Lecture No. 02 and Lecture No.

03 Summary
Point No. 01: Entrepreneurs are, thus, the seeds of industrial development and the fruits of
industrial development are greater employment opportunities to unemployed youth, increase in
per capita income, higher standard of living and increased individual saving, revenue to the
government in the form of income tax, sales tax, export duties, import duties, and balanced
regional development.
Characteristics of Entrepreneurship:

Entrepreneurship is characterized by the following features:

Economic and dynamic activity: Entrepreneurship is an economic activity because it involves

the creation and operation of an enterprise with a view to creating value or wealth by ensuring
optimum utilization of scarce resources. Since this value creation activity is performed
continuously in the midst of uncertain business environment, therefore, entrepreneurship is
regarded as a dynamic force.

2. Related to innovation: Entrepreneurship involves a continuous search for new ideas.

Entrepreneurship compels an individual to continuously evaluate the existing modes of business
operations so that more efficient and effective systems can be evolved and adopted. In other
words, entrepreneurship is a continuous effort for synergy (optimization of performance) in
organizations.

3. Profit potential: Profit potential is the likely level of return or compensation to the
entrepreneur for taking on the risk of developing an idea into an actual business venture.”
Without profit potential, the efforts of entrepreneurs would remain only an abstract and a
theoretical leisure activity.

4. Risk bearing: The essence of entrepreneurship is the ‘willingness to assume risk’ arising out
of the creation and implementation of new ideas. New ideas are always tentative and their results
may not be instantaneous and positive.

An entrepreneur has to have patience to see his efforts bear fruit. In the intervening period (time
gap between the conception and implementation of an idea and its results), an entrepreneur has to
assume risk. If an entrepreneur does not have the willingness to assume risk, entrepreneurship
would never succeed.

Point No. 02:

Entrepreneurial Process: Entrepreneurship is a process, a journey, not the destination; a means,

not an end. All the successful entrepreneurs like Bill Gates (Microsoft), Warren Buffet
(Hathaway), Gordon Moore (Intel) Steve Jobs (Apple Computers), Jack Welch (GE) GD Birla,
Jamshedji Tata and others all went through this process.
To establish and run an enterprise it is divided into three parts – the entrepreneurial job, the
promotion, and the operation. Entrepreneurial job is restricted to two steps, i.e., generation of an
idea and preparation of feasibility report. In this article, we shall restrict ourselves to only these
two aspects of entrepreneurial process.

The Entrepreneurial Process

1. Idea Generation:
To generate an idea, the entrepreneurial process has to pass through three stages:

a. Germination:
This is like seeding process, not like planting seed. It is more like the natural seeding. Most
creative ideas can be linked to an individual’s interest or curiosity about a specific problem or
area of study.

b. Preparation:
Once the seed of interest curiosity has taken the shape of a focused idea, creative people start a
search for answers to the problems. Inventors will go on for setting up laboratories; designers
will think of engineering new product ideas and marketers will study consumer buying habits.

c. Incubation:
This is a stage where the entrepreneurial process enters the subconscious intellectualization. The
sub-conscious mind joins the unrelated ideas so as to find a resolution.
2. Feasibility study:
Feasibility study is done to see if the idea can be commercially viable. It passes through two
steps:

a. Illumination:
After the generation of idea, this is the stage when the idea is thought of as a realistic creation.
The stage of idea blossoming is critical because ideas by themselves have no meaning.

b. Verification:
This is the last thing to verify the idea as realistic and useful for application. Verification is
concerned about practicality to implement an idea and explore its usefulness to the society and
the entrepreneur.

