Marketing proquest

8/12/2019 Marketing proquest

1/13

The entrepreneurialmarketing mix

Diane M. MartinUniversity of Portland, Portland, Oregon, USA

Abstract

Purpose This paper identifies and examine a divergence of philosophies and practice betweencorporate/traditional marketing (CTM) and entrepreneurial marketing (EM). The paper examines thecase of an entrepreneur who also possesses a deep understanding of CTM practices. The purpose ofthis paper is to learn which set of marketing practices entrepreneurs are likely to privilege.

Design/methodology/approach This paper is an ethnographic investigation of a marketingentrepreneur: one who possesses a deep understanding of CTM and who is also a successfulentrepreneur. Data collection and analysis included participant observation, multiple interviews, and

interpretation of textual and video data.Findings Entrepreneurs with CTM expertise privilege elements of EM. Rather than relying on thetraditional four Ps (product, price, place, and promotion), their marketing strategy and practice isreminiscent of the entrepreneurial four Ps (purpose, practices, process, and people). Communicationcompetency is foundational to successful EM.

Practical implications Entrepreneurs are encouraged to assess their personal situations andidentify ways to improve their organizational and interpersonal communication skills and personalcontact network processes.

Originality/value This paper provides a provocative look at how CTM theory and practice aresuperseded by the creativity, flexibility, and innovation of day-to-day entrepreneurship. The papervalidates a framework for analysis of marketing practices specific to entrepreneurs.

KeywordsEntrepreneurialism, Marketing, Marketing mix, Communication

Paper typeResearch paper

IntroductionPeriodic examination of traditional assumptions of marketing theory allows scholarsto remain relevant to emerging trends in business. Scholars note that both marketingtheories and entrepreneurship theory privilege the notion of value creation, that is, thenotion that elements are combined in a manner that results in the provision of value tothe user (Morriset al., 2002). Others creatively combine foundational theories of bothdisciplines into a body of research concerned with marketing in the context of smalland medium-sized enterprises (SME) and with business practices called the marketing/entrepreneurship interface (Gilmore and Coviello, 1999; Hoy, 2008). Scholarsacknowledge important differences between large and small business ventures and

call for greater presence of entrepreneurial elements in marketing theory education(Carson, 1993; Stokes, 2000). This paper challenges the one size fits all assumptionsof marketing theory to qualitatively identify and examine philosophical and practicaldifferences between corporate/traditional marketing (CTM) and entrepreneurialmarketing (EM).

Criticisms of traditional marketing theory and education include:

[. . .] an over-reliance on established rules of thumb, encouragement of formula-basedthinking, lack of accountability for marketing expenditures, an emphasis on the promotion

The current issue and full text archive of this journal is available at

www.emeraldinsight.com/1352-2752.htm

Theentrepreneurialmarketing mix

391

Qualitative Market Research: AnInternational Journal

Vol. 12 No. 4, 2009pp. 391-403

q Emerald Group Publishing Limited1352-2752

DOI 10.1108/13522750910993310


2/13

elements of the marketing mix, focus on superficial and transitory whims of customers, thetendencies to imitate instead of innovate and serve existing markets instead of creating newones, a concentration on short-term, low-risk payoffs, and marketing as a silo with static andreactive approaches (Morriset al., 2002, p. 2).

Even the American Marketing Associations endorsed definition of marketing, ignoresissues central to entrepreneurship: innovation, risk-taking, and proactiveness (Morriset al., 2002). These scholars and others have set about to remedy this apparent lack ofentrepreneurial focus in the marketing discipline. Hill and Wright (2000, p. 43) note thata paradigmatic shift would allow for the full expression of the entrepreneurialpersonality in the management and marketing activities of the SME. They argue thatmarketing and entrepreneurship can be conjoined more completely, creating a new,entrepreneurial paradigm of marketing.

It is generally accepted that most entrepreneurs are specialists in a field other thanmarketing (Carsonet al., 1995; Stokes, 2000; Zontanos and Anderson, 2004). In order toexamine the real potential of the marketing/entrepreneurship interface, this qualitative

study examines the work of an entrepreneur who is a marketing expert and enjoyssuccess as an entrepreneur in the competitive motor sport event management market.First, a review of the literature examines marketing theory and practice by organizationalsize and context, i.e. formal and traditional vs informal and entrepreneurial. Next, theanalysis uncovers the primacy of personal contact networks and interpersonalcommunication for entrepreneurs in marketing enterprises. Finally, the paper concludeswith suggestions for theory and practice, training, and development.

Not business as usual: re-thinking the four PsMarketing scholars and practitioners have long depended on the same basic elementsfor success. The elements of successful corporate marketing have traditionally boiled

down to the familiar four Ps: price, promotion, product, and placement (Kotler, 2001).Companies typically organize these elements into proven patterns, marked by logicalstep-by-step processes. The plans behind the patterns are both highly structured anddisciplined (Carson, 1993).

