Entrepreneurial Marketing: How it Differs in SMEs and Large Businesses

This article explores the concept of entrepreneurial marketing and how it differs in small and large businesses. It discusses the theories of entrepreneurial marketing and the best practices used by small businesses to promote their offerings.

Entrepreneurial
Marketing
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Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
How marketing in an SME is different from medium or large sized business.......................3
Entrepreneurial theory............................................................................................................5
Best practice methods.............................................................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8
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INTRODUCTION
Marketing is about studying and managing exchange relationships through recognizing,
foreseeing and meeting needs of targeted audiences. It is an activity or process to create,
communicate provide and exchange products which have huge values for clients, society,
customers along with partners at large. Entrepreneurial marketing is described to proactive
identification as well as exploitation of wide number of opportunities to acquire and retain
profitable audiences by using innovative approaches of marketing, resource leveraging together
with creation of values by an entrepreneur. In present era, the concept has gained recognition in
the field of marketing along with entrepreneurship disciplines. To understand entrepreneurial
marketing, Otty Sleep Ltd is chosen which was founded in 2016 by young entrepreneur that is
Michal Szlas (Otty Sleep Ltd, 2020). The head office of the small entity is situated at Leeds UK.
The company was started with mission of becoming most popular and leading sleep brand across
world. The assessment highlights about the ways in which marketing in SME differs from that of
medium or large sized company. Further, it discusses about relevant SME and entrepreneurial
theory and also provide critical thinking about marketing practices in small businesses.
MAIN BODY
How marketing in an SME is different from medium or large sized business.
As per the views of Kilenthong, Hultman and Hills (2016), All companies whether small
or large uses the concept of entrepreneurial marketing for the purpose of establishing themselves
in emerging and competitive business environment. However, the usage of the terminology
differs among small sized and large sized entities. In context to small business, these are
privately owned companies that have fewer employees as well as limited annual revenues. These
companies works for building relations with local residents so that they can properly understand
their needs and preferences in order to meet them as soon as possible (Cadet, 2016). For this
purpose, they adopts simple marketing practices to improve awareness among consumers that
their demanded products are available with the company and they can easily grab them. For
example, Otty Sleep Ltd performs marketing practices at domestic level for enhancing its
consumer base. This is done through devising small business marketing programme that will
assist in setting them apart from rival firms. Moreover, there are various methods or ways for
promoting small business. Through right mixture of practices, the entity can identify along with
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focus on most suitable marketing tactics for the small business. Because of having limited
resources, small businesses focuses on adopting low budget yet effective marketing ideas to
promote and grab attention of mass population. Moreover, they also emphasis on publishing
great content, create instructional videos, newspaper articles and many more. There various
numbers of issues related to marketing in small business. Some are lack of funds, less
technology, limited resources, fierce competition and ineffective marketing team.
However, according to Jones, Sethna and Solé (2013), marketing done by medium or large
sized businesses involves huge resources in terms of money, manpower and ideas. Large sized
business is defined to the companies that have large employee and more number of revenues.
They invest money in marketing their products for attracting population which resides at global
level or market. They have main vision of these business is making more profits through meeting
demands at global scale. It is seen that large sized companies initiates marketing activities at
international level through creating large marketing campaigns, using social media platforms and
various modern marketing methods. A marketing department is also created by the large
company that acts as guider and leaders of other departments to design, produce, communicate,
deliver and service products or services to end customers. Marketing department performs or
plans marketing tasks for its marketers that are creating surveys, capturing information, tracking
trends, monitoring competition, searching new marketing techniques, coordinating efforts with
other marketing agencies, improving sales processes, managing marketing budgets and hence
forth. The issues which are faced by marketing in large company are intense competition, poor
choice of marketing strategy, unsuitable marketing content and hence forth (Lam and Harker,
2015).
There are various number of marketing techniques that are used by small business and are
different from that of marketing techniques of large companies. For instance, small business,
such as Otty Sleep Ltd uses traditional marketing method. It performs marketing through direct
mails, print marketing, referral tools and broadcast mechanisms. Through direct mailing, it
creates awareness for its sleep products that are deluxe bed, adjustable pillows and many more
through brochures, fliers, postcards and letters sent through mails. In print advertising, products
are advertised of the company are advertised through magazines together with newspaper (Miles
and et.al., 2015). By using broadcasting marketing, main traditions avenues to share messages
about organisational products are television and radio. However, in context to medium or large
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sized entities, they majorly use modern marketing tools that involves Google Analytics,
marketing automation software, content marketing software, affiliate marketing, social media
marketing and many more. Addition to this, it also combines traditional and modern methods so
that wide area of international market is covered and more information is provided to large
customer base about its offerings.
