This chapter begins with the marketing strategies that can be used by a business to market its products and services effectively. A marketing strategy is a way in which a business plans to use its resources in order to gain a competitive advantage in the market.
This enables the business to acquire a larger market share than its competitors. The business should carefully assess its environment both internally and externally. The marketing mix, customers, competitors, and any technological developments within the industry should be assessed (Burne 2007). Market segmentation, positioning, and targeting strategy forms the basis for building a marketing strategy. This enables the business to satisfy its customers.
Pricing involves the setting of prices to be charged for various products and services provided by a given business. It is what the business receives in selling its products. For the business to be successful, various factors should be considered in making pricing decisions. These factors include the costs of making the product, the quality of the product, prices charged by competitors, and the situation of the market. It can be used as a marketing strategy for getting customers in the market.
Differentiation is the process of making products different from other products in the market. It can be in terms of promotion, appearance or design, quality, and functioning of the product. It can be used to attract many customers and therefore make the business have a comparative advantage over other businesses. Sometimes the business can improve the quality of the product and charge a premium to cover the costs.
Development of a customer focus organization involves getting information about what customers need and their expectations, obtaining customer feedback, improvement of customer service, and developing a customer lifetime value.
Entrepreneurship marketing shows how the entrepreneur can make his business successful. It explains how one can develop new products and other marketing strategies. It also explains how to raise capital for the business and also increase the profitability of the business.
Marketing research is the process of gathering information from the customers and the market as a whole. It may involve the use of analytical tools to analyze the information gathered which can then be used in making important decisions for the business. The main types are primary or secondary research. Qualitative or quantitative research can be undertaken under the primary research. Competitor analysis, product analysis, and market trends are very important to obtain useful information while undertaking the research.
In the development of selling skills, the salesperson should know more about the products to avoid being frustrated by customers and also to be more confident. Selling skills needs one to develop a good rapport with the customers, listen to them carefully, show interest in the questions asked by customers, and also learn how other successful salesmen work. The skills will enable the entrepreneur to increase the number of customers.
The internet can provide various benefits for an entrepreneur. It provides access to many customers and therefore the business can advertise many products and services on the website. Customers can make orders online and also know more about the products and services being offered by the business. It can also be used in marketing research as it provides information on developments in the market.
Legal forms of business ownership include sole proprietorship, partnerships, and corporations. A sole proprietorship is owned by one person, a partnership by more than one person and the owners or partners are agents for the business while a company is a separate legal entity that is distinct from its owners. Each form of business has its advantages and disadvantages and different ways of operation.
Reference
Burne, P 2007, Entrepreneurship and small business, Palgrave Macmillan Limited, Houndmills, Baingstoke.