ALL-TOPIC-FOR-FINAL

Entrepreneurial Marketing Mix

  • Subject: Entrepreneurial Management

  • Professor: Mr. Jimmy A. Labaguez, CHRA, MBA

  • Date: December 7, 2024

Learning Objectives

  • Define marketing and entrepreneurial marketing

  • Know the main marketing tools

  • Apply the pricing methods and strategies

  • Compare traditional and entrepreneurial marketing

  • Understand the main entrepreneurial marketing forms

Introduction

  • Entrepreneurial marketing activities are essential for new or established businesses.

  • Focuses on marketing tools like product, price, place (distribution), and promotion.

  • Discusses the differences and similarities between traditional and entrepreneurial marketing.

  • Concludes with forms of entrepreneurial marketing such as guerrilla, ambush, buzz, and viral marketing.

What is Marketing?

  • Marketing is the process of creating, communicating, delivering, and exchanging products or services to satisfy customer needs and generate revenue.

Needs, Desires and Demands of Customers

  • Need: A basic requirement for survival.

  • Desire: A need connected to a specific product.

  • Demand: A specific want backed by the ability to pay.

Products and Services

  • Companies must produce what customers want, not what they want to sell.

  • Satisfaction of customer needs and desires is critical to successful marketing.

Information

  • Customers should be informed about the products or services offered.

  • Companies should convince customers to purchase their offerings.

Exchange

  • Exchange occurs when a product is produced and the customer is aware of it.

  • Conditions for exchange:

    1. At least two parties involved.

    2. Each party must provide something of value.

    3. Communication must be possible.

    4. Each party has the freedom to accept or reject the offer.

    5. Both parties should view the agreement as beneficial.

Market

  • A market is a place for exchanging products/services.

  • With the Internet, digital markets allow transactions without physical interaction.

  • Companies focus on specific customer groups through market segmentation.

Marketers

  • Marketers identify customer needs, provide products/services, and inform customers about offerings.

Competition

  • Refers to rival companies offering similar or substitute products and services.

Environment

  • Encompasses internal and external factors influencing the business.

  • Macro-environment: Includes natural, demographic, economic, political, technological, legal, and socio-cultural factors.

  • Micro-environment: Involves the business itself, suppliers, intermediaries, customers, competitors, and the public.

Marketing Tools/Instruments

  • Marketing consists of four main tools known as the 4Ps: Product, Price, Place, and Promotion.

  • Evolution to 7Ps adds People, Process, and Physical Evidence.

  • 4P’s correlate with customer-focused 4Cs: Customer Solution, Customer Cost, Convenience, Communication.

Product

  • A product satisfies customer needs, desires, and demands.

  • Not just tangible; encompasses overall customer experience.

Product Mix

  • Dimensions:

    • Width: Number of different product types.

    • Depth: Variety within a product type.

    • Length: Total number of product variants.

    • Consistency: Similarity among products concerning use and production.

Brand

  • Identification through name, symbol, or design, differentiating products in the market.

Packaging

  • Involves designing product wrappers that protect and attract customers.

Labelling

  • Provides essential product info (manufacturer, content, expiration date).

Price

  • Represents the amount exchanged for a product/service.

  • Pricing must reflect both company profit needs and customer expectations.

Pricing Based on Customers

  • Companies often engage customers for feedback on perceived value, influencing price setting.

Conjoint Analysis

  • Customers evaluate and set prices based on product features and benefits.

Experimentation

  • Distributing a product at varied prices and analyzing sales performance across locations.

Economic Value to Customers

  • Reflects benefits and cost savings compared to competitors.

Distribution

  • Finding efficient channels to deliver products to customers.

  • Also concerned with the timing, quantity, and convenience.

Types of Distribution Channels

  1. Zero-level channel: Direct sales to customers.

  2. One-level channel: Involves one intermediary (e.g., retailer).

  3. Two-level channel: Involves two intermediaries (wholesaler and retailer).

  4. Three-level channel: Includes three intermediaries (wholesaler, retailer, and agent).

Promotion

  • The activity of informing customers about products and persuading them to purchase.

  • Different forms include advertising, personal selling, sales promotions, publicity, etc.

