- New Ventures Project Strategy
- Entrepreneurial marketing
- Marketing methods
Process:
Today was the fifth lesson of the technopreneurship programme by Mr Chia. We learnt about the strategies for setting up a new venture selling products, what marketing is, and how to do marketing.
One of the ways a new venture selling products can gain high success is being a disruptive innovation. Disruptive innovation describes a product that starts of with slow success but has sudden exponential growth. Competitors tend to ignore it at the start, not feeling that it is a threat, but are left behind in the end when they realise too late. Not only does the performance of the disruptive product increase over time, the prices also drop sharply, giving it huge success over its competitors. An example of this is the digital camera. The digital camera started with very low performance and little success. Companies like Kodak ignored the potential of the digital camera. However, due to the advancements in technology, the performance of the digital camera increased quickly and it made film, along with companies like Kodak, obsolete.
As a new venture, it is good to be a disruptive innovation, but a business must always look out for potential disruptive innovations and prepare itself to remain relevant.
Another strategy for new ventures is the Blue Ocean Strategy. A Red Ocean Market refers to a market with many competitors , where these competitors compete by slashing their prices. A Blue Ocean Market, on the other hand, is a market with no other competitors, hence allowing the venture to price the products as they wish. The Blue Ocean Strategy suggests that an organisation should create a new demand in an uncontested market space, or a 'Blue Ocean', rather than compete head-to-head with other suppliers in an existing industry.
The Blue Ocean Strategy is the most suitable strategy for new ventures given very little resources, and it encourages the creation of value innovation.
Beyond having a good strategy, marketing is also a very important aspect of a venture.
What is a market?
A market is a place where consumers' need for a product or service is met at the right price.
What is marketing?
Marketing is bringing a product into a market to meet the needs of customers.
Marketing vs Selling
Marketing includes selling. However, marketing starts even before a product is manufactured. Selling starts only after a product is manufactured.
How do we find a good marketing environment?
A good marketing environment must take into account the political, technological, economical, and social conditions of the area. These conditions must be understood for a business to be able to market within a suitable market, and also for the marketing of the business to be effective to the masses.
The four P's must also be considered to make a well-rounded, attractive, and effective marketing plan.
Marketing method:
With the improvement of technology and the prevalence of the internet, the face of marketing has changed. From traditional media such as radio and TV advertisements, social media is becoming a more attractive and effective way to market. Marketing on social media incurs less cost, and can reach a larger or more specific target audience.
Apart from lower cost, social media marketing has many other strengths too. Social Media marketing can have a viral effect, with netizens sharing the marketing product of the company. This further increases the speed and reach of marketing of the product, at little or no cost. An example of this is the Evian baby&me campaign, with the video going viral and capturing over 96M views on Youtube alone.
Social Media marketing can also capture the attention of the mainstream media, causing it to become more viral and reach more people.
There are also social media sites that have a more focused audience, such as in art or music, and this can help you reach a more specialised audience.
Reflection:
Today was a very eye opening session. I got exposed to many new terms for the first time, such as Blue Ocean Market or disruptive innovation. I got to understand the workings of disruptive innovation and this has made me very interested to find out more examples of disruptive innovation, as well as try to spot disruptive innovation that might still be in its infancy now. I am also interested in studying more about the mechanics of the market and the different techniques that companies employ to exploit or gain an advantage in a Red Ocean Market. I have been exposed prior to marketing using social media, and have been using it for projects or competitions like F1 in Schools. The notes given out by Mr Chia is extremely useful as it can remind me of how to make use of social media the most effectively.
Personal Development:
I will be using the weekends to research and learn more about how the market works, as well as find out about the different strategies employed by companies to gain an advantage in the competitive market. I will try to explore into deeper detail how to best use social media as a marketing tool, not as a business but just as a student or as a project group.
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