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L5 - Entrepreneurial Marketing

Apr 14, 2018

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    BPTW 4012ENTREPRENEURSHIP

    TECHNOLOGY

    Lecture 5:

    ENTREPRENEURIAL

    MARKETING

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    Introduction

    Marketing is basically an exchange activity thattakes place between a business entity and its

    customers.

    The customers can include individuals, otherbusiness entities (e.g. wholesalers and

    retailers) and support organizations (e.g. banks

    and government agencies).

    Marketing is a critical activity in any businessbecause it forms the backbone to the total

    business effort in achieving a profitable income.

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    UNDERSTANDINGMARKETING

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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 andincrease 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 Sales3. 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 ProfilesHuman Being Geographic

    Demographic

    Psycho graphic

    Governments Local governmentState government

    Federal government

    NGOs Environment

    Social

    Cultural

    Business Entities Manufacturer

    Wholesaler

    Agent/Dealer

    RetailerIPTK - UTeM

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    PREPARING A MARKETING

    PLAN

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    Eight Steps in Preparing a Marketing Plan

    1. Define the product concept

    2. Identify the target market

    3. Determine market size

    4. Identify competitors

    5. Determine market share

    6. Develop sales forecast7. Develop marketing strategy

    8. 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 entirepopulation.

    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 beoffered

    2. Focus the marketing effort

    i. Identify the market area and businesslocation

    ii. Collect information and data

    of customersiii. Segmenting the market

    3. Determine target market from the

    market segments identifiedIPTK - UTeM

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    Sales Forecast

    The sales forecast is the

    expected sales potential from

    the selected target market. Thesales 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 Size2. Identify the Competitors

    3. Estimate Market Share

    4. Forecast Sales

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    1. Determine Market Size

    Market size is the total potentialpurchase that is expected from the

    target market.

    The potential purchase includespurchases 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 maincompetitors in order to know whom thebusiness is sharing the market with and

    to develop appropriate marketingstrategies to compete with its rivals.

    It must also analyze the strengths and

    weaknesses of the competitors in termsof size, experience, number of years inbusiness, financial capabilities andproduct 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 competitorsposition 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 ofUse

    ProductDifferentiation

    Attractive

    Customers Product Safety

    Labeling

    After SalesService

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    Pricing Strategy

    1. Cost-Based Pricing

    2. Value-Based Pricing

    3. Competitive-Based Pricing

    4. Factor Affecting Pricing

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    Distribution Strategy

    1. Selling Direct to Customer

    2. Selling Through Retailers

    3. Selling Through Wholesalers4. Selling Through Wholesalers

    and Retailers or Agents

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    Promotion Strategy

    1. Advertising

    i. Printed media

    ii. Broadcast media

    iii. Internet

    iv. 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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