NEW VENTURE MARKETING
The plan is a vehicle that aids the entrepreneur, and those working with the entrepreneur, to reach for targeted goals. It acts as a map, a subdirectory, within the overall strategic plan of the enterprise, but more importantly, it is the genesis of the business plan. The investor will typically raise three questions in response to a new venture. Is there a unique selling propo¬sition, a new technology or innovation that's unrivalled in the market? Is there a management or team who can manage the system? Is there a market and a plan to reach it?
Marketing Strategies
The marketing plan is an extension of the overall business strategy. It usually sets out the mar¬keting strategy for the venture. In many cases the marketing strategy is the business strategy. Fred Smith of Federal Express focused on overnight delivery which became the total strategy for the organization. Domino's Pizza founder Tom Monaghan centred on the 30-minute delivery.2
There are a number of diverse market strategies that entrepreneurs may elect to use in their plans. Table 13.1 sets out five that are often used.
Marketing Concept and Entrepreneurship
The translation of a marketing strategy into a successful venture requires the sound application of marketing functions. In the entrepreneurial realm it is the case that some entrepreneurs are great marketers but weak in operations or they are exceptional innovators, technicians, pro¬duction people but unappreciative of marketing. Hisrich3 notes that the main problem sources of a new venture are finance and marketing. Both are tied together in that inadequate sales places a burden on the cash flow of the venture, while poor financial controls curtail the ability to bring in revenue.