209- Start Up and New Venture

Management

Generic Elective – University Level

Unit 1

• Being an Entrepreneur:
• The entrepreneur, Profile analysis, behavior and
motivations, Lean Start –up, The entrepreneurialecosystem,
Entrepreneurs and strategic decisions
, Sustainability of Entrepreneurship: Dilemmas ofan
entrepreneur for success; Handling doubts onsurvival of
business, Struggles-Causes of failure– Product/ market ,
financing, managerial- Resilience. Legal Fundamentals -
When, how andwhere to incorporate. (5)

The entrepreneur

• entrepreneurs

– people who own, operate, and take the risk of a

business venture
• entrepreneurship

– running a business of one’s own

Profile analysis
• SELLING

• DISRUPTOR

• KNOWLEDGE

• DETERMINATION

• DELEGATOR

• PROFITABILITY

• RELATIONSHIP

• RISK

• CONFIDENCE

• INDEPENDENCE

Meaning of entrepreneurial behavior

• Entrepreneurial behavior is directly concerned with the

understanding, predictionand control of human behavior in
enterprises.
• Definition “Entrepreneurial behavior is a subset of
entrepreneurial activities concernedwith understanding,
predicting and influencing individual behavior in

entrepreneurial settings.” –Callahan

• Entrepreneurial behavior represents the behavioral

approach of management.
• 1.It emerged as a distinct field of study because of the
importance of human behavior in enterprise.
• 2. Cause and effect relationship: Human behavior is
generally taken in terms of cause and effect
 relationship. It provides generalization that
entrepreneurs can use to anticipate the effect of certain
activities on human behavior.
• 3. A branch of social sciences: Entrepreneurial behavioris
greatly influenced by other social sciences viz., psychology,
sociology and anthropology

. Three levels of analysis: Entrepreneurial behavior is the

study of three levels of analysis
i.e. individual behavior, inter-individual behavior and
the behavior of organizations.
• 5. A science as well as an art: The systematic knowledge
about human behavior is a scienceand the application of
behavioral knowledge and skills is an art.

Entrepreneurial motivation.

Motivation has been derived from the word

‘Motive’ which implies the inner state of mindthat activates,
provokes and directs our behavior towards the goal .
Motivation is a process that motivates a person into action
and induces him to follow the course of actiontill the goals
are finally achieved.

• Motivating Factors:
• ( A ) Internal Factors :
• Educational Background .
• Occupational Experience .
• Desire to do work independently .
• Desire to branch out to manufacturing.
 . Family Background

(B ) External Factors :
• Assistance from Government.
• Assistance from financial institutions.
• Availability of technology.
• Availability of raw material.
Demand of the particular product

• Achievement
• . Power
• Affiliation
• Independence
• Extension
• Personal achievement
• Social achievement

Entrepreneurs

Ecosystem

•Education system
•Market structure
•Infrastructure
•R&D system
•Financial sector
•Corporate sector
•Government

Entrepreneurs and strategic decisions

• Recognizing a problem
• Generating alternatives
• Evaluating various alternatives
• Selecting the alternative that best satisfiesover
evaluating criteria
• Operates with limited information
• Must be action oriented decision
• Accept risk

Decision making in strategic activity

• Setting specific course of action to reachstrategic

goals.
• Revenue and profit goals
• Market share and competitive advantage
• Product superiority and technical advantage

• strategic decision involves critical analysis

,resource investment ,company commitment

 Sustainability of Entrepreneurship
It is a process of sustaining a level of entrepreneur development as to
create a model shift to economic activity like GDP, jobopportunity

Dilemmas of an entrepreneur for success

• Time and money

• Success
• Got Busy in work
• Admitted kids in good school
• Had a good car

Barriers of growth

Start up new venture(commitment)

Leadership(Creativity)
Autonomy(direction)
Control (delegation)
Excessive system(collaboration)

Management styles

• Commanding
• Pace setting
• Visionary
• Coaching
• Democratic
 • Affinitive (a natural liking for and understanding of
someone or something.)
• A change in personality
• A change in staff culture

Handling doubts on survival of business

• Doubt is the biggest dream killer than failure

• A Proper Business Plan
• Business Funding
• Walk before you Run
• Use Technology
• Try to Start with a Virtual
• Push yourself out of your comfort zone
• Quit beating yourself up
• Blame the tactics, not the talent
• Get expert TACTICAL guidance
• Build your inner circle
• Get busy, and stay busy
• Get some momentum

