Business is defined by Griffin and Ebert in 2013 as a an organization with a number of groups or individuals working together on a certain financial activity that involves the provision of goods and services that simply comes out through forming trade in a commercial space. Ebert and Griffin highlight the importance of the analysis of the businesses rather than generalize the topic, thus improving the functionality and the purpose of each corporation. With financial benefit that comes later on after the succession of the business is the main motive behind its start, other can vary from individual to another, such as social, psychological or even personal but mainly profit is the main purpose of all businesses. Other definition vary from one to another, financial purposes may not be one that circulates the meaning behind owning or working for a business but rather a social case where aiming to build a business is completely about creating and leaving behind a “satisfying customer” which was according to Peter Ducker (2000), the essential purpose of all businesses, Ducker has been one of the idealist author in the business industry, describing endless methods of management for over 30 years and the consideration of taking well care of clients has always been one of the ways that he has specifically mentioned in most of his books.
Major corporations today take-over the market due to its long term experience within the market; from thousands to millions of loyal consumers to settling networking panels that can always save them through hardship, yet it is rarely heard of new entrants? Kicking off a business plan can be the most exciting part for all entrants, as opportunities are initially the main vision, and the goals are followed with multiple to even endless consumers and expansion for the entrants. The starting out with obvious motives, wide area of choice to take part in, chasing major aspiration and financial rewards, and the underestimating competitiveness of the existing players can be psychologically rewarding, unfortunately the rewards come with consequences and endless faults can be associated with the misperceptions of the entrants and worst can be followed if the entrant is not already a player in the market; entrepreneurs (Also known as “New business comers”) that can range to uncontrollable success, major debt, and competitive aggressiveness within the chosen market. It takes certain characteristics and careful execution in order to gain the rewards of successful businesses, often takes time. (Barringer and Ireland, 2016)
Fortunately, the marketplace maintains a place where gaps can be found on a daily basis, which can be filled with innovative ideas, fresh entrants with ambitious tangibles and intangibles, endless offerings of ventures working hand in hand to build a better product or services, or even create an outstanding products or services that can be identified as “Unique” in the market place. Problem solving and even changing the game existing competitors play, are major opportunities that are generated by entrepreneurs in technological, political/regulatory, and social demographic fields which can be formulated into a new method of production that either excels existing businesses or even be the first in the marketplace. (Baron and Shane, 2008)
Understanding Entrepreneurship and New Business Comers
Entrepreneurship is a new subject which is only recently studied in the 21th century by Joseph Schumpeter, Carl Menger, Ludwig Von Mises and Friedrich Von Hayek. Where Schumpeter in 1934, described it as putting a new idea into practice creating successful innovations through development and elaboration which demolishes or solves problems of old and existing industries, definition expands to the French classifying entrepreneurship in 1723 as a quality individuals have rather than a function or practice, originality, and novelty within the new venture enterprise, whilst, Richard Cantillion described them Entrepreneurs as risk takers with daring resources allocation skills seeking opportunity within chosen departments and financially succeed as result; profit seekers.
In 2011, Eric Ries highlighted entrepreneurship as a continuous changing phase in order to succeed in the business world. That improvises that new business comers must play harder within the market to be distinguished from their upcoming or even existing competitors which doesn’t usually go well as new entrants suffer most with introduction phase since it is the hardest, most investing, and risky move but in any ways, some businesses could succeed with a strong backbone and a careful business plan. Adversely, many businesses may not take the risks due to personal, professional and/or market setbacks that threaten their capital and time, but that isn’t always true because Ries highlights the inner motives to move forward to all fresh businessmen to put in practice their “Dices” in the game.
Unfortunately, due to the large global market today, the overcrowding of business starters within the local market is possible because of high ambition, creating high competitiveness with high stakes of using up large sums of capital and even greater percentages of loss. Market entrance is very well known to come with high risks but that does not affect the number of gamblers in the business world. Keller and Kotler in 2015 highlighted the importance of having strong foundation to all businesses in order to not only to hold a spot within the market but to maintain in the market. It is to not be understated that the research about the targeted market is to be undergone in order to understand the future customer-base, but to also attract further investments to work on the factors that bring goods and services together; a marketing plan. The groundwork for start-ups insures the familiarity of it to the market, and then secondly, the familiarity of the market to the start-up.
An entrepreneur is someone who manages a business in order to achieve profit and growth while a small business owner runs a business to achieve personal goals and to provide an income to his family. If an entrepreneur aims to maximize the economic performance, a small business owner seeks to achieve personal goals (non-economic purpose) which turn out to an acceptable level of business performance.
Do not, though mistaken an entrepreneur from a small-sized business owner, as they usually have different purposes. As mentioned, entrepreneurs can be both profit seekers and market “opportunitists” they are highly focused on goals that include growth as beginners, they usually have to endure more than what other existing businesses have to, as the competition can be ruthless and also short in time span. While small business owner usually have quite basic goals, it can be elementary in matters such as income or even maintaining in the market. In economic level, the starters usually focus on maximization and the owners of small business could be at a more satisfied level or what keeps their income from flowing and even sometimes, they steep away and set non-economic purposes. On revolution, they both have completely different paths; entrepreneurs seek difference, flexibility, experiential on supplies and take part on risk taking where it could bring in best results and the small business owners usually are less lean to such chances as the market could downturn and probably disrupt its existing routine. Subsequently, the scope has expanded from entrepreneurs towards companies, even large ones, which have a particular approach on the market. (Wagener, Gorgievski, and Rijsdijk, 2008)
What is Entrepreneurial Marketing?
