Download An Introduction to Entrepreneurial Marketing

‘Celebrating being Attractive AND
Different!’
An Introduction to Entrepreneurial
Marketing
Dr Rosalind Jones, MBA, PhD, PG Cert HE, FHEA,
MCIM
Lecturer in Marketing
Birmingham Business School
‘Chartered Marketer’ and Member of the Senior ‘Levitt
Group’ of Marketers (CIM)
AMDIS conference, Sutton Coldfield, 12th-13th
May 2014
My background
∗ Department of Work & Pensions Senior Strategic Manager and
Marketer-Jobcentre Plus North West England
∗ Childcare Partnership Manager-the ‘Child Poverty Agenda’-until
2005
∗ PhD Research- 2005-2009, Entrepreneurial Marketing in
Semantise –a North Wales SME- operating in the educational
software sector
∗ Lecturer Birmingham Business School and ‘Chartered Marketer’
MCIM
∗ Teaching Fellow (FHEA) PGCertHE- and on the examination
board for Welsh Universities
∗ SME Ambassador for North Wales, CIM
∗ Executive board member of the Global Research Symposium of
Research in Marketing & Entrepreneurship
∗ Co-Chair of the Entrepreneurship and Small Business Marketing
Special Interest Group, Academy of Marketing, UK
I stand here- a product of an
independent school!
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‘Omne bonum Dei donum’
‘Every good thing is a gift of God’
Elmslie Girls’ School, Blackpool
Father- Christ Church College, Brecon
Mother-Edgbaston School for Girls
Marketing but not as we know it!
∗ All too often traditional marketing theory doesn’t fit
∗ ‘One-size-fits all’ mentality
∗ Marketing is a relatively new academic discipline
derived from social, economic and philanthropic
theory
∗ Entrepreneurship is also a relatively new academic
discipline derived from management theory
∗ AND YET………………………………….
Entrepreneurship
∗ Entrepreneurship has been going on since the stone
age!
∗ But of course- business is changing………………
Changing marketplaces
∗ Globalization-movement of people , goods and
services, changes in countries and cross-borders
∗ Changes in markets, declining traditional marketsemerging economies with new ‘top of the pyramid’
lucrative target markets
∗ Technology drivers-fast-paced communications, a
‘networked’ globe, unceasing timelessness, FMCGs,
and services, increasing demand for new technologies
(B2B and B2C markets).
Marketing Rhetoric
The 4 Ps example
∗ Product, place, promotion, price- anything missing?
Reactive marketing
∗ 4-7 Ps, the marketing mix, and marketing planning and
marketing strategy-demonstrate∗ Responding to competitors and changes in the market
and, listening to customers-current status and future
direction based on current knowledge with some
forecasting
∗ Market orientation models- are also responsive marketingcustomers, competitors and intra-organisational (Kohli and
Jaworski, 1991; Narver and Slater, 1991).
∗ HOWEVER-what is the effect in fast-paced, dynamic
markets?
The marketing capabilities gap……..
Marketplace
Organisation
Roach, Ryman and Jones (2014), Academy of Management Conference, Philadelphia
Easier said than done…………
∗ What are the main challenges for the small businessbeing a sustainable business and a growth business?
∗ And for independent schools?
∗ A caveat here- every SME is different, hence
marketing for your school- can only be generic
∗ But- all SMEs face similar challenges to other SMEs
operating in the same marketplace
SME marketing
∗ Research of small business and small & medium sized
enterprises (SMEs) is even newer!
∗ Since the 80’s internationally based researchers have
collaborated to explore marketing in new ventures
and SMEs-US and UK leading the field!
∗ Until then it was assumed that marketing was largely
the same in all businesses –and that all marketing
models would ‘fit’.