Struggles-Causes of failure–Product/market

• Poor product quality

• Higher price
• Poor timing
• Inherent defect
• Extent of competition
• Lack of promotional measures
• Faulty distribution policy
• Unavailability of spare parts
• Poor after-sale service
• Imitation products
• Trying to fix a non-existent problem
• Targeting the wrong market
• Incorrect pricing
• Build, and they will come

Financing :-

• Lack of Personal Capital

Every entrepreneur needs to begin with a certainamount of
seed capital to pay for the cost of hiring staff, renting
premises, buying or leasingequipment, marketing.

• Fewer Networking Contacts

When you're searching for funding options you alsolack those
well-placed connections who could suggest your nascent
business to a venture capitalist they know, or who would
serve as a valuable reference in your hunt for funding
Poor Credit History

In general, the older you are, the better yourcredit history

is. Older entrepreneurs have generally had time to
build a solid and highcredit rating. Their youthful
mistakes disappeared off of their credit reports long
ago.
Age Discrimination

• It is an advantage when you need to convinceinvestors that

you're a reasonable financial risk. Young entrepreneurs can
 find that some bank managers and investors are very reluctant
to trust them with a loan or venturefunding simply because
they think that they are too young
Fearing Debt

No one likes the feeling of owing money, but as youget older you
realize that some debt can be positive, depending on the loan and its
purpose. Ashort-term business loan that's taken out with careful
planning of repayment schedules and with the right APR(Annual
percentage rate) rates can bean excellent way to deal with startup
capital or early cash flow issues. Many people who start a business in
their 20s and 30s are still paying off student loan debt and have a
mortgage and/or auto loan to pay off, as well. Adding a business loan
to that might just be too daunting.

No Safety Net

• Older entrepreneurs also often already have some kind of

retirement fund and pension that they can fall back on if their
business fails.Young entrepreneurs can be struggling to raise
money for their startup at the same time as wanting to settle
down in a relationship and perhaps start a family. The lack of a
financial safety-net can be very worrying to young
entrepreneurs
Managerial-Resilience :-

• See setbacks as an opportunity to learn

• A manager can never be the source of all wisdom. He will
make bad decisions and therewill be things that he do not
know.
• When mistakes are made, rather than beat him up about
it, he should review the incident with an honest and
open mind.
• Identify the things he need to change and puta plan in
place to change them Practice
 feedback consistently

• Interpersonal relationships can cause a lot ofstress in the

workplace.
• Stressful situations often arise due to a lack ofcommunication.
• Employees require guidance and support ifthey are to
thrive Praise employees for good performance andoffer
constructive feedback when their performance falls below
expectations.
• This will take just a few minutes of mangersday but it lets
employees know where theystand and prevents minor
incidents from developing into stressful situations
• Include sufficient breaks in his schedule. These steps may
seem counterintuitive, but rest allowsthe body and mind to
recover from high pressureactivities, and build up strength and
resolve for the challenges to come.
• When manger know that he have sufficient rest in your
schedule, he can give 100 percent duringperiods of work,
• allowing him to perform to a higher standard,more of
the time. Rest improves productivity.

• Adhering to labour laws

• Adhering to labour laws are integral to every organization,

small or big. When you are established as a company and
have hired people to work for your organization, you are
subject to several labour laws regardless of the size of the
organization. Laws with regardsto minimum wages,
gratuity, PF payment, weekly holidays, maternity benefits,
sexual harassment, payment of bonus among otherswill
need to be complied with
• The Industrial Disputes Act, 1947
• The Trade Unit Act, 1926
• Building and Other Constructions Workers’ (Regulation of
Employment
• and Conditions of Service) Act, 1996
• The Industrial Employment (Standing Orders) Act, 1946
• The Inter-State Migrant Workmen (Regulation of Employment and
• Conditions of Service) Act, 1979
• The Payment of Gratuity Act, 1972
• The Contract Labour (Regulation and Abolition) Act, 1970
• The Employees’ Provident Funds and Miscellaneous Provisions Act,
• 1952

• Startups under this scheme will have to {le

• self-certified return for the second and third year in
order to continue with the exemption. Ensuring
protection of intellectual property Intellectual
property is the secret sauce for most

• businesses today, especially for tech centric

• businesses. Codes, algorithms and research findings among
others are some of the most common intellectual property
owned by organizations. Startups can leverage the ‘Scheme
for Startups Intellectual Property

• Ensuring effective contract management

• As per the Indian Contract Act, 1872, all agreements are

contracts if they are made by the free consent of parties
competent to contract, for a lawful consideration with a
lawful object, and are not expressly declared to be void.