Advertising

  • Activities to inform about products/services, persuade purchases, and enhance brand perception.

  • Types of advertising include:

    1. Product Advertising

    2. Institutional Advertising

    3. Pioneering Advertising

    4. Comparative Advertising

    5. Advocacy Advertising

Personal Selling

  • Direct interactions between buyers and sellers, enabling tailored communication.

  • High cost due to personalized approach.

Sales Promotion

  • Short-term strategies to increase sales; includes discounts, coupons, special offers, etc.

Publicity

  • Unpaid promotion through media coverage; can enhance credibility but may also have risks.

Public Relations

  • Building positive relationships with the public via various strategies like press releases and events.

Direct Marketing

  • Direct communication with customers, utilizing digital platforms, mail, and telemarketing.

Events and Experiences

  • Sponsoring or organizing events to enhance brand visibility.

Elements of Entrepreneurship

  1. Customer-intensity: Passion and dedication to customer focus.

  2. Continuous innovation: Ability to generate creative ideas for new products and processes.

  3. Strategic flexibility: Willingness to adapt strategies continuously.

  4. Calculated risk-taking: Pursuing opportunities while managing risks responsibly.

  5. Proactiveness: Viewing the external environment as a realm of possibilities to reduce uncertainties.

  6. Resource leverage: Maximizing output while managing limited resources effectively.

Entrepreneurial Marketing Types

  • Guerrilla Marketing: Low-budget, creative marketing strategy focusing on high engagement.

  • Ambush Marketing: Associating with events without formal permissions to gain visibility.

  • Buzz Marketing: Generating excitement and discussions around a product/service.

  • Viral Marketing: Encouraging sharing of content to promote brand awareness exponentially.

Organizing Entrepreneurial Venture

  • Subject: Entrepreneurial Management

  • Professor: Mr. Jimmy A. Labaguez, CHRA, MBA

  • Date: December 14, 2024

Learning Objectives

  • Understand the reasons for choosing a specific legal form of business.

  • Know the types of legal forms and their implications.

  • Understand the roles of Board of Advisors and Board of Directors.

Reasons for Forming a Specific Legal Form of Business

  • Influenced by taxation policies, number of employees, legal liabilities, and industry type.

Taxation

  • Varies by company type and country, a crucial factor in legal form selection.

Number of Employees

  • Anticipated employee count impacts legal form choice and benefits offered.

Legal Liability

  • Increasing extent of legal liability; certain industries require specific legal forms.

Types of Corporation Forms

  1. Limited Liability Company: Offers legal protection without double taxation.

  2. S-Corporation: Limits ownership to 100, used for small businesses.

  3. C-Corporation: Subject to double taxation; necessary for public trading.

  4. Non-Profit Organization: Tax-exempt status; must allocate income for charitable purposes.

  5. Hybrid Corporation: Allocates a portion of profits to non-profit causes.

  6. Professional Corporation: Designed for professionals like lawyers or accountants.

Organizational Structure

  • Defines employee roles and relationships; includes accountability measures.

Board of Directors

  • Has fiduciary responsibilities; essential for company guidance and governance.

Board of Advisors

  • Serves in an advisory capacity; compensation typically through equity.

Entrepreneurial Business Growth

  • Subject: Entrepreneurial Management

  • Professor: Mr. Jimmy A. Labaguez, CHRA, MBA

  • Date: January 11, 2025

Learning Objectives

  • Understand factors influencing growth.

  • Know perspectives and characteristics of fast-growing companies.

  • Recognize management actions for growth.

  • Explore growth strategies and exit options.

Growth Perspectives and Cycle

  • Entrepreneurs aim for growth to create wealth and make societal impacts.