The dyadic perspective
∗ Example∗ Relationship Marketing (RM) research focusses on
the benefits of RM for the business
∗ Marketers (and researchers) should consider from
the organisational perspective and from the customer
perspective∗ Not ‘doing to’ BUT ‘doing with’ customers
Constraints for small businesses
∗ Budgetary constraints- focus mainly on finance
∗ Limited investment in marketing (employee resource
and funding for marketing promotions)
∗ Leaders (entrepreneurs) are largely technical
specialists in their industry sector rather than
business and marketing experts
∗ Investment in marketing often comes much later
∗ Lack of time to plan for the long term and often multitasking, with multi-roles within a small team
Issues for Independent Schools
∗ AMDIS 21 years old!-changing roles and emergence of marketers
and marketing teams in schools
∗ Early stages of school marketing-targeting prospective parents,
advertising, PR and planning events
∗ Now- increasing competition especially in the boarding school
markets
∗ Increasing legislation, potential changes in school inspection
policies for Independent Schools – greater comparison between
publicly funded and privately managed schools
∗ Increasing expectations of parents and, price versus value
∗ Now, marketing strategy and marketing planning involves ecommunications, digital and social media strategies
∗ The traditional home markets are in decline, new opportunities
are offered in both emerging and emergent markets, for
example, South Africa, Russia, Brasil, India, China.
Advantages of being small
∗ Opportunity to create ‘entrepreneurial mind-set’ within a
small management team
∗ More easy to have marketing ‘touch points’ and
involvement in all aspects of the organisation (Gronroospart-time marketers)
∗ Having a ‘Multi-role’ provides greater understanding of the
very organisation in which you are marketing and respect
from other ‘experts’ in the organisation as…∗ Often-internal marketing with colleagues is more
challenging than external marketing!
∗ Swift to make strategic changes without bureaucracy and
‘bureaucratic layers’
∗ Increasingly in larger business the post of CMO is not
represented on Executive Management Boards- a risk of
marketing being marginalised (Chartered Institute of
Marketing)
Entrepreneurial Marketing is…..
∗ At interface between marketing, entrepreneurship and
innovation
∗ A few key relevant themes here∗ Opportunity Driven, PROACTIVE, entrepreneurial approaches to
marketing activity
∗ Innovation focus
∗ A persistent drive to create customer value (from the eye of the
beholder!)
∗ Leveraging additional resources through entrepreneurial
networks and social contact networks (these being often more
effective than formal networks).
∗ Close long term customer relationships- and co-creation activity
∗ An inherent sales focus
∗ Risk management
Strategic Orientations- the
Entrepreneurial Marketing Orientation
perspective
Investigation of activities, attitudes and behaviours in
SMEs in relation to Entrepreneurial Marketing in fast
moving, dynamic, challenging markets
Seminar Aberystwyth University
Seminar Aberystwyth University
Aims- What EM activities, attitudes and behaviours
are linked to sustainable business growth?
What should other small software technology firms
(SSTF) emulate to achieve business growth in
challenging markets?
Objectives- To investigate and to compare the
effects of different ecosystems in 2 different
countries, UK and the US.
To examine the effect of ecosystems on SSTFs
looking at Entrepreneurial Marketing Orientation
(EMO) and the relationship with sustainable firm
growth.
Seminar Aberystwyth University
Developing EM theory recognises the interface between
marketing and entrepreneurship (Bjerke and Hultman,
2002; Hills, Hultman and Miles, 2008)
SME marketing, EM and Market Orientation (MO) have
a positive impact on firm growth (Carson et al., 1995);
while firms that adopt other strategic orientations as well
as MO exhibit greater performance (Grinstein, 2008)
There is also a correlation between a firm’s
entrepreneurial orientation (EO) and MO, both being
responsible for a firm’s business success
Seminar Aberystwyth University
Entrepreneurial Marketing Orientation Model (EMO) :
a conceptual model
Makes explicit the links
between EO, MO, CO and IO
Entrepreneurial Marketing (EM)
∗ Entrepreneurial Marketing and Strategic Orientation
∗ Research focussed on activities, attitudes and
behaviours in SMEs-qualitative research
∗ UK and US study of software technology SMEs
∗ UK firms- example –average of £200,000 turn over
after 5 years of trading
∗ US firms- example- 1 BN dollar turn over in the first
year!
High
Medium
Incremental
UK Firms
1
1
4
US Firms
3
3
0
•Table 1. Firm growth classifications
High
Medium
Incremental
UK Firms
2
1
0
US Firms
28
23
•Table 2. Specialist sales/marketing resource per firm groupings
Similarities
R& D focus (US- a core function)
Market intelligence generation (less
important, implicit)
Responsiveness to competitor actions
(low)
Integration of business processes (less
focus in US- younger firms?)