• Details about winding down the business

• Closing a company is a dif{cult call to make forany

entrepreneur. When a startup decides to shut down, all
the stakeholders from vendors to employees to customers
 and investors needto informed in advance and the whole
processmust be properly planned and executed in order to
make the exit easy on everyone

Unit 2

• Customer Discovery:
Entrepreneurial Opportunity Search and Identification;
Market Intelligence, Market analysis , Market research,
Customer validation, developing your business model,

Crafting your value proposition, Product Development ,

Managing the product development process,

Long Tail markets, Product launch goals, Go-to- Market
Strategy, The role of selling in a startup, Sales
forecasting for startups, Mapping buyer response
modes. Social media Promotion tools.

Entrepreneurial Opportunity Search and Identification

• The ability to identify business opportunities isan essential

characteristic of an entrepreneur
• Opportunity- favorable position or a advancement.
range for

STEPS IN ARRIVING AT BUSINESS OPPORTUNITY

1. Generating Ideas
• Screening Process
• Formulating the Concept of the Business

Generating Ideas
• Source: Environment
• Scan & Understand the needs & wants of people Abraham
Maslow -psychologist Peoplegenerally have different kinds of
basic needs such as food, clothing, shelter, safety ,
socialization, recognition for self-esteem & self fulfillment
Screening Process

• Source: Environment
• Taking macro-perspective or viewing larger environment
where business will be situated(looking at the Social,
Technological, Economic, Environmental, & Political)

WAYS OF SCANNING THE ENVIRONMENT

1. Looking Closely at the market

– Demand & Supply Gap Analysis
– Import-Export Movement
– Product Substitution
– Forward-Backward Industry Linkages
WAYS OF SCANNING THE ENVIRONMENT

1.Looking at People’s
skills Observe
your Community

2. Looking at Available Business Assistance

 Program
Visit DTI (Department of Trade and Industry)Office
Government & Private Institutions
Non-Government Organizations
COLLECTING INFORMATION

• Method:
• Ad Hoc Scanning -short-term, infrequent &initiated by
crisis
• Regular Scanning -involve studies done on amore or less
regular basis
• Continuous Scanning -entails regular collection or
processing of data on a wide range of factors from
business environment

MEANS OF COLLECTING INFORMATION

• Accessing Networks
• Public Meetings, Trade Fairs & Fora
• Focused-Group Discussion
• Key People Surveys
• Publications
• In-Depth Interviews
• Usage & Awareness Studies

Screening Process

1. Personal level
 • Personal Preference (committed)
• Educational & Training Background
• Work experience (degree of expertise &
knowledge)
• Business Network & Contacts (buyers,
suppliers or creditors)
• family Support
2. firm level

• Market
• Technology
• Availability of Skills
• Availability of Raw Materials
• Financial/Capital Requirement
• Profitability
• Government Support

FORMULATING THE CONCEPT OF THE BUSINESS

1. Resource Analysis, Resources Strengths, Weakness, Money
,Materials
2. Machines, Methods, Manpower, Management Moment (time)

The Resource Analysis where strengths and weaknesses are identified indicates what thefirm is capable
of doing at the start of the business.

The strengths identify distinctive competencies of the company which can workto its advantage

Identifying Opportunities & Threats in the Environment

• Socio-Cultural
• Technological & Technical

• Economic

• Natural

• Political

• Peace & Order

• Population Trends

• Government Program

• Global Environment
Market Intelligence

• Marketing intelligence (MI) is the everyday information relevant

to a company’s markets, gathered and analyzed specifically for
the purpose of accurate and confident decision- making in
determining market opportunity, market strategy, and market
development In order to collect marketing intelligence, marketing
managers must be in constant touch with relevant books,
newspapers and trade publications In order to collect marketing
intelligence, marketing managers must be in constant touch with
relevant books, newspapers and trade publications.
• The process of acquiring and analyzing information in order to
understand the market; to determine the current and future needs and
preferences, attitudes and behavior of the market;
• Marketing intelligence is necessary when entering a
foreign market
Need of market Intelligence
• There is an urgent need for making available market
intelligence services to boost the trade and increase
the participation of all importing and exporting
organizations or firms in India and also other
countries which require support about latest
developments in trade

