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internal decisions and attract external investors.
8.6 Sales and Customer Service
Sales drives profit. They may require a simple sales approach or a complicated sales system. An example of a
sales system is a six-step sales strategy: doing research about prospective clients and creating a list; making
an appointment to talk about your good or service; meeting with them to present a proposal; handling
objections; closing the deal; and nurturing the relationship after close. When selling luxury and expensive
items, the sales approach is usually more thorough and requires more sales training and finesse. Customer
service is a component that is linked to this process and with proper training can really differentiate a
company from the competition.
Review Questions
1. What are the differences between traditional and entrepreneurial marketing?
2. What is a target market? Why is it important to know the target before creating the marketing mix?
3. What are the components of the marketing mix? Explain each component.
4. What is the difference between pricing a product based on what a competitors charge and pricing a product
based on the company’s costs?
5. Check out the website http://www.flyzipline.com/. Who is the target market? What are their 7Ps?
6. What is market research? Why is it important to do research before you start a business?
7. How does primary data differ from secondary data?
8. How does STP help entrepreneurs?
9. How does guerrilla marketing differ from viral marketing?
10. What types of activities are involved in digital marketing? Choose one and explain.
11. What is a brand? Why is it important to work toward gaining recognition for the brand, especially for a
start-up brand?
12. How does a tagline help with positioning?
13. How does a marketing plan help an entrepreneur?
14. What is the difference between a marketing objective and a marketing strategy?
15. What are the steps in the sales process?
16. How does customer service impact sales of a new business?
Discussion Questions
1. If you could open a business right now, what would it be? Who would be your target market?
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2. Look at the Wag! website https://wagwalking.com/ and determine the 7Ps of this service. Do they work well
together? Why or why not?
3. Give an example of a company that uses bundle pricing and explain why it uses this method.
4. Discuss how market research can benefit entrepreneurs.
5. What is the difference between qualitative and quantitative data?
6. Give examples of how entrepreneurs can leverage marketing activities even when strapped for cash.
7. If you had a business that was highly dependent on WOM marketing, how would you ensure the
information passed along was positive? If the message passed along was negative, what would you do about
it?
8. Describe how a brand advocate might help IKEA position itself as a cost-effective and design-oriented
furniture store. Now discuss how a brand advocate can help a new product on the market establish a good
reputation.
9. Discuss how the business model canvas can help an entrepreneur create a framework for generating sales.
Think of a business you like and describe how it generates sales.
10. Negative referrals can have a great impact on a company’s sales. Remember an instance where you were
the source of a bad referral for a product or service, and determine what made the experience so negative.
What would you have done differently as the sales person to prevent that?
Case Questions
1. Claire is a young artist who has decided to sell her paintings to make some money while she finishes
college. She doesn’t know much about promoting her work, especially through online channels. Since you are
studying business, she has asked you for your advice on promoting her work to a young professional
demographic who would be inspired by her message through the arts. Describe two types of promotional
tools she can use to connect with her ultimate customer.
2. You have recently been hired to work as a marketing manager for a boutique hotel in San Diego. This hotel
is the only one of its kind and is not part of a chain. It only has 50 rooms that have been carefully designed to
fit a younger, eclectic, design oriented, and higher-income demographic. The owner needs help pricing the
rooms and other hotel services (see the following). Determine which pricing strategy you would use
(customer-led, cost-based, competition-based, premium, etc.) for each of the following items and explain why.
If necessary, look at some industry reports on how hotels price their services and decide if you should go the
same route or try something else.
A. Room rate (weekly and weekend)
B. Restaurant food
C. Parking
D. Internet and movie access
3. One of your classmates would like to open a food delivery service in town. This service would allow people to
buy lunch or dinner through an app from a list of restaurants. She’s in the early stages of her analysis and she
is asking your advice on possible sources of data that she can use. What kind of resources would you direct her
to? Why?
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4. One of your classmates recently opened a new gym in an up and coming professional area. She is an
accomplished trainer, but has little experience in business. She asks your help in coming up with a specific
target market. You share with her the STP process.
5. Visit the current Birchbox website, its online promotions, social media, online ads, and anything you can find
about its digital marketing strategies. If you were in charge of digital marketing for Birchbox, what would you
include or delete from their current activities?
6. Visit the Method website at https://methodhome.com/ and describe all of the branding components they
use to position themselves as the best cleaning products in the US market.
7. You have recently become a supplier of heavy equipment to manufacturing plants that build automotive
components. You have acquired one customer and would like to add more within the next three months. How
would you go about prospecting?