Point No. 03:

Importance of Entrepreneurship: Some of factors which are important for the significance of
Entrepreneurship are as under

Benefits of Entrepreneurship to an Organization:

a) Development of managerial capabilities

b) Creation of organizations
c) Improving standards of living
d) Means of economic development

Point No. 04:

Factors affecting Entrepreneurship: Entrepreneurship is a complex phenomenon influenced by the

interplay of a wide variety of factors. Some of the important factors are listed below:

Personality Factors:
Personal factors, becoming core competencies of entrepreneurs, include:
(a) Initiative (does things before being asked for)
(b) Proactive (identification and utilization of opportunities)
(c) Perseverance (working against all odds to overcome obstacles and never complacent with
success)
(d) Problem-solver (conceives new ideas and achieves innovative solutions)
(e) Persuasion (to customers and financiers for patronization of his business and develops &
maintains relationships)
(f) Self-confidence (takes and sticks to his decisions)
(g) Self-critical (learning from his mistakes and experiences of others)
(h) A Planner (collects information, prepares a plan, and monitors performance)
(i) Risk-taker (the basic quality).
Environmental factors:

These factors relate to the conditions in which an entrepreneur has to work. Environmental
factors such as Political Climate, Legal System, Economic and Social Conditions, market
situations, etc. contribute significantly towards the growth of entrepreneurship. For example,
political stability in a country is absolutely essential for smooth economic activity. Frequent
political protests, bandhs, strikes, etc. hinder economic activity and entrepreneurship. Unfair
trade practices, irrational monetary and fiscal policies, etc. are a roadblock to the growth of
entrepreneurship. Higher income levels of people, desire for new products and sophisticated
technology, need for faster means of transport and communication, etc. are the factors that
stimulate entrepreneurship.

Thus, it is a combination of both personal and environmental factors that influence

entrepreneurship and brings in desired results for the individual, the organization and the society.

Point No. 04:

Types of Entrepreneurs: Depending upon the level of willingness to create innovative ideas, there can
be the following types of entrepreneurs: a) Innovative entrepreneurs b) Imitating entrepreneurs c) Fabian
entrepreneurs d) Drone entrepreneurs e) Social entrepreneurs

Functions of an Entrepreneur: The important functions performed by an entrepreneur are listed

below:
1. Innovation 2. Assumption of Risk: 3. Research 4. Development of Management Skills
5. Overcoming Resistance to Change 6. Catalyst of Economic Development

Point No. 05:

Some Myths about Entrepreneurship: Over the years, a few myths about entrepreneurship
have developed. These are as under:
a) Entrepreneurs, like leaders, are born, not made
b) Entrepreneurs are academic and socially misfits
c) To be an entrepreneur, one needs money only
d) To be an entrepreneur, a great idea is the only ingredient
e) One wants to be an entrepreneur as having no boss is great fun
 Summary Number. 04
Course Entrepreneurship

Marketing is of crucial importance for the success or failure of an enterprise, as its success is
ultimately decided in the market, competing for the target customers.

The degree of market orientation of an enterprise may well impact its overall business
performance, both in the context of young and small enterprises and in the process of launching
new products.

Venture capitalists will look at:

a) How the enterprise plans to enter the market

b) Which target groups will be addressed?
c) How the firm’s product or service offers will be communicated and distributed to
potential customers.

Marketing activities of small companies with limited access to resources:

Creativity and simplicity (for example Guerilla Marketing)
Entrepreneurial Marketing is difficult to calculate and is rather based on the entrepreneur´s
visionary and creative marketing ideas

Entrepreneurial Marketing is driven by entrepreneurial opportunities:

“The proactive identification and exploitation of opportunities for acquiring and retaining
profitable customers through innovative approaches to risk management, resource leveraging
and value creation” (Morris et al. 2002)

Characteristics of Entrepreneurial Marketing: The Characteristics of Entrepreneurial

Marketing are as under:

 Pro-activeness
 Calculated risk-taking
 Innovativeness
 Opportunity focus
 Resource leveraging
 Customer intensity
 Value creation

