Guidelines for e-Startup Promotion Strategy
Keywords:Start-up, promotional strategy, marketing, advertising formats
AbstractAbstract Startup businesses have always played an important role in the global economy, but recently their importance has grown significantly. For this reason, governments around the world have amended regulation and created incentives to encourage their development. However, statistics show that startups have an extremely high mortality rate, often due to a lack of strategic planning, wrong marketing investments or inefficient resource allocation. The purpose of this paper is to propose a decision-driven tool which will enable the creation of a successful promotional strategy. The proposed strategy is a three-stage process allowing startups to gradually eliminate non-optimal advertising formats. The first stage focuses on the analysis of the e-market where the startup operates. The second stage is dedicated to the economic environment that the new company will face relative to its available resources. Its aim is to reject overly expensive advertising formats by linking costs to availability of funds. The third and last stage is a cost effectiveness analysis, allowing the entrepreneur to identify the best advertising formats and using an impact-factor as a proxy of effectiveness. The proposed methodology has been applied to the case of an Italian early-stage startup for validation.
AHUJA, R., Michelis, T., Walker, M., & Weissbuch, M. (2007, 05 8). Teen perceptions of disclosure in buzz marketing. Journal of Consumer Marketing, 24(3), pp. 151-159. doi:10.1108/07363760710746157
ALBERGHINI, E., Cricelli, L., & Grimaldi, M. (2013). KM versus enterprise 2.0: a framework to tame the clash. Intrnational Journal of Information Technology and Management, 12(3/4), pp. 320-336. doi:10.1504/ijitm.2013.054799
BEESLEY, C. (2012, June 4). How to Set a Marketing Budget that Fits your Business Goals and Provides a High Return on Investment. Retrieved from U.S. Small Business Administration: http://www.sba.gov/community/blogs/howset-marketing-budget-fits-your-business-goals-and-provideshigh-return-investmen
BJERKE, B., & Hultman, C. M. (2004, 02). Entrepreneurial marketing: The growth of small firms in the new economic era. International Journal of Entrepreneurial Behavior & Research, 10(1/2), 167-170. doi:10.1108/13552550410521452
BUREAU OF LABOR STATISTICS. (2012). Business Employment Dynamics: Entrepreneurship and the U.S. Economy. Washington DC: U.S. Department of Labor. Retrieved from http://www.bls.gov/bdm/entrepreneurship/ entrepreneurship.htm
CARSON, D., Cromie, S., McGowan, P., & Hill, J. (1995). Marketing and Entrepreneurship in SME’s. London: Prentice Hall.
CERATI, F., De Cesari, M., Fotina, C., Meazza, M., Micardi, F., Roffero, F., . . . Tremolada, L. (2012). STARTUP NOW! Guida ai nuovi incentivi e al mercato delle imprese innovative. Milano: Il Sole 24 ORE.
CHRISTINE, M. (2013). The CMO Survey: Highlights and Insights - February 2013. C-suite Studies, Fuqua School of Business, Duke University.
DOBELE, A., Toleman, D., & Beverland, M. (2005, 03). Controlled infection! Spreading the brand message through viral marketing. Business Horizons, 48(2), pp. 143-149. doi:10.1016/j.bushor.2004.10.011
DYE, R. (2000). The Buzz on Buzz. Harvard Business Review(November/December), pp. 139-146.
GROENEWEGEN, G., & de Langen, F. (2012). Critical Success Factors of the Survival of Start-Ups with a Radical Innovation. Journal of Applied Economics and Business Research, 2(3), pp. 155-171.
HERRMANN, B. L., Marmer, M., Dogrultan, E., & Holtschke, D. (2012). Startup Ecosystem Report 2012. Telefonica Digital and Startup Genome.
HÜSING, T., & Selhofer, H. (2004). DIDIX: Digital Divide Index for Measuring Inequality in IT Diffusion. 1(7), pp. 21-38.
INTERNATIONAL TELECOMMUNICATION UNION. (2012). Measuring the Information Society. Geneve: ITU.
JOHNSON, T., & Kaye, B. (2002, 09 1). Webelievability: A Path Model Examining How Convenience and Reliance Predict Online Credibility. Journalism & Mass Communication Quarterly, 79(3), pp. 619-642. doi:10.1177/107769900207900306
KORTUM, S., & Lerner, J. (2000). Assessing the contribution of venture capital to innovation. RAND Journal of Economics, 31(4), pp. 674-692. doi:10.2307/2696354
KRAUS, S., Harms, R., & Fink, M. (2010). Entrepreneurial marketing: moving beyond marketing in new ventures. International Journal of Entrepreneurship and Innovation Management, 11(1), pp. 19-34. doi:10.1504/ijeim.2010.029766
LASCH, F., Le Roy, F., & Yami, S. (2007, 02 13). Critical growth factors of ICT start-ups. Management Decision, 45(1), pp. 62-75. doi:10.1108/00251740710718962
LEPPÄNIEMI, M., & Karjaluoto, H. (2005). Factors influencing consumers’ willingness to accept mobile advertising: a conceptual model. International Journal of Mobile Communications, 3(3), pp. 197-213. doi:10.1504/ ijmc.2005.006580
LEVINSON, J. (1984). Guerrilla Marketing: Secrets for making big profits from your small business. Boston: Houghton Mifflin.
LEVINSON, J., & Levinson, J. (2011). The best of guerilla marketing: Guerilla Marketing remix. USA: Entrepreneur Press.
