Marketing-Entrepreneurship Interface - Cheshire Innovators - Literature review Example

Report: Marketing-Entrepreneurship interface A table of contents Introduction/ Executive summary 2. Literature Review- and Critical Analysis (ii). The Marketing-Entrepreneurship interface and the proposed use of ‘Entrepreneurial Marketing’ within small firms (ii). The proposed use of ‘Entrepreneurial Marketing ‘small firm for a specific start-up (Cheshire Innovators) new venture (ii). Appropriate marketing strategies/techniques that may be utilized by small firms in United Kingdom 3. Conclusions 4. Appendices 5. References 1. Introduction/ Executive summary Marketing-entrepreneurship interface entails a process of creating a link between the marketing techniques/strategies and entrepreneurs creative and innovative ideas so that a start-up venture or product can become easily acceptable by the customers/buyers. This means that the interface between marketing and entrepreneurship arises when an entrepreneur brings out innovative and creative ideas into the market. Normally, entrepreneur’s innovative ideas influence marketing in numerous ways. For example, the product or service becomes easily differentiated from other existing products in the market. This in turn helps to make marketing process more easier because marketers can be in a position to explain to the customers how the added features in a product will help to meet and exceed their needs and satisfaction than any other product in the market (Hine and Carson, 2007). Research indicates that the application of entrepreneurial creative and innovative skills may play a significant role in marketing rather than fully relying on marketing concept a lot. This means that they should not only rely on innovation but they should also utilize the most effective and appropriate marketing strategies. For example, entrepreneurs of small business start in the United Kingdom should be innovative in numerous areas of marketing. Among those areas that they should be innovative include; in development of product, identification of the potential business opportunities, utilization of innovation in marketing techniques to mention just but a few of the areas of application. Therefore, the application of innovation may successfully help to interface between marketing and entrepreneurship so that small business start up /in the united kingdom can /be in a position to deliver products and services desired by their customers at a profit (Paley,2006). 2. Literature Review- and Critical Analysis (i).The Marketing-Entrepreneurship interface and the proposed use of ‘Entrepreneurial Marketing’ within small firms Marketing entrepreneurship interface links the entrepreneur behaviour and the market. This means that an entrepreneurship interface is an area where the aspect of innovation tends to be introduced in the market. The interface between Entrepreneurial behaviour and marketing may be as displayed in diagram below. Marketing/Entrepreneurship Interface The entrepreneurial behaviour tend complex concept to understand because it tends to be influenced by the factor that are found both inside and outside the organisation. The major pillar of entrepreneurial behaviour is the vision that the owner of a small business has in respect to where he/she want the business to be in the future. Therefore, entrepreneurial behaviour encompasses an innovative marketing vision that helps an entrepreneur to successfully meet market demand in a cost effective manner. On the contrary, marketing is contains three basic components that are further being subdivided into other sub-components. Among the three major components of marketing include; Infrastructure, tools and concept. Infrastructure entails knowledge and channels used in marketing to distribute products and services to various destinations. Further, entails adverting activities as well as marketing research and development (Fillis, 2005). On the other hand, marketing tools entails both quantitative and qualitative marketing applications that are utilized in gathering necessary marketing information to bed used by marketers to make necessary adjustments and bring out new changes in the market. The final component involves concepts, those are marketing strategies and techniques they include; marketing segmentation, matching concept, the product/small business life cycle and four marketing p’s(4P’S) meaning Product, price place and promotion (Cheverton, 2004). In order to understand marketing-Entrepreneurship interface it is crucial to take into consideration certain aspect. One of those concepts is the communication/information aspect. The information aspect is one of the most integral factors in ensuring that marketing activities become a success. This is because information ensures there are seamless operations within and outside the firm. There are three fundamental areas that information is involved in establishing an interface between the entrepreneurship and marketing. The first area involves having the most update and relevant information about the marketing needs. This means that for an entrepreneur to be successful in marketing his innovative products/services, they should have all the relevant information so that they can be able to produce goods and services that meet market demands. The second area of information that an entrepreneur should be conversant with is the information diversity. This means that for an entrepreneur to interface his innovative and creative ideas with the market, he/she should be able to gather and interpret different kinds of information. The third and the final areas of entrepreneur’s information entail accessibility to the primary sources of information. This means that an entrepreneur should not only relay on secondary information but they should be vigilant in gathering the most current and update information in order to take advantage of the market before other competing firms have realized about the available opportunities in the market (Michman, Mazze and Greco, 2003). Research indicates that there