Functions of Entrepreneurial Marketing: The Functions of Entrepreneurial Marketing are as

under:

a) Build up customer trust

b) Create customer preferences
c) Create sustainable competitive advantages
Challenges for Young (New) Company Marketing: Few Challenges for marketing of new
company are as under:

a) Newness of the company

b) Newness of the products and services
c) Low level of familiarity, zero brand awareness
d) Scarcity of resources
e) Customer attention

a) Application of innovative marketing methods

b) Authentic and entertaining promotion activities Customer Attention
c) Affordable activities
d) Creative use of available resources
e) Creative use of networks

Marketing Instruments

Concepts of entrepreneurial Marketing strategies

Gorilla Marketing: Also called Low Budget Marketing

Basic aim: Maximum attention of the target group
 In spite of a low budget
 Through inventive and fancy ideas’
Example of Gorilla Marketing: Some examples of Gorilla Marketing are as under:
Word-of-mouth advertising
• Addressing consumers in their everyday work situation, for example via E-Mail
• Sticker and poster campaigns with electrostatic, self-adhesive materials
• „Forehead“-campaigns
• Blue-Jacking: Sending personal messages via Bluetooth
• Advertisements on cars
• T-Shirts
• Covered advertising
• Advertisements on sales receipts
• Street-Branding: Applications in dirty streets or on walls
• Projection of images, texts or videos in public areas via beamer or laser

Boundaries of Gorilla Marketing: Some major limitations of Gorilla Marketing are:

 Actions are limited in time
 Infringing conventional standards can be counter-productive.
 Aggressive and shocking Guerilla Marketing could act against the moral sentiment of a
community
 The boundaries are blurred here in our country i.e. Pakistan.

The Concept of Ambush Marketing

Ambush Marketing: Also called Freeride-Marketing

A company uses an event which is sponsored by another company to cause positive effects on
their branding without the permission of the sponsoring company
 Both companies are competitors
 Ambush Marketing mostly takes place at big sport events like the FIFA Football World
cup etc

Instruments of protection against Ambush-Marketing:

 Domiciliary Rights of the sponsor
 Copyright and related rights
 Competition Law

Viral Marketing:

Viral Marketing uses social networks like Facebook etc. to gain brand awareness.
 Information about the product passes virally from human to human
 A low-cost marketing method which is very efficient
 Summary Number. 05
Course Entrepreneurship

Marketing Strategies: Marketing Efforts are used by entrepreneurs as well as intrapreneurs,

following are some of the strategies, which are used in contemporary world in order to market
brands properly. (http://cultbranding.com/ceo/52-types-of-marketing-strategies/)

Cause Marketing
Finding a causes both your customers and your company cares about can create magic for your
business. This requires internal knowledge about what your organisation cares about and who
they want to help in the world. A good example of this is Toms Shoes. Instead of doing the
traditional “buy one get one free” promotion, Toms built a strong customer following and
reputation for giving back by giving away a free pair of shoes to someone in need for every shoe
purchase made by their customers.

Close Range Marketing (CRM)

Use Wifi or Bluetooth to send promotional messages of their products and services to their
customers’ smart phones and tablets at close proximity. Close Range Marketing is also known as
Proximity Marketing

Relationship Marketing
Many companies focus on building relationships with their customers instead of always
exclusive trying to sell them something (transactional marketing). Customers who love your
brand more will also spend more money with your brand. Many traditional retailers have found
this to be true. Walgreens has seen that customers who buy from all of their purchasing channels
(store, web, mobile, etc) buy up to six times more than the average customer that only buys in
their store.

Transactional Marketing
Driving sales can be challenging, especially for retailers that have to consistently sell products in
high volume to consumers. In order to stay with the demands of investors, retailers have to
encourage consumers to buy using coupons, discounts, liquidations, and sales events. High
volume big-box retailers like Target are constantly running promotional events in order to get
interested consumers into their stores.

