Entrep Handouts 1A Product and Brand Devt
Entrep Handouts 1A Product and Brand Devt
1. DEFINITION OF ENTREPRENEURSHIP
Entrepreneurship is the act of creating a business or businesses while building and scaling it to generate a
profit.
The more modern definition of entrepreneurship is also about transforming the world by solving big
problems. Like initiating social change, creating an innovative product, or presenting a new life-changing
solution. (Oberlo, 2018)
“What the definition doesn’t tell you is that entrepreneurship is what people do to take their career and
dreams into their own hands and lead them in the direction of their own choice. It’s about building a life on
your terms. No bosses. There are no restricting schedules. And no one is holding you back. Entrepreneurs
can take the first step into making the world a better place for everyone.” (Oberlo, 2018)
Entrepreneurship is a dynamic process of vision, change, and creation. It requires an application of energy
and passion towards the creation and implementation of new ideas and creative solutions. Essential
ingredients include the willingness to take calculated risks in terms of time, equity, or career; the ability to
formulate an effective venture team; the creative skill to marshal needed resources; and the fundamental
skill of building a solid business plan; and finally, the vision to recognize opportunity where others see
chaos, contradiction, and confusion.
Entrepreneurship is more than the mere creation of a business. Although that is certainly an important fact,
it’s not the complete picture. The characteristics of seeking opportunities, taking risks beyond security, and
having the tenacity to push an idea to reality combine into a unique perspective that permeates
entrepreneurs.
Although there is a misconception that a business person and an entrepreneur are identical, each term
describes a separate person with a unique approach to business. To put it another way, an entrepreneur
thinks and feels that he should create his own road with unique ideas, whereas a business person follows a
predetermined path carved by someone else with an unoriginal idea or concept.
A business person manages a project or a company, but an entrepreneur leads a startup that has a unique,
cutting-edge concept or product. An entrepreneur is someone who creates a novel concept or idea, whereas
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3. ENTREPRENEURIAL OPPORTUNITY
At its core, the entrepreneurial process begins with identifying an attractive entrepreneurial opportunity,
which is more than merely having a good idea. Such opportunities make the enterprise economically
attractive for the owners while offering customers a product or service so appealing that they are willing to
pay their hard-earned money for it. An entrepreneur must find a way to create value for customers. An
entrepreneurial opportunity is an economically attractive and timely opportunity that creates value both for
prospective customers and for the firm’s owner. According to Kirzner, opportunities exist because of
imbalances in the market or inefficient use of existing resources; and entrepreneurs are creators of
equilibrium.
4. ENTREPRENEURS
a. WHO IS THE ENTREPRENEUR?
An entrepreneur is a person who relentlessly pursues an opportunity to create value while assuming both
the risk and the reward for his/her efforts. Entrepreneurs generally think differently about resources than
employees-managers, entrepreneurs work to do more with less. Entrepreneurs help move the economy to
or from equilibrium.
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1. PERSONAL FULFILLMENT
Some entrepreneurs aren't in it for the money or the experience as much as they're in it for a legacy. They
might want to become the face of a brand and earn a taste of fame along the way. They might want to leave
behind something that appreciates them. They might even want to pass the business on to a future
generation. The point is, that they want to create something meaningful that will outlast them. This
motivation is one of the strongest for entrepreneurs because it can't be achieved in any other application
and lasts much longer than money or experience. One example is the legacy of Henry Sy, founder of SM
Investments Corporation.
2. PERSONAL SATISFACTION
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3. INDEPENDENCE
Some entrepreneurs venture out on their own because they're tired of the demands of traditional work. In a
high-level position, the demands are exceptional -- working long hours, catering to the whims of your
bosses and clients, and being stuck in the same old rut of responsibilities. Being your own boss in
entrepreneurship frees you from those restraints. You can work your own hours, wherever you feel like
working, and set your own goals and responsibilities. Just be aware that entrepreneurship is highly
demanding, especially in the early stages of growth, so working your own hours can sometimes mean
working fewer hours or under less stress. Many people find that they work harder, longer, and under tighter
constraints as entrepreneurs than they did as workers -- but it's still rewarding.
