A new, small business would employ entrepreneurial marketing techniques rather than traditional ones because:
- They have many resources allocated to marketing to grow their business.
- They want to know what products their customers would be interested in.
- They want to remind customers of the strength of their brand.
- They need to develop their customer base.
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Answer: They need to develop their customer base.
Why a New Small Business Uses Entrepreneurial Marketing: A 1000-Word Explanation
Entrepreneurial marketing is a set of unconventional marketing strategies and practices typically used by startups and small businesses. Unlike traditional marketing, which depends heavily on large budgets, brand loyalty, and mass media advertising, entrepreneurial marketing focuses on innovation, adaptability, customer relationships, and low-cost strategies to grow a business from the ground up.
When a new, small business is just starting out, the most crucial task is not promoting a widely recognized brand or using traditional media to “remind” customers about what they already know — because none of that exists yet. The business is new, the customer base is small or non-existent, and there are very limited financial resources. This is why developing a customer base becomes the primary goal — and entrepreneurial marketing provides the right tools and mindset for achieving that goal effectively.
1. What Is Entrepreneurial Marketing?
Entrepreneurial marketing refers to marketing strategies driven by innovation, risk-taking, and creativity. It involves proactive identification and exploitation of opportunities to acquire and retain customers. Unlike the formulaic approaches of traditional marketing, entrepreneurial marketing:
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Relies on trial and error
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Adjusts quickly based on customer feedback
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Uses low-cost or no-cost channels (e.g., social media, content marketing, referrals)
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Prioritizes building strong customer relationships
It’s not just a type of marketing; it’s a mindset where business owners think like entrepreneurs, always testing, adapting, and re-evaluating what works best for their specific audience.
2. Why Traditional Marketing Doesn’t Work Well for New Small Businesses
Traditional marketing is best suited for well-established companies that have the following:
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Large advertising budgets
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A well-defined market segment
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Brand recognition
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Wide market reach
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Access to expensive advertising platforms like TV, radio, and print media
Small businesses, in contrast, often have:
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Tight budgets
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Limited reach
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No brand recognition
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A need for personalized, agile, and experimental marketing strategies
If a small business used traditional marketing techniques, they would quickly run out of resources without guaranteed returns. Instead, they must think creatively and act strategically, using entrepreneurial marketing to grow their customer base from scratch.
3. The Role of Developing a Customer Base
At the heart of any successful business lies a loyal and engaged customer base. This is particularly true for startups, whose survival hinges on early adopters. Entrepreneurial marketing directly supports this by helping a business:
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Identify target customers with minimal research budgets
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Reach potential customers using free or affordable digital channels
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Build trust and relationships that lead to repeat purchases
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Gather real-time feedback to improve product-market fit
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Turn satisfied customers into brand advocates
By focusing on community-building and relationship-based marketing, small businesses slowly convert strangers into loyal customers — something traditional ads cannot achieve as effectively at the early stages.
4. Key Techniques in Entrepreneurial Marketing
Entrepreneurial marketing includes several powerful techniques that support customer base development:
a. Social Media Marketing
Platforms like Facebook, Instagram, TikTok, and LinkedIn allow small businesses to reach highly targeted audiences without massive ad budgets. By posting engaging content, answering comments, and running small ad campaigns, startups can create awareness and build a community.
b. Content Marketing
Blogging, creating videos, sharing tutorials, and building email newsletters are cost-effective ways to educate potential customers, build trust, and drive traffic to the business.
c. Networking and Word-of-Mouth
Entrepreneurs often attend community events, partner with influencers, or offer referral incentives. This helps spread the word organically and builds trust through personal recommendations.
d. Feedback Loops
Early users are asked for feedback, and the business adapts quickly. This responsiveness shows customers that the company cares and is evolving — a huge advantage over larger, slower competitors.
e. Minimum Viable Product (MVP) Testing
Instead of launching a complete product with a massive marketing campaign, entrepreneurial marketers test a smaller version of the product to see how customers react. This is cost-effective and ensures the product fits actual demand.
5. Case Example: The Power of Customer Development
Consider a small business startup that launches a line of eco-friendly cleaning products. They don’t have the funds to run TV ads or sponsor major events. Instead, they:
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Create an Instagram page to showcase their ingredients and packaging
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Share user-generated content from early adopters
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Offer discounts to the first 100 customers
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Send follow-up emails to gather feedback
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Use testimonials on their website
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Optimize for local SEO to gain traffic organically
By applying these entrepreneurial techniques, the business gradually builds a customer base that not only buys their products but also shares them with others — accelerating growth without massive advertising costs.
6. Developing vs. Reminding
Let’s briefly contrast the correct answer with the other options:
❌ “They have many resources allocated to marketing to grow their business.”
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This is rarely true for new small businesses. They typically have very limited resources, which is precisely why entrepreneurial marketing is necessary.
❌ “They want to know what products their customers would be interested in.”
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This is a part of entrepreneurial marketing, particularly in early development stages, but it’s not the primary reason they choose this method over traditional ones. Knowing customer preferences is one step in the larger goal of developing a customer base.
❌ “They want to remind customers of the strength of their brand.”
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Reminding customers assumes that a brand already exists and has recognition — which is not the case for new small businesses.
7. Final Thoughts
Entrepreneurial marketing is not a luxury; it’s a necessity for startups and small businesses. Without the ability to pay for traditional marketing campaigns, these businesses must rely on creativity, agility, and deep customer engagement. All of these point to the central reason they adopt entrepreneurial marketing strategies:
They need to develop their customer base.
By focusing on building relationships, testing ideas rapidly, and leveraging affordable digital tools, small businesses can survive, adapt, and eventually thrive — even in highly competitive markets.