Course Instructor: Rahim Bux SoomroLecturer

Department of Business AdministrationShah Abdul Latif University

Shah Abdul Latif University, Khairpur.

Entrepreneurship

Chapter 01

The Foundations of

Entrepreneurship

The World of the Entrepreneur

R B Soomro, LecturerDepartment of Business Administration, Shah Abdul Latif University, Khairpur 2

1• Every year in the U.S., entrepreneurs launch

850,000 new businesses.

2• Entrepreneurial spirit - the most significant

economic development in recent history.

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• GEM (Global Entrepreneurship Monitor ) study: 11.3 percent of adult population in the U.S. is actively involved in trying to start a new business.

The World of the Entrepreneur

R B Soomro, Lecturer Department of Business Administration, Shah Abdul Latif

University, Khairpur3

What Is an Entrepreneur?

R B Soomro, Lecturer Department of Business Administration, Shah Abdul Latif

University, Khairpur4

What Is an Entrepreneur?

R B Soomro, Lecturer Department of Business Administration, Shah Abdul Latif

University, Khairpur5

One who creates a new business in the face of risk and uncertainty for the purpose of achieving profit and growth by identifying opportunities

and assembling the necessary resources to capitalize on them.

What Is an Entrepreneur?

R B Soomro, Lecturer Department of Business Administration, Shah Abdul Latif

University, Khairpur6

Entrepreneurship is the process of creating something new with value by devoting the necessary time and effort, assuming the accompanying financial, psychic, and social risks, and receiving the resulting rewards of monetary and personal satisfaction and independence

Characteristics of Entrepreneurs

R B Soomro, Lecturer Department of Business Administration, Shah Abdul Latif

University, Khairpur

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Characteristics of Entrepreneurs

R B Soomro, Lecturer Department of Business Administration, Shah Abdul Latif

University, Khairpur

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Diversity!

One characteristic of entrepreneurs stands out:

Anyone regardless of age, race, gender, color, national

origin, or any other characteristic – can

become an entrepreneur (although not everyone

should).

Benefits of Entrepreneurship

R B Soomro, Lecturer Department of Business Administration, Shah Abdul Latif

University, Khairpur

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1• Do what you enjoy and to have fun at it

2• Create your own destiny

3• Make a difference

4• Reach your full potential

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• Contribute to society and to be recognized for your efforts

6• Reap impressive profits

Drawbacks of Entrepreneurship

R B Soomro, Lecturer Department of Business Administration, Shah Abdul Latif

University, Khairpur

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1• Uncertainty of income

2• Risk of losing your entire investment

3• Long hours and hard work

Marketing Research for New Venture

R B Soomro, Lecturer Department of Business Administration, Shah Abdul Latif

University, Khairpur

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Marketing Research for New Venture

R B Soomro, Lecturer Department of Business Administration, Shah Abdul Latif

University, Khairpur

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R B Soomro, Lecturer Department of Business Administration, Shah Abdul Latif

University, Khairpur

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Understanding the Marketing Plan Your Go-to-Market Strategy

R B Soomro, Lecturer Department of Business Administration, Shah Abdul Latif

University, Khairpur

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Understanding the Marketing Plan

• Where have we been?

• Where we want to go (Short-term)?

• How do we get there?

1. Discuss the specific marketing strategy.

2. When it will occur?

3. Who will be the responsible for monitoring activities?

R B Soomro, Lecturer Department of Business Administration, Shah Abdul Latif

University, Khairpur

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Understanding the Marketing Plan

Outline for Marketing Plan

R B Soomro, Lecturer Department of Business Administration, Shah Abdul Latif

University, Khairpur

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Understanding the Marketing Plan

Defining Marketing Plan

• Written statement of marketing objective , strategies and activities to be followed in business plan.

• Central instrument for directing and coordinating the marketing effort

• A marketing plan outlines the specific actions you intend to carry out to interest potential customers and clients in your product and/or service and persuade them to buy the product and/or services you offer.

