Two groups:
* Srategies and tactics for ''reducing the amount of resources'' (“let others pay”)
** Free-riding strategy
*** Focuses on problems of excluding consumers who enjoy benefits from the provision of public goods without paying for their costs
*** Free riding occurs in various forms in the business world, e.g., when firms imitate attributes of products from competitors without incurring R&D expenditures made by the innovating company
*** New ventures can free ride on the sometimes substantial market development efforts undertaken by the innovators
*** Learn from the experiences made by earlier entrants
*** Avoid their costly mistakes.
*** New ventures might also be able to enjoy cost savings in R&D, marketing planning, etc., when imitating strategies used by the originating firms (“mimicry”)
** Forming alliances
*** Experience in marketing plays a critical role in achieving success in cooperative marketing activities
* Strategies and tactics that require only few resources
** Niching strategy
*** Suggests that emerging firms should ''focus on market segments that are less crowded'' or even ignored by more resourceful companies.
*** New ventures can gain their first customers away from larger competitors and establish themselves as credible business partners
*** Research shows that 75% of successful small businesses pursue a niching strategy
** Gradual “step-by- step” development of marketing activities
*** See [[M6-S1 - Marketing in new ventures: theory empirical evidence - Stage models]]
***  In essence, the step-by-step approach rep- resents a strategy of slow growth as opposed to a strategy of high growth that might be required to succeed in some markets.
** Low-cost “guerrilla” tactics in marketing.
*** Consumers’ word-of-mouth
*** Creating a fan club for the offering
*** Handing out flyers
*** Delivering free samples
** Franchising
*** Not discussed
** Multilevel marketing
*** Not discussed

Part of [[M6-S1 - Reading - Gruber, M. 2004. Marketing in new ventures: theory & empirical evidence]]
Fri, 04 Jun 2010 11:19:02 GMT
Fri, 04 Jun 2010 11:19:02 GMT