While it may seem appropriate to take the tradition of the four Ps as gospel, doingso would blind one to important differences at the heart of entrepreneurial experience.Gronroos (1994) argues that the usefulness of the four Ps as a general theory is highlyquestionable. Others note that adherence to the four Ps misses the fundamental pointof marketing adaptability, flexibility and responsiveness (McKenna, 1991, p. 13)and is both wasteful and inappropriate, and consequently is not seen to functioneffectively (Carson, 1993, p. 190). This is not to say that the conventional marketingapproach is not relevant to SMEs (Reynolds, 2002). However, SMEs face opportunities

and concerns that large corporations do not, and as such they may benefit frommarketing theory which considers the particularities of the SME context.

One way scholars have begun to address this need is by specifically investigatingmarketing in entrepreneurial contexts. Hills et al. (2008) recently investigated theevolution and development of this scholarship and found that indeed, marketingamong entrepreneurs deviates from mainstream marketing. Carson (1993, p. 12)describes EM as the experience, knowledge, communication abilities and judgment ofthe owner-manager, key competencies on which marketing effectiveness depends,

QMRIJ12,4

392


3/13

while Zontanos and Anderson (2004) offer the four Ps: person, process, purpose, andpractices, as a better frame for understanding marketing in entrepreneurial firms.

Marketing: corporate/traditional vs entrepreneural, dimensions, and

differencesCTM theory is described in terms of three distinct dimensions:

(1) Culture (i.e. values and beliefs regarding the central importance of the customerin guiding the organization).

(2) Strategy (i.e. achieving competitive advantage within a particular industry andmarket context).

(3) Tactics (i.e. methods of resource leveraging, and variety of techniques formanaging risks; Kotler, 2001).

Examining these dimensions through an entrepreneurial context provides someinsights into philosophical differences.

CultureCTM theory suggests determination of researched, established need amongstcustomers first, then addressing that need. Entrepreneurial cultural (e.g. organizingphilosophy) is more often promoted by new product concepts than by researched,established needs amongst customers. Entrepreneurs culture of innovativenesssuggests that they first develop an idea and then gauge customer reaction after thedevelopment of new product. Morris et al. (2002) note that EM fosters a culture ofinnovativeness, risk-taking, and pro-action throughout the firm, encourages a strategythat seeks to exploit opportunities others have missed or ones that have not beencompletely exploited, and includes tactics that are creative and develop a personalapproach to the identification and pursuit of opportunity.

StrategyCTM strategy prescribes an organized process of segmentation, targeting, andpositioning. On the other hand:

[. . .] entrepreneurs use a bottom-up approach by serving the needs of a few customers andthen expanding the base gradually [. . .] [entrepreneurs use] trial and error in the marketplace,being in contact with customers to learn their preferences, looking for customers with thesame profiles so they can expand their base (Stokes, 2000, p. 50).

Strategy for entrepreneurs is more fluid and innovative.

Tactics

For entrepreneurs, tactics for using the marketing mix diverge from the traditionalprogression of product development, pricing, promotion, and distribution.Entrepreneurs prefer direct interchanges and building personal relationships.Likewise, the tactics behind entrepreneurs marketing intelligence is based onpersonal observation and contact information, rather than formal research (Stokes,2000). Decision making in larger organizations tends to adhere to variable time intervals:Some are short-term issues and others are considered medium or long-term issues. EMdecisions are more immediate and fluid (Carson, 1993). Basic philosophical differences


393


4/13

between CTM and EM are manifest in material differences in organizational culture,strategy, and tactics.

The owner/manager, the entrepreneurThe traits, styles, competencies, and behaviors of the owner/manager are keycomponents of entrepreneurial organizing. Zontanos and Anderson (2004, p. 231) notethat: what seems to distinguish formal marketing from entrepreneurial marketing isthe active role of the entrepreneur, and networks appear to be the link between thephenomena. Scholars generally accept that behaviors and competencies are primaryto a general theory of entrepreneurship (Carsonet al., 1995; Stokes, 2000; Zontanos andAnderson, 2004). Zontanos and Anderson (2004, p. 230) argue that it is generallyaccepted that the characteristics of the small firm influence [its] marketing practice.Merrilees and Frazer (2006) found that highly successful entrepreneurial franchiseesdemonstrate hidden marketing success related to their confident personalities, drive,and ambition.

Carson et al. (1995) describe the marriage of entrepreneurship and marketing interms of the experience, knowledge, communication abilities, and judgment of theowner-manager. Overall, behaviors and competencies of entrepreneurs are key tothe success of the enterprise. While there are distinct foundational differences betweenthe job of the marketing manager and the job of the entrepreneur, the functions ofrelationships and networks are somewhat similar for both.