4. FINANCIAL REWARDS
You can deny it all you want, but most entrepreneurs get into the game at least partially because of the
potential to make lots and lots of money. Stories about entrepreneurial geniuses like Richard Branson and
Mark Zuckerberg make it seem possible for any enthusiastic citizen with a good idea to become an
overnight billionaire. This isn't exactly true, but any dedicated entrepreneur with a good idea and great
timing can make much more money than they ever could in a traditional position. There's nothing wrong
with pursuing money, but if the allure of wealth is the only thing driving you, you risk becoming frustrated
if you don’t turn a profit in the first few years.
C. SOCIAL ENTREPRENEURSHIP
1. DEFINITION
Social entrepreneurship is about applying practical, innovative, and sustainable approaches to benefit
society in general, with an emphasis on those who are marginalized and poor. A term that captures a unique
approach to economic and social problems, an approach that cuts across sectors and disciplines grounded
in certain values and processes that are common to each social entrepreneur, independent of whether his/
her area of focus has been education, health, welfare reform, human rights, workers' rights, environment,
economic development, agriculture, etc., or whether the organizations they set up are non-profit or for-
profit entities. This approach sets the social entrepreneur apart from the rest of the crowd of well-meaning
people and organizations who dedicate their lives to social improvement.
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2. SOCIAL ENTREPRENEURS
Social entrepreneurs drive social innovation and transformation in various fields, including education,
health, environment, and enterprise development. They pursue poverty alleviation goals with
entrepreneurial zeal, business methods, and the courage to innovate and overcome traditional practices.
Like a business entrepreneur, a social entrepreneur builds strong and sustainable organizations, which are
either set up as not-for-profit companies. A social entrepreneur is a leader or pragmatic visionary who:
• Achieves large-scale, systemic, and sustainable social change through an invention, a different
approach, a more rigorous application of known technologies or strategies, or a combination of
these.
• Focuses on social and/or ecological value creation and tries to optimize the financial value creation.
• Innovates by finding a new product, service, or approach to a social problem.
• Continuously refines and adapts approach in response to feedback.
• An unwavering belief in the innate capacity of all people to contribute meaningfully to economic
and social development
• A driving passion to make that happen.
• A practical but innovative stance to a social problem, often using market principles and forces,
coupled with dogged determination, allows them to break away from constraints imposed by
ideology or field of discipline, and pushes them to take risks that others wouldn't dare.
• A zeal to measure and monitor their impact. Entrepreneurs have high standards, particularly to their
own organization's efforts and in response to the communities with which they engage. Data, both
quantitative and qualitative, are their key tools, guiding continuous feedback and improvement.
• A healthy impatience. Social Entrepreneurs cannot sit back and wait for change to happen – they
are the change drivers.
• Creating a world where everyone has the opportunity to live a healthy and productive life.
• Using their financial capability to attract people into participating to help them achieve their goal
which is to hope for a cleaner future.
• Bambike. A socio-ecological enterprise that works with the Gawad Kalinga Foundation aims to
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There are four reasons or motivations why people become entrepreneurs, but several motivations may lead
you to consider starting an enterprise from scratch rather than pursuing other alternatives. So how do you
get started? It all begins with a promising business idea. By recognizing the nature and origin of startup
ideas an entrepreneur can broaden the range of new ideas available for his or her consideration.
• Startup ideas centered on providing customers with an existing product or service not
available in the market.
• Examples include targeting the new age beverage market by selling soft drinks with
nutritional value or moving from the trend of selling coffee and tea to flavored milk
drinks with better nutritional value.
• There is an existing product already, but you improve or innovate thus creating a new
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• Startup ideas involving new or relatively new technology centered on providing new
customers with a new product.
• Examples include using high-tech computers to develop simulated helicopter rides or
using virtual reality (VR) to give customers a better sense of the product.
Know how to screen business ideas to identify those with the greatest potential.
