Entrepreneurial Marketing in the Exploitation of Resources and Attraction of Customers - Literature review Example

Entrepreneurial Marketing Innovation and creativity in entrepreneurship deals with; what, when, how and why certain tents ought to be adopted through policy implementation and decision-making. According to Peter Drucker, “Innovation and creativity must involve staffing, rewards, competition, risks, opportunities, strategies, and structures” (2012; 7). However, a firm may be successful in creativity and innovation but end up failing to market these great inventions. H&M is an example of a small fashion firm in the UK. The company has a variety of fashion lines, providing clothes that cater for all age groups and all sizes. Despite its size, this fashion company is one of the most creative and innovative firms in the UK. Recently, they launched a conscious clothing choice that ranges from organic cotton to recycled polyester. This is a great innovation since the fashion consumers can either be climate smart or ethical. Despite all this innovation, few people have tried any H & M product; this is due to poor marketing strategies by the company. The idea of using of going organic can be a hit with consumers given that shoppers will always want to shop with a company that is eco-friendly. This can be used as a platform to market its products. Another great marketing strategy is network competencies. H&M can use technology-oriented relationships to link with other organizations (Geoff & Cecile 113). Given small businesses have a high network flow, the knowledge for marketing and selling products, will be easily adapted from the competitors as new for trial. As a small market, they should also ensure technological competencies. The technology applied by most small business may not be the latest in the marketing sector (Geoff & Cecile 113). As a secondary measure, small firms such as H&M should see the need and importance of stalk-holders. If the business affects the relationship with stakeholders then marketing the products will be a great challenge. H&M last year accused a shop in the New York City for throwing a bunch of their unsold clothes. This is a clear indicator that no one was interested in buying these products. Apparently H&M does not have marketable products whatsoever. However, this incident could be as a result of their poor marketing strategies. A linkage is a way of harmonizing all business activity through controlling and monitoring. These together with early budgeting of strategies will help in marketing products (Geoff & Cecile 113). Many small firms in the UK and even all over the world are clinging onto simple marketing structures that are a routine to every market. For example small businesses only look at the cost versus the value; this is their preferred method of setting the price mix. It is no doubt that such companies will dwell on losses (Michael 149). Investing in perceptive finances is one way small companies can make quick money. Instead of the small firms providing the society with value in return for capital gains, they prefer commercializing the new products. Thus, the firm ends up with little equity and more borrowing due to laws governing long and short-term investments. These entrepreneurs go with the capitalist approach that they could make more long term profits when they could maximize in the short run (Shaklin 108). The fact that small businesses believe they have to be the jack-of-all-trades should not be the case. A firm can have a marketing strategy that they embrace to have customers over a long period. Marketing orthodoxy are the methods or market policies that are acceptable as right by both the buyers and sellers. With orthodoxy nothing different from what is believed to be right should not be practiced (Howell 131). It is more traditional and does not evolve or accept new or different ways. Conventional market orthodoxy means that one adhering to the accepted traditional market strategies. Orthodoxy in marketing is all about promoting products and services that are environmental friendly (Michael 194). Without orthodoxy in marketing, the world would be a horrible place. People would market deteriorating products that could impact the environment negatively. Some products are not on market because they do not fulfill the requirements of a product by market orthodoxy. (Michael 194). When established orthodoxies face challenges, they try to uphold the status quo through three processes. First, there will be denial phase and if the challenge is undeniable, the second face comes in, concessions where pressure is shrinking to an acceptable level and finally absorption where the compromise is accepted with the aim of revolutionary change (Michael 196). Small firms let the pressures from unrepresented groups stop them from bringing change. The lack of a unified science consensus on matters such as global warming makes change is unnecessary (Michael 197). H&M is among the other small firms that are lacking a marketing perspective because they think that environmentalists will criticize it. Environmental concerns however show that science and technology will not be able to reverse any degradation or poverty. This is due to the increasing human population and constant human activity (Michael 197). However, there are approaches that small firms can adapt to orthodoxy and at the same time apply conventional wisdom. This way the needs of the smaller firms are attainable and at the same time, acceptable marketing approaches are applied. Marketing is a rational process that is noticeable primarily as a natural composition to understanding the marketing environment. Small should develop a marketing plan based on the mix. Strategizing follows through implementing the market plan with the four mix factors. Finally, a control measure is put in place to ensure that the approach is adhered to (Phill & Frank 5). Evaluation and review of the market plan is done regularly for modifications to be made in the regard to competition (Phill & Frank.5). This process has actually led to a change in orthodoxy allowing a change in the view of how markets work. In other word, pressure is lesser with the process. There is empirical evidence suggesting that marketing and entrepreneurship when properly combined leads to the success of a business. This is because entrepreneurship together with marketing brings innovation (Anuradh &Bernard, Mark 128). Market-entrepreneurship interface is easily comprehendible as a gap between the market and the entrepreneur on different sides. The gap contains information to be complete with ideas (Anuradh &Bernard, Mark 