Entrepreneurial theory
An entrepreneur has wide ideas and puts them together in a venture together with accepts
all types of associated risks in order to make huge profits. It is well stated that an entrepreneur is
important element or factor in development of an economy. In this regards, various kinds of
entrepreneurial theories are used as guider towards successful path. Entrepreneurial theories are
the general framework which acts as motivator for entrepreneurs to carry out business activities
in effective and successful manner (Harkema, 2017). There are significant as they list out what
entrepreneurship entails in all. Following are some of entrepreneurial theories that is used by
entrepreneur of SMEs:
Economic theory of entrepreneurship: The entrepreneurial theory is the effort made by
Richard Cantillon in early 1700s. It is most common entrepreneurial theory which states that
economy as well as entrepreneurship is linked with each other in close manner (Kirberg, 2016).
It is also seen that it is very difficult for a business tycoon to realise aspects of growth and
development at the time when economy is in poor state or doing poorly. Moreover, when
entrepreneur of SME that is Otty Sleep Ltd will adopt the economic entrepreneurial theory then
they will find motivation when huge number of economic incentives is available to them in form
of industrial policies, basis of financial sources, investment opportunities, taxation policies,
availability of infrastructure and many other economic benefits. In accordance to the theory, an
entrepreneur is risk taker as they never fully and accurately predict about favourability of
upcoming economic conditions.
Entrepreneurship innovation theory: Joseph Schumpeter was the inventor of
entrepreneurship innovation theory. As per the viewpoints of Joseph, an entrepreneur attains
growth through being creative together with having foresight. It is well said that the most
important creative thing that is done by an entrepreneur is introducing or launching a new
product (Evans, 2016). Moreover, a new commodity emerges for solving certain societal
problems as well as making it more expedient. In case with Otty Sleep Ltd, the entrepreneur
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when use this theory will be more successful in bidding activities for achieving growth along
with have more margin of profits. Furthermore, it is perceived that increased production methods
results in reducing production costs together with increasing manufacturing of products. When
an entrepreneur opens news market, at that time also innovation emerges and this is done after
recognizing growth opportunities in economy. Discovery of new sources related to raw material
along with establishing a venture is important aspects that shows aspects of entrepreneurs for
being innovators.
Opportunity based theory: The theory is anchored by Howard Stevenson as well as Peter
Drucker. It is said by these personalities that an entrepreneur is always in search of some
changes in external environment and exploit them as opportunity. As per the theory, an
entrepreneur never fails to grab opportunities that come across the path of establishing the
venture and running it productively (Sethna, Jones and Harrigan, 2013). By using the
entrepreneurial theory, entrepreneur of Otty Sleep Ltd can oversee the changes in society,
culture, preferences of consumers and technology as opportunities to success in dynamic
business environment. Furthermore, the theory also suggests that an entrepreneur always look for
opportunities which will help in enhancing venture expansion and development as per the
determined state.
Entrepreneurial theories are best theories which provide success path to the business
tycoon for establishing venture and running it effectively. In case with Otty Sleep Ltd, its
entrepreneur uses entrepreneurial innovation theory so to introduce new products that are
innovative in nature. With this theory, they make huge attempts those results in development of
economy along with society as whole.
Best practice methods.
Marketing practices are defined to the attempts that are made by marketing team of an
organisation for the purpose of delivering suitable information about organisation and its
products to mass population at same time (Jain and Ali, 2013). Marketing always remain
essential for any business whether small or large. It is because it enables in becoming profitable
together with grow. There are various marketing practices that assist small businesses to deal in
the sector through grabbing attention of mass population that lives in nearby surroundings.