are five fundamental interface concepts in entrepreneurial marketing of the small firms. Among the five marketing entrepreneurship interface concepts include; product/small business start-up life cycle, market segmentation, strategic planning utility and finally marketing concepts. The small business life cycle is just the same as the product life cycle that a new product undergoes. Under this cycle, the product/business passes under the various stages starting with birth, growth, constant and finally declining stages. Under each stage, entrepreneurs utilize different marketing tools because each stage tends to be impacted by different factors from the preceding stage. This means the entrepreneurs of small firm in the United Kingdom should be aware of that small business start ups have limited history that leads to formulation of a sigmoid curve and hence, different marketing techniques should be employed under each stage to be effective and efficient in the market. The other interface concept that entrepreneurs of small start firms should be aware off is the market segmentation concept. This concept has a strong correlation with the marketing concept which focuses on specific group. However, market segmentation tend to be unique in the sense that it differentiate the discrepancies and similarities that exist in the entire market unlike marketing concept which focuses on specific groupings. Therefore, market segmentation helps to recognize that there is need to apply different innovations in different segments market segment during the product development life cycle. The third marketing-Entrepreneurship interface entails strategic planning (Wedel and Kamakura, 1999). This involves putting ahead some skilful plans that may be utilized in deal changes and factors that may affect the efforts of having a successful marketing. Strategic planning helps to ensure that a small start up firms is prepared to deal with market competition, customers demand and any other factors that may negatively affect marketing efforts (In Sethna, In Jones and In Harrigan, 2013). The forth interface involves utility whereby, Entrepreneurs should employ efforts in creating time, place and possession utility. This helps to ensure that the correct product reaches to the customers at the right time and at the right place. Further, the concept of utility helps in determining the most appropriate attributes that should be added to the product and the prices to be charged to the customers as well as determining the most appropriate distribution channels to be utilized in ensuring the product reaches the hands of the customers at the right time and in the correct quantities (Casson, 2008). (ii).The proposed use of ‘Entrepreneurial Marketing ‘small firm for a specific start-up (Cheshire Innovators) new venture Cheshire Innovators is a small business start up located in the United Kingdom. The firm deals melioration technology. However, just like other small business start us in the United Kingdom, the company had been experiencing numerous challenges ranging from lack of adequate finances to lack of a reliable market for its product. This means that despite having developed innovative products the firm faces the challenge of marketing its product to the customers. The problem of marketing has been so prevent not only for Cheshire Innovators but also to other small business start ups in the United Kingdom. However, the problem of funding has been addressed by the United Kingdom government whereby, the UK government through the Bank of England provide loans to small business start up at a lower interest rate. In addition, the United Kingdom government has put forth other avenues where small business start-up can access funds for financing their investment. Some of those avenues include but not limited to; Angle investment Funds, Partnership business loans scheme as well as Small and Medium Enterprise loan scheme. This means that the problem of finance has been fully addressed because the United Kingdom government has set aside various sources of financing small business start up. However, the problem of marketing remains a challenge because it has not been fully addressed. The reason why marketing problem has become quite difficult to address in the United Kingdom is because it is an internal problem that tends to be brought up by entrepreneurial behaviour which is normally an internal factor (Gov.UK, 2014). The most common mistakes those Entrepreneurs in United Kingdom makes include but not limited to; failure to carry out proper market assessment. This means that Entrepreneurs tends to make a narrow market evaluation whereby, the most pertinent factors that may affect marketing efforts tend to be ignored. Secondly, entrepreneurs make a mistake of carrying out appropriate marketing segmentation as the new business start-up continue to experience growth. Thirdly, Entrepreneurs fails to understand marketing requirements for example, the fail to understand market potential in terms of customers’ purchasing power. This means that they tend to establish higher market pricing strategies that most of the customers may not be in a position to afford The proposed use of ‘Entrepreneurial Marketing may be summarized in the form of paradigm interface, the paradigm provide an interface between marketing and entrepreneurial behaviour (Rogers, 2001). The paradigm interface indicates a point in which innovation and creativity is introduced into the market as shown in the diagram 1.5 in the appendices. (iii).Appropriate marketing strategies/techniques that may be utilized by small firms in United Kingdom The most appropriate marketing strategies/ techniques that may be used by small start-up firms in the United Kingdom include; targeting, positioning, strategic development of advertising message, segmentation strategies and pricing strategies. Targeting involves communicating the right message to the right market segments. Small business start-ups should employ the right communication channel to communicate their product value to the customers. Some