Entrepreneurialand Formulated Marketing
Entrepreneurialand Formulated Marketing
Marketingis among the key determinants of the company’s success in acompetitive business environment. However, different companies usedifferent marketing strategies since there is not a single strategythat is appropriate for all companies (Tylik, 2014). This paper willaddress the differences between formulated marketing andentrepreneurial marketing strategies. The paper will also addresstheir advantages and disadvantages.
Entrepreneurialmarketing refers to a marketing strategy that eschews most of theconventional marketing principles, especially those that are designedfor large corporations. This implies that entrepreneurial marketingis specifically used by small firms that are founded by people wholive by their own wits (Kotler & Armstrong, 2015).Entrepreneurial marketing is mainly used by entrepreneurs who do notbelieve in the formal strategies of marketing. It involves the use oforthodox tactics to help emerging companies find their ways in thecrowded markets. These orthodox practices are, in most cases, bornout of necessity. The main reason for avoiding the formal marketingstrategies is that users of entrepreneurial marketing strategy desireto make significant or maximum impact using limited resources.
Entrepreneurialmarketing has three major advantages that support its application inthe modern business environment. First, entrepreneurial marketing isone of the simplest marketing strategies to design and use since itdoes not require any formalities (Kotler & Armstrong, 2015). Thisimplies that entrepreneurial marketing can be used by people who haveno prior experience or training in marketing. Secondly, theimplementation of entrepreneurial marketing strategies does notrequire a lot of capital. This ensures that companies spend less topresent their products to potential consumers. Third, entrepreneurialmarketing is the most appropriate strategy for small and new firmsthat have limited finances. Entrepreneurial marketing has two majordisadvantages. First, the intention of the company to use limitedresources to achieve maximum benefits of marketing often reduces theeffectiveness of entrepreneurial marketing. Secondly, the success ofentrepreneurial marketing is uncertain since the marketing involvesthe use of informal tactics that are developed out of necessity.
Formulatedmarketing is a formal method of promoting brands or small companies,which is accomplished by creating customized strategies that matchthe specific needs of the business. This type of marketing isdeveloped over a number of years. This means that the owner of thebusiness formulates the marketing strategies depending on theobservations made since the business was started (Morello, 2014).Formulated marketing relies on self-analysis, research, and consumermonitoring. The objective of using formulated marketing is to ensurethat all efforts applied in marketing a small business are properlycoordinated and directed towards one and clearly defined goal.
Formulatedmarketing has many advantages, but two of them are considered in thisessay. The first advantage is that formulated marketing is moreeffective compared to entrepreneurial marketing because it relies onthe past experiences of the company with the customers and the marketat large. This reduces the need to use guesswork and instead allowsthe markets to address the specific issues that have been identifiedin the small business (Morello, 2014). Secondly, the effectiveness offormulated marketing is more certain because marketing strategies arebased on formal procedures, including research and monitoringcustomers’ experiences with the services or products of the companyover time. However, formulated marketing has several disadvantages.First, it takes a long period to formulate marketing strategies.Secondly, research and monitoring of customers can be expensive(Burke, 2015). Lastly, the process of formulating marketingstrategies require experts who may be expensive to hire or hard toget. In conclusion, the main difference between entrepreneurial andformulating marketing is that entrepreneurial is done by a newcompany while formulating marketing is practical for a company thathas been in operation for some time.
Burke,A. (2015). Whatis formulated marketing?Santa Monica: Demand Media.
Kotler,P. & Armstrong, G. (2015). Principlesof marketing.Pearson Prentice Hall: Upper Saddle River.
Morello,R. (2014). Whatis formulated marketing.Santa Monica: Demand Media.
Tylik,V. (2014). Digital marketing in Russia: Finding your customers on theinternet in Russia. AmericanMarketing Association.Retrieved April 18, 2015, fromhttps://www.ama.org/resources/White%20Papers/Pages/Digital-Marketing-In-Russia.aspx