Since you can pursue multiple startup ideas for now it is important to narrow your focus to the one that
seems most promising. You need to decide on the business idea that you want to consider in the future.
The business idea screening can help you do this.
3. SWOT ANALYSIS
a. WHAT IS A SWOT ANALYSIS AND WHY SHOULD YOU USE ONE?
Strength, Weakness, Opportunity, Threat. A SWOT analysis guides you to identify the positives and
negatives inside your organization (S-W) and outside of it, in the external environment (O-T). Developing
a full awareness of your situation can help with both strategic planning and decision-making.
The SWOT method (which is sometimes called TOWS) was originally developed for business and industry,
but it is equally useful in the work of community health and development, education, and even personal
growth.
• Strengths refer to the strong attributes or capabilities of the business that provide a great advantage
in exploiting the business opportunity.
• Weaknesses are poor attributes or deficiencies that give disadvantages to the business. Both the
strengths and the weaknesses in the SWOT analysis are within the business environment and are
thus within the control of the entrepreneur.
• Opportunities are business situations in the form of products or services that must be exploited
because of their potential in terms of profit and growth.
• Threats are possible external events in the environment that may provide harm to the business. Both
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A SWOT analysis can offer helpful perspectives at any stage of an effort. You might use it to:
Explore possibilities for new efforts or solutions to problems. Make decisions about the best path for your
initiative. Identifying your opportunities for success in the context of threats to success can clarify directions
and choices. Determine where change is possible. If you are at a juncture or turning point, an inventory of
your strengths and weaknesses can reveal priorities as well as possibilities. Adjust and refine plans mid-
course. A new opportunity might open wider avenues, while a new threat could close a path that once
existed.
SWOT also offers a simple way of communicating about your initiative or program and an excellent way
to organize the information you've gathered from studies or surveys.
By using the SWOT analysis model, the entrepreneur must list down all the factors that are considered
strengths, weaknesses, opportunities, and threats affecting the business.
The very first and foremost reason for any new product development is to provide value to the customers.
Without this, there is no reason to waste your money for new devices. However, if the product or service
offers great value, then the customers feel interested in trying it. The increasing demands of customers for
innovation & new technologies keep the companies growing.
b. Society betterment
There are many instances where new products helped in society's improvement beyond any level. The new
features or technology have been proved to be a boon for society. Also, with the need for new product
development practices, companies hire new resources which help society in terms of employment and
income generation.
New Product Development (NPD) is the total process that takes a service or a product from conception to
commercialization. Before a product is introduced in the market, it usually undergoes a process such as,
conceptualizing, creating designs, defining the market, and so on. This process does not only mean
introducing a new product to the market, it also includes rebranding products or services to increase
competition in the market. New product development can take any form; it can completely replace a current
product, take over an existing product, or simply broaden the market for something that already exists. This
process can improve the company's position in the market, its resources, and its relationship with the
customers and distributors, and increase its market share.
1. Idea Generation
Generating ideas is the initial stage of product development. Every great product was conceived from an
idea. This stage is crucial because it serves as the foundation of all the phases of product development.
2. Idea Screening
Once you have already gathered ideas from different people involved in the market, you will now screen
these ideas to come up with the best idea that fits the needs of the potential customers. Idea screening can
be done by researching the market. This will help you to see if there's a demand for the product and what
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Before selecting or rejecting an idea, the following questions are considered or asked:
3. Development
The next stage is development. Under this stage, there are two developments. The first is concept
development. In this stage, the business will start researching the potential costs, revenues, and profits of
the screened ideas or products. Also, it will undertake further analyses such as SWOT analysis,
segmentation, product's target market, and other studies that will help develop the chosen concept. After
concept development, product development will follow. In this stage, prototypes are created for market
testing before commercial production. Prototypes may be modified through various design and
manufacturing stages to come up with a finished product that consumers will want to buy. Creating a
prototype will allow business owners to test and refine a designed product, as well as its marketing strategies
of it.