Connecting with people: relationships and networksThe importance of relationships in marketing is foundational to entrepreneurialpractice and has more recently found favor in formal marketing theory (Chaston, 1997).Practitioners in both CTM and EM practice boundary spanning activities foundationalto personal contact networks. Networking provides a crucial link between

entrepreneurial theory and relationship marketing (Zontanos and Anderson, 2004).Hill and Wright (2000) note that personal contact networks play a crucial role incharacterizing a marketing orientation in a SME. Chaston (1997) developed a hybridmodel of four alternative marketing styles based on two important aspects influencingmarketing strategy: closeness to the customer (transactional vs relationship) and levelof entrepreneurial activity (conservative vs entrepreneurial). This resulted in fourgeneral categories of marketing:

(1) Conservative-transactional.Standard goods/services at a competitive price, littleinterest in building close relationships with suppliers.

(2) Conservative-relationship. Standard goods/services at a competitive price, butwilling to work with suppliers to optimize quality.

(3) Entrepreneurial-transactional. Innovative products/services without formingclose relationships with suppliers.

(4) Entrepreneurial-relationship.Participating in markets where customers work inpartnership with suppliers to develop innovative new products and services.

Chaston (1997) is reticent to privilege one alternative marketing style as the formula forentrepreneurial success. This is understandable when one considers how formulaicprocesses are generally anathema to the four key factors of successful entrepreneurship

QMRIJ12,4

394


5/13

organization: creation, innovation, uniqueness and growth (Hills and LaForge, 1992).More to the point is the primacy of relationships as indicative of ones personal contactnetwork. According to Carson (1993), contact networks are a natural phenomenon, notplanned processes. However, there may be some difference in how they are used.

Marketing managers networks are consciously used, while entrepreneurs aresubconsciously used (Carson, 1993). There appears to be a distinction between theway personal contact networks are used relative to the different roles andresponsibilities expected of marketing managers and entrepreneurs doing marketing.

Marketing entrepreneursEntrepreneurs are not typically marketing experts. As such, the vocabulary andfoundations of formal marketing theory are often unfamiliar to them (Stokes, 2000).Dodgeet al. (1994) argue that the most prevalent problem in small firms is a lack ofknowledge about the marketplace and planning. Indeed, most owner-managers do notdefine their own marketing mix in terms of product, pricing, place and promotion, but

appear to prefer interactive marketing (Carson et al., 1995, p. 230). Smallentrepreneurial knowledge-based firms are characterized by entrepreneurs lack ofmarketing development competencies coupled with their high technical andprofessional skills (Capaldo et al., 2001). Although most entrepreneurs are unfamiliarwith formal marketing theory, they are often so personally embedded in the enterprisethat they can ill afford mismanagement of the personal contact network at the heart ofEM success. Entrepreneurs may not know the vocabulary and concepts but they arekeenly aware of the value of the results of good marketing.

Marketing scholars have identified the need to better understand strategicrelationships, alliances, and networks (Achrol and Kotler, 1999). Zontanos andAnderson (2004, p. 231) note that a small firms marketing advantage, in contrast to alarge firm, is precisely these close relationships between the entrepreneur and

customers. Entrepreneurs must be excellent communicators; both effective atconveying understanding and skilled at persuasion and influence. An entrepreneurwho specializes in marketing would seem to have his or her feet planted in both worlds.Those who are both competent communicators, the cornerstone of personal contactnetwork success, and knowledgeable marketers, possessing a deep understanding ofCTM theory, are in a uniquely qualified to assess skills and resources from both CTMand EM. This study examines the work of just such an entrepreneur.

MethodologyInterpretive theorists argue that social reality is negotiated and constructed throughsense-making processes (Anderson, 1987; Lindlof, 1995). Assumptions of accuracy arenot bound by a search for the truth, but rather by the display and analysis of an

internally consistent and coherent system of evidence (Putnam, 1983). Qualitativeanalyses enable sensitivity to contextual dynamics (Barley, 1986) because they focusprimarily on explaining the characteristic forms and variations of the phenomenaunder consideration (Lofland, 1971).

This study continues a tradition of research that establishes a logical link betweenthe development and testing of EM theory and qualitative research methods (Gibb,1990; Hill and Wright, 2000). Gibb (1990) argued that large sample questionnaires aremisplaced in researching small firms and that more inductive reasoning based on


395


6/13

grounded theory (Glaser and Strauss, 1967) is a better method. Hill and Wright (2000)also call for in-depth entrepreneurial research programs in the ethnographic tradition.Finally, Cope (2005) demonstrates the value of phenomenological, in-depth,unstructured interviews in entrepreneurial research.