When considering a product that is at the verge to exist or was newly introduced, marketing is the dependent act most new business comers must take into account. The concept of entrepreneurial marketing was introduced as the crossing point between of two business disciplines which are marketing and entrepreneurship about 30-years ago. The understanding of entrepreneurial marketing is definitely the topic to account for as its’ economy, psychology and sociology, and their evolution of its’ paradigm is still underdeveloped. With different kinds of definitions, specific principles in this area are missing, practical tools are inadequate developed and unfortunately there is no unifying theory. Although it is generally accepted that entrepreneurs behave differently regarding “traditional” marketing, however some of them are very successful. Lacking a unique definition makes research efforts remain fragmented and misaligned. Consequently, the theoretical development is limited to the identification of concepts, mostly borrowed from other social sciences and the development of some conceptual models. However, there is a strong need to develop tools, principles and theories to help businesses – especially start-ups and small ones – to survive and thrive in an increasingly hostile and unpredictable environment. This article presents a brief history of the evolution of entrepreneurial marketing concept, an analysis of the most common definitions, a comparison with “traditional” marketing, a brief overview of the most important concepts developed in the MEI and an inventory of research methodologies.
To run down the path of how entrepreneurial marketing started, the University of Illinois in Chicago initiated a conference which was sponsored by the International Council for Small Businesses and American Marketing Association in 1982, which has shown notice to the marketing aspects in those areas and although their strong highlights of its importance, it was still limited (Hills, Hultman et al., 2010). It was later shown interests but associations such as the AMA (American Marketing Association) to even put marketing in entrepreneurship into an actual concept in 1986. It was later seen to have been showing growth within other researcher and have given us today the initiation of the Marketing and Entrepreneurship Task Force, which was permanently became amongst the Special Interest Group, with that entrepreneurial marketing topics has made its way west by expanding into Europe, and by 1995 the Academy of Marketing planned the first ever conference devoted for Entrepreneurial Marketing. Then through 1999, Journal of Research in Marketing and Entrepreneurship was founding it was a dedicational venue for entrepreneurial marketing researchers who put effort into the topic.
The entrepreneurial marketing researchers later own got their analysis regarding the matter of entrepreneurial marketing not making it’s way in all the way and what has come to have shown effective; that it can highly be concept on its’ own later were able to publish their findings in both, own magazines and exceptional marketing journals such the Marketing Education Review, the European Journal of Marketing, Marketing Education Review, Management Decision, and others that were highly in this regards, interested in making the concept acknowledge. In 2003, the conference on marketing, entrepreneurship and entrepreneurial marketing made its first step in Germany with a little over 130 innovations and ideas with harsh condition as an initial approach.
Australia, New Zealand and even the continent of Asia’s researchers attained concentration and took place within the Special Interest Group to make their studies regarding marketing and entrepreneurship. The International Journal of Entrepreneurship and Innovation Management in 2005 aimed at linking technology and marketing issues, which were then displayed and highlighted in the Small Business Management 2008 edition that later on in 2010 showed that entrepreneurial marketing made its way into the entrepreneurship area, as mentioned by the International Journal of Entrepreneurship and Innovation Management. After the intense beginning of entrepreneurial marketing concept has started to make its way into the Special Journal, it was the, chosen to associate the activities that small enterprises and entering companies to practice upon for their marketing activities. Unfortunately, concepts are not always trusted upon to bring in the results it theoretically presumes after the practice is suggested, as companies choose to side track due to conditions that can’t be fully explained or generalized, and that’s what has been seen out of experiments that researches conducted for their conception practice as trial. Main point of the purpose for their practice is to alert to better or newer ideas, according to the economist Kirzner (Metcalf, 2006).
Thus, entrepreneurial marketing is as following most commonly described:
“proactive identification and exploitation of opportunities for acquiring and retaining profitable customers through innovative approaches to risk management, resource leveraging and value creation.”
Which to break it down, highlights the most important and obvious reasons to its calling and categorization in entrepreneurship and marketing qualities put together, and they are “Proactive identification” which is the initiation with action towards a change or any causes that needs to be thought through fast. “Exploitation of opportunities” which are the empirical ways of understanding suitable or attractive opportunities. “Acquiring and retaining profitable customers” to gain customer retention and their willingness to take part of the purchase with what is being offered and returning due to satisfaction or interest. “Resource leveraging” where they could affect the environment with efforts but no correspondence of higher consumption in resource for an ideal outcome. “Value creation” is the increasing of worth of the product or service for the customer; it helps with the appreciation and the price of purchase. (Morris, Schindehutte et al., 2002, p. 5).
The combinations of marketing and entrepreneurship can highly explain the reasons why researches have persuaded towards its individualism and wanted to build for it a concept on its own. The other side to the uniqueness of entrepreneurial marketing is the attitude, it brings into its practice, aside from its mix between being spontaneous and careful, and there are sides to the market even the existing practitioners and long run business often miss. They are usually lack of expectancy, thus be a reason for why many businesses often fail with theoretical analysis of the outcome of their marketing assumptions. Here, entrepreneurial marketing allows the associative creating of opportunities in constructive view that shows the Management and Marketing 136 importance within social habits of what is actually, or even potentially possible in regards to occurrence of positive results when practiced. Entrepreneurial point of view towards to the product and service offered isn’t always a competition of who is different or outstanding, but a “Dialogue” of creation and recreation of images, icon and signs (Gaddefors and Anderson, 2008, p. 33).