Entrepreneurial marketing

Prasanna Perera, Marketing and Management Consultant, Chartered Marketeer, CIM UK

Entrepreneurs are individuals who conceptualize and create their own businesses. These entrepreneurs are savvy marketers and have shown the bigger establishments how to capture existing and new markets. In this article, I will endeavour to highlight the secrets of entrepreneurial marketing.

Quick decision making

Larger organizations have a decision making process, which takes time. Entrepreneurs running small businesses take decisions “on their feet.” Hence, in fast changing business environments, small businesses are able to respond to market changes quicker than big businesses. The learning for big businesses is to make their decision making processes more agile.

Risk taking

The hallmark of entrepreneurial marketing is risk taking. Entrepreneurs take fairly large risks and are not afraid to do so. Take the example of Zappos, the largest on-line footwear retailer. When a customer orders a pair of shoes, Zappos sends the customers three pairs, (one size smaller, one size larger and the ordered size). Why? To enable the customer to select the size that fits best. The other two pairs should be returned by the customer to a designated courier company. Zappos pays for the courier charges of returning the extra pairs!! This is what entrepreneurial marketing and risk taking is all about. Will a bigger footwear retailer such as Clarks or Hush Puppies do a Zappos?

Networking

Entrepreneurs or small business owners, do not have the resources of big businesses. For example, research & development units, headed by scientists and researchers. Hence, they overcome this by creating a “virtual organization” that is perpetually networked. For e.g. entrepreneurs would encourage students in universities to conduct research projects on their organizations. In this manner, they obtain research inputs virtually free of charge!! Many small and medium scale business owners (SME’s) in Sri Lanka have a great thirst for knowledge and attend appropriate seminars to acquire same. This also gives them opportunities to network. Top Management in larger businesses, do not have the same thirst for knowledge.

Expertise

SME’s find it difficult to hire top professionals, on a permanent basis, due to higher costs. Hence they obtain services of consultants and thereby overcome this limitation.

This gives them the “muscle” to compete with the big boys (Large organizations).

Customer focus

Smaller businesses are more focused on providing excellent service to their customers. Why? Since they have less customers than bigger players and value these customers. Take the example of Virgin Atlantic Airlines. They provide great customer service when compared with much bigger airlines such as British Airways and Air Canada. This customer focus gives SME’s a great competitive edge and builds up customer loyalty and even customer intimacy.

Simplicity

Is the hallmark of entrepreneurial marketing. There is great power in keeping things simple. Larger organizations complicate things beyond comprehension. Take the example of “Jinadasa Talaguli” a household name in Sri Lanka. Everything about this business is unbelievably simple. The product is of high quality and uncomplicated. Products are displayed in a traditional and simple manner. No flags and whistles and bells!! Smiling staff who provide good service without too much of a fuss. Jinadasa has been able to market Talaguli in Sri Lanka, without a single advertisement! Another example is a yogurt manufacturer from the south of Sri Lanka, “Lucky.” A simple, uncomplicated brand that has been able to give the bigger brands a run for their money! Lucky yogurt does everything in a simple manner. Nothing high profile, but a sound business philosophy.

Team spirit

In entrepreneurial businesses, team-working is generally very pronounced. This is probably because of smaller numbers and a family based culture that prevails. This team spirit is a key factor of their success. On the other hand, big businesses are characterized by internal politics and departmental silos. These businesses waste valuable resources in “in-fighting”, rather than fighting external market forces.

Creativity

The bigger a business becomes, creativity is lost in many instances. Why? Processes, systems, rules and regulations take over. In smaller entrepreneurial businesses, the culture is “entrepreneurial” and hence creativity is always encouraged. Take the example of “Titan” the Indian watch maker. They are significantly smaller than the larger timekeepers in Switzerland and Japan. However, “Titan” was the first brand to create the world’s slimmest watch – “The Edge.” Further, Titan was the first brand to create matching watches for him and her. (Gifting solution) – The “Titan Raga” collection.

Internal marketing

Smaller businesses educate their employees on the importance of “living the brand” promise. Basically, they make their employees brand ambassadors and encourage them to market to their friends and family. In larger businesses, this internal marketing concept is largely neglected, probably with more focus placed on other aspects of the business.

What big businesses can learn from entrepreneurs about Marketing

1.Be agile and quick to respond to market changes

2.Practice internal marketing, before external marketing

3.Create a marketing oriented culture, within the organization

4.Use all resources to fight the competition, rather than in-fighting

5.Reduce the rules and regulations and processes and manage the business more by “corporate values.” (Create a values driven business)

6.Keep things simple and avoid unnecessary complications. Clarity of thought and action is important.

7.When market opportunities are observed, capture them speedily, with out spending too much time and resources on extensive market surveys and feasibility studies. (Balance is important)

8.Breakdown “departmental silos” and create a healthy organizational structure, so that inter-functional co-operation can be enhanced.

“Zappos is about delivering happiness to the world.”

(Tony Hsieh, CEO, Zappos.com, Inc)