Scarcity Marketing
In some markets it’s important to control how much product is available at one time. In many
cases this is done because of the difficulty of acquiring raw materials or higher quality of the
product. A company may choose to make their products accessible to only a few customers.
Rolls-Royce’s release of theirChinese edition car called Phantom sold quickly. While the cost of
the car was higher than most cars the scarcity drove the desire and the price.
Word of Mouth Marketing
Word-of-mouth Marketing is the passing of information from person to person by oral
communication. Customers are very excited to share with the world the brands they love. Many
consumers find meaning in sharing stories of their favorite products and services. Word of
Mouth is one of the ancient ways people learned about what to purchase. Modern marketers have
learned how to create authentic word of mouth for their companies and the products they
represent.

Call to Action (CTA) Marketing

CTA Marketing refers to methods of converting web traffic into leads or sales on websites using
text, graphics, or other elements of web design. Conversion strategies help improve the
percentage of online visitors who become customers or who join the mailing list.

Viral Marketing
Cult Brand marketers are constantly creating new business ideas that keep their products in the
heart and minds of the global consumer. Each time a new product is created, customers have to
be given a reason to dream about their future purchase. Sometimes marketers of Cult Brands hit
on something so great that people can’t help but share with others. Getting your customers
talking about your products and services is very important to growing awareness for your
business.

Diversity Marketing
Develop a customized marketing plan by analyzing different customer segments based on
cultural differences including tastes, expectations, beliefs, world views, and specific needs.
Undercover Marketing. Sometimes not telling everyone everything can become a great source of
buzz. Think of a movie trailer that got you very excited to go see the movie. While not showing
all the aspects of the movie, the advertiser can create enough intrigue to drive viewers to want to
see more.

Mass Marketing
Major corporations need to drive large numbers of purchasing of their products in order to
survive and grow. While mass marketing may seem like a shotgun approach to marketing this is
far from the truth. Big businesses spend big money in understanding big data–thats a lot of bigs!)
This gives them an insight to where to place media for their potential national customers who
buy their products and services. Wal mart is an example of an effective mass market retailer. As
the number one retailer in the world, they are very smart about their mass marketing efforts,
often giving their customers a feeling of locality and warmth.
Seasonal Marketing
Seasonal events offers a great way to meet new consumers. Sometimes these events can be actual
changes of weather or national holidays. For a retailer like Hallmark, Valentine’s Day represents
a large portion of their business. By tuning into the various seasons that are important to your
customers you can become more relevant in their lives.

PR Marketing
One of the most important marketing strategies is public relations. Many effective marketers
work with the media to bring awareness to their products and the benefits their products offer.
Also, in many cases where things go wrong, a good PR marketing strategy is vital. When
Apple’s founder Steve Jobs was alive, Apple held a major press conference to announce every
new product. This tradition is now continued by their new Apple CEO and CMO.

Online Marketing
As commerce has propagated to the Internet, a new form of marketing has emerged. From online
banners to those annoying pop ups, online marketers have attempted to get their customers
attention any way they can. Most online strategic marketing efforts today are a mix of growth
hacking strategies ( A/B testing taken to the max) and a variety of awareness tactics that drive
attention. A very effective online marketer is the insurance company Geico who simply asks
their users to enter their zip code for an instant quote on a better savings.

Email Marketing
As soon as customers migrated into the online world, Internet marketers have attempted to
collect and organize emails for potential prospects. Many business-to-business marketers depend
on email marketing as a primary way to connect with customers. At industry tradeshows, IBM
consultants can often be seen exchanging email information with their prospects.
Evangelism Marketing. Develop raving fan customers (what we call Brand Lovers) who become
advocates of your brand or product, and who represent the brand as if it was part of their own
identity.

Event Marketing
Creating events is a great way to drive sales. Customers often need a reason to shop and events
can often offer the perfect reason. Macy’s Thanksgiving Day Parade has become part of
American culture by connecting two events together that consumers love: Thanksgiving and
shopping.

