Entrepreneurial Marketing & Finance
Course Website: www.ieor.berkeley.edu/~ieor190b/index.htm
Stacey Lawson & Ian Sobieski
225B Bechtel
stacey_lawson@berkeley.edu
ian@bandangels.com
Office Hours:
M 2:30-3:30
GSI: Wen-Yu Liao
1116 Etcheverry
wenyul@ieor.berkeley.edu
Office Hours:
W2:30-3:30
What is Entrepreneurship?

Entrepreneurship is a management and leadership style that
involves pursuing opportunities without regard to resources
currently controlled

Any attempt at new business or new venture creation, such as
self-employment, a new business organization, or the
expansion of an existing business, by and individual, a team, or
an established business.

A way of thinking and acting that is opportunity obsessed,
holistic in approach and leadership balanced for the purpose of
value creation.

An entrepreneur is a highly creative person who marshals
scarce resources to pursue opportunities that bring about largescale change
References: Harvard Business School and Babson College, London School of Business
Entrepreneurship takes many forms…
Entrepreneurship
 New venture
 Bootstrapped or
externally financed
 Organize required
resources to bring to
bear
Intrapreneurship
 New internal project,
division, operating unit,
joint venture, etc.
 Financial & human
resources identified
from internal or
external sources
My Experience with Entrepreneurship
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Founder & President of InPart
Started and grew PLM software division of
PTC to $300M annual revenue
Started new ERM division at Siebel Systems
and grew to $100M annual revenue
Acquired 4 companies during various roles
Limited Partner in 5 venture capital funds
Have been board member, advisor, or
investor in 20+ early stage companies
What is Marketing?

“Taking actions to create, grow, maintain or defend markets.”

“Identifying the particular wants and needs of a target market of
customers, and then going about satisfying those customers
better than the competitors.”
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“Process by which a firm creates value for its chosen
customers.“

“A group of related business activities aimed at satisfying
customer demand for goods and services.”
References: Peter Drucker, Geoffrey Moore, web sources
Entrepreneurial + Marketing

Relentlessly pursuing opportunities without
regard to resources currently controlled….
by
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…identifying the particular needs of target
customers, and then satisfying those
customers better than the competition
Biggest Issues VC’s Identify
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Don’t know how to segment market and position
solution in a compelling way
Don’t understand patterns of adoption -pragmatists won’t buy unless they have to!
Major focus of Entrepreneurial Marketing:
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Selecting target market and positioning product in
customer’s minds
Specifying the plan for marketing activities to achieve
desired customer perception & behavior
Marketing is an Exchange Process
Company
Customer
Understanding the Customer

Who are They?
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Personal characteristics
Product usage patterns
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Why do They Buy?
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Needs
Purchase Motivations
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What do They Buy?
How do They Buy?
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Decision-making unit (DMU)
Decision-making process
“Whole” Product or Service
Set of product and nonproduct capabilities that meet
buying objective
Set apart from competition
Where do They Buy?

