Enterprise Marketing What is Enterprise Marketing Definition Marketing

Enterprise Marketing

What is Enterprise Marketing ? Definition: Marketing w The process of creating, distributing, promoting and pricing goods, services and ideas to facilitate satisfying exchange relationships with customers. Definition: Enterprise w A business organization w An undertaking, especially one of some scope, complication and risk.

Enterprise Marketing w Creating, distributing, promoting and pricing goods, services and ideas to business organizations.

Why do we market? w Brand awareness w Generate demand w Satisfy customer needs w Generate value for customers w Establish beneficial customer/buyer relationships

The Marketing Mix w Product w Distribution w Promotion w Price

Product w A good, service or idea w Developing a product that is a part of everyday life, that satisfies customer needs and expectations w Examples of successful products: Coco. Cola,

Distribution w Getting the product to the customer w Making the product available when the customer needs it

Promotion w Increase customer awareness w Offer buying incentives w Generate demand

Price w Setting a reasonable price based on: w Customer expectations w Competition w Perceived value w Customer value = Customer benefit - Cost

Good Ideas and Good Products are “a Dime a Dozen” Good People are Rare!

Marketing is… w Resource intensive w Expensive w Time consuming

The Solution: w Target your market: Identify your market segment and focus your marketing efforts towards it. w Marketing Plan: The systematic process of accessing marketing opportunities and resources, determining marketing objectives, defining marketing strategies and planning implementation of the marketing activities.

The Marketing Plan, components w Executive Summary w Environmental Analysis: identifying the target market w Analysis tools: Porter’s five forces, S. W. O. T. and P. E. S. T. w Marketing Objectives: Numbers, projections and financials w Marketing Strategy: Activities, resources, timetable

The Marketing Plan, continued w Marketing Implementation: the plan to meet the objectives w Evaluation and control: the means to measure the success or failure of the marketing plan, the contingency plan in case it fails.

P. E. S. T. w Political forces: w Economic forces w Socio-cultural forces w Technological forces

Why Institutions are Important to Business Students and Otherwise Disinterested Parties

Institutions and Technology w Legal Structure w Bills of Exchange w Insurance w Taxation w Association w Double Entry Bookkeeping w Diversity

Legal Structure w Late 1800’s Royal Courts in London began using precedent to enforce legal contracts. Allowed suits of foreigners. Reputation for fairness w Allowed growth of transactions w Made London a world financial center to be copied

Legal Structure w Weber states West inherited Roman formal law - logical and reasoned, free of ritual and magic w How does a legal structure create and promote technological advancement today? How will it directly impact your role as managers and entrepreneurs?

Bills of Exchange w Checks (or letters to the effect) created the first international banking system w Important to provide short term capital (loans) avoiding Catholic church’s usury prohibition w Deposits and trading of these checks developed into banks that provided deposits and loans - churning wealth

Insurance w Lloyds of London founded in late 1600’s w Risks of piracy, sea hazards, etc. . . w Allowed individuals to take greater risks for greater potential gain w Promoted more investment w What are the implications for insurance today in the technology arena?

Taxation w Arbitrary assessments paid for military protection w People hid their wealth from confiscation everything in China owned by the Emperor w Expansion of professional armies promoted technological development, but required consistent revenue w Exchange from right to pillage to a stable activity

Taxation w Magna Carta first time individual property was protected from confiscation by the crown w Provided for town customs w resulted in strength of new merchants Holland England developed parliaments limiting royal power

Taxation w Problem of concealment of wealth prevented investment w Consistent and predictable taxation allowed businessmen to plan long term w New environments attracted capital, as wealthy merchants moved to protected locations w Much wealth was portable - not situated

Taxation w What are the implications of Tax policy on contemporary technological firms?

Social Institutions w Merchant families were a result of kinship ties w Larger investments of capital, such as shipbuilding, was done by the state w How do individuals organize themselves into productive units? w Investors began to have faith in “corporations” managed by others

Social Institutions w Limitations of family run empires w Importance of larger organizations to technological innovation w How do social institutions promote contemporary technological innovation?

Double Entry Bookkeeping w The hands in the till problem w Bookkeeping creates an abstract entity w Allowed to objectively evaluate performance of a business w How does bookkeeping alter our decision making process regarding technological innovation today?