Offline Marketing
With mass adoption of the Internet, many companies are finding new ways of integrating offline
marketing with new technologies to create more engaging customer experiences. The Coca-Cola
company has create vending machines that invite customers to hug them. This continues to tie
the Coca-Cola brand to the core emotion of happiness, but also invite customers to experience
the real product offline.
Outbound Marketing
Sometimes it’s important for companies to let their potential customers know they exist. By
developing a list of prospects a company can begin to reach out to their individual target groups
in order to find new customers. When Microsoft was selling their accounting software they often
used outbound marketing to identify potential targets before trying to call the companies for an
in-person meeting.

Direct Marketing
Communicate directly with customers and prospects through mail, email, texts, fliers and
other promotional material.

Inbound Marketing
Companies often have customers calling them for various reasons. This can present a great
opportunity to sell customers additional products and services they currently don’t have. When
business customers call to check their balances, the business bank Chase often takes the
opportunity to ask if they are interest in a credit line, a 401 k plan, or a variety of other services
the bank offers.

Freebie Marketing
Promote free give away’s or sell your products and services sold at low rates to boost the sales of
other related products or services.

Newsletter Marketing
A fun way to promote a business is to write a newsletter that highlights some of the newsworthy
things that have happened for the organization. The Motley Fool have been sharing their
investment insights with their community for many years.
These newsletters create a sense of inclusion and participation with their members and has
provided a key driver for their incredible growth.

Article Marketing
In industries where expertise is highly valued, articles can offer a powerful tool to showcase your
knowledge and expertise. Some innovations are shared in the form of articles or white papers
where technical information needs to be convey to specialized buyers. Amazon.com has
dedicated part of their site for white papers on technical know-how on cloud computing. This is a
very sophisticated form of marketing for specialized buyers.

Content Marketing
Write and publish content to educate potential customers about your products and services. For
the appropriate businesses, this can be an effective means of influencing them without using
direct selling methods.
Many products have to be experienced to be bought. There are very few customers that will buy
a new automobile without doing a great deal of research and test-driving the car first.
Tradeshows are industry gatherings where customers are invited to come sample all that the
industry has to offer. To introduce their new lines of products, Ford Motor Company spends a
great deal of time setting up and operating their booth at the international consumer auto shows
each year. These auto trade shows give reporters and consumers a chance to experience cars first
hand.

Search Marketing
These days, when consumers have questions they often don’t ask their friends; they go straight
for Google. In fact, Google is so good at answering our questions that millions of people daily
search for their answers on this leading Internet search site. One does not have to look far to see
the power of search marketing. Google has shaped the industry for many years now and has
helped hundred of retailers grow their businesses. While many businesses used to advertise in
their local yellow pages, as less and less consumer consult their local physical directory, this
channel becomes increasingly less effective each year.

Direct Marketing
Advertise and promote your products and services to customers using a range of digital devices
including computers, smartphones, and tablets. Internet Marketing is an essential practice in
Digital Marketing. Once a target market has been clearly identified, it is possible to work in
conjunction with the USPS or a professional mail carrier that knows where your customers live.
Direct marketing can be an effective way to reach consumers right where they live at home.
While there is often a negative side to this approach (consumers don’t want to be bothered with a
flurry of mail), many smart companies execute direct marketing well. Catalog retailer L.L. Bean,
for example, created direct marketing programs that their customers looks forward to receiving.

Niche Marketing
Finding a niche and filling it could be described as the secret recipe for growth in over-crowded
marketplaces. Take the shoe business, for example. There is a great demand for shoes in the
world and so many top companies have evolved to satisfy most of the immediate shoe needs in
the marketplace. The shoe space might seem crowded, but shoe manufacturing
company Vans noticed an underserved customer: the skater. By focusing on this niche
market Vans has developed a thriving business.

