Every economy in the world encourages its citizens to start businesses and become entrepreneurs. Entrepreneurship is a tool used to combat poverty and unemployment in all world economies. It is the heartbeat of major strong economies today.
A good number of the wealthiest people in the world today are entrepreneurs. A survey by a small business genius on Forbes annual list of richest people backs this claim. The survey states that 90% of new American billionaires are self-made.
Establishing a New Business and Setting Up a Marketing Research
Establishing a new startup business is a lot of hard work, intelligence, and financial responsibility. Starting a new business requires a risk, and managing a business takes planning and more risks. New startup entrepreneurs often are bothered by several factors and decisions to manage, expand the business and avoid a shutdown. As a result, old business owners all want to stay afloat, become bigger, and avoid bankruptcy.
There are unavoidable processes an entrepreneur must take when managing a business, and one is marketing. Marketing is a huge part of a business environment. Even ground-breaking pioneer products still need marketing to sell to their final consumers.
Businesses are made to generate profit, and profit is made when products are sold. Understanding market needs and how to reach your target customers is the general summary of what marketing is.
This article will discuss what marketing is to an entrepreneur, its importance, and how to use it to establish your business.
What is Marketing to an Entrepreneur?
To an entrepreneur, marketing is the key tool needed for the success of a business. It entails every activity carted out to drive consumers to a particular product, ensure and boost sales.
Entrepreneurship is a big part of the world. There are government grants and financial aids available for people who have an interest in business. For example, an entrepreneur can start a business due to economic, political, or cultural reasons. To some, it is a career path; to others, it is a necessity, an escape from poverty due to the lack of jobs in their country.
An entrepreneur is responsible for creating and undertaking a business outfit or venture to create goods or services, increase profit and labor. Marketing is the act of promoting a business to create awareness and increase sales. It is vital in every industry.
Marketing comprises a host of different activities a company takes to stimulate sales. Activities under marketing include advertising, selling, and product delivery. A business owner must market such products to a target audience to expand and sell your products. A pampers company targets new mothers, court hospitals, and pediatric outfits to endorse their products to their customers who are expectant mothers or mothers with infants.
Importance of Marketing
Marketing is concerned with taking a product or service, identifying the potential consumers, and piquing customers’ interest to buy said products. Here are some points why marketing is vital.
• Growth and expansion
Marketing helps create product and service awareness to customers. Transfer and movement of products is also included in marketing; it is not complete till it reaches the consumer.
• Profit generation
Marketing aims at persuading the target audience to buy a product. Marketing also boosts sales if utilized properly.
• Creating value and revenue options
Marketing establishes brand credibility and helps to build trust with customers. It is through marketing that customers are informed of the availability of a product.
Four Factors That Determine Marketing Quality
There are four Ps in marketing that guide an entrepreneur in matching products to potential customers and clients to ensure sales.
- Product: refers to the item or service the business intends to sell. Entrepreneurs create products and services to fulfill consumer needs. Products and services are established to compete against another existing one to destroy a monopoly.
- Price: refers to the amount a product or service is intended to be sold for. An entrepreneur must consider factors when setting a price for a product. Unit cost, marketing price, distribution cost, price of competing products in the market, the income of target customers, and affordability of goods and services. For example, will customers be willing to buy a product for a certain cost?
- Place: this refers to the place for distribution. Factors to consider include how the company intends to sell the product. Prior to the explosion of eCommerce, the place was restricted to physical walk-in stores at local or international market scenes. However, internet shopping is now prevalent and is considered as a location marketing factor.
- Promotion: this is the crux of marketing. It is the integration of marketing campaigns and communications. Through a promotion, potential customers know about the existence and use of a product. Promotion may include endorsement of popular faces with a huge fan base and social media presence to seek the audience’s attention. Other important activities under promotion include advertisements, public relations, sponsorship, and others.
Marketing Strategies to Facilitate Sales
The internet, social media, networking with past and potential customers are some of the simplest marketing strategies to use as an entrepreneur. Entrepreneurs can tap into the open market by utilizing the internet. For example, social media platforms like Instagram and Facebook have numerous features for entrepreneurs to use digital content for marketing their products to a larger audience.
Creating an active network of a customer base is a useful strategy to market your products. Public relations packages are sent to a selected number of users and influencers to test a product, review it, and recommend it to their followers.
Affiliate marketing is a strategy that works when promoting a business brand. It is an advertising strategy to promote a brand and product to generate sales. Affiliates are paid on performance rate, so the more clicks and sales of a product, the higher they are paid.
Companies and brands are always searching for ways to grow and realize greater profits. The sweetest words in an entrepreneur’s dictionary are ‘sold out.’ Marketing strategies are formulated and updated on a daily basis to propel a business and product and beat out competitors.
Proven marketing strategies are, however, more reliable than new ones. Therefore, startup entrepreneurs and failing entrepreneurs need to grasp the knowledge and tools to utilize marketing to expand, grow, and generate profit.
Cogent Analysis: Importance of marketing in business
Small business genius: 39 entrepreneur statistics you need to know in 2021
Entrepreneur: Zero-cost marketing strategies that provide instant traction
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Great information. A must read post, thanks for sharing.