As promised, I’m following the class with my own journal entries/blog posts about the subject. Our first is:
What’s so hard about Entrepreneurial Marketing?
As we covered in class, Entrepreneurial Marketing is (for better or worse) more than just the Four Ps (Price, Place, Promotion, and Product for those of you who can name three-of-four and inevitably forget one of them). Unlike traditional marketing, which can simply focus on who is going to buy the product, entrepreneurs must market to a variety of stakeholders: suppliers, customers, the end users of those customers, market intermediaries (gatekeepers that might exist in your market), investors/potential investors, and business partners/employees/potential employees. Each group requires its own strategy and tactics, all when resources are incredibly scarce.
Sure, the money problem is obvious, some of it can be overcome with good research, strategy, and tactical execution. What isn’t quite as easy is balancing multiple priorities among a diverse group of people who often have competing interests. Not only must entrepreneurs focus on selling their product or service, they must also be constantly thinking about how to market their business to raise money (through equity or loans). Finally, they must do this while promoting the overall image of the company, ensuring that suppliers and talent are both on-board as partners in the company’s success. Not an easy task.
Interestingly, most entrepreneurs seem to do this automatically. They work to build relationships with all of these people and tend to manage those relationships well. However, many entrepreneurs can suffer from tunnel vision — maybe focusing too much on sales while neglecting investors, or working hard to raise money without making sure the customers are happy. Coming back to the money issue, entrepreneurs often don’t have the capital to recover from a major error when marketing to any one of their diverse targets. This makes attention to all marketing strategies incredibly critical.
Personally, I find maintaining relationships with market intermediaries to be the most difficult, since they are acting as gatekeepers and offer third-party interference with your customers. When these relationships are good, they’re excellent. When they’re bad, they can make an entrepreneur’s marketing job much more difficult.
What do you think? What would be your biggest marketing challenge?
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