Suggested Resources
8.1 Entrepreneurial Marketing and the Marketing Mix
American Marketing Association: https://www.ama.org
Small Business Administration: https://www.sba.gov/
8.3 Marketing Techniques and Tools for Entrepreneurs
AMA Digital Marketing Certification: https://www.ama.org/events-training/Certification/Pages/digital-
marketing-certification.aspx
AMA on Demand course: Digital Marketing: Delivering a Custom Experience: https://www.ama.org/events-
training/virtual-events/Pages/digital-marketing-virtual-conference-051717.aspx
Google Ads: https://ads.google.com/home/
Google Analytics: https://analytics.google.com/analytics/web/provision/#/provision
Hubspot Google Ads guide: https://blog.hubspot.com/marketing/google-adwords-ppc
8.4 Entrepreneurial Branding
Hubspot’s Beginner’s guide to branding: https://blog.hubspot.com/agency/develop-brand-
identity#.WgSASHcJI2E.mailto
8.5 Marketing Strategy and the Marketing Plan
Business Model Canvas: https://strategyzer.com/canvas/business-model-canvas
Hubspot Marketing Plan templates: https://blog.hubspot.com/marketing/marketing-plan-template-generator
Small Business Administration: https://www.sba.gov/business-guide/manage-your-business/marketing-sales
8.6 Sales and Customer Service
Cialdini online tools: https://www.influenceatwork.com/
Hoffman Sales Training: https://sellhoffman.com/
Neil Rackman: http://neilrackham.com/
Chapter 8 Entrepreneurial Marketing and Sales 353
Spin Selling: https://blog.hubspot.com/sales/spin-selling-the-ultimate-guide
Zig Ziglar: https://www.ziglar.com/
The State of Customer Service: https://offers.hubspot.com/state-of-customer-service?hubs_post-
cta=anchor&hsCtaTracking=9c545446-aacf-47a3-bfb3-1998f78b79c8%7C4f98051f-03f6-4061-9a68-5de8fcbb40c1
Cialdini, R. B. (2001).Influence: Science and Practice (4th ed.). Boston: Allyn & Bacon: Explains some aspects of
the sales process in a fun and fact-based manner.
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Chapter Outline
9.1 Overview of Entrepreneurial Finance and Accounting Strategies
9.2 Special Funding Strategies
9.3 Accounting Basics for Entrepreneurs
9.4 Developing Startup Financial Statements and Projections
Introduction
In 2015, Doug Monahan, the CEO and founder of iBackPack of Texas, Inc., introduced a revolutionary
technology package encased in a typical backpack. The iBackPack boasted the capacity to incorporate WiFi/
MiFi, a battery system, smart power transfer cables, and a car-charging system—while carrying four notebook
computers and their accessories. Monahan promised that the iBackPack would be a “communication hub and
corresponding electrical powerhouse for students and business professionals alike.”[1] To bring the project to
market, iBackPack sought crowdfunding through an Indiegogo campaign that raised $723,395 from 4,041
backers. An additional $76,694 was raised from 252 Kickstarter backers.
In 2016, iBackPack raised over $800,000 to fulfill investors’ orders, but the product never materialized. The only
update from the company was a Facebook post alluding to issues sourcing “safe” batteries. By 2017, the
iBackPack crowdfunding campaign failed to deliver the product promised to its investors.[2],[3] According to an
article on the website The Verge in August 2018, the founders of iBackPack were under investigation by the
Figure 9.1 An advertisement showcasing the features of the iBackPack.
9
Entrepreneurial Finance and Accounting
1 “iBackPack Planning Kickstarter Launch on Black Friday.” Cision PR Newswire. November 24, 2015. http://www.prnewswire.com/news-
releases/ibackpack-planning-kickstarter-launch-on-blackfriday-300183934.html
2 Lewis Leong. “Sorry, iBackPack Backers. You Got Scammed.” Crowdtoolz. January 9, 2017. http://crowdtoolz.com/sorry-ibackpack-backers-
you-got-scammed/
3 Kylie McGovern. “Hundreds Still Waiting for Bulletproof ‘iBackPack’ Delivery a Year Later.” KXAN. July 13, 2017. http://kxan.com/2017/07/13/
hundreds-still-waiting-for-bulletproof-ibackpack-delivery-a-year-later/
	Chapter 8. Entrepreneurial Marketing and Sales
	Review Questions
	Discussion Questions
	Case Questions
	Suggested Resources
	Chapter 9. Entrepreneurial Finance and Accounting
	Table of Contents
	Introduction