Objective of market Intelligence

• To provide market and customer orientation
• Identification of new opportunities
• To identify new trends in markets and
competitors

• Early warning of competitor moves to enablecounter

measures

• Minimizing investment risks, to detect threatsand early

market trends

• To provide better customer interaction and togive

intensified customer market view

• Information for better market selection & positioning

and to understand and discoveruntapped or under-
served potential

• To give quicker, more efficient and cost-

effective information in order to avoid
duplication of report acquisitions and
expensive consultant work

Steps to be taken by a Company to improve its Marketing

Intelligence

1.Train and Motivate Sales Force:

• A company's sales force can be an excellentsource of
information about the current trends in the market.
They are the "intelligence gatherers" for the company.

• It can also provide credible source to knowabout

competitor activities, consumers, distributors and
retailers.
• (2) Motivate Distributors, retailers, and other
intermediaries to pass along important intelligence:

• Specialists are hired by companies to gather

marketing intelligence.

• In order to measure the quality of production,the way

the employees are behaving with customers, quality of
facilities being provided;
• (3) Network Externally:
• Every firm must keep a tab on its competitors.
• Competitive intelligence describes the broader
discipline of researching, analyzing and formulating
data and information from the entire competitive
environment of any organization.
(4) Set up a customer advisory panel:
• Companies can set up panels consisting of customers.
They can be the company's largestcustomers or
representatives of customers orthe most outspoken
customers.
 (5) Optimal usage of Government

data resources:

• Governments of almost all countries publishreports

regarding the population trends, demographic
characteristics, agricultural production and a lot of
other such data.
• All this data must be or can be referred to asbase data.
• It can help in planning and formulating policiesfor the
companies.
 (6) Information bought from external suppliers:

• Certain agencies sell data that can be useful toother

companies.
• For example, television channels will requireinformation
on the number of viewership, ratings of TV programs,
etc.
• An agency which calculates this informationand
generates this data will provide it to companies that
need it.
 (7) Collect Competitive Intelligence

through online customer feedback:

• Customer's view about a product is most

essential for any company.
• Ultimately it's the customer who's buying theproduct.
Hence customer feedback must be taken.
Online platforms like chat rooms, blogs, discussion
forums, customer review boards can be used to
generate customer feedback
Market analysis

• A market is defined as the sum total of all thebuyers

and sellers in the area or region underconsideration.
The area may be the Earth, or countries, regions,
states, or cities.
• The value, cost and price of items traded areas per
forces of supply and demand in a market. The market
may be a physical entity,or may be virtual. It may be
local or global, perfect and imperfect.

• A market analysis is the best way to get a third-party

perspective of all of the best options for your
marketing campaign, and to ensure that your
marketing dollars are spent in the most effective
way possible.
. The goal of market analysis is to determine the attractiveness of a
market and to understand its evolving opportunities and threats
as they relate to the strength and weakness of the firm

Objective of Market analysis

• Determine attractiveness of a market.
• Find & identify new business opportunities.
• Targeting and dividing the market into niche.
• Positioning the products or brands in the mindof
customers
• Understand the dynamics of the market Market information
• Insight into existing customers
• Identifying potential customers
• Customer need
• Customer behavior pattern
• Identify business opportunity
• Competitor Analysis
• Economic overview
• Shift share analysis
• Occupational changes
• Strategic advantage
• Resolving Business Problems
WHEN MARKET ANALYSIS?

• Determining the sales potential of your

products and services.
• Attracting customers to your business
• Selling to customers and earning repeat
business
How MARKET ANALYSIS helps

A market analysis answers these questions about your

customers:
• Who are they?
• Where are they?
• What do they need?
• How do they make their buying decisions?
• Where do they buy?
• How do you reach them with your marketing and sales
messages?

DIMENSIONS OF MARKET ANALYSIS

•
• Market size (current and future)
• Market segment
• Market trends
• Market growth rate
• Market profitability
• Industry cost structure
• Distribution channels
• Key success factors
MARKET SIZE

• Total annual sales in the market served.