of the most cost effective marketing communication strategies include; advertisement strategies using various media platforms, sales promotion strategies, the use of personal selling, and utilization of digital marketing, direct marketing and public relation. Therefore, entrepreneurs of small start-up firms should ensure that their marketing targets are in line with organisation mission and objectives. On the other hand, entrepreneurs of small start up firms should utilize positioning strategy/techniques to get a market for their products (Beattie, 2011). Market positioning entails creating a picture that makes the product being offered to become easily acceptable by the customers. Positioning further involves designing the most appropriate branding that can be easily accepted by the customers. In addition, appropriate market positioning should explain to the customers how the product is unique and how well it meets and exceeds customers’ needs and wants than any other product offered by competitors in the market. The two important tools used in market/product positioning include; corporate figure identification, product branding and messaging. Corporate identification entails consistency on the type of branding utilized by the company. It involves ensuring that the company apply the right slogans and logos to market their products. The logos and slogan used should be appealing and should communicate how the product meet customers’ needs better than any other product offered by competitors (McDonald, M and Dunbar, 2012). The other strategy that should be utilized by small start-up firms involves developing the right advertisement message. The advertisement message should communicate influence purchase decision of the targeted market segment. The advertisement message should inform, remind and persuade the targeted groups that the product meets and exceeding the anticipation (Cahill, 2006). In above connection, small start up firm in the United Kingdom such as Cheshire Innovators should utilize segmentation strategy to get the right market for their product. Segmentation strategy focuses at dividing the market into the specific market grouping that can easily served separately based on the group needs. For instance, small start-up firms may utilize geographical segmentation, demographic segmentation, pricing segmentation, media segmentation, distribution, psychographic segmentation (Olsen, 2014). 3. Conclusions Marketing entrepreneurship interface is an area where the aspect of innovation tends is introduced into the market. The interface links the Entrepreneurial behaviour with the market. The major component of entrepreneurship behaviour entails the vision that the owner of a small start-up firm has in respect to where he/she want the business to be in the future. On the contrary, marketing is contains three basic components that are further being subdivided into other sub-components. Among the three major components of marketing include; Infrastructure, tools and concept as discussed. Further, of small start-up firms in United Kingdom such as Cheshire Innovators should take into consideration information aspect to have successful marketing activities. The report had discussed the five marketing entrepreneurship interface concepts. Among the five concepts include; product/small business start-up life cycle, market segmentation, strategic planning utility and finally marketing concepts as discussed. The paradigm interface has been put forth to indicate an interface between marketing and entrepreneurial behaviour where innovation is introduced into the market. Conclusively, the report had proposed the most appropriate marketing strategies/techniques that may be utilized by small firms in United Kingdom to get a market for their product among the proposed strategies include; targeting, positioning, strategic development of advertising message, segmentation strategies pricing strategies to mention just but a few. 4. Appendices Diagram 1.5. Marketing Entrepreneurship Paradigm Interface Information Concepts Entrepreneurial Market Firm Information 5. References List Beattie.A.(2011). Seven Popular Marketing Techniques of Small Businesses. Retrieved :< http://www.investopedia.com/articles/financial-theory/11/small-business-marketing-techniques.asp> on 13.04.2014. Cahill, D. J. (2006). Lifestyle market segmentation. New York: Haworth Press. Casson, M. (2008). The Oxford handbook of entrepreneurship. Oxford: Oxford University Press. Cheverton, P. (2004). Key Marketing Skills 2: Strategies, Tools and Techniques for Marketing Success. London: Kogan Page. Fernandes.S.J. (2013). Entrepreneurship 101: The Best Start-up Pitch Deck & How to Raise VentureCapital.Retrieved:on 13.04.2014. Fillis, I. (2005). Creative marketing for SMEs. Hyderabad, India: ICFAI University Press Gov.UK. (2014).Making it Easier to Set-Up and Grow a Business. Retrieved :< https://www. gov.uk/government/policies/making-it-easier-to-set-up-and-grow-a-business--6>on 13.04.2014. Hine, D., and Carson, D. (2007). Innovative methodologies in enterprise research. Cheltenham: Edward Elgar. In Sethna, Z., In Jones, R., and In Harrigan, P. (2013). Entrepreneurial marketing: Global perspectives. McDonald, M and Dunbar, I. (2012). Market segmentation: How to do it and how to profit from it. Chichester: John Wiley & Sons. Michman, R. D., Mazze, E. M and Greco, A. J. (2003). Lifestyle marketing: Reaching the new American consumer. Westport, Conn: Praeger. Olsen.E. (2014).Strategic Planning: Types of Market Segments. Retrieved :< http:// www.dummies.com/how-to/content/strategic-planning-types-of-market-segments.html>on 13.04.2014. Paley, N. (2006). The managers guide to competitive marketing strategies. London: Thorogood. Rogers, S. C. (2001). Marketing strategies, tactics, and techniques: A handbook for practitioners. Westport, Conn: Quorum Books. Thomas. J.W. (2014).Market Segmentation. Retrieved:on 13.04.2014. Wedel, M., and Kamakura, W. A. (1999). Market segmentation: Conceptual and methodological foundations. Boston: Kluwer Academic. Read More