Enterprise Enterprise MarketingMarketing

What is Enterprise Marketing ?

Definition: Marketing The process of creating, distributing, promoting

and pricing goods, services and ideas to facilitate satisfying exchange relationships with customers.

Definition: Enterprise A business organization An undertaking, especially one of some scope,

complication and risk.

Enterprise Marketing

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

Why do we market?

Brand awareness Generate demand Satisfy customer needs Generate value for customers Establish beneficial customer/buyer

relationships

The Marketing Mix

Product Distribution Promotion Price

Product

A good, service or idea

Developing a product that is a part of everyday life, that satisfies customer needs and expectations

Examples of successful products: Coco-

Cola,

Distribution

Getting the product to the customer Making the product available when the

customer needs it

Promotion

Increase customer awareness Offer buying incentives Generate demand

Price

Setting a reasonable price based on: Customer expectations Competition Perceived value

Customer value = Customer benefit - Cost

Good Ideas and Good Good Ideas and Good Products are “a Dime a Products are “a Dime a Dozen”Dozen”

Good People are Rare!

Marketing is…

Resource intensive Expensive Time consuming

The Solution: Target your market: Identify your market

segment and focus your marketing efforts towards it.

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

Executive Summary Environmental Analysis: identifying the target

market Analysis tools: Porter’s five forces, S.W.O.T.

and P.E.S.T. Marketing Objectives: Numbers, projections

and financials Marketing Strategy: Activities, resources,

timetable

The Marketing Plan, continued

Marketing Implementation: the plan to meet the objectives

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.

Political forces: Economic forces Socio-cultural forces Technological forces

Why Institutions are Why Institutions are Important to Business Important to Business Students and Otherwise Students and Otherwise Disinterested PartiesDisinterested Parties

Institutions and Technology

Legal Structure Bills of Exchange Insurance Taxation Association Double Entry Bookkeeping Diversity

Legal Structure

Late 1800’s Royal Courts in London began using precedent to enforce legal contracts. Allowed suits of foreigners. Reputation for fairness

Allowed growth of transactions Made London a world financial center to

be copied

Legal Structure

Weber states West inherited Roman formal law - logical and reasoned, free of ritual and magic

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

Checks (or letters to the effect) created the first international banking system

Important to provide short term capital (loans) avoiding Catholic church’s usury prohibition

Deposits and trading of these checks developed into banks that provided deposits and loans - churning wealth

Insurance

Lloyds of London founded in late 1600’s Risks of piracy, sea hazards, etc... Allowed individuals to take greater risks

for greater potential gain Promoted more investment What are the implications for insurance

today in the technology arena?

Taxation

Arbitrary assessments paid for military protection People hid their wealth from confiscation -

everything in China owned by the Emperor Expansion of professional armies promoted

technological development, but required consistent revenue

Exchange from right to pillage to a stable activity

Taxation

Magna Carta first time individual property was protected from confiscation by the crown

Provided for town customs resulted in strength of new merchants -

Holland and England developed parliaments limiting royal power

Taxation

Problem of concealment of wealth prevented investment

Consistent and predictable taxation allowed businessmen to plan long term

New environments attracted capital, as wealthy merchants moved to protected locations

Much wealth was portable - not situated

Taxation

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

Social Institutions

Merchant families were a result of kinship ties

Larger investments of capital, such as shipbuilding, was done by the state

How do individuals organize themselves into productive units?

Investors began to have faith in “corporations” managed by others

Social Institutions

Limitations of family run empires Importance of larger organizations to

technological innovation How do social institutions promote

contemporary technological innovation?

Double Entry Bookkeeping

The hands in the till problem Bookkeeping creates an abstract entity Allowed to objectively evaluate

performance of a business How does bookkeeping alter our decision

making process regarding technological innovation today?

Weber and the Protestant Ethic

Calvinist doctrine promoted a calling or devotion to work

Wealth no longer looked at as inherited right, but god-given reward

Accumulation of capital was a service to god Devotion to work, dependability, diligence, self-

denial, austerity Reformation removed church from business

The Importance of Diversity

Newly emerging Nation-States were in competition with each other to amass wealth and conduct trade

Unlike in China, were a rational bureaucracy diffused power, Europe was fragmented

China adopted a policy of status quo - limiting the range of technological innovation and diffusion

The Importance of Diversity

In the West, technology could provide important advantages and diversity flourished

Factory Production

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 Required surplus in agriculture Guild was the rule until late 1800’s - family

firms with apprentices Factories were less personalized - company

towns provided living accommodations Growth of urbanization (enclosure laws

cited by Polyani)

Energy

Watermills, animals, and humans limits size of factories

Steam engine and improvements in harnessing water improved efficiency (1725 Newcomen engine)

Watt improved the engine fully by 1790, using 1/3 as much coal

Required production to be near coal, larger factories, away from the home

Iron and Steel

Improvement in 1700’s to 1800’s allowed output increase from 12 tons a week to 1600 tons a week.

Steam powered blowers to furnaces (technological linkages).

More ore, near coal, required transportation improvements (more linkages)

Mills created demand for their own product Compare with computer revolution

Technological Linkages

Steam engine allowed larger steel mills Steel Mills required advanced steel and

steam technologies Larger trains and ships now viable out of

steel - as are newer engines Military power depended on new types of

steel for canons and rifles

Textiles

Led the industrial revolution by 1788, 143 looms run by waterwheel

spinning cotton to 55,500 steamers in 1829 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

Organizational change occurred before steam engine due to Taylorist nature

Organizational advantages of unified control, step by step production, specialization, and central power source

What are the organizational changes occurring now with the information revolution? How might they effect your activities?

Capital

Larger firms produced more goods - driving prices downwards as a result of technological improvements

R suggests that increases in factory output were sufficient to provide quick returns

Funding of capital by English country (deposit) banking system

Consumption was not lowered to fuel rev.

The Labor Market

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)

Factories drew from poor landless population

The Labor Market

In Paris, 1776, 91,000 homeless Replaced a social institution - the

apprentice system- resulting in less educational investment (but is was a severe system)

Factory perceived as exploitation of the poor- longer work hours, hazardous work

Franchise at the end of the revolution,1897

The Labor Market

Factories allowed employment of unskilled women and children, less theft, and more consistent working hours, in exchange for building the plant (capital investment)

Move from craftsmen satisfaction to “modern times”

What are the implications of new technologies on today’s labor market?

Class 1c

Managing Resources for Managing Resources for EntrepreneurshipEntrepreneurship

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 SCA Created when firms possess resources

that are:– Valuable– Rare– Imperfectly imitable– Nonsubstitutable

Resource Types

Financial Physical Human Technological Reputational Organizational

Individual Resources

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

Weak results - Jamaican research: are entrepreneurs surviving or creating?

Sociological Approach SES- social and economic status Human Capital Social Capital

– religiosity– group membership– marital status

Financial Capital Other factors include age, immigrant, gender,

market structure,environmental factors

Process Models

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

Commitment and Control of Resources Goal of acquiring resources for SCA

– aware of liquidity and time requirements– too soon and the wrong resources might be

obtained

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

Usually prefer a flat organization with informal networks– coordination important because nonstrategic

resources are uncontrolled and must be shared

Incentives are usually deferred compensation, stock options, equity

Knowledge

Critical to a start up - often a result of a spin off

Tacit knowledge most important - the way of doing - uncodified– much harder to duplicate