Drip Marketing
Drip marketing is a communication strategy that sends, or “drips,” a pre-written set of messages
to customers or prospects over time. These messages often take the form of email marketing,
although other media outlets can also be used as well.
Community Marketing
Engage an audience of existing customers in an active dialogue, speaking to the needs and wants
of this particular customer group. Instead of focusing on generating the next transaction,
community marketing promotes greater loyalty and higher levels of engagement within an
existing brand community. Learn how to build brand communities here. Community marketing
can also lead to word of mouth marketing.

Social Media Marketing

Social media sites like Facebook and Twitter offer a unique opportunity for savvy businesses
willing to invest in customer engagement. Social media marketing is still in its infancy but is
growing up rather quickly. Companies like Southwest Airlines have departments of over 30
people whose primary responsibility is to actively engage with customers on social media.

Cross-Media Marketing
Provide customers information through multiple channels like email, physical mail, websites,
and print and online advertisements to cross promote your products and services.

B2B Marketing
Business-to-business marketing is a marketing practice of individuals or organizations (including
commercial businesses, governments, and other institutions). It allows businesses to sell products
or services to other companies or organizations that in turn resell the same products or services,
use them to augment their own products or services, or use them to support their internal
operations. International Business Machines is a well known B2B marketer. IBM’s business has
grown because taking a very intelligent approach at marketing their products to other business
and governments around the world.

Promotional Marketing
Promotional marketing is a business marketing strategy designed to stimulate a customer to take
action towards a buying decision. Promotional marketing is a technique that includes various
incentives to buy, such as:
 Contests: We all enjoy winning something for free. Contests offer an attractive
marketing vehicle for small business to acquire new clients and create awareness.
 Coupons: According to CMS, a leading coupon processing agent, marketers issued 302
billion coupons in 2007, a 6% increase over the previous year. Over 76% of the
population use coupons, according to the Promotion Marketing Association (PMA)
Coupon Council. Coupons still work and provide an affordable marketing strategy for
small business.
 Sampling: Try before you buy. Giving away product might appear profit-limiting, but
consider how giving your customers a small taste can lead to a big purchase. Retail
genius Publix supermarkets share samples of their award-winning key lime pie not
because people question the goodness of the pie but to get their customers to buy more.
Ambush Marketing
Advertiser use this marketing strategy to associate with specific events and brands without
paying sponsorship fees. This allows the business to capitalize on these events or leverage the
brand equity of the other business, which has the potential effect of lowering the value of the
original event.

B2C Marketing
The ultimate goal of B2C marketing (business-to-consumer marketing) is to convert shoppers
into buyers as aggressively and consistently as possible. B2C marketers employ merchandising
activities like coupons, displays, store fronts (both real and online) and special offers to entice
the target market to buy. B2C marketing campaigns are focused on a transaction, are shorter in
duration, and need to capture the customer’s interest immediately. These campaigns often offer
special deals, discounts, or vouchers that can be used both online and in the store.

Cloud Marketing
In this new form of marketing, all marketing resources and assets are brought online so
customers (or affiliates) can develop, modify, use, and share them. Consider
how Amazon.com gets customers to buy digital books, movies, and televisions shows in a digital
library that is accessible in the customer’s online account or on their digital device like their
Kindle Fire.

Mobile Marketing
Marketing on or with a mobile device, such as a smart phone. Mobile marketing can provide
customers with time and location sensitive, personalized information that promotes goods,
services, and ideas.Here is a recent example of mobile marketing in action.

Alliance Marketing
A joint venture is formed between two or more businesses to pool resources in an effort to
promote and sell products and services.

Reverse Marketing
In reverse marketing, the idea is to get the customer to seek out the business rather than
marketers seeking the customer. Usually, this is done through traditional means of advertising,
such as television advertisements, print magazine advertisements, and online media. While
traditional marketing mainly deals with the seller finding the right set of customers and targeting
them, reverse marketing focuses on the customer approaching potential sellers who may be able
to offer the desired product.