4. Testing
After developing a prototype, the next stage is market testing. In this stage, the business will test its new
product with a small group of actual consumers. They will be asked about what they see as a standout when
it comes to their products or services, where they feel your products or services can be improved, and if
your price point is competitive. This stage is done before formally introducing the product to the market
and before commercial production. Test marketing may be time-consuming, but it is considered to be a
safety device for businesses with costly products because it will enable them to make sure that they have a
viable product that will be profitable, and that there are no changes that need to be made before it's
launched.
5. Analysis
The analysis will follow testing the market. In this stage, the business will look at the feedback from the
customers who took part in the market testing. Testing the product can yield valuable information such as
which features they like and don't like potential problems, and their willingness to buy the product. Also,
they will now decide if the product needs certain changes, how it will be introduced in the market, what
price to sell, how the product will be marketed, and other strategic decisions before commercialization.
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If the test marketing is successful, then the company introduces and produces the new product on a large
scale. In this stage, which is the final stage of the product development process, the business embarks on
investing a large amount for the new product or service. Usually, these new products or services are
promoted on mass media like television, radio, newspaper, magazines, billboards, etc.
Product development is the strategy for the successful development of new products or adding new features
to the existing product. It is the first step in the development of the product. In business terms, the product
development strategy can provide a framework that helps to improve the performance as well as the quality
of the products. These strategies can bring up scores of benefits to help you to expand your business in
today's competitive market such as:
The development of a product without a proper strategy is quite a risky challenge. To control and to be sure
of your success, you must plan the development of your products or services, and this is what your business
requires. This planning could help in achieving your business goals.
2. Improved Performance
Many times, even after spending thousands of dollars on promotion or marketing your product, a business
owner faces disappointment because of the poor quality of the product. Hence, you must look at your
production and other processing to keep a record of your wrongdoings & rectify the same.
3. Reduced Cost
There is no denying the fact that creating and implementing new products leads to an additional huge cost
to the company. You may have to bear a huge cost in the initial stage of product development but after the
execution process, you will notice a decrease in your product development cost.
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Developing a successful new product is not an easy game. One must make lots of decisions and exercise to
minimize the rate of failure. Many factors fail in product development such as shortage of new ideas, long
time, high cost developing, fragmented or small market, etc.
But to succeed with a new product, one needs to follow a decorum or a system step by step which results
in the success of product development. Based on the possible causes of new product failures, some
essentials factors also need to be considered in developing a new product:
1. TIMING: Timing is everything for a product launch. There are certain times and days you need to
avoid in deciding a time for your product launch. For instance, a new Christmas decoration product
or service is best introduced during the Christmas season.
2. PRICE: make sure you undertake thorough research to ensure consumers will be willing to pay the
price you are asking.
3. PACKAGING: it needs to be attractive and welcoming to the human eye. Do your research on what
colors people like and are receptive to.
4. YOUR NEW PRODUCT’S NAME: make it simple and original that will leave a lasting impression
upon the customer.
5. PROMOTION: Understand the variety of marketing channels available to you to promote your
product and do your research as to which channels will work best. A mixture of at least two different
mediums will be required.
6. KNOW YOUR TARGET MARKET: be aware of what your intended audience like and doesn't
like. It is important to know the demand for your product.
7. KNOW YOUR COMPETITION: be aware of your competition’s marketing strategies and range
of products. You don’t want to launch only to find out that your competitor is bringing out a newer,
cheaper (or more prestigious/expensive) product the next day.
8. TEST YOUR NEW PRODUCT REPEATEDLY: This needs to be done several times beforehand.
Test the quality and performance of your product. As much as possible, you will provide a 100%
error-free product upon launch. In this way, you can leave a positive impression on your target
market.
9. SEEK REVIEWS: be open to positive and negative feedback for continuous improvement.
10. BE STRATEGIC AND PATIENT: you may need to re-work your marketing strategy, alter your
price or even re-launch because of a change in circumstances. Having a strategic and flexible
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Akrani, G. (n.d.). Stages process steps of new product development. KALYAN CITY LIFE BLOG.
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