• Current market size and future size.
HOW TO DETERMINE MARKET
SIZE?

– Govt. data.
– Trade associations.
– Financial data from major players.
– Customer survey.
 • MARKET

• SEGMENTS
•

GeGeography and location

a) market in which we sell

b)

l
o
c
Customer
a segments Customer segments
l
a) whombuy our product a) who buy our product
b) profile
a of target b) profile of target
r customer
k customer
e
c)

d)

e)

f)

g)
 h)

i)

MARKET TRENDS

*Once the segments of the product's market are determined,

the market trends of the product needs tobe analyzed from
time to time.
*Identify the trends in the market segments within whichthe
product fits.
*If the market segment is growing and is projected to
continue to grow, then it is an upward trend.
*If the trend is for new products then the company should replace older
models, with new ones and that iscalled downward trend for the older
products

MARKET GROWTH RATE

• Keep a track of the market condition.

• Sales growth of complementary products.
• Product life cycle phases can be understood.How to
estimate the Market Growth Rate ??

– Historical data
– Demographic information

MARKET PROFITABILITY
• Profit potential for a market can be used as aguideline
to determine how difficult it is to make money in the
market.
• Porter`s 5 forces identifieseffect
the 5the
factors
market
thatprofitability
Market research

• Marketing research involves collecting, organizing,

analyzing and communicating information that can be
used in order to make an informed marketing decision.

• Performing market research will complement your

marketing mix strategy as it enables you to make
educated decisions regarding selecting markets, your
image or branding andproducts or services.

Online Research

• Online research: the use of computer networks,

including the Internet, to assist in any phase of the
marketing research processincluding development of
the problem, research design, data gathering,
analysis, andreport writing and distribution

key steps in Marketing Research

1. Define the Problem

2. Collect the Data
3. Analyze and interpret the data
 4. Reach a conclusion
5. Implement your research
Define the Problem

• In this stage you need to identify the actual

problems that are relating to the apparent
symptoms.
• What information is needed in order to solvethe
problem?
For example, poor sales within a business are not the problem,
they are the symptom of a larger issue such as a weak marketing
strategy

Further business problems may include:

• Who are your target customers?

• What method could be implemented to reachthese
customers?
• Who are your customers and what advantagesand
disadvantages do they have over your business?
What size is the consumer market you aretrying to
engage?
 Collect the Data

• There are two types of market research that canbe

performed:

1. Primary research - involves collecting information

from sources directly by conductinginterviews and
surveys, and by talking to customers and
established businesses.

2. Secondary research - involves collecting information

from sources where the primary research has already
been conducted. Such information includes industry
statistics, marketresearch reports, news paper articles,
etc

Collection methods and techniques

• Qualitative research is where you seek an

understanding of why things are a certain way.For
example, a researcher may stop a shopperand ask them
why they bought a particular product or brand.
• Quantitative research refers to measuring market
phenomena in a numerical sense, suchas when a bank
asks consumers to rate their service on a scale of one
to ten.

Analyze and interpret the data

• You must attach meaning to the data you have
collected during your market research tomake sense of
it and to develop alternative solutions that could
potentially solve your business problem.
You should determine how the knowledgeyou have
gained through researching your market
can be applied and used to developeffective business
strategies

Implement your research

• Put your final solution into practice.

• Without completing this step your researchcould
potentially have been a waste of yourtime and
resources.

Marketing Research Agencies in India

• IMRB International (“Indian Market Research

Bureau”)

• IMRB has been responsible for establishing the first

and television audience measurementsystem and the
first radio panel in the country

• IMRB International's specialized areas are

 consumer markets, industrial marketing,
business to business marketing, social marketing
and rural marketing

Customer validation

• Lower Case
• Customers testing real unreleased products inreal
environments.
• Upper Case
• A distinct discipline for gathering and synthesizing
representative customer feedback to produce a more
successful product. Specific proven research and
testingmethodologies utilized to capture unique
actionable insight about the customer experience of
actual products throughout
• Customer Validation –
• The Second Step
• Validation comes after discovery
• Make early sales
• Constrain spending
• Step one
• Ready to sell product
• Acquire activity customer
• A high-fidelity MVP (Minimum Viable Product)
addresses whether your product solves that problem.
You build a low-fidelity MVP first to ensure that the
problem is worthsolving, then you build the high-
fidelity
• MVP to ensure that you are solving theproblem
• Develop sales collateral
• Sales road map

• Customer validation your goal is to find the user

segment with the most potential, identifyearly adopters,
and learn about their habits, needs, problems, and
perspectives in relation to your business. Learning
about your target audience will help you find the right
product- market fit so you can create business solutions
that solve a genuine user problem.