In 2004, Dove launched the Dove Campaign for Real Beauty focusing on the natural beauty of
women rather than advertising their product. This campaign caused their sales to soar above $1
Billion and caused Dove to re-create their brand around this strategy. Although successful, this
campaign caused a lot of controversy and discussion due to what people saw as an advertisement
with a contradictory message.
Telemarketing
Is a method of direct marketing in which a salesperson solicits prospective customers to buy
products or services, either over the phone or through a subsequent face to face or Web
conferencing appointment scheduled during the call. Telemarketing can also include recorded
sales pitches programmed to be played over the phone via automatic dialing. Telemarketing has
come under fire in recent years, being viewed as an annoyance by many.

Free Sample Marketing

Unlike Freebie Marketing, this is not dependent on complementary marketing, but rather consists
of giving away a free sample of the product to influence the consumer to make the purchase.

Direct Mail Marketing

A channel-agnostic form of advertising that allows businesses and nonprofits organizations to
communicate directly with the customer, with advertising techniques that can include text
messaging, email, interactive consumer websites, online display ads, fliers, catalog distribution,
promotional letters, and outdoor advertising. Direct marketing messages emphasize a focus on
the customer, data, and accountability. Characteristics that distinguish direct marketing are:
 Marketing messages are addressed directly to the customer(s). Direct marketing relies on
being able to address the members of a target market. Addressability comes in a variety
of forms including email addresses, mobile phone numbers, Web browser cookies, fax
numbers, and postal addresses.
 Direct marketing seeks to drive a specific “call to action.” For example, an advertisement
may ask the prospect to call a free phone number or click on a link to a website.
 Direct marketing emphasizes trackable, measurable responses from customers regardless
of medium.
 Direct marketing is practiced by businesses of all sizes—from the smallest start-up to the
leaders in the Fortune 500. A well-executed direct advertising campaign can prove a
positive return on investment by showing how many potential customers responded to a
clear call-to-action. General advertising eschews calls-for-action in favor of messages
that try to build prospects’ emotional awareness or engagement with a brand. Even well-
designed general advertisements rarely can prove their impact on the organization’s
bottom line.

Database Marketing
Database Marketing is a form of direct marketing using databases of customers or potential
customers to generate personalized messages in order to promote a product or service for
marketing purposes. The method of communication can be any addressable medium, as in direct
marketing.

The distinction between direct marketing and database marketing stems primarily from the
attention paid to the analysis of data. Database marketing emphasizes the use of statistical
techniques to develop models of customer behavior, which are then used to select customers for
communications. As a consequence, database marketers also tend to be heavy users of data
warehouses, because having a greater amount of data about customers increase the likelihood
that a more accurate model can be built.
There are two main types of marketing databases: (1) Consumer Databases and (2) Business
databases. Consumer databases are primarily geared towards companies that sell to consumers,
often abbreviated as [business-to-consumer] (B2C) or BtoC. Business marketing databases are
often much more advanced in the information that they can provide. This is mainly because
business databases aren’t restricted by the same privacy laws as consumer databases.

Personalized Marketing
Personalized marketing (also called personalization, and sometimes called one-to-one marketing)
is an extreme form of product differentiation. Whereas product differentiation tries to
differentiate a product from competing ones, personalization tries to make a unique product
offering for each customer. Nike ID is a popular brand that has developed a strong business
around this personalization marketing concept.

Affinity Marketing
Create strategic partnerships that are mutually beneficial by forming alliances with
complementary brands. Also known as partnership marketing, with this strategy, one brands
generates sales while the other creates new customers and builds brand awareness.

Cult-tural Marketing
The proposition of cult marketing holds reign upon the notion that a way to convert—ahem,
excite … OK, convert—consumers is by using timeless human behavioral drives found in
religious cults. Heck, fellow acolytes, nothing is more permission-, buzz- and one-to-one-based
than “a central ideology with a parallel social universe rich with customs.” Cult marketing is a
bright spot in the list of newfangled marketing templates, one that applies timeless social-science
principles in a powerful way. To the list of newfangled marketing buzzwords, let’s add the
term cult.

