Chapter 11: Successfully Launching New Ventures

Involves studying a firm’s industry and determine the different target markets in that industry. (e.g. geography, demographic variables, psychographic variables, behavioral variables, and product type)

Segmenting the market

Part of a market that the firm is claiming as its own.

Position

Illustrates a firm’s positioning strategy relative to its rivals

Product attribute map

A set of attributes (positive or negative) that people associate with a company. Expresses a firm’s reputation, credentials, nature, and serves as a handshake between a firm and its customers.

Brand

A strong brand can be a very powerful asset for a firm. 88 percent of consumers indicate that authenticity is an important factor when they consider the brands they will buy and support while 46 percent of respondents in another survey indicate that they would pay more to buy brands they trust

The power of a strong brand

Determined by adding a markup percentage to a product’s cost

Cost-based Pricing

Determined by estimating what consumers are willing to pay for the product

Value-Based Pricing

Set of marketing activities designed to increase awareness, sales, and the visibility of a product, service or company

Promotion

A form of marketing that uses digital technologies to promote a firm’s products, Search engine ads, email marketing, mobile advertising, and social media are the most common forms.

Digital marketing

A form of digital marketing that involves sending promotional messages to a target list of subscribers via email. The goal of email marketing is to build, strengthen, and maintain relationships with customers or potential customers, build brand awareness, and encourage encouragement and sales

Email marketing

Promote products via mobile devices such as smartphones and tablets. Mobile advertising allows a business to reach its target market while they are on the go and can be a very effective way to drive user engagement and convert sales.

Mobile Marketing

A type of website where an individual, group, or organization regularly posts content in the form of articles or posts. Startups use blogs to establish themselves as industry experts, connect with their target market, post content they think their target market will find useful and drive traffic to their website.

Blog

The collection, analysis, and interpretation of data from digital sources such as search engine ads of social media sites so firms have insights about the outcomes of their digital marketing initiatives.

Digital analytics

A set of actions firms take to establish and maintain their desired image with the public. Done well, it can result in earned media (news/media coverage that we do not have to pay to receive). The difference between public relations and advertising is that firms do not pay directly for public relations.

Public Relations

A folder containing background information about the company and a list of its most recent accomplishments

Press Kit

An event at which firms from a specific industry exhibit and demonstrate how to use their products

Trade Show

A low-budget approach to marketing that relies on ingenuity, cleverness, and surprise rather than traditional techniques

Guerrilla Marketing

Distribution channel encompasses all activities that move a firm’s product from its place of origin to the consumer.

Place

Being able to control the process of moving products from the place of origin to the end-user instead of relying on third parties (sell directly to customers)

Selling Direct (Direct-to-Consumer)

Firms selling through intermediaries typically pass of their products directly to retailers, or to wholesalers, distributors, or agents for placement in retail outlets for selling purposes.

Selling Through Intermediaries