Although not an ethnography in the strictest sense, this study benefited from myprior experience as both an entrepreneur and a motorcyclist providing prolongedengagement in the ethnographic tradition. My association with motor sports is veryloosely akin to what Corsaro (1980) described and strongly recommended as, priorethnography: becoming a participant observer in a situation for a lengthy period oftime before the study is actually undertaken (Lincoln and Guba, 1985, p. 251).

From 1990 to 1998, I owned and operated a marketing consulting business. Sincethen, my time away from day-to-day entrepreneurial activities and education inresearch methods has provided me with fresh eyes for participating in and observinga relatively familiar scene. My hiatus from entrepreneurship enabled an appropriatedistancing, an opportunity to problematize the familiar.

Sampling and data collectionOne of the cornerstones of interpretive research is theoretical sampling, i.e. datagathering that is driven by concepts derived from the evolving theory, going to places,people, or events that will maximize opportunities to discover variations amongconcepts (Glaser and Strauss, 1967). This investigation focuses on one organization inwhich the entrepreneur is also a marketing expert.

Data were collected as part of a larger study occurring over more than 18 months ofintermittent engagement. This longitudinal method corresponds with Gilmore andCoviellos (1999) call for contextualized research methodologies at the marketing/entrepreneurship interface. I conducted and video-tape recorded over 25 hours ofinterviews. Field notes taken during observations were typed directly on a laptop

computer. Extended notes were added and typed up as soon as possible after eachobservation, before the nextobservation, and usuallywithin 24 hours. Initially,50 pages offield notes, meeting transcripts, and interview transcripts made up the corpus of the data.

Fieldwork consisted of observations and interviews at annual internationalmotorcycle competitions. I also analyzed artifacts (magazines, flyers, web sites, andtrade publications) and conducted in-depth interviews with the entrepreneur,associates, customers, fans and suppliers. When appropriate a critical incident lineof questioning was used to elicit narratives from the entrepreneur about activities withdetails of critical aspects (Curran et al., 1994). Multiple semi-structured interviewguides were designed to capture critical aspects of the dimensions of EM.

Entrepreneurial creations: the magazine and the mini-motoThe MiniMoto Supercross (SX) event and MiniMoto Magazine represent theconvergence of Tim Clarks two passions in life: motorcycles and marketing.Supported by his wife and his business partner, Tim successfully carved out a newmarket segment in the competitive motor sport market. Tims business combinesmagazine publishing and competition promotion and demonstrates the creativity,innovation, uniqueness, and growth that are the hallmarks of successful entrepreneurialenterprises (Hills and LaForge, 1992).

QMRIJ12,4

396


7/13

Tim started riding motorcycles when he was just eight-years old and at the age of15 had to fake some papers to show he was old enough to compete in off-road dirtbike races near his California home. A run-in with a neighbor/art instructor who didnot appreciate young Tims noisy motorcycle on the neighborhood streets turned into

an opportunity to learn graphic design and uncovered an interest in marketing anddesign. Tim later directed marketing projects for several multinational corporations.Throughout his marketing career, Tim remained close to the motorcycle world. Hisconstant attention to innovations in design and after-market products led to theidentification of a new market segment: motocross competition for adults on mini-bikes(MiniMoto SX). Tim explains how he got the idea for a new market segment:

I just watched and looked at everything. I watched how these companies were working veryhard to build products to build on to the Honda 50 and the KLX 110. Just looking in my dailystuff. I spend a lot of time connecting myself to the industry. I watch the web a lot. I read themagazines a lot. [. . .] I look and read and look and read and look and read. [ . . .] A lot ofindustry publications. We receive every industry publication. We look at everything thatcomes in the door.

Tim kept a close eye on mini-bike after-market product innovations that allowed adultsto ride and compete on bikes originally designed for children. My interviews withcompetitors at the second annual MiniMoto SX in Las Vegas in May 2005, revealedseveral reasons for the success of MiniMoto competition. Adult riders find competing onmini-bikes to be easier, safer, and more accessible than motocross racing on a full-sizemotorcycle. Several riders moved to minis after getting hurt on their big bikes. If a ridergets in trouble on the mini, he or she can just stand up and let the bike roll out on its ownrather than risk the danger of going down. The retro-fitted mini-bike provides adults achance to ride again, to be new entrants in a way that gives them confidence,competence and pleasure. MiniMoto riders in the professional classifications even getthe chance to compete against top motocross racers, but doing so on mini-bikes.

Dimensions of culture, strategy, and tactics in entrepreneurshipMiniMoto SX was nurtured in a culture of creativity and innovation. True to Stokes(2000) description of entrepreneurial culture, Tim first developed the magazine, thenthe race, and then he looked for markets. Tim explains:

I decided we needed to have a race. What wins on Sunday sells on Monday. They had noplace to race; there was no organized event. Everything is about competition [. . .] the one littlepart of the puzzle youre missing [. . .] a buddy of mine was the editor of (another) magazine.[. . .] he had been there for years, came to me asking for creativity. I said I got this idea aboutthe mini-bike market. Ill create the magazine, Ill do all the art, you print it for free and theydid that. It was inserted into his magazine called Motorcycle Product News. At the time it was

half of their magazine, I then took the same artwork and I sent it to my printer in Californiaand he printed me my own with the same artwork. He printed 10,000. Once it got inMotorcycle Product News, it just exploded. Every dealer in the United States gets that andthere are about 10,000 dealers.