Following are best considered marketing methods that are practiced by marketers of Otty Sleep
Ltd:
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Word of mouth: It is one of effective marketing practice in which information is passed by
manpower of company from one targeted audience to other with the help of oral communication
which as easy as telling others the time of day (Gilmore and et. al., 2018). In this, storytelling is
most understandable form related to word of mouth practice in which marketers of Otty Sleep
Ltd tells targeted population a story that is related to its products. It does not requires any
additional investment as it is free and easy to start at any time. Furthermore, it also stimulates
people to huge extent. Additionally, it is encourages customer experiences and providing them
something which is beyond their expectations. It facilitates in consumer to consumer together
with market to consumer communications. It is generally in form of social media marketing,
buzz marketing, blogs, emotional marketing and viral marketing.
Innovative: Another marketing practice which is said to set of innovative mechanisms for
marketing or communicating offerings of company to targeted consumer group. In other terms,
innovation as marketing practice is related to involvement of new ideas which can have positive
impacts on new commodities of entity. By using innovative marketing practice, marketing team
of Otty Sleep Ltd conduct market research to gain insights about consumer needs, develops
prototype addition to make certain changes in designing or other elements of current products,
launches the product in innovative or unique manner. Addition to this, it also focuses on pricing
products in ways, introducing commodities on unique location, promoting offerings in
inconvenient manner and so on. Its role is to explore new needs of markets for the purpose of
enhancing sales together with margins of revenues (Renton and Et. Al., 2015). It is believed that
innovating practice changes regular basis of doing business and implementing strategies too.
CONCLUSION
The assessment concludes that entrepreneurial marketing is achieving more recognition
in the competitive business environment. The concept eschews various fundamental principles
relate to marketing as these are designed to attract population in domestic and international
market. Marketing in small company is slightly different from marketing in large business. it is
because of limited funds, resources, equipments and other essentials with small ventures to
promote their offerings. While large businesses have uncountable facilities for maximising
awareness and promoting products at large scale. The entrepreneurial theories that can be used
by emerging or existing entrepreneurs include economic theory of entrepreneurship,
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Entrepreneurship innovation theory and opportunity based theory. Main marketing practices
followed by small sized business are word of mouth and innovation.
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REFERENCES
Books and Journals
Cadet, F. T., 2016. Determining the advertisement value of Facebook: A content and financial
analysis. Hampton University.
Evans, W. D., 2016. Social marketing research for global public health: methods and
technologies. Oxford University Press.
Gilmore, A. and et. al., 2018. Four questions of entrepreneurial marketing education:
Perspectives of university educators. Journal of Business Research.
Harkema, K. J., 2017. An Exploration into Entrepreneurial Marketing and Firm Profitability.
Anderson University.
Jain, R. and Ali, S. W., 2013. Self-efficacy beliefs, marketing orientation and attitude orientation
of Indian entrepreneurs. The Journal of Entrepreneurship. 22(1). pp.71-95.
Jones, R., Sethna, Z. and Solé, M., 2013. Entrepreneurial marketing: conceptual exploration and
link to performance. Journal of Research in Marketing and Entrepreneurship.
Kilenthong, P., Hultman, C. M. and Hills, G. E., 2016. Entrepreneurial marketing behaviours:
impact of firm age, firm size and firm’s founder. Journal of Research in Marketing and
Entrepreneurship. 18(1). pp.127-145.
Kirberg, A. S., 2016. El marketing como estrategia de emprendimiento. EDICIONES DE LA U
LTDA.
Lam, W. and Harker, M. J., 2015. Marketing and entrepreneurship: An integrated view from the
entrepreneur’s perspective. International Small Business Journal. 33(3). pp.321-348.
Miles, M. and et.al., 2015. Exploring entrepreneurial marketing. Journal of Strategic
Marketing. 23(2), pp.94-111.
Nijssen, E. J., 2017. Entrepreneurial marketing: an effectual approach. Routledge.
Renton, M. and Et. Al., 2015. Small but sophisticated: Entrepreneurial marketing and sme
approaches to brand management. Journal of Research in Marketing and
Entrepreneurship. 17(2). pp.149-164.
Sethna, Z., Jones, R. and Harrigan, P. eds., 2013. Entrepreneurial marketing: Global
perspectives. Emerald Group Publishing.
Whalen, P. And et. al., 2016. Anatomy of competitive advantage: towards a contingency theory
of entrepreneurial marketing. Journal of Strategic Marketing. 24(1). pp.5-19.
Online:
Otty Sleep Ltd. 2020. [Online]. Available through:< https://otty.com/>
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