strategic entrepreneurship topic 9
TRANSCRIPT
STRATEGIC ENTREPRENEURSHIP
TOPIC 9DR ANIS AMIRA AB RAHMAN
TAHIRAH BINTI ABDULLAH
FACULTY OF ENTREPRENEURSHIP AND BUSINESSUNIVERSITI MALAYSIA KELANTAN
Dr Anis Amira Ab Rahman 14
LINING UP FOR SALES AND MARKETING STRATEGY
Dr Anis Amira Ab Rahman 14
Sales Strategies
A sales strategy sets out in detail on how entrepreneursget their product or service in front of people who needit.
It can be based on business and marketing plans. The questions on sales strategies: How to deliver
objectives set out in marketing plan?, how to segmentsyour target market?, and how to fund your marketingactivities?
Must allocates sales resources efficiently so the sellingcosts will drive down and revenues up
Dr Anis Amira Ab Rahman 14
Sales Strategies
Assess performance environment
Evaluate organizational design
Conduct competitive analysis
Develop buyer personas (i.e.: understand who is your customer, how they buy)
Develop roadmap (i.e.: Change management plan, sequencing of improvement initiatives)
http://www.slideshare.net/
Dr Anis Amira Ab Rahman 14
Best practices in Sales Strategy
Ensure active and visible CEO/Business Unit Leader participation
Plan and execute robust communications Link to Corporate strategy Continually refresh strategy as need
http://www.slideshare.net
Dr Anis Amira Ab Rahman 14
What is Marketing?
Thinking about business in terms of customer needs and satisfaction.
“You may have a very good product or service but unless people know about it”
Dr Anis Amira Ab Rahman 14
Marketing Research for the New Venture
Step one -Defining the purpose or objectives
Step two -Gathering data from secondary
sources
Step three -Gathering
information from primary sources
Step four -Analyzing and
interpreting the results
Source : Hisrich, R. D. Peters, 2009
Dr Anis Amira Ab Rahman 14
Sales and Marketing Strategy
Source : Hisrich, R. D. Peters, 2009
Dr Anis Amira Ab Rahman 14
Marketing Strategies
Price
(Customer cost)
Place
(Convenience)
Product
(Customer/consumer)
Promotion
(communication)
Source: Goi (2009)
Dr Anis Amira Ab Rahman 14
Product
Product differentiation is concerned with the bending of demand to the will of supply.
It is an attempt to shift or to change the slope of the demand curve for the market offering of an individual supplier.
Price and product components to be the most important (Kellerman, Gordon and Hekmat, 1995)
Dr Anis Amira Ab Rahman 14
Product
Variety
Quality
Design
Features
Brand name
Service
Dr Anis Amira Ab Rahman 14
Place
Represents the location where a product can be purchased.
Often referred as the distribution channel.
The ease to buy a product, find a product, find information about a product.
Dr Anis Amira Ab Rahman 14
Place
Reasons for diversify in specific markets (Smith, 1995):
i) Variations in the production equipment and methods orprocesses used by different manufacturers of productsdesigned for the same or similar uses;
ii) Specialized or superior resources enjoyed by favourablysituated manufacturers;
Dr Anis Amira Ab Rahman 14
Place
Reasons for diversify in specific markets (Smith, 1995):
i) Variations in the production equipment and methods orprocesses used by different manufacturers of productsdesigned for the same or similar uses;
ii) Specialized or superior resources enjoyed by favourablysituated manufacturers;
Dr Anis Amira Ab Rahman 14
Place
iii) Unequal progress among competitors in design,development, and improvement of products;
iv) The inability of manufacturers in some industries to eliminate product variations even through the application of quality control techniques;
v) Variations in producers' estimates of the nature of market demand with reference to such matters as price sensitivity, color, material, or package size.
Dr Anis Amira Ab Rahman 14
Promotion
The activities involve to communicate and persuadethe target market to buy the company’s products orservices.
Advertising, public relations, personal selling, viraladvertising and any form of communication betweenthe firm and the consumer.