StrategyMiniMoto Magazine started as an insert to an established motor sport publication. Asinterest in both the mini market segment and the magazine grew, Tim responded to


397


8/13

requests from both enthusiasts and after-market suppliers/advertisers. As he explains,readers called for:

[. . .] more how to articles [. . .] [they said] can you give us more opinion of how things workand operate? Can you give us more options on where to go and find products? What is sogreat about our magazine right now is that it is so new, that people dont even know whomakes tires for mini-bikes. And Im going to the advertisers saying hello, if you advertise,people are going to find you. Thats the marketing, its different than your ideas andconcepts, thats how to manage a magazine. You know I really try and merge them.

The strategy works and customers know they are being heard. Tim claims that ourcustomer base absolutely does what we [want them to] do because we give themeverything they ask for. This bottom-up approach first serves the needs of a fewcustomers and privileges customer preferences (Stokes, 2000).

TacticsThe tactic of direct interchanges and building personal relationships (Stokes, 2000) is

the overarching tactic in the MiniMoto SX organization. Tim notes that he calls upmotocross superstar Jeremy McGrath and says Jeremy Im having a race and heshows up. He dont go anywhere for under $10,000. And he shows up to our races[for free]! The opportunity to compete with one of the top pros in the world bringsother competitors to the track to test their mettle. Even if they never make it past theheat races, they can, as one competitor exclaimed, I tell the guys at home I raced

Jeremy McGrath!

Privileging the four Ps of EMDevelopment of the culture, strategies, and tactics used to identify and develop a newmotorcycle market segment can be best understood using the framework of Zontanosand Andersons (2004) four Ps of EM: practices, purpose, person, and process.

PracticesDecisions about which practices to follow were based on innovative thinking andmaking good use of meager financial resources. The MiniMoto SX is strategicallydesigned to take advantage of a major event in the motor sport industry. By holdingthe annual MiniMoto SX on the night before the Las Vegas SX, a major internationalmotocross event, Tim takes advantage of the audience of motor sport enthusiastsalready in town for the SX:

Supercross is Saturday night [. . .] and I got into the mini-bike thing and I no sooner got intothe minibike magazine and I thought, theres nothing to sell. I need to create some sizzle, solets create a race [. . .] so lets do it the night before the biggest Supercross in the world [ . . .]cause theres 40,000 people that are going to come to this [Supercross] race.

PurposeMiniMoto Magazinegrew out of need to provide a place for after-market innovators toadvertise to a highly targeted market. Through constant monitoring of the industry,Tim connected the dots and:

[. . .] realized that the mini market had tremendous potential because it was made up of anumber of cottage industries, several dozen [. . .] Ive always loved motorcycles, so I was

QMRIJ12,4

398


9/13

looking at the industry and I saw there was all these mom and pop start-up shops and theyneeded a place to advertise. [. . .] Im a real graphics magazine guy. The biggest magazines foroff-road [motorcycle market] which minibikes would fall into are in my opinion [too expensivefor the after-market innovators]. So if you were a manufacturer that came up with a great idea

for a lever, or a swing arm or a grip, you couldnt afford to advertise in any of thosepublications because aDirt Riderfull page ad is eight or nine grand. My whole concept was togive these guys an arena they could participate in and [. . .] we still have passion. [. . .] so I saidlets make a magazine where a small guy could be a big fish. So we put the full page at $1500now $1800, its the same magazine, you can buy full color more than black and white.

PersonA deep understanding of promotions and the role of public relations in launching a newventure allowed Tim to leverage his personality and extend his limited resources.Careful handling of the requests from the general motor sport media outlets allowedMiniMoto SX to have a major impact in enthusiast and trade press:

We always cater to the media [. . .] We invite everybody in. We do a little safety talk [about

being on the racetrack and in the pits] because we think its important and let you [the media]do your job. The biggest Supercross in the world was in Las Vegas the night after us, and inevery magazine in the world we have more pages about the MiniMoto than the Supercross. Itmakes us feel like we accomplished what we were after. We really get more press than [ . . .]a billion dollar company.