Perspectives of Growth

  1. Financial growth: Increases in sales, profits, and asset values.

  2. Strategic growth: Adapting to market opportunities and building competitive advantages.

  3. Structural growth: Changes in internal management and organization.

  4. Organizational growth: Cultural and process changes reflecting company evolution.

Entrepreneurial Growth Cycle Stages

  1. Development of a new venture: Foundation stage, assessing opportunities.

  2. Start-up activities: Formal business planning and team building.

  3. Growth of the venture: Adapting to competition requires enhanced entrepreneurial skills.

  4. Stabilization of business: Market maturity may signal future direction.

  5. Innovation or decline: Failure to innovate jeopardizes survival.

Methods for Growing a Business

  1. Going Global: Expanding internationally leveraging digital commerce.

  2. Strategic Alliances/Acquisitions: Collaborating for mutual benefits and market expansion.

  3. Franchising/Licensing: Utilizing independent dealers for distribution.

  4. Attracting Retaining Employees: Key for sustainable growth through effective recruitment.

  5. Exit and Harvesting Strategies: Plans for transitioning ownership to maintain legacy.

Business Ethics and Social Responsibility

  • Subject: Entrepreneurial Management

  • Professor: Mr. Jimmy A. Labaguez, CHRA, MBA

  • Date: January 18, 2024

Learning Objectives

  • Define ethics and business ethics.

  • Navigate ethical dilemmas.

  • Explain ethical behavior models.

  • Understand social responsibility's essence.

Ethics and Entrepreneurial Managers

  • Growing emphasis on ethical behaviors and social responsibilities.

Definitions

  • Ethics: Values and principles defining right and wrong.

  • Business Ethics: Applying moral standards within business contexts.

Ethical Standards Types

  1. Conventional: Based on societal norms, varies across cultures.

  2. Teleological: Focus on outcomes, promoting overall benefit.

  3. Deontological: Adherence to rules regardless of consequences.

Ethical Dilemmas

  • Situations where right and wrong are not clearly defined, common in decision-making.

Development of Ethical Values

  • Influenced by personal, family, and organizational factors.

Levels of Ethical Development

  1. Pre-conventional: Behavior motivated by avoiding punishment.

  2. Conventional: Aligning behavior with societal norms and expectations.

  3. Post-conventional: Guided by personal principles and ethical standards.

Approaches to Ethical Behavior

  1. Utilitarian: Decisions based on maximizing overall benefits.

  2. Individualism: Protects long-term interests of individuals.

  3. Moral Rights: Respect for fundamental rights and freedoms.

  4. Justice: Ensuring fairness and equity in decisions.

Entrepreneurial Manager Types

  • Immoral: Prioritizing profit over ethics.

  • Amoral: Neglecting ethical considerations in decision-making.

  • Moral: Guided by ethical standards in pursuit of profit.

Pyramid of Social Responsibility by Archie Carroll

  1. Economic Responsibility: Main goal to generate profit.

  2. Legal Responsibility: Conducting business according to laws.

  3. Ethical Responsibility: Adhering to societal norms and values.

  4. Philanthropic Responsibility: Voluntary contributions to societal welfare.

Family Businesses and Succession Management

  • Subject: Entrepreneurial Management

  • Professor: Mr. Jimmy A. Labaguez, CHRA, MBA

  • Date: January 18, 2025

Learning Objectives

  • Define family business.

  • Understand the family business life-cycle.

  • Explain conflict dynamics and succession stages.

Defining Family Businesses

  • Family firms range from small local operations to major multinationals.

Participants in Family Businesses

  • Internal Members: Family members, employees, owners.

  • External Members: Non-family professionals and advisors.

Balancing Between Family and Business

  • Variables: Control, career progression, capital reinvestment, conflict resolution, and cultural integration.

Succession Management Issues

  • Succession can be a vulnerable period; critical to address property, control, and leadership issues.

Stages of Succession

  1. Pre-business phase: Familiarization with business.

  2. Introductory phase: Early exposure to business practices.

  3. Introductory functional phase: Part-time engagement.

  4. Functional phase: Full-time employment and broad exposure.

  5. Advanced functional phase: Transitioning into management.

  6. Early succession phase: Assume leadership roles with support.

  7. Mature succession phase: Full assumption of leadership.

Advantages of Family Business

  1. Inherent Trust: Family ties foster loyalty and investment in the business.

  2. Commitment: Family members often demonstrate a stronger commitment to success.

  3. Long-term Stability: Continuity of relationships with customers improves stability.

Disadvantages of Family Business

  1. Family Conflicts: Personal issues can impact business decisions.

  2. Skill Limitations: Difficulty in hiring based on competency rather than family ties.

  3. Leadership Transition: Challenges in transitioning control to successors.