumped to the next phase - idea examination.
Skipping examination
When to skip: Only when you can produce the actual product
Skipping Exploitation
Never skip
Skipping Expansion
Never skip
Draw the dual dumbbell model of entrepreneurship and label it clearly.
Founders view
Opportunity → human capital → resources → human capital → Opportunity
Customers view point

Innovation → Problem solvers → Capacity → Problem solvers → Innovation
What is the central message of the model?
The dual dumbbell model highlights the importance of including the customer as a co-active producer of our offering. It shows the different views of entrepreneurship from founders' and customers' viewpoints.
When do you create a prototype and try to sell it or have customers experience it?
During the exploration stage you create a prototype in order to gain a better sense of the demand within your industry and to show customers are interested in your product.
Write the Opportunity equation
Opportunity= Idea + Customer Base
Write the Opportunity explain it.
The opportunity equation explains the relationship between an idea and a customer base to achieve an opportunity. It displays whether your idea is attainable based of the market which you can influence but do not have total control over.
Entrepreneurs invest in opportunities, not ideas. Explain.
An opportunity is an idea that is scalable because it is supported by a customer base. It requires allowing potential customers to physically interact with the prototype to elicit a purchase.
Post- and pre-money valuation calculations
Post-Money Valuation= new money x total shares post money / shared issued for new
Briefly explain any three pricing techniques discussed in class.
(1)Target return pricing, based on the need to achieve return-on-investment
(2)Cost plus pricing, prices set at production cost plus profit
(3)Psychological pricing, baed on customer perception of quality and reasonable pricing
Which entrepreneurial marketing step requires the most amount of resources? Why?
Reconcile this with the definition of this step.
Discuss how any three prominent entrepreneurs began exploiting their ideas?
James Treybig formed Tandem through his friendship with old colleagues from HP. Identifying his human capital as strength promoting his venture.
Bill Gates brought in people with experience since the beginning of Microsoft because he had rich social capital.
Ray Liotta jumped right into the movie industry exploiting his goal by being proactive.
What does each letter in STEPPS stand for?
Social currency, Triggers, Emotion, Practical Value, Public, Story
Social currency
Berger notes that sharable information is that which holds social currency; one way or another, it makes us look good to those around us. This is a concept that most email marketers can learn from and should apply to programs. Too often, we ask subscribers to share an offer or information in an email communication, yet there's nothing in that email that would make a subscriber look or feel good by passing it along.
Triggers
is something that is easy to remember about a product or idea, helping to ensure it stays top of mind. It's funny to note that although email marketers use the term "trigger" to mean something completely different, we apply triggers to our programs with that same goal: keeping our program top of mind. Do not underestimate the power of properly triggering your email communications--or the importance of being top of mind with the customer.
Emotion
Simply put, messaging with an emotional component is more likely to be shared. Email is a relationship channel and part of any good relationship is emotion. Does that mean that every message you send should pull on heartstrings or get subscribers mad as hell? Probably not. However, every message you send should absolutely stay true to your brand, while remaining focused on your customer. If your subscribers feel like your messaging is all about you, without taking their interests into consideration, don't expect them to participate in spreading the word.
Practial value
another word for practical value is "relevance," practically a mantra for folks like you and me. If your email isn't relevant, why would it go viral? Some of the most successful email programs are those that provide practical advice; how-to information, for example, or interesting, random facts. Think top ten lists, or "did you know" messaging. Always consider the practical value your messaging offers your audience.
Public
The ability to show the idea which lends its self to different Channels
Story
Berger notes our rich cultural history of storytelling and, certainly, good stories get passed along through generations. For email marketers, there are a couple different ways to tap into this and use stories to improve our programs. Sure, you could come right out and toss an actual story into an email every once in a while. It could help keep your content fresh, keep subscribers engaged, and maybe even get subscribers talking. But another way to look at building stories into your program takes a more holistic perspective: What is your brand story to consumers? Every memorable brand makes implicit promises to consumers across key touch points. And every great brand keeps those promises with every interaction it makes. So, if every email you send isn't reinforcing your brand story, the absence of that story can inadvertently erode brand value.
17.Which company or what type of company is featured in this video? Which of the
STEPPS is being invoked? Explain.
Social currency = because it makes the viewer see the company as a company focused on social well being
Trigger = idea of manikin transformation will stay on the mind
Emotions = disfigurement of humans is very emotional
Public = displaying the manikin shows it to the public
Practical value = low in practical value to most
Story = it tells a good story that can be repeated
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