ProcessTims understanding of CTM extends to his careful analysis of price point and theprocess of developing a new market segment:

The genus of MiniMoto in Las Vegas [. . .] you know why it was so successful. Its becauseI realized that there were 42,000 people that went to Sam Boyd [arena and casino] on Saturdaynight to watch Supercross, to watch Chad Reed, Ricky Carmicheal, Bubba Stewart and they

all show up on Thursday or Friday because they love to be there, they love to gamble, theyneed something to do. So we created Friday night for the 42,000 people. The first year we didit, 5000 people showed up. Then the buzz hit. Do you realize that next year we could doublethe prices and we could still sell out? Were not going to do that, were going to keep the pricesthe same. Its going to explode.

Working his talk: personal contact networksTim enthusiastically acknowledges the importance of his personal contact network inthe success of his enterprise. He seems to know everyone in the motocross world. If hedoes not know someone, his partner, Eric Peronnard, does. Tim notes that When wecome up with a name we dont know, were in shock and we question that name. Thenetwork at the heart of MiniMoto SX and MiniMoto Magazinereflects more of what

Carson (1993) would call a natural phenomenon than a planned process. Counter toCarsons viewpoint, the use of networks here seems to be both consciously used andsubconsciously used. Tim purposefully approached his future partner Eric abouthelping him with the US Open of SX, staged inside the MGM in Las Vegas. As Timtells the story:

It was really the first indoor, big style race and Eric created it and I called like on day two andsaid Eric, youve got to know me. So Eric, youve never met me, but youve got to know me,Im the guy whos going to help you make this thing work. [ . . .] And I called up Eric and he


399


10/13

said I should meet his partner and if you showed up to this meeting in Vegas maybe we cando something with you. [. . .] so I showed up in Vegas. And after an 8 hour meeting I raneverything. Eric made the calls but I took over everything.

This conscious decision to extend his impact and network in the motor sport industryled to the partnership that gave rise to MiniMoto SX andMiniMoto Magazine. Gilmoreet al. (2001, p. 142) note that entrepreneurs develop networks for useful personalcontacts [. . .] used to gather information about developing and adapting appropriatemarketing activities [. . .]. The MiniMoto SX race sold out in its third year. Vendors,riders and racing fans enthusiastically refer to MiniMoto Magazine as their mainsource for how-to tips, product reviews and industry news. A new market segment ofmotor sports has been born.

Implications for practice and theoryThis study examined the practices of a marketing entrepreneur; a man with deepknowledge of and engagement in marketing and promotion services. With all the

experience and knowledge of CTM theory and practice at his fingertips, he proclaimsand exemplifies the effective leverage of personal contact networks and exceptionalcommunicativeskills as the most salientaspect of his enterprises success. The MiniMotoenterprise is just one of the situations in which organizations are not practicing theclassic, traditional strategic approach posited within standard marketing texts(Chaston, 1997, p. 62). These results support the findings of a growing group of theoristswho privilege the role of personal contact networks in the marketing mix of successfulentrepreneurial enterprises (Hill and Wright, 2000; Morris et al., 2002; Zontanos andAnderson, 2004). Zontanos and Anderson are quick to point out that entrepreneursexhibit relationship and EM without necessarily having a knowledge of the terminologyor formal construct. The study at hand examines the behaviors of one who has both thetraining and experience of CTM but privileges the philosophy and practices of EM. Theanalysis shows a strong preference for relationship marketing described by Zontanosand Anderson as the new four Ps at the heart of the EM paradigm over the traditionalfour Ps that constitute traditional marketing theory.

In answering the question in the title of his article, The need for a new paradigm forsmall business marketing? What is wrong with the old one? Reynolds (2002) arguedthat traditional marketing education is useful for enterepreneurs. The study at handindicates entreprenuers would be better advised to spend their time using and honingcommunicaiton skills that help them build relationships. While the traditional four Ps (i.e.product, price, promotion, and place) still lie at the heart of CTM theory, education, andpractice, entrepreneurs are advised to consider their communication competency in lightthe new four Ps (i.e. person, process, purpose, and practices; Zontanos and Anderson,

2004). Each of these new four Ps is grounded in relationships and networks. Traininggeared toimprove one ormore ofthe new Ps may prove tobe more usefulthan the basics ofcorporate marketing management and strategy found in traditional marketing education.As Chaston (1997) argued, competency-based process model development can bridge thegap between theory and practice for working entrepreneurs. Entrepreneurs areencouraged to assess their own situations and identify ways to:

. increase the reach of their personal contact networks; and

. improve their communication skills.

QMRIJ12,4

400


11/13

An undeniably important aspect of ones personal contact network is the effectiveness ofinterpersonal and organizational communication (Martin, 2004). Communicationcompetency is indicated by the extent to which one communicates and behaves so as toenhance the self and supportnormative standards for appropriatebehavior establishedby

the larger group (Sussman, 1997). Communication skills and social cognitive ability arelinked with managerial performance (Penley et al., 1991) and successful managers arelikely to also be highly competent communicators. Educational opportunities focused onimproving communication are often based on the foundations of persuasion, influence,and negotiation theories, the foundation of communication competency.

