Entrepreneurial marketing is defined by Morris et al as:
“The proactive identification and exploitation of opportunities for acquiring and retaining profitable customers through innovative approaches to risk management, resource leveraging and value creation” (5)
Whereas formulated marketing occurs when companies spend monies in financing advertisements in the televisions, salespeople, research in both product and the market, etc. It is applicable in the following circumstances:
- Fragile Market Share Trap; this is where the population is price conscious and they buy the cheapest products notwithstanding the quality.
- Low-quality trap; this occurs where consumers assume that the quality of the products is always low.
- Shallow-pockets trap; this is a situation when the population is composed of low-income earners and the competitors are forced to cut prices to ensure that they remain in those markets i.e. there is price discrimination in the market.
Entrepreneurial marketing is advantageous when the market competition and turbulence can be expected to increase. Present trends, such as more technological developments as well as reduced costs for research and development and manufacturing, offer opportunities to new players and aggressive entrepreneurial firms in a dynamic and highly competitive market. Depending on their ability to exploit the new trends, businesses can be expected to grow and increase their profits. It is also faced with certain disadvantages among them; difficulty in creating and formulation entrepreneurial marketing strategies, cost constraints, difficulty to maintain the policies especially when the firm ages (Morris, 13).
Formulated marketing is commonly used by many firms in the modern markets due to the benefits which it holds. Among them; large response on sales, wider market coverage since the price discrimination levels are distinct to the ability to purchase, increase brand recognition, faster mode of conveying information, easy to implement and measure its success. It also consists of a couple of shortcomings ranging from costs incurred, workforce involved in terms of salespeople involved, the misconception of conveyed information to inability to measure the impact of the marketing because only one parameter is used i.e. sales.
Entrepreneurial marketing and formulated marketing if efficiently applied in the right environmental conditions would be very efficient and effective. Thus an applicable marketing strategy should be formulated to ensure marketing success.
Works cited
Morris, Murray, Schindehutte, Murray. and La Forge, W. “Entrepreneurial Marketing: A Construct for Integrating Emerging Entrepreneurship And Marketing Perspectives.” Journal of Marketing Theory and Practice. Armonk, NY USA. Vol. 10, No. 4, Pp. 1–18. 2002.