David Stokes

Putting entrepreneurship into marketing: the process of entrepreneurial marketing

This paper considers how marketing can be made more appropriate in entrepreneurial contexts by proposing a conceptual model of the processes of marketing as undertaken by entrepreneurs. Although marketing is a key factor in the survival and development of business ventures, a number of entrepreneurial characteristics seem to be at variance with marketing according to the textbook. These include over‐reliance on a restricted customer base, limited marketing expertise, and variable, unplanned effort. However, entrepreneurs and small business owners interpret marketing in ways that do not conform to standard textbook theory and practise. An examination of four key marketing concepts indicates ways in which entrepreneurial marketing differs from traditional marketing theory. Entrepreneurs tend to be “innovation‐oriented”, driven by new ideas and intuitive market feel, rather than customer oriented, or driven by rigorous assessment of market needs. They target markets through “bottom‐up” self‐selection and recommendations of customers and other influence groups, rather than relying on “top‐down” segmentation, targeting and positioning processes. They prefer interactive marketing methods to the traditional mix of the four or seven “P’s”. They gather information through informal networking rather than formalised intelligence systems. These processes play to entrepreneurial strengths and represent marketing that is more appropriate in entrepreneurial contexts, rather than marketing which is second best due to resource limitations.

Taking control of word of mouth marketing: the case of an entrepreneurial hotelier

Marketing in entrepreneurial contexts, such as small business, relies heavily on word of mouth (WOM) recommendations for customer acquisition. However, we know little about how WOM processes work for small firms, or how owner‐managers can influence them. This case study of an entrepreneurial owner of an independent hotel is used to illustrate the problems associated with WOM, and potential strategies to overcome them. The owner‐manager researched existing hotel customers through face‐to‐face interviews and a questionnaire. The results confirmed the importance of WOM, but found two sets of dissonance. One was between input WOM types and sources, the other between output WOM content and targets. The owner‐manager improved the effectiveness of WOM communications through a variety of interventions, thus demonstrating that WOM can be an effective part of a marketing strategy for a small firm.

Entrepreneurial marketing: a conceptualisation from qualitative research

Proposes a conceptualisation of “entrepreneurial marketing” based on the practices of successful entrepreneurs. The methodology took account of specific issues in researching entrepreneurs such as lack of common understanding of management terms, and the influence of ego on participants’ responses. Depth interviews used critical incident technique to elicit accounts from entrepreneurs of their marketing practices. Focus groups supplemented individual interviews to test the candour of responses. The results indicated that successful entrepreneurs undertake marketing in unconventional ways. They tend to focus first on innovations, and only second on customer needs. They target customers through a bottom‐up process of elimination, rather than deliberate segmentation, targeting and positioning strategies. They rely on interactive marketing methods communicated through word‐of‐mouth, rather than a more conventional marketing mix. They monitor the marketplace through informal networks, rather than formalised ma...

Marketing practices in the UK small business sector

In the UK, some 95 per cent of firms are considered small businesses. Although there is a general agreement in the literature that a market oriented firm is one in which all employees are committed to the continuous creation of superior value for the customer, what is not clear is whether the market orientation concept is appreciated by the small business owner. A postal survey is conducted among owner‐managers aimed at assessing marketing practices within the UK small business sector. The results identify three key strategies (management/staff relationship, profitability and changing markets) employed by owner‐managers. Conclusions, managerial implications and future research directions are discussed.

Learning the hard way: the lessons of owner‐managers who have closed their businesses

There is a tendency to associate business “closure” with business “failure”, confusing owners that close a business with ‘unsuccessful’ entrepreneurs. This article reports on a study into the experiences of business owners who have left their business. Three stages of research, including interviews and a postal questionnaire, tracked businesses that closed, what the owners did next and what they learned from the experience. The results suggest that some common assumptions need challenging in order to remove the stigma from closing down a business. The overall conclusion is that the closure process can represent a positive, learning experience. Even owners who have had unsuccessful ventures are motivated and more able to make it work next time because of lessons learned. This provides further support for the concept of the serial entrepreneur.

Breaking Down the Barriers: Using Focus Groups to Research Small and Medium-sized Enterprises

DR. ROBERT BLACKBURN IS HSBC Professor of Small Business Studies and director of the Small Business Research Centre, Kingston University, England, and Dr. David Stokes is assistant director of the Small Business Research Centre at Kingston University. This paper examines the use of a focus group method for investigating business owners. The method is almost absent in the study of business owners or their enterprises, or has been used as a precursor to quantitative-based research. It was found that the organisation, running and analysis of focus groups is resource intensive. In return, the method provides a richness of data uncommon even in many face-to-face data collection strategies. The method adopted is shown to unearth the motivations, rationales and experiences of business owners in relation to their succession strategies. The paper concludes with a discussion of the ability of the method to provide stand-alone results and help overcome the culture gap between researchers and business owners.

