Entrepreneurship
MGT602
VU
Lesson
42
PREPARING
FOR THE NEW
VENTURE
LAUNCH: EARLY MANAGEMENT
DECISIONS (Continued....)
CREATING
AWARENESS OF THE NEW VENTURE
In
the early stages, the entrepreneur should
focus on developing awareness of the
products offered.
Publicity
is
free advertising provided by a media
outlet. Many local media
encourage entrepreneurs to par-
ticipate
in their programs. The entrepreneur
can increase the opportunity
for getting exposure by preparing
a
news release and sending it
to as many media sources as
possible. For radio or TV,
the entrepreneur
should
identify programs that may
encourage local entrepreneurs to
participate. Free publicity can
only
introduce
the company. Advertising can be
focused on specific
customers.
Internet
Advertising
The
Internet is an excellent medium to
create awareness and to
effectively support early
launch strategies.
Creating
a website is the most important
first stage. The website
should indicate: Background of the
company.
Its products, officers, address,
telephone and fax numbers. Contact
names for potential
sales.
Direct
sales from the website may
also be available. Significant advertising is
needed to create interest
and
awareness
of the existence of the website. It is
important to change the content of the
website as necessary.
The
entrepreneur may also consider
using a banner ad, small
rectangular ads similar to
billboard ads that
appear
on browser websites.
Trade
Shows
Every
industry has a trade or
professional association that
sponsors annual trade shows.
Although creating
a
booth can be very expensive,
trade shows are where
hundreds of thousands of people observe
or identify
trends
in their industry. There is strong
evidence to indicate that the cost
per sale from a trade
show is
significantly
less than the cost per
sale from a personal sales
call.
Selecting
an Advertising Agency
Advertising
agencies can provide many
promotional services. The advertising
agency is an independent
business
organization composed of creative and
business people who develop, prepare,
and place advertis-
ing
in media for its customers.
The agency can provide
assistance in marketing research. It is
important to
determine
whether the agency can fulfill
all of the needs of the new venture. A
checklist of items that
the
entrepreneur
may consider in evaluating an agency is
useful. The agency should
support the marketing
program
and assist the entrepreneur in getting the
product effectively
launched.
HIRING
EXPERTS
If
the entrepreneur has no expertise in financial
analysis, marketing research, or
promotion, he or she
should
hire outside experts. There
are accountants, financial experts,
and advertising agencies that
cater to
new
ventures.
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