Survey of Entrepreneurship

Class 12

Strategic Planning

King Saud University -- Kent State University

Partners in Entrepreneurship

OBJECTIVES

12_Objectives

• 1. Present results of internet-based business research.• 2. Understand the principles of Marketing; explain

characteristics of internet-based businesses.

INTERACTIVITIES

12_Interactivities

1. Students should present on the internet businesses researched.2. The instructor, depending on the time involved, may speak after the presentations.

The Market Planning Process

• Market planning is the process of

– Identifying your customers– Defining their needs, wants and expectations– Developing your strategies and tactics for

satisfying them.

Pricing

• Pricing is a balancing act

– You must support your costs– While meeting your customer’s limits– And giving you your desired profit.

How Do I Set a Price

• Breakeven Analysis plus desired gross profit

Breakeven Graphs

Pricing Strategies

• Markup Pricing• Penetration Pricing• Price Skimming

Pricing Strategies Continued

• Follow the Leader• Price Lining• Variable Pricing

Product (or Service)

• Bundle of attributes that a customer perceives• Package of value from the various features,

benefits, and intangible rewards

Types of Products / Services

• Convenience goods/services• Shopping goods/services• Specialty goods/services

Product/Service Planning Strategy

• Product Mix and Positioning• Product life Cycle• Product Branding

Promotion

• The Ultimate Goal: increase sales• Purposes of Promotions:

– Communicate information– Position products/services– Add value– Control sales volume

Promotional Mix of Tools

• Advertising• Personal Selling• Sales Promotions• Publicity

Place / Distribution

• Channels of Traditional Distribution and Intermediaries

• Warehousing and Transportation Operations

Location Planning

• Importance of Location• Key Factors in Location Decisions• Challenges in Designing and Equipping the

Physical Facilities

Internet-Based Businesses

• Perhaps the hottest and fastest growing area of entrepreneurial activities

Ascent of Internet-Based Businesses

• E-intermediaries are internet-based members of a channel of distribution

• These channel members perform one or both of the following functions:– Collect information about sellers and present it to

consumers– Help deliver internet products to buyers.

Types of E-Intermediaries

• Syndicated Sellers• Shopping Agents• Electronic Retailing

Electronic Retailing

• Electronic Catalogs• Electronic Storefronts• Cybermalls• Interactive and Video Marketing

E- Retailing

• Cybermalls are collections of virtual storefronts with numerous offerings

• Interactive and video marketing allow viewers to conveniently shop online.

HOMEWORK

12_Homework

1. Read Mariotti text: Chapter 14: “Franchising, Licensing, and Harvesting”2. Read and consider handout 12.1 Some Preliminary Questions About the Business to Help Decide on a Legal Structure.

HANDOUTS

12_Handouts

1. 12-1_Some Preliminary Questions About the Business to Help Decide on a Legal Structure.

24

QuestionsQuestions