Humanistic Marketing
Human needs are “a state of felt deprivation.” They distinguish between physical needs (food,
shelter, safety, clothing), social needs (belonging and affection), and individual needs
(knowledge, self-expression). Needs are a relatively narrow set of non-cultural states of felt
deprivation.

Guerrilla Marketing
Grass root, untraditional, and low-budget methods that found involve creativity, big crowds of
people, and the element of surprise to market or promote a product, service, brand, event, or new
launch.

Brand Lover Marketing

Brand Lover Marketing is a marketing concept that is intended to replace the idea of traditional
brand marketing. Brands are running out of juice and Brand Lovers are what is needed to rescue
brands. But what builds loyalty that goes beyond reason? What makes a truly great brand stand
out? Brand Lovers bring brands to life. For a brand to elevate itself into the “Cult Brand”
category, it has to give customers a feeling of belonging while generating strong feelings of love
for its customers. Creating loyalty beyond reason requires emotional connections that generate
the highest levels of love and a sense of belonging for your brand.
In fact, there are ads on this very page, and most other websites you visit, as they are the primary
revenue driver for the Internet. Another avenue of online advertising is "Native Advertising,"
which is the digital variation of the old print advertorials. And, sponsored content is growing by
leaps and bounds. From ads on Facebook and SnapChat, to partnerships with Buzzfeed and
Reddit, the fastest, easiest way to reach millions of potential customers is online.

Print Advertising
If an advertisement is printed on paper, be it newspapers, magazines, newsletters, booklets,
flyers, direct mail, or anything else that would be considered a portable printed medium, then it
comes under the banner of print advertising. This was once the big driver of sales, but as print
gives way to digital formats, it is slowly taking a back seat.

Guerrilla Advertising
Also known as ambient media, guerrilla advertising (or marketing) has become prominent over
the last 20 years. It is a broadly used term for anything unconventional, and usually invites the
consumer to participate or interact with the piece in some way. Location is important, as is
timing. The driving forces behind guerrilla advertising or marketing are creative ideas and
innovation, not a large budget. Quite often, you will ask for forgiveness rather than permission
with these campaigns, and they will spread via word of mouth and social media.

Broadcast Advertising
A mass-market form of communication including television and radio, broadcast advertising has,
until recently, been the most dominant way to reach a large number of consumers. Broadcast
advertising has really taken a beating over the last few years, especially with the rise of DVRs
and "ad skipping" technology. However, it is still a popular way to reach millions of people,
especially when the Super Bowl comes around.

Outdoor Advertising
Also known as out-of-home (OOH) advertising, this is a broad term that describes any type of
advertising that reaches the consumer when he or she is outside of the home. You will know it as
billboards, bus shelter posters, fly posters, and even those big digital boards in Times Square.

Public Service Advertising

Unlike traditional commercials, Public Service Advertisements (PSA) are primarily designed to
inform and educate rather than sell a product or service. PSAs traditionally appear on TV and
radio, but are also being heavily promoted online these days.

Product Placement Advertising

In a nutshell, product placement is the promotion of branded goods and services within the
context of a show or movie, rather than as an explicit advertisement. If you have ever seen a
movie and wondered "wow, they sure are driving a lot of Ford cars in this scene," or "does
everyone in this TV show drink Pepsi?"
Then you are noticing product placement. It's a way that these films and shows get funding, and
is a great way for advertisers to reach a targeted demographic.

Cell Phone & Mobile Advertising

A relatively new form of advertising, but one that's spreading rapidly, uses cell phones, iPads,
Kindles, Nooks, and other portable electronic devices with Internet connectivity. Current trends
in mobile advertising involve major use of social media such as Twitter and Facebook. Right
now, this is the toughest nut to crack. This kind of advertising is not only disruptive, but can
leave the customers with a lot of ill will. If you do it, do it right.