How do you sell an innovative product to a market that does not yet exist? Entrepreneurial businesses often create products and services based on radically new technology that have the power to change the marketplace. Existing market research data will be largely irrelevant in these cases, making sales and marketing of innovative new products especially challenging to entrepreneurs.
Entrepreneurial Marketing focuses on this challenge. Classic core marketing concepts, such as segmentation, positioning and the marketing mix undergo an `extreme makeover' in the context of innovative products hitting the market. Edwin J. Nijssen stresses principles of affordable loss, experimentation and adjustment for emerging opportunities, as well as cooperation with first customers.
Containing many marketing examples of successful and cutting edge innovations (including links to websites and videos on the Internet), useful lists of key issues and instructions on how to make a one-page marketing plan, Entrepreneurial Marketing: An Effectual Approach provides a vital guide to successfully developing customer demand and a market for innovative new products.
This second edition has been thoroughly expanded with:
a one-page marketing plan which now focuses on the three entrepreneurial challenges that can be easily adapted;
coverage of the customer development process; and
updated references and new examples.
This book provides students and entrepreneurs with the fundamental tools to succeed in marketing.
Edwin J. Nijssen is Professor of Marketing at the Eindhoven University of Technology, the Netherlands.
Table of contents Preface 1. Using marketing to create a new business with radically new product ideas 1.1. Entrepreneurship and radically new ideas: The need for effectuation 1.2. Developing your business model 1.3. Products don't sell, solutions do! 1.4. Defining marketing and sales 1.5. Beyond stereotypes 2. Identifying an application and market 2.1. Entrepreneurship as opportunity seeking 2.2. Evaluation criteria of the experienced entrepreneur 2.3. The particular role of marketing 2.4. Developing your bowling pin model 2.5. Managing the development of the first application 3. Segmentation and positioning to maximise the value of a new technology and product application 3.1. Conceptualising the market 3.2. The importance of customer segmentation 3.3. Understanding customer value 3.4. Targeting using effectuation 3.5. Developing a positioning statement 3.6. Validation: customer feedback and iteration 3.7. Using technology push and market pull 4. Adoption, diffusion, and understanding lead customers 4.1. The technology adoption life cycle 4.2. Penetration and diffusion 4.3. Understanding lead customers 4.4. A detailed view of how innovators adopt 4.5. Anticipating and preventing chasms 4.6. Reasons why customers postpone or resist adoption 5. Competitive and market considerations 5.1. Different levels of competition 5.2. Anticipating competitor reactions and avoiding head-on competition 5.3. Change from inside or outside the industry 5.4. Network products and their particularities 5.5. Guidelines for performing market research 6. The customer development process 6.1. The need for creating customer buy-in 6.2. New product development versus customer development 6.3. Steps of the customer development process 6.4. Different customer roles 6.5. The relationship with the business model 7. Developing a marketing and sales programme 7.1. A one-page marketing and sales plan 7.2. Content of the plan 7.3. Marketing instruments 7.4. Product: Designing a product application and product line 7.5. Price: How to set your price 7.6. Promotion: Creating awareness with a limited budget 7.7. Place: Obtaining market access 8. The role of sales in customer development 8.1. The sales learning curve 8.2. Sales as knowledge broker for innovation 8.3. Sales process and activities: developing customer relationships 8.4. Developing the sales message 8.5. Managing customer expectations 9. Developing the new firm's marketing and sales capabilities 9.1. Developing the commercial competencies of the new firm 9.2. Marketing and sales capabilities for the survival and growth stages 9.3. Marketing capabilities' specific contribution to business processes 9.4. Implement, evaluate, and improve the one-page marketing and sales plan 9.5. Concluding remark References