R B Soomro, Lecturer Department of Business Administration, Shah Abdul Latif

University, Khairpur

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Understanding the Marketing Plan

R B Soomro, Lecturer Department of Business Administration, Shah Abdul Latif

University, Khairpur

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Marketing Mix

R B Soomro, Lecturer Department of Business Administration, Shah Abdul Latif

University, Khairpur

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Preparing the Marketing Plan

R B Soomro, Lecturer Department of Business Administration, Shah Abdul Latif

University, Khairpur

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R B Soomro, Lecturer Department of Business Administration, Shah Abdul Latif

University, Khairpur

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Steps in Preparing the Marketing Plan

• Business situation Describes past and present business achievements of new venture.

Whe

re h

ave

we

been

?

R B Soomro, Lecturer Department of Business Administration, Shah Abdul Latif

University, Khairpur

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Steps in Preparing the Marketing Plan

• Target Markets Specific group of potential customers toward which venture aims its market plan.

• Market Segmentation

Process of dividing a market into definable and measureable groups for purpose of targeting marketing strategy.

R B Soomro, Lecturer Department of Business Administration, Shah Abdul Latif

University, Khairpur

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Steps in Preparing the Marketing Plan

Henry Ford’s Model T

R B Soomro, Lecturer Department of Business Administration, Shah Abdul Latif

University, Khairpur

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Steps in Preparing the Marketing Plan

Henry Ford’s Model T

R B Soomro, Lecturer Department of Business Administration, Shah Abdul Latif

University, Khairpur

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Steps in Preparing the Marketing Plan

R B Soomro, Lecturer Department of Business Administration, Shah Abdul Latif

University, Khairpur

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Steps in Preparing the Marketing Plan

Strengths and Weaknesses

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University, Khairpur

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Steps in Preparing the Marketing Plan

Establishing Goals and Objectives

R B Soomro, Lecturer Department of Business Administration, Shah Abdul Latif

University, Khairpur

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Steps in Preparing the Marketing Plan

Establishing Goals and Objectives

• Goals are broad objectives are narrow.• Goals are general intentions; objectives are

precise.• Goals are intangible; objectives are

tangible. • Goals are abstract; objectives are concrete.

Examples:Goals: knows about the human body.Objectives: LWBAT name all of the bones in the human body as stated in the medical textbook "The Human Body".

R B Soomro, Lecturer Department of Business Administration, Shah Abdul Latif

University, Khairpur

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Defining Marketing Strategy and Action Programs

Defining Marketing Strategy and Action Programs• Specific activities outlined to meet the

venture’s business plan goals and objectives.

How do we get there?

R B Soomro, Lecturer Department of Business Administration, Shah Abdul Latif

University, Khairpur

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1. Product: Does the organization creates what its intended customers want?

•Functionality

•Quality

•Appearance

•Packaging

•Brand

•Service

•Support

•Warranty

•Website

R B Soomro, Lecturer Department of Business Administration, Shah Abdul Latif

University, Khairpur

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R B Soomro, Lecturer Department of Business Administration, Shah Abdul Latif

University, Khairpur

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2. Price: How much are the intended customers willing to pay?

• List Price• Discounts• Markups• Allowances

Related Issues

• Costs• Markups or Margins• Competition

R B Soomro, Lecturer Department of Business Administration, Shah Abdul Latif

University, Khairpur

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3. Place: Available at the right place, at the right time, in the right quantities.

• Locations

• Logistics

• Number of

Intermediaries

• Market

Coverage

• Web

Marketing

R B Soomro, Lecturer Department of Business Administration, Shah Abdul Latif

University, Khairpur

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R B Soomro, Lecturer Department of Business Administration, Shah Abdul Latif

University, Khairpur

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R B Soomro, Lecturer Department of Business Administration, Shah Abdul Latif

University, Khairpur

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4. Promotion: (How) are the chosen target groups informed or educated about the organization and its products?

• Advertising

• Public

Relations

• Message

• Direct sales

• Sales

• Media

• Budget

R B Soomro, Lecturer Department of Business Administration, Shah Abdul Latif

University, Khairpur

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R B Soomro, Lecturer Department of Business Administration, Shah Abdul Latif

University, Khairpur

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R B Soomro, Lecturer Department of Business Administration, Shah Abdul Latif

University, Khairpur

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Reasons of failure of Marketing Plan

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University, Khairpur

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R B Soomro, Lecturer Department of Business Administration, Shah Abdul Latif

University, Khairpur

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R B Soomro, Lecturer Department of Business Administration, Shah Abdul Latif

University, Khairpur

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