Marketing And Entrepreneurship

Marketing and Entrepreneurship Dr. Tejinder Sharma Department of Commerce KU, Kurukshetra 136119 [email protected]

Layout Why marketing? What constitutes marketing? Changing facets of marketing Strategies for SMEs

Why marketing? Wherever there are competing alternatives, and transactions, there is marketing. Irrespective of the nature of firm, marketing is important. – – – – –

Armed forces Charitable organisations Religious organisations Hospitals Educational institutions

Drivers of marketing Technology Globalisation of economy Competition Mergers and acquisitions Retailing boom Availability of information

Marketing defined Marketing is the process of planning and executing the conception, pricing, promotion and distribution of ideas, goods, services to create exchanges that satisfy individual and organisational goals. (AMA)

Marketing redefined Marketing is the process of delivering value to the customers. Value = Benefits Costs Value =

Functional + Emotional . Monetary + Time + Energy + Psychic

Marketing Mix Set of marketing tools that the firms use to pursue their marketing objectives in the target market. Common classification of the marketing tools is: * Product * Price * Place * Promotion

Product A Product is anything that can be offered to satisfy a want or a need. The products include: * Physical goods * Services * Experiences * Events * Persons * Places * Properties * Organisations * Ideas

Product redefined A product is a solution to customers’ problems There can be alternative solutions to the problems Customers chose the solution which offers them the best value

Product life cycle

Maturity

S A L E s

Growth

Introduction

Time

Decline

Price What is given to get something. It can be in the forms of monetary cost, time, energy and psychic costs.

Pricing Objectives Market penetration strategy Market skimming strategy Partial/full cost recovery strategy Social price

Common pricing methods Mark-up pricing Target return pricing Perceived value pricing Value pricing Going rate pricing Tender pricing Geographical/Discriminatory pricing

Place Making the product available to the right customer at the right time in the right form. Customer service output * Lot size * Waiting time * Spatial convenience * Product variety

Promotion Making/persuading the customers buy the products. The tools for promotion are: * Advertisements * Sales promotion * Publicity * Word of mouth communication

Changing philosophies of marketing Production concept – The consumers will prefer the products that are widely available and are inexpensive. (Nirma, Parachute, Lakhani, etc.)

Product concept – The consumers will favour those products that offer the most performance, or innovative features. (Web TV) How can the public know what kind of car they want until they see what is available (GM)

Changing philosophies of marketing Selling concept – The consumers, if left alone, will ordinarily not buy enough of the firm’s products. So, the firm must undertake aggressive selling and promotion efforts. (Coke, Pepsi, Koutons, Maruti, Bajaj)

Changing philosophies of marketing Marketing concept – The key to achieving a firm’s goals lies in the firm being more effective than the competitors in creating, delivering and communicating customer value to its chosen target markets. – Meeting the ends profitably – Partners for profit

Changing philosophies of marketing Societal marketing concept – A firm’s task is to determine the needs, wants, and interests of the target markets and to deliver the desired satisfactions more effectively and efficiently than competitors in a way that preserves or enhances the consumers’ and society’s well-being.

Strategy formulation for SMEs Defining Business Mission – External (ETOP) analysis – Internal environment (SWOT) analysis

Goal formulation Strategy formulation Programme formulation Implementation Feedback and control

- Impact of globalization Access to markets Access to finance Access to business development services Legal and regulatory system Infrastructure and logistics

Challenge From Globalization The sub-continents’s awareness and preparedness for WTO is limited, of SME units even worse

MSME sector most vulnerable to impact of WTO. The impacts are – Import of consumer goods from East Asia and China – Shift in procurement by large companies from SSIs to overseas suppliers – Inability of SMEs to implement anti-dumping measures and counter other unfair practices such as moves by competitors to patent traditional Indian products and brands. – Continuing of imports through illegal channels via neighboring countries

Possible Responses to Challenges Create awareness regarding WTO issues Identify and tap new markets Promote inter regional trade Encourage linkage with large corporates Improve governance and environmental/ social compliance Increase competitiveness by – – – –

Improving manpower skills Moving up value chain International benchmarking Build intellectual property rights

Key to success Winning attitude Keeping the eyes and ears open Love thy market and not the product Waking up and going to work

Thank you