Managing Creativity and Innovation: The Challenge for Cultural Entrepreneurs

Purpose To distinguish managing creativity from managing innovation and highlight the importance for cultural entrepreneurs of recognising the differences between the two. Design / methodology / approach Based on Government-sponsored research project looking at access to finance in the UK music industry. Interviews were carried out with cultural entrepreneurs, finance providers and industry experts. A conceptual model of work and creative production put forward by Leadbeater and Oakley (1999) is used as a foundation for analysis. Findings Highlight the importance of recognising the differences between managing creativity and innovation, and call for effective management of them both, through developing business communication skills, external focus and promotional strategies. The different nature and role of collective activities associated with promoting creativity and innovation are highlighted. Research limitations / implications The findings are generalised across other ‘creative industry’ businesses, but the empirical research is based only on the music industry. Practical implications Practical steps can be taken to increase the success of small creative businesses in managing both the generation of new ideas (creativity) and the successful exploitation of those new ideas (innovation). Formal education courses have an important role in encouraging creativity and flair alongside the acquisition of core business skills necessary for innovation. Originality / value This paper makes an important contribution in separating creativity and innovation – concepts that are too often used interchangeably. It is argued that this analytical separation will help practitioners and researchers gain a better understanding of the management behaviours required to foster both successfully.

Laments and serenades: relationship marketing and legitimation strategies for the cultural entrepreneur

This paper investigates how the marketing/entrepreneurship interface functions within the cultural sector. Specifically, the paper considers how cultural entrepreneurs in the music industry market not to customers, but to networks that control the resources necessary to support entrepreneurial ventures. Evidence is drawn from the qualitative research of a study on access to finance by owner‐managers of independent music companies (“cultural entrepreneurs”). The findings support the notion that “legitimation” is a key factor in accessing such resources. Cultural entrepreneurs have difficulties in establishing either “pragmatic legitimation” (derived from the self‐interest of organisations across marketing networks) or “cognitive legitimation” (derived from perceptions of normality and conformity within marketing networks). Marketing strategies at both individual and industry level are put forward to overcome these barriers. For individual businesses, a “selection strategy” using creative clusters or a “manipulation strategy” that manages the cultural environment are recommended. The implications for relationship marketing models are discussed.

Entrepreneurship and marketing education: time for the road less travelled?

Three dimensions are proposed as a conceptual framework for entrepreneurship education: context, behaviours and process. Entrepreneurship educators have focussed more on the behaviours of entrepreneurs and less on the process of entrepreneurship. In doing so, they have also tended to avoid challenging the context of other disciplines such as marketing. If however we examine important aspects of marketing through the behaviours of entrepreneurs, we find that they do not conform to the standard concepts of marketing as portrayed in widely used learning materials. The increasingly well travelled i?½pragmatici?½ road, which encourages the development of enterprising behaviours ands kills, is contrasted with the less travelled i?½conceptuali?½ road, where our understanding of the phenomenon of entrepreneurship in contexts such as marketing, is challenged and explained. We suggest that unlike the poeti?½s i?½travelleri?½ i?½ who cannot take both roads entrepreneurship education can benefit most by reaching the fork in the road and taking it.

Cultural Entrepreneurs and Creating Exchange

“Marketing, as it relates to the arts, is not about intimidation or coercion or abandoning an artistic vision. It is not ‘hard‐selling’ or deceptive advertising. It is a sound, effective technology for creating exchanges and influencing behaviour that, when properly applied, must be beneficial to both parties involved in the exchange” (Kotler and Scheff, 1997). The focus of this paper is on how owners/managers of small and medium sized Independent businesses in the music industry (“cultural entrepreneurs”) create exchange and influence behaviour when accessing finance for their businesses. The paper is based on Leadbeater and Oakley’s (1999) description of a “new” model of work and creative production, derived from cultural entrepreneurs’ characteristic “independence”. With reference to initial findings from a major Government‐sponsored research project looking at the extent to which access to finance acts as a barrier to growth for small and medium‐sized enterprises (SMEs) in the Music Industry, the paper identifies some potential difficulties such independence might lead to in creating beneficial exchange. The importance of appropriate partnership and promotion strategies, effective communication skills, and financial self‐sufficiency are highlighted in the context of the Industry’s uncertain environment. In conclusion, it is argued that the reconciliation of the entrepreneurs’ independence on the one hand with the qualities that allow mutually beneficial exchange on the other, is a primary requisite for effective cultural entrepreneurship.