Networks & relationships (unlike
Finland)
Knowledge infrastructure (like
business process- dependent on firm
size/customer base?)
Propensity to innovate- much greater
focus in the US (a core function)
Communications with customerssimilar issues with managing
expectations!
Understanding & delivering customer
value –UK- excellent service
experience and incremental customer
driven innovations – US- radical
innovations- leading customers,
provoking market changes
Differences
Speed to Market- (US- very important)
Risk Taking (US-embedded with
individual and in firm culture)
Pro-activeness (US-ditto- especially in
terms of marketing)
Exploiting markets- US- Schumpeterian
behaviour- ‘pivoting’ into new markets
and ‘blue oceans’, UK – WOM & niche
marketing
Responsiveness towards customers- UKheavy CO focus, inhibits IO –USdeliberately less responsive- leading
customers
Sales & Promotion- US- greater
investment in sales & marketing (engineersales focus)-UK- new business via WOM,
niche marketing approaches
Innovation and customers-new
insights from our research
Not always pleasing the customer (old marketing rhetoric) butExpeditionary Marketing- leading the customer
‘Pivoting’ into new markets!
Customers may lead you down the wrong path
Customers may not have the knowledge you have for the
foresight
∗ Too much customer focus can inhibit innovation, creativity and
new ideas∗ Mainly due to time and costs attributed to relationship
management and managing customer expectations (!) (banking
example)
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USP
While outstanding natural beauty is a
USP for Wales-what is your USP?- does
it hold value for your potential
customer ?
EMO
What are successful growth
orientations for your school?
If you map the EMO model-in which
direction (s) are you oriented?
Seminar Aberystwyth University
Jones, R, Suoranta, M. and Rowley, J. (2013) ‘Strategic network marketing in
technology SMEs’, Special Issue of the Academy of Marketing 2012, Journal of
Marketing Management, Vol.29, (5-6), pp.671-697.
Jones, R, Suoranta, M. and Rowley, J. (2013) ‘Entrepreneurial Marketing: A
comparative study’, The Service Industries Journal, Vol.33 (7-8), pp. 705-719.
Parry, S., Rowley, J., Jones, R., and Kupiec-Teahan, B. (2012) ‘Customer-perceived
value in B2B relationships: A study of software customers,’ Journal of Marketing
Management, Vol. 28, (7-8), pp. 887-911.
Jones, R., & Rowley, J. (2011). Entrepreneurial Marketing in small business: a
conceptual exploration. International Journal of Small Business, 29 (1), 25-36.
Jones, R and Parry, S. (2011). ‘Business support for new technology ventures: A study
of entrepreneurs in North Wales,’ International Journal of Entrepreneurial Behaviour &
Research, Vol. 17, (6), pp.645 – 662.
Jones, R and Rowley, J. (2009) "Marketing activities of companies in the educational
software sector", Qualitative Market Research: An International Journal, Vol. 12 Iss: 3,
pp.337 - 354
Jones, R., & Rowley, J. (2009). Presentation of a generic ‘EMICO’ framework for
research exploration of Entrepreneurial Marketing in SMEs. Journal of Research in
Marketing & Entrepreneurship, 11 (1), 5-21.
Rowley, J., Jones, R., Hanna, S., & Vassileiou, M (2012). Using card-based games to
enhance the value of semi-structured interviews. International Journal of Market
Research, 54(1), 93-110.
Hills, G., Hultman, C., & Miles, M. P. (2008). The evolution and
development of Entrepreneurial Marketing. Journal of Small Business
Management, 46 (1), 99-112.
Kraus, S., Filser, M., Eggers, F., Hills, G.E. & Hultman, C.M.(2012).
The Entrepreneurial Marketing domain: A citation and co-citation
analysis. Journal of Research in Marketing and Entrepreneurship, 14
(1), 6-26.
Entrepreneurial Marketing Global Perspectives (2013) Zethna, Jones
& Harrigan, Emerald.
http://www.amazon.com/Entrepreneurial-Marketing-PerspectivesZubin-Sethna/dp/1781907862
Thanks for listening!
[email protected]
[email protected]
Seminar Aberystwyth University