LEWRICK, M., Omar, M., & Williams, Jr., R. (2011). Market Orientation and Innovators’ Success: an Exploration of the Influence of Customer and Competitor Orientation. Journal of Technology Management & Innovation, 6(3), pp. 48-62. doi:10.4067/s0718-27242011000300004
MAGRI, S. (2009). The Financing of Small Innovative Firms: The Italian Case. SSRN Electronic Journal, 18(2), pp. 181-204. doi:10.2139/ssrn.1022522
MALDONADO, M. U., Dias, N., &V arvakis, G. (2009). Managing Innovation in Small High-technology Firms: A Case Study in Brazil. Journal of Technology Management & Innovation, 4(2), pp. 131-142. doi:10.4067/s0718-27242009000200011
MARQUES, C. S., & Ferreira, J. (2009). SME Innovative Capacity, Competitive Advantage and Performance in a ‘Traditional’ Industrial Region of Portugal. Journal of Technology Management & Innovation, 4(4), pp. 53-68. doi:10.4067/s0718-27242009000400005
MCGRATH, R. G., Tsai, M.-H., Venkataraman, S., & MacMillan, I. C. (1996, 03). Innovation, competitive advantage and rent: A model and test. Management Science, 42(3), pp. 389-403. doi:10.1287/mnsc.42.3.389
MOHR, J., & Spekman, R. (1994, 02). Characteristics of partnership success: Partnership attributes, communication behavior, and conflict resolution techniques. Strategic Management Journal, 15(2), pp. 135-152. doi:10.1002/ smj.4250150205
MORRIS, M. H., Schindehutte, M. S., & LaForge, R. W. (2002). Entrepreneurial marketing: a construct for integrating emerging entrepreneurship and marketing perspectives. Journal of Marketing Theory and Practice, 10(4), pp. 1-19.
NIELSEN. (2011). Global AdView Pulse (Q3 2011). Amsterdam: Nielesn.
ORGANISATION for Economic Co-operation and Development. (2001). Understanding the Digital Divide. Paris: OECD Publications.
PHELPS, J., Lewis, R., Mobilio, L., Perry, D., & Raman, N. (2004). Viral Marketing or Electronic Word-of-Mouth Advertising: Examining Consumer Responses and Motivations to Pass Along Email. Journal of Advertising Research, 44(4), pp. 333348. doi:10.1017/S0021849904040371
PORTER, L., & Golan, G. (20120). From Subservient Chicken to Brawnt Men: A Comparison of Viral Advertising to Television Advertising. Journal of Interactive Advertising, 6(2), pp. 26-33. doi:10.1080/15252019.2006.10722116
PRICEWATERHOUSECOOPERS LLP. (2011). IAB Internet Advertising Revenue Report (2011 Full Year Report). New York: PwC New Media Group.
ROMANELLI, E. (1989, 09). Environments and Strategies of Organization Start-Up: Effects on Early Survival. Administrative Science Quarterly, 34(3), pp. 369-387. doi:10.2307/2393149
SCHWIENBACHER, A., & Larralde, B. (2010). Crowfunding of Small Entrepreneurial Ventures. In D. Cumming, The Oxford Handbook of Entrepreneurial Finance (p. 752). Oxford: Oxford University Press. doi:10.2139/ssrn.1699183
SOHL, J. E., & Rosenberg, W. (2003, 01). The US Angel and Venture Capital Market: Recent Trends and Developments. Journal of Private Equity, 6(2), pp. 7-17. doi:10.3905/ jpe.2003.320035
SONG, M., Bijl van der, H., & Halman, J. (2008, 12 07). Succes Factors in New Ventures: A Meta-analysis. Journal of Product
Innovation Management, 25(1), pp. 7-27. doi:10.1111/j.15405885.2007.00280.x
STEENKAMP, N., & Kashyap, V. (2010, 07 27). Importance and contribution of intangible assets: SME’s managers’ perceptions. Journal of Intellectual Capital, 11(3), pp. 368390. doi:10.1108/14691931011064590
STOKES, D. (2002, 04). Entrepreneurial Marketing in the Public Sector: The Lessons of Headteachers as Entrepreneurs. Journal of Marketing Management, 18(3/4), pp. 397-414. doi:10.1362/0267257022872488
TAN, H., Plowman, D., & Hancock, P. (2008, 10 17). The evolving research on intellectual capital. Journal of Intellectual Capital, 9(4), pp. 585-608. doi:10.1108/14691930810913177
VENTURE CAPITAL MONITOR. (2011). Rapporto Italia 2011. Varese: Università Carlo Cattaneo.
WATTS, D., & Peretti, J. (2007). Viral Marketing for the Real World. Harvard Business Review, May, pp. 1-2. doi:10.1007/978-3-8349-9537-7
WONG, A., Bhatia, M., & Freeman, Z. (2010, 05 10). Angel Finance, The Other Venture Capital. Investment Strategies, Structures, and Policies, pp. 71-110. doi:10.1002/9781118266908.ch5
ZERENLER, M., Hasiloglu, S. B., & Sezgin, M. (2008). Intellectual Capital and Innovation Performance: Empirical Evidence in the Turkish Automotive Supplier. Journal of Technology Management & Innovation, 3(4), pp. 31-40. doi:10.4067/ s0718-27242008000200003
ZILBER, S. N., & Braz de Araújo, J. (2012). Small Companies Innovations in Emerging Countries: E-Business Adoption and its Business Model. Journal of Technology Management & Innovation, 7(2), pp. 102-116. doi:10.4067/s071827242012000200009
How to Cite
Authors who publish with this journal agree to the following terms:
- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).