Crafting your value proposition

• If you don’t have a strong, customer-enticingvalue

proposition, it’s tough to sell.
• Lots of people think that a value proposition is
information about their company, product or service.
A value proposition is also not a glowing description
of your unique services, passionfor excellence or
leading-edge technology

Some question to ask in value proposition

• Have you talked to your clients about the

results they get when using your offering?
• You need to! What you learn will help you sell.
• Of course, you don’t have to.
But without knowing these outcomes, you’llhave a hard
time setting up meetings
Product launch goals

• Sales goals
This may be the easiest type of goal to create because
you already have sales expectations. How many units
of your product do you want to sell inwhat timeframe?
Example: We will sell 100 widgets within two months of
launch.
• Prospect goals
Your company might have a long lead time for
selling new products. Anappropriate goal could
be to outline how many prospects you would
like to identify as a result of your product
launch.
Example: We will identify 200 prospects within two
months of launch

• Product awareness goals

The sales process usually begins with your market
being aware of you and your product. Your marketing
efforts can help to build that awareness. Although your
tactics may vary, one goal should include being able to
measure the awareness you have built. Review the
different awareness-gathering methods in the

article, Marketing plan for your product launch.

Example: Within the first week after launch, we will
see20 outlets pick up our press release, 50 retweets of
our launch announcement and 1000 visits on the
website.
• Customer goals
If it is not your first release, you might have goals to
show the adoption of your product within your existing
customer base (for example, upgrades, enablement of
features).
Example: Ten customers will show
interest inupgrading within one month
of launch.

• Product defect goals

Although you will have set defect goals during the
product development process, it is inevitable that
additional defects will be found after launch.
Considersetting a goal to resolve quickly any issues
found as a result of the release so that they do not
impede your revenue- or customer-related goals.
Example: For the first month after release, address all

Go-to- Market Strategy

A go-to-market (GTM) strategy is the way in which a
company brings a product to market. It generally
includes a business plan outlining the target audience,
marketing plan, and salesstrategy. Each product and
market are different, therefore each GTM strategy
shouldbe thoroughly thought out; mapping a market
problem and solution a product offers

The role of selling in a startup

• A sales strategy – unlike one for marketing orproduct

– narrows your focus on one very important aspect
 of your startup success: making the sale. While
marketing strategy focuses on increasing your
visibility, a well- defined sales strategy helps you
make real quantifiable profits.

• 1. A sales strategy allows you to address the

needs of customers at every stage.
• Assisting a new customer requires a different
approach than helping current customers. New
customers need education about the product
features and functionality, while existing
customers mostly need assistance or technical
support.
• Addressing prospects at different points in
the sales journey calls for different approaches.
Without a strategy in place for this, you will walkin
blind and likely fail to produce the best results.

• Construct a flowchart or a spreadsheet that lists

out all possible stages of your prospect’s journey
• 2 click over here. A sales strategy improves the
ROI ofyour sales team.
• The act of formulating a strategy requires you to take a
step back and look at the big picture. You have to ask
yourself tough questions like:
• Should I focus more on obtaining new customers
orexisting ones?
• Is the up selling strategy fetching enough
resultsagainst the efforts?
• In what areas is the result better than the cost?

• As a result, you will see which particular sales

tactics are working for you and which aren’t. You can
maximize your results by focusing on the
• 3. A sales strategy enables you to hire theright
 people.
• Hiring is extremely important for startups,
especially since most startups have a one- totwo-
member sales team.
• Teams with a sales strategy have well-definedgoals
and methods. You know exactly what you want to do
in the future and so you knowexactly what to expect
of your sales team.
• This clarity allows you to hire people who

Sales forecasting for startups

• Sales forecasting is the process of estimatingfuture

sales. Accurate sales forecasts enable companies to
make informed business decisions and predict short-
term and long- term performance. Companies can
base theirforecasts on past sales data, industry-wide
comparisons and economic trends.

