Download Class 7

ENT422:
The Role of
Entrepreneurship
in Value Creation
in Large and Small
Enterprises
Lecture 7
Guest Speaker:
Lauren Dixon
CEO, Dixon Schwabl
 What were the motivating factors in Lauren’s
decision to start the agency?
 What are the agency’s distinct competencies?
Are they sustainable over time?
 Evaluate the marketing program of the agency.
What are its Strengths? Weaknesses?
 What is your assessment of Lauren’s plan to
increase the billings of the company? What
would you suggest?
Developing a Winning
Marketing Plan for a
New Venture
Reading: Baron, Chapter 9
Marketing in a New Firm
Third Step of
Entrepreneurial Process
Launching a New Venture
Assume that …
 The “IDEA” is an “OPPORTUNITY”
adding value to the user;
 The “RESOURCES” have been assembled
including the TEAM – and Risk/Rewards
are in balance.
Now – MARKETING becomes an
important COMPONENT in developing a
successful venture.
Recall the Marketing
Promotion Mix Consists of …
 Sales Promotion
 Advertising
 Sales Force – Personal
Selling
 Public Relations
 Direct Marketing
Personal Selling is the
Central Component of
Entrepreneurial Marketing
 Direct personal selling is the
entrepreneur’s most important tool
 More valuable than advertising and
other marketing – mix devices used
by established companies
 They are developed later
Effective Personal Selling
is Developed By
Following These Steps:
 First, generate
interest in a product/service by
meeting a need of a customer or prospect;
 Second, identify the requirements for purchasing the
offering;
 Third, overcome objections to a purchase by
answering questions;
 Fourth, close the sale by asking for the order;
 Fifth, service after the sale is completed – a most
important step.
ScrubaDub Case is Due
Class Discussion of the
Following Questions

What type of marketing philosophy has ScrubaDub
adopted? Do you think this is the best choice? Why
or why not?

What methods of market research were used by
ScrubaDub? What additional research could it do to
better understand its customers?

Do you think the promotional activities of
ScrubaDub could be improved and or extended?
Explain.

What kind of forecasting method do you believe
would be most appropriate to estimate ScrubaDub’s
market potential?
Workshop
 Exercise 6 should be handed in.
Groups will be asked to report in
class on results.
 Work on exercises 7 & 8. Exercise 8
should be handed in at the next
class.
Assignment for November 9
 Lecture: Planning for a Competitive
Advantage in a New Venture
Reading: Baron Chap. 10 Strategic
Planning for Competitive Advantages
 Workshop
Exercises 7 & 8 should be completed.
Exercise will be due and will be
discussed in class.