Appropriate channel design
Understanding the Customer
Company
Firm/Manager owns Understanding:
• The who, what, where, why, &
how of customer behavior
• How to translate these into
offerings and marketing mix
Customer
Customer owns Behavior:
• Perception of fit between company’s
offerings and their own need
• Ability to act
Model for Marketing Decision-Making:
5 C’s & 4 P’s
Context
Competition
Collaborators
Competitive Advantage
Shared Interests
Company
Customer
Core Competencies
Unmet Needs
Target Market
Assess the Situation
Model for Marketing Decision-Making:
5 C’s & 4 P’s
• What areContext
our core competencies?
• Who has specific, relevant expertise?
• Who works in the venture? Advises? Invests?
Competition
Collaborators
• What is the value of the
venture’s offerings?
• Who can supply “whole Shared
product”Interests
expertise?
Competitive Advantage
Company
Customer
Core Competencies
Unmet Needs
Target Market
Assess the Situation
Model for Marketing Decision-Making:
5 C’s & 4 P’s
• Who are current & potential competitors?
• What are their strengths & weaknesses?
Context
Competition
Competitive Advantage
• What is our differentiation?
• How does the value of our offerings compare?
Collaborators
Shared Interests
Company
Customer
Core Competencies
Unmet Needs
Target Market
Assess the Situation
Model for Marketing Decision-Making:
5 C’s & 4 P’s
Context
Competition
Collaborators
• What is the macro-economic environment
Competitive Advantage
Shared Interests
(regulatory, legal, technological, cultural, etc.)?
• What changes are taking place in the industry?
Company
Customer
• What will this market look like long-term?
Core Competencies
Unmet Needs
Target Market
Assess the Situation
Model for Marketing Decision-Making:
5 C’s & 4 P’s
Context
• Who are the most important partners?
• How should we motivate them?
Competition
• Who has relationships with our buyer?
Competitive
Advantage
• What should
our channel
look like?
• Who is best cultural fit?
Collaborators
Shared Interests
Company
Customer
Core Competencies
Unmet Needs
Target Market
Assess the Situation
Model for Marketing Decision-Making:
5 C’s & 4 P’s
Context
• What are the customer’s attributes?
• What isCompetition
the customer’s need/pain?
Collaborators
• WhatCompetitive
is the customer
buying process?
Advantage
Shared Interests
• Who is involved in the process?
• What do they require in a “whole product”?
Company
Customer
• Where do they wish to buy?
Core Competencies
Unmet Needs
Target Market
Assess the Situation
Model for Marketing Decision-Making:
5 C’s & 4 P’s
Assess the Situation (5 C’s)
Select
Target
Market
Target Market
• Customer Segmentation
• Competitive Differentiation
• Company & Product Positioning
Model for Marketing Decision-Making:
5 C’s & 4 P’s
Assess the Situation (5 C’s)
Select
Target
Market
Define
Marketing
Mix (4P’s)
Target Market
Product
Price
Place
Promotion
Model for Marketing Decision-Making:
5 C’s & 4 P’s
Assess the Situation (5 C’s)
Select
Target
Market
Define
Marketing
Mix (4P’s)
Target Market
Product
Place
• Total package of benefits obtained by the customer
• “Whole Product”
Price
Promotion
Model for Marketing Decision-Making:
5 C’s & 4 P’s
Assess the Situation (5 C’s)
Select
Target
Market
Define
Marketing
Mix (4P’s)
Target Market
Product
Place
• Perceived value represents maximum price
customer is willing to pay
Price
Promotion
Model for Marketing Decision-Making:
5 C’s & 4 P’s
Assess the Situation (5 C’s)
Select
Target
Market
Define
Marketing
Mix (4P’s)
Target Market
Product
Place
• Communication with customers to build awareness,
knowledge, interest, trial, and repeat purchase
Price
Promotion
Model for Marketing Decision-Making:
5 C’s & 4 P’s
Assess the Situation (5 C’s)
Select
Target
Market
Define
Marketing
Mix (4P’s)
Target Market
Product
Place
• Channel structure and “go-to-market” approach
Price
Promotion
Model for Marketing Decision-Making:
5 C’s & 4 P’s
Assess the Situation (5 C’s)
Select
Target
Market
Define
Marketing
Mix (4P’s)
Target Market
Product
Price
Place
Promotion
Product Adoption Lifecycle
Pragmatists
Stick with the herd
Visionaries
Move ahead of the herd
Techies
“Try it”
The Chasm
Conservatives
Move only when necessary
Skeptics
No way
Managing It Over Time
Change (Good and Bad news)
Assess the Situation (5 C’s)
Select
Target
Market
Target Market
Product
Define
Marketing
Mix (4 P’s)
Anticipation
Price
Place
Promotion
Experiments
Iteration
Learning
Response
Lawson adapted from Lassiter & Sahlman
Scope of Marketing Course
Marketing Modules
Module 1
Market Definition, Customer Segmentation & Competition
(5C’s, TARGET MARKET)
Module 2
Product Development, Positioning & Pricing
(PRODUCT, PRICE)
Module 3
Marketing Communications
(PROMOTION)
Module 4
Distribution & Sales Channel Development
(PLACE)
Conclusion
Putting it All Together
Why Use Case Method?
"We cannot teach people anything; we can
only help them discover it within
themselves."
~ Galileo Galilei (1564-1642)
great Italian astronomer, mathematician, &
physicist
Why Use Case Method?
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Some concepts are best shown through
example
Context matters -- what works in one
situation might not work in another
You get to be the manager in 20+
companies this semester
Feel the nuance and complexity of the
situation, but boil down to key issue(s)
Over time, will help with pattern recognition
Case Preparation
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Assignment questions on syllabus/website
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Opening study question is often, “what should
the protagonist do?”
Put yourself in the shoes of the protagonist
Prepare until you have an action plan
….and be willing to bet your career on it
More learning comes from being wrong, than
being right
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Note: See “Guide to Cracking Cases”
Class Preparation Expectations
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Minimum of 2 hrs. preparation for each class
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Typically assigned a Case & Note/Reading for
each session
Focus on Cases
Use whatever time left over to read Notes
Notes will provide structures/frameworks to
guide our class discussion
Case Preparation Tactics/Steps
Skim the reading/note quickly for new concepts
1.
Skim the case quickly
2.
Re-read the case carefully
3.
Decide what the issues are (case questions)
4.
Decide what analysis will inform the issues
5.
Complete analysis
6.
Choose a course of action/plan
7.
Test the plan
Re-read the reading/note if have time
End of Class Sessions
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Unlike much of your engineering curriculum,
there will not always be a “right” answer
Business is messy, don’t expect a tidy
solution
Let the lessons settle in over time
Will share outcomes where possible; guest
speakers can offer insights
Grading
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40% -- Class Participation and Assignments
20% -- Midterm Group Project & Presentation
20% -- Final Group Project & Presentation
20% -- Final Exam
How will participation be evaluated?
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40% of grade based on class attendance &
participation
Your participation in critical to the process –
requires good preparation
QUALITY + Quantity
Provide your viewpoint with supporting facts or
analysis to back it up
Very few “right” answers
LISTEN to your fellow classmates -- take the
discussion forward, not backward
Group Assignments & Projects
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Groups of 5
Pick your own groups
Pick a concept for a new venture that you
believe could be a viable company
OK to use a concept you’ve already been
exploring
We’ll take the marketing/sales and finance
portions of plan to the next level
Assignments & Group Projects
Deliverables
Date
1
Submit Resume
1/23
2
Concept for New Venture
2/1
3
Product, Positioning Pricing Plan
2/15
4
Communications Plan
2/27
5
Integrated Marketing Plan (incl. Sales & Distribution Plan)
3/8
Marketing Presentations
3/8 & 3/13
6
P&L, Capitalization Table
4/17
7
Balance Sheet
4/24
8
Integrated Financial Plan
5/1
Funding Presentations
5/1 & 5/3
Preparation for Monday
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Reading for today: Note on Marketing Strategy
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Prep for Monday
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Case: Microfridge
Reading: Market Segmentation, Target Market Selection
and Product Positioning
Assignment 1 Due: Submit Resume
Create a name card and bring to every class
Class starts at 4:10 – late-comers not admitted
Accessing HBS Case Materials:
http://www.hbsp.com/relay.jhtml?name=cp&c=c93260
Entrepreneurial Marketer of the Week
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"I never perfected an invention that I did not
think about in terms of the service it might
give others... I find out what the world needs,
then I proceed to invent."
- Thomas Edison