Weber and the Protestant Ethic w Calvinist doctrine promoted a calling or devotion to work w Wealth no longer looked at as inherited right, but god-given reward w Accumulation of capital was a service to god w Devotion to work, dependability, diligence, selfdenial, austerity w Reformation removed church from business

The Importance of Diversity w Newly emerging Nation-States were in competition with each other to amass wealth and conduct trade w Unlike in China, were a rational bureaucracy diffused power, Europe was fragmented w China adopted a policy of status quo - limiting the range of technological innovation and diffusion

The Importance of Diversity w In the West, technology could provide important advantages and diversity flourished

Factory Production w w w w The Shift toward factory production Energy and the Industrial Revolution The Steam Engine Steel Textiles Ceramics Capital The Labor Market

The Shift Toward Factory Production 1750 -1880 w Required surplus in agriculture w Guild was the rule until late 1800’s - family firms with apprentices w Factories were less personalized - company towns provided living accommodations w Growth of urbanization (enclosure laws cited by Polyani)

Energy w Watermills, animals, and humans limits size of factories w Steam engine and improvements in harnessing water improved efficiency (1725 Newcomen engine) w Watt improved the engine fully by 1790, using 1/3 as much coal w Required production to be near coal, larger factories, away from the home

Iron and Steel w Improvement in 1700’s to 1800’s allowed output increase from 12 tons a week to 1600 tons a week. w Steam powered blowers to furnaces (technological linkages). w More ore, near coal, required transportation improvements (more linkages) w Mills created demand for their own product w Compare with computer revolution

Technological Linkages w Steam engine allowed larger steel mills w Steel Mills required advanced steel and steam technologies w Larger trains and ships now viable out of steel - as are newer engines w Military power depended on new types of steel for canons and rifles

Textiles w Led the industrial revolution w by 1788, 143 looms run by waterwheel spinning cotton to 55, 500 steamers in 1829 w Technology of production went with change in ORGANIZATION of production – From Cottage to Factory – Costs of textiles reduced - success meant the cheapest product of comparable quality

Ceramics w Organizational change occurred before steam engine due to Taylorist nature w Organizational advantages of unified control, step by step production, specialization, and central power source w What are the organizational changes occurring now with the information revolution? How might they effect your activities?

Capital w Larger firms produced more goods driving prices downwards as a result of technological improvements w R suggests that increases in factory output were sufficient to provide quick returns w Funding of capital by English country (deposit) banking system w Consumption was not lowered to fuel rev.

The Labor Market w Displacement of agricultural workers to urban environments. Conditions at the start of the industrial revolution were bleak. From 90% t 5% agricultural workers represents a major structural shift. Enclosure laws (Polyani again) w Factories drew from poor landless population

The Labor Market w In Paris, 1776, 91, 000 homeless w Replaced a social institution - the apprentice system- resulting in less educational investment (but is was a severe system) w Factory perceived as exploitation of the poor- longer work hours, hazardous work w Franchise at the end of the revolution, 1897

The Labor Market w Factories allowed employment of unskilled women and children, less theft, and more consistent working hours, in exchange for building the plant (capital investment) w Move from craftsmen satisfaction to “modern times” w What are the implications of new technologies on today’s labor market?

Class 1 c

Managing Resources for Entrepreneurship Review of Resource Based Approach Personality Characteristics of E’s Sociological Characteristics of E Organizational Characteristics of E Technology Creativity

Review of Resource Based Theory w SCA Created when firms possess resources that are: – – Valuable Rare Imperfectly imitable Nonsubstitutable

Resource Types w Financial w Physical w Human w Technological w Reputational w Organizational

Individual Resources w Psychologists look at personality – Need for Achievement – Locus of Control: Externals who believe in fate, and Internals who believe in control – Risk Taking: not upheld by research w Weak results - Jamaican research: are entrepreneurs surviving or creating?

Sociological Approach w SES- social and economic status w Human Capital w Social Capital – religiosity – group membership – marital status w Financial Capital w Other factors include age, immigrant, gender, market structure, environmental factors

Process Models w Initiative w Consolidation of resources w Management of the organization w Autonomous action (strategy) w Risk taking

Commitment and Control of Resources w Goal of acquiring resources for SCA – aware of liquidity and time requirements – too soon and the wrong resources might be obtained w While managers seek to control and own resources (for status and power) E’s are willing to borrow and rent non strategic resources

Management Structure w Usually prefer a flat organization with informal networks – coordination important because nonstrategic resources are uncontrolled and must be shared w Incentives are usually deferred compensation, stock options, equity

Knowledge w Critical to a start up - often a result of a spin off w Tacit knowledge most important - the way of doing - uncodified – much harder to duplicate