Communication education is available from a number of formal and informalresources. Entrepreneurs who are already naturally gifted at communication may findshort seminars and professional development courses useful for honing their skills.Others may seek out community-based groups which offer multiple opportunities forpracticing public speaking and persuasion in a safe and supportive context(e.g. Toastmasters). For those who want a deeper understanding of the foundation ofcommunication theory, colleges and universities offer courses in mediation, negotiationand conflict, and organizational communication. Capaldo et al. (2001) suggest thatfounders of small entrepreneurial-knowledge-based firms may experience profoundcommunication apprehension. For these entrepreneurs, individual coaching withguided practice can improve ones comfort and confidence, leading to overall success inrelationships at the heart of successful EM.

There are certainly limitations to the results offered here. First, these findings arebased on the analysis of observations of a successful entrepreneur who has a deepunderstanding in CTM and therefore may be difficult to investigate in otherentrepreneurial contexts. However, the results here offer a new and compellingcompeting framework for understanding marketing among entrepreneurs, regardless oftheir training and experience in CTM. Second, the a priori typology of Zontanos and

Andersons (2004) entrepreneurial four Ps may have unduly constrained the opportunityfor competing typologies to emerge. Recalling the purpose of this paper was to identifyand examine philosophical and practical differences between CTM and EM and the realpotential of the marketing/entrepreneurship interface, framing the analysis in anacceptable entrepreneurial typology was well advised. Finally, these findings suggestfuture research is warranted. First, scholars should examine the extent to which otherentrepreneurial competencies and characteristics pertain to successful marketingefforts. Future research should also examine how over time, entrepreneurshipmetamorphoses into entrepreneurial management and in some cases, decline.

This analysis also offers implications for marketing theory. The results heresuggest that comparisons between CTM and EM theories can be examined along anumber of dimensions. First, the context of the business enterprise (i.e. entrepreneurial

or corporate) may suggest a preference for one set of theories and practices overanother. CTM theory appears to works best in the context where it was first developed:with large, established organizations. EM theory and practice appears to be suited foremerging, small organizations. Next, size and longevity of the enterprise should also beexamined as independent determinants of the usefulness of either formal or EM.Lastly, a fifth P, for Passion, is important to our understanding of the dailycommitment one makes to his or her venture. Smilor (1997, p. 342) describedentrepreneurial passion as the fire in the belly that makes the improbable possible.


401


12/13

Passion sustains entrepreneurs through the uncertainties of daily decisions, the thrill ofnew innovations and the challenges and setbacks that line the road to success.

References

Achrol, R.S. and Kotler, P. (1999), Marketing in the network economy, Journal of Marketing,Vol. 55 No. 4, pp. 77-93.

Anderson, J.A. (1987),Communication Research: Issues and Methods, McGraw-Hill, New York, NY.

Barley, S.R. (1986), Technology as an occasion for structuring: evidence from observations ofCT scanners and the social order of radiology departments, Administrative ScienceQuarterly, Vol. 31, pp. 78-108.

Capal do, G. , Inadoli , L. , R affa, M. and Zoll o, G. ( 2001) , Managing themarketing/entrepreneurship interface in small knowledge-based firms: a methodologicalapproach, Journal of Research in Marketing and Entrepreneurship, Vol. 3 No. 1, pp. 18-38.

Carson, D. (1993), A philosophy for marketing education in small firms,Journal of Marketing

Management, Vol. 9, pp. 189-204.Carson, D., Cromie, S., McGowan, P. and Hill, J. (1995),Marketing and Entrepreneurship in SMEs,

Prentice-Hall, London.

Chaston, I. (1997), How interaction between relationship and entrepreneurial marketing mayaffect organizational competencies in small UK manufacturing firms, Marketing

Education Review, Vol. 7 No. 3, pp. 55-65.

Cope, J. (2005), Researching entrepreneurship through phenomenological inquiry,InternationalSmall Business Journal, Vol. 23 No. 2, pp. 163-89.

Corsaro, W.D. (1980), Something old and something new: the importance of prior ethnographyin the collection and analysis of audio-visual data, unpublished manuscript, IndianaUniversity, Bloomington, IN.

Curran, J., Jarvis, R., Blackburn, R.A. and Black, S. (1994), Networks and small firms: constructs,methodological strategies and some findings,International Small Business Journal,Vol.11No. 2, pp. 13-25.

Dodge, H., Fullerton, S. and Robbins, J. (1994), Stage of the organizational life cycle andcompetition as mediators of problem perception for small businesses, Strategic

Management Journal, Vol. 15 No. 2, pp. 121-34.

Gibb, A. (1990), Organising small firms research to meet the needs of customers of the 21stcentury, in Robertson, M., Chell, E. and Mason, C. (Eds), Towards the Twenty-firstCentury: The Challenge for Small Business, Nadamal Books, Macclesfield.