Mapping buyer response modes

• It is key for startups to understand customer responses

to sales propositions and to be ableto map these buyer
response modes. The
term “response modes” describes a potential
customer’s behavior or reaction to a sales
proposition.
• Buyer response modes
• There are four potential buyer response
modes to change:
• Growth
• Trouble
• Even Keel
• Overconfident

• Buyer behavior in growth mode

• Buyers in Growth mode perceive that by buying
your product or service, they are meant to generate
growth for their company.
• However, while these buyers recognize the needto grow, they
also understand that something needs to change in order to
make growth happen. This understanding is positive for
potential vendors as buyers will have a positive response to
offerings that they believe will helpto close the gap between
current reality and thegrowth target Trouble mode
• In Trouble mode, buyers perceive that the business
is failing (that is, it is losing customers, losing
money, decreasing productivity) and understand
that somethingmust change.
These buyers will be very open to offerings that seem
to address fundamental problems. Buyers in Trouble
mode have more appetite for radical solutions than do
buyers in Growth

• Even Keel mode

• Buyers in Even Keel mode do not perceive a large
enough gap between their position and their goal to
warrant change. They believe that progress is steady
and there is no urgency to change anything. As a result,
these buyers are not open to vendor offerings. They do
not see the value such offerings would represent or
why they should go through the trouble that change
represents.
 However, peers or more senior executives that are
either in Growth mode or Trouble mode can influence
buyers in Even Keel mode. It is rare for vendors to
directly influence Even Keel buyers.
• Overconfident mode
• Buyers in Overconfident mode have a somewhat
delusional(mistakes) outlook and perceive that they are
succeeding. In fact, theybelieve that they are doing so
well that the suggestion that your offering might
improve their situation is practically an insult (even if
reality suggests the contrary). The fact that buyers in
Overconfident mode have such a weak grasp of reality
suggests that there is

Social media Promotion tools.

• Using Facebook
• Facebook’s casual, friendly environment requires an
active social media marketing strategy. Start by
creating a Facebook BusinessFan Page. You will want
to pay careful attention to layout, as the visual
component isa key aspect of the Facebook experience.
• Facebook is a place people go to relax and chat with
friends, so keep your tone light andfriendly. And
remember, organic reach on Facebook can be
extremely limited, so
• Google+
• Google+ entered the scene as a Facebook
competitor, but it now serves a more niche
audience. It won't work for everybody, butsome
communities are very active on Google+.
• On Google+ you can upload and share photos,videos,
links, and view all your +1s. Also take advantage of
 Google+ circles, which allow youto segment your
followers into smaller groups,enabling you to share
information with some
• Pinterest
• Pinterest is one of the fastest growing socialmedia
marketing trends. Pinterest’s image- centered
platform is ideal for retail, but anyone can benefit
from using Pinterest forsocial media purposes or
sales-driving ads.
• Pinterest allows businesses to showcase theirproduct
offerings while also developing brandpersonality with
eye-catching, unique pinboards. When developing
your Pintrest strategy, remember that the social
network's

• Twitter is the social media marketing tool that lets

youbroadcast your updates across the web. Follow
tweeters in your industry or related fields, and you
should gain a steady stream of followers in return.
• Mix up your official tweets about specials,
discounts,and news with fun, brand-building tweets.
Be sure to retweet when a customer has something
nice to say about you, and don’t forget to answer
people’s questions when possible. Using Twitter as
a social media marketing tool revolves around
dialog and communication, so be sure to interact as
much as possible to nurture and build your
following
• YouTube is the number one place for creatingand
sharing video content, and it can also be an incredibly
powerful social media marketingtool. Many businesses
try to create video content with the aim of having their
video “goviral,” but in reality those chances are pretty
slim. Instead, focus on creating useful,
instructive “how-to” videos. These how-to videos also
have the added benefit of ranking on the video search
results of Google, so don't
Under-estimate the power of video content Social media platforms like Yelp and
Foursquare are great for brick and mortar businesses lookingto implement
marketing on social media. Registeron these sites to claim your location spot, and
then consider extra incentives such as check-in rewards or special discounts.
Remember, these visitors will have their phones in hand, so they will be able to
write and post reviews. A lot of good reviews can significantly help sway
prospective visitors to come in and build your business