Dr Anis Amira Ab Rahman 14
Promotion
Dr Anis Amira Ab Rahman 14
Price
The amount a customers pays for the product
Determined by market share, competition, material costs and customer’s perceived value.
Dr Anis Amira Ab Rahman 14
Strategies to commercialize at start up stage
Rapid skimming: new product to be launched at a high price and high promotion level
Slow skimming: new product to be launched at a high price but with low promotion level
Rapid penetration: new product to be launched at a low price and high promotion
Slow penetration: new product to be launched at a low price and low promotion
Dr Anis Amira Ab Rahman 14
Porters 5 Forces
Dr Anis Amira Ab Rahman 14
Competitive rivalry is a good starting point to when analysing a particular industry. If entry to an industry is easy then competitive rivalry is likely to be high. If it is easy for customers to move to substitute products for example from coke to water then again rivalry will be high. Generally competitive rivalry will be high if:
• There is little differentiation between the products sold by competitors.• Competitors are approximately the same size of each other.• If competitors have similar strategies.• It is costly to leave the industry (exit barriers)
Dr Anis Amira Ab Rahman 14
Competitive Rivalry
Sources:http://www.learnmarketing.net/porters.htm
Suppliers are also essential for the success of an organisation as they provide businesses with the resources they need to produce their products and services. Supplier power can come from:
• If there is one or just a few suppliers that can provide the resources a business needs.• If it is expensive to move from one supplier to another (known also as switching cost)• If there is no other substitute for the product provided by the supplier.
Dr Anis Amira Ab Rahman 14
Power of Suppliers
Sources:http://www.learnmarketing.net/porters.htm
Buyers or customers can exert influence and control over an industry in certain circumstances. This happens when:
• There is little differentiation over the product and substitutes can be found easily by customers/buyers. • Buyers/customers are sensitive to price fluctuations.• Switching to another product is not costly for customers/buyers.
Dr Anis Amira Ab Rahman 14
Power of Buyers
Sources:http://www.learnmarketing.net/porters.htm
Are there alternative products that customers can purchase instead of yours? alternative products that offer the same benefit as your products? The threat from substitute (competitor) products is high when:
• The price of the substitute (competitor) product falls.• It is easy for consumers to switch from one substitute product to another.• Buyers are willing to substitute products from different competitors.
Dr Anis Amira Ab Rahman 14
Threat of Substitutes
Sources:http://www.learnmarketing.net/porters.htm
The threat of new organisations entering the industry is high when it is easy for an organisation to enter the industry i.e. entry barriers are low. When a new business is deciding whether to enter an industry it will look at:
How loyal customers are to existing products,
How quickly it can achieve economy of scales
Would it have access to suppliers and
Would government legislation prevent them or encourage them to enter the industry.
Dr Anis Amira Ab Rahman 14
Threat of New Entrant
Sources:http://www.learnmarketing.net/porters.htm
References
• Aashish Mehra, G. S. (2011). Managing rapid growth : How mid caps can leap into the billion
dollar club .
• Dollinger, M, J. (2008). “ENTREPRENEURSHIP: Strategies and Resources Fourth Edition”,
Kelley School of Business, Indiana University. MARSH publications, pp. 33-40.
• Drucker, P. F., & Drucker, P. F. (2007). Innovation and entrepreneurship: Practice and
principles. Routledge.
• Hisrich, R. D., Peters, M. P., & Shepherd, D. A. (2009). Entrepreneurship. New York:
McGraw-Hill Higher Education.
• Lieberman, M. B., & Montgomery, D. B. (1988). First‐mover advantages. Strategic
management journal, 9(S1), 41-58.
• R. Barringer, Duane,(2009).Successfully Launching New Ventures: McGraw-Hill Higher
Education.
• Zimmerer, T., Scarborough, N. M., & Wilson, D. (2002). Essentials of entrepreneurship and
small business management (Vol. 2). Upper Saddle River, NJ: Prentice Hall.
• http://www.learnmarketing.net/porters.htm
Dr Anis Amira Ab Rahman 14