Gilmore, A. and Coviello, N. (1999), Methodologies for research at the marketing/entrepreneurshipinterface,Journal of Research in Marketing and Entrepreneurship, Vol. 1 No. 1, pp. 41-53.

Gilmore, A., Carson, D., Cummins, D., ODonnell, A. and Gallagher, D. (2001), Networking as an

entrepreneurial aid to export marketing, Journal of Research in Marketing andEntrepreneurship, Vol. 3 No. 3, pp. 139-42.

Glaser, B.G. and Strauss, A.L. (1967), The Discovery of Grounded Theory: Strategies forQualitative Research, Aldine, Chicago, IL.

Gronroos, C. (1994), From marketing mix to relationship marketing, Journal of the Academy ofMarketing Science, Vol. 23 No. 4, pp. 252-4.

Hill, J. and Wright, L. (2000), Defining the scope of entrepreneurial marketing: a qualitativeapproach, Journal of Enterprising Culture, Vol. 8 No. 1, pp. 23-46.

QMRIJ12,4

402


13/13

Hills, G.E. and LaForge, R.W. (1992), Research at the marketing interface to advanceentrepreneurship theory,Entrepreneurship Theory & Practice, Vol. 16, Spring, pp. 33-60.

Hills, G.E., Hultman, C.M. andMiles, M.P. (2008), Theevolution anddevelopment of entrepreneurialmarketing,Journal of Small Business Management, Vol. 46 No. 1, pp. 99-113.

Hoy, F. (2008), Organizational learning at the marketing/entrepreneurship interface, Journal ofSmall Business Management, Vol. 46 No. 1, pp. 152-9.

Kotler, P. (2001),A Framework for Marketing Management, Prentice-Hall, Englewood Cliffs, NJ.

Lincoln, Y.S. and Guba, E.G. (1985),Naturalistic Inquiry, Sage, Beverly Hills, CA.

Lindlof, T.R. (1995), Qualitative Communication Research Methods, Sage, Thousand Oaks, CA.

Lofland, J. (1971), Analyzing Social Settings, Wadsworth, Belmont, CA.

McKenna, R. (1991), Relationship Marketing: Successful Strategies for the Age of the Customer,Addison-Wesley, Reading, MA.

Martin, D.M. (2004), Humor in middle management: women negotiating the paradoxes oforganizational life,Journal of Applied Communication Research, Vol. 32 No. 4, pp. 147-70.

Merrilees, B. and Frazer, L. (2006), Entrepreneurial franchisees have hidden superior marketingsystems,Qualitative Market Research, Vol. 9 No. 1, pp. 73-86.

Morris, M., Schindehutte, M. and LaForge, R. (2002), The emergence of entrepreneurialmarketing: nature and meaning,Journal of Marketing Theory and Practice, Vol. 10 No. 4,pp. 1-19.

Penley, L.E., Alexander, E.R., Jernigan, I.E. and Henwood, C.I. (1991), Communication abilities ofmanagers: the relationship to performance,Journal of Management,Vol.17No.1,pp.57-76.

Putnam, L.L. (1983), The interpretive perspective: an alternative to functionalism, in Putnam, L.and Pacanowsky, M. (Eds),Communication and Organizations: An Interpretive Approach,Sage, Beverly Hills, CA, pp. 31-54.

Reynolds, P.L. (2002), The need for a new paradigm for small business marketing? What iswrong with the old one?,Journal of Research in Marketing and Entrepreneurship, Vol. 4

No. 3, pp. 191-205.Similor, R.W. (1997), Entrepreneurship: reflections on a subversive activity,Journal of BusinessVenturing, Vol. 12, pp. 341-6.

Stokes, D. (2000), Entrepreneurial marketing: a conceptualization from qualitative research,Qualitative Market Research, Vol. 3 No. 1, pp. 47-54.

Sussman, L. (1997), Prejudice and behavioral archetypes: a new model for cultural-diversitytraining,Business Communication Quarterly, Vol. 60, pp. 7-12.

Zontanos, G. and Anderson, A.R. (2004), Relationships, marketing and small business: an explorationof links in theory and practice,Qualitative Market Research, Vol. 7 No. 3, pp. 228-36.

About the authorDiane M. Martin is an Assistant Professor of Marketing at the University of Portland in Portland,

Oregon, USA. She earned her PhD from the University of Utah in 2001. Her research interestsinclude entrepreneurial marketing, the communicative constitution of communities and markets,sustainable marketing practices, and gendered consumption. Diane M. Martin can be contactedat: [email protected]


403

To purchase reprints of this article please e-mail: [email protected] visit our web site for further details: www.emeraldinsight.com/reprints

Documents

Marketing proquest