128). In this interface, the task for marketing is providing infrastructure, tools, and concepts in the innovation and market positioning concerning competition. The major concepts are market segmentation, place, and time and market concept. The gap needs filling even after marketing provides the concepts (Gardner 49). Entrepreneurial marketing is risk-taking, proactive and innovative in exploitation of resources and attraction and retention of customers (Morris 89). If H&M take this into action they will not only have more profits but they will also more profitable consumers. Though it is risky, taking it comes with great rewards for those bold enough. The five concepts illustrate how entrepreneurial marketing can be simple. First Guerrilla marketing, here firm minimizes cost, maximizes effort, promotes innovation, and uses most of networking benefits. Expeditionary marketing is the point when, firms are market leaders rather than followers and they are front at innovation. Environmental marketing involve firms reducing constraints and becoming independent on external factors. In radical marketing, the firm ensures intuitive connection with customers, marketing is through passion. Subversive marketing is when the firm is action oriented and challenges formal structures, and has informal networks. Lastly, proactive marketing, which deals with, Firms that use this are about change management, redefining the market product and finding the sources for customer value(Anuradh &Bernard, Mark 128). The company should take note of the influence of social media when it comes to promotion of the business. To begin with, the company website should be updated regularly in regards to the products on offer and information on offers posted clearly for the general public to see (White 112). There should be follow up calls to its customers to find out if they liked the products of the company and any changes that they think should be made so that they might be more products. Such case studies should then be put online, on the company website where they can be seen by the public. Research shows that people are more likely to buy products from a company that has positive feedback that they can see rather from a company that has no evidence of user satisfaction. Use of videos in social media platforms is also a hit with consumers. Customers are drawn to the visuals of a business (Casson 56). This means that a video will most definitely be watched as it gives them better understanding of the company and its products. The possibility that customers will buy a product after watching a video is slightly over 150%. As such, this is one avenue that is yet to be fully utilized by small businesses as they strive to get a market share. Having great products is just one of the steps to a successful business, getting the customers to buy your product is the most crucial part. While making full use of social media avenues, the company should ensure the customers know the innovative nature of their products. Therefore, there should be information on why the use of organic material is beneficial to the environment and why customers should embrace the use of organic products. It is these small factors that create a difference between several suppliers and makes companies stand out. By highlighting the simple matters that make the company’s products stand out the company can attract media attention and this is another source of free publicity (Drucker 92). Visibility of the company is very important for people to embrace its products and the company should be willing to invest in the process. The management of H & M should reevaluate the company objectives and re direct more resources towards marketing the company products that are already in the market before it can allow the employees to be more innovative and come up with new products. The above perspectives are applicable in entrepreneurial marketing while the entrepreneur has a part to fulfill in the interface too. Customer intensity is where there is the conviction that the marketing campaign is going as expected. Sustainable innovation means the firm can maintain sustainable internal and external sustainability of processes. Strategically analyzing all available risk factors and formulating ways to avoid them. Finally is resource leverage, a firm is able to stretch its resources or use other firms’ resources for its own benefit. H&M could use entrepreneurial marketing for many benefits for example market leadership, market positioning, profit maximization and many other benefits (Hine & David 31). H&M together with many other small firms will not only benefit presently but also in the future. Customer satisfaction will lead to customers being loyal to specific brands. This will in turn create a big customer base for the small companies. In future, the only thing they may seem to tackle will be market penetration in other parts of the world. In the end, H&M can be a successful global business. Entrepreneurial marketing is a great tool for small markets to broaden their customer base and position themselves in both local and international markets. The interface has some risky features such as calculative risk that will only take bold firms to try. Creative marketing is the key to H&M selling their products faster and in an easy way. Small firms should review their marketing policies and adapt to the changing marketing environment in order to survive in this era. Works Cited Casson, Mark. The Oxford Handbook of Entrepreneurship. Oxford: Oxford University Press, 2008. Print. Drucker, Peter. Innovation and Entrepreneurship. 2012. 272. Print Fillis, Ian. Creative Marketing for Smes. Hyderabad, India: ICFAI University Press, 2005. Print. Goldman, Geoff, and C Nieuwenhuizen. Strategy: Sustaining Competitive Advantage in a Globalised Context. Cape Town: Juta, 2006. Print. Goldman, Geoff, and C Nieuwenhuizen. Strategy: Sustaining Competitive Advantage in a Globalised Context. Cape Town: Juta, 2006. Print. Harris, Phil, and Frank McDonald. European Business and Marketing. London [u.a.: SAGE, 2004. Print. Hine, Damian, and David Carson. Innovative Methodologies in Enterprise Research. Cheltenham: Edward Elgar, 2007. Internet resource. Howell, David R. Fighting Unemployment: The Limits of Free Market Orthodoxy. Oxford: Oxford University Press, 2005. Internet resource. Shanklin, William L. Six Timeless Marketing Blunders. Lexington, Mass: Lexington Books, 1990. Print White, Michael. A Short Course in International Marketing Blunders: Mistakes Made by Companies That Should Have Known Better. Petaluma, CA: World Trade Press, 2009. Internet resource. Read More