TECHNOPRENEURSHIP

INTRODUCTION TO TECHNOPRENEURSHIP
Learning Objectives:

By the end of this session you should be able to:

1. Explain the definitions of entrepreneurship and
Technopreneurship
2. Describe similarities and differences between
entrepreneurship and Technopreneurship
3. Relate the 5 characteristics of entrepreneurship to real
life situations.
 Do you need a business related
course, like Technopreneurship,
knowing the fact that you are
future engineer?

YES! OF COURSE, I DO NEED IT!

Do you know these persons?
V
 ENTREPRENEURSHIP vs TECHNOPRENEURSHIP

A way of thinking and

acting that is
opportunity obsessed, Entrepreneurship in a
holistic in approach technology intensive
and leadership context, it is about
balanced for the creating the NEW
purpose of wealth and destroying the
creation. OLD:
•
ENTREPRENEUR VS TECHNOPRENEUR

An entrepreneur is a
person who identifies an
opportunity, converts it
into a product or service,
estimates earnings and
profit and builds a
successful business with
it.
 ENTREPRENEUR VS TECHNOPRENEUR

A person who destroys the

existing economic order
(creative destruction) by
introducing products and
services by creating new
forms of organizations and by
exploiting new raw materials. .
A technopreneur starts out
with nothing but an ‘idea’.
Entrepreneur vs Employee
Think, do you want
to be employee for
the rest of your
life?

Do you also want to

become an
entrepreneur?
 Would you imagine yourself few years
from now being your own boss?

Would you imagine working from 9am to

5pm in a cramped office where you have
to meet deadlines, be scolded by your
supervisor, while being stuck in traffic
from and to your office. How would you
feel?
ANYONE could
start a business
5 CHARATERSTICS OF
ENTREPRENEURS
5 CHARATERSTICS OF
ENTREPRENEURS
5 CHARATERSTICS OF
ENTREPRENEURS
5 CHARATERSTICS OF
ENTREPRENEURS
5 CHARATERSTICS OF
ENTREPRENEURS
“To do big things, you need to grow”
INNOVATION
AND
IDEAS
Learning Objectives

In this session, you will get a good grasp on what innovation

and ideas are. You will be able to:
1. Suggest different creative and innovative ideas on various
issues surrounding the United Nation’s 17 Sustainable
Development Goals
Views of Technopreneurship
CREATIVITY

• ability to develop new ideas and

discover new ways of looking at
problems and opportunities
• an important source for building a
competitive advantage and for
survival
• capability or act of conceiving
something original or unusual
Test of Creativity
Let’s test your creativity before digging deeper into our
session. Answer this test to
measure your creativity.

https://www.kellogg.northwestern.edu/faculty/uzzi/ftp/page176.html

What is your score? _______________

If your score lies below not
being creative enough, don’t
worry. This course will help
you enhance your creativity.
INNOVATION

• ability to apply creative solutions to

problems and opportunities that
enhance or enrich people’s lives
• evolutionary, developing market-
sustaining ideas.
• implementation of something new
Five characteristics of innovation

• 1. Relative advantage – how improved an innovation is

over a competing option or the previous generation of a
product.
• 2. Compatibility – potential adopters of your innovation
must know that your innovation will be COMPATIBLE
WITH THEIR LIFE AND LIFESTYLE
• 3. Simplicity – it refers to how difficult it will be for
adopters to learn to use an innovation.
4. Trialability – it describes how easily potential adopters
can explore your innovation.
5. Observability – it is the extent to which the results of
using an innovation are visible to potential adopters.
Importance of
Creativity
1. Solves problems
2. Fuels big ideas
3. Opens door to
new opportunities

Importance of
Innovation
1. Stand Out
2. Growth
3. Meet the Needs of
Customers
Idea

1. a thought or collection of thoughts that

generate in the mind
2. usually generated with intent, but can also
be created unintentionally
3. formed during brainstorming sessions or
through discussions
4. impression or notion that tries to portray the
overaching scope or outline
Examples

1. SM – With their tagline “WE GOT IT ALL FOR YOU”,

they ensure that their malls are one stop shop for all your
needs while making shopping a pleasant, comfortable
and convenient place to shop.
2. ONLINE SHOPPING AND DELIVERY SERVICES – The
pandemic that caused the whole world to STAY AT
HOME has paved way for online shopping and delivery
services businesses to boom.
See you in our class.
Thank you.
 References/Readings:
1. https://www.destination-innovation.com/what-is-the-difference-between-
creativityandinnovation/#:~:
text=Creativity%20is%20the%20capability%20or,product%20of%20some%20unique%20insight
2. https://www.linkedin.com/pulse/importance-creativity-innovation-business-siyanasokolova/
3. https://online.lsus.edu/articles/business/creativity-innovation-inentrepreneurship.aspx
4. https://www.planbox.com/3-reasons-why-innovation-
isimportant/#:~:text=Innovation.,making%20it%20easier%20to%20achieve.
5. https://en.wikipedia.org/wiki/Sustainable_Development_Goals
Technopreneurship
- Idea Generation
 Learning Objectives

By the end of this session you should be

able to:
• Identify where can we get ideas
• Identify the techniques in idea generation
 Introduction
• Ideas are the key to innovation. Without
them, there isn't much to execute and
because execution is the key to learning,
new ideas are necessary for making any
kind of improvement.
• It's obvious that ideas alone won't make
innovation happen, as you need to be able
to build a systematic process for managing
those ideas.
What is Idea Generation?

• Idea generation is described as the

process of creating, developing and
communicating abstract, concrete or visual
ideas.
• It’s the front end part of the idea
management funnel and it focuses on
coming up with possible solutions to
perceived or actual problems and
opportunities.
Where can we get ideas?

1. Experience Personal
2. Environment Observational
3. Culture Anthropological
Where can we get
ideas?
OPPORTUNITY
IDENTIFICATION

Improvements, variants, and

cost reduction of existing one.

New territory of one or both of

the market and technology
dimensions.

New category of
product/service with great
uncertainty.
TECHNIQUES FOR GENERATING
OPPORTUNITIES

Pull opportunities from capabilities (Mind your

resources).
Valuable, rare, not easy to imitate, non-substitutable.

Follow a personal passion

Compile bug lists
Study customers
Consider implications of trends
Imitate but improve
Techniques in idea
generation
1. SCAMPER is an idea generation
technique that utilizes action verbs as
stimuli. It is a well-known kind of checklist
developed by Bob Eberie that assists the
person in coming up with ideas either for
modifications that can be made on an
existing product or for making a new
product. SCAMPER is an acronym with
each letter standing for an action verb
which in turn stands for a prompt for
creative ideas.
 2. Brainstorming
• This process involves engendering a huge
number of solutions for a specific problem
(idea) with emphasis being on the number
of ideas. In the course of brainstorming,
there is no assessment of ideas. So,
people can speak out their ideas freely
without fear of criticism. Even
bizarre/strange ideas are accepted with
open hands. In fact, the crazier the idea,
the better. Taming down is easier than
thinking up.
 3. Mindmapping
• Mindmapping is a graphical technique for
imagining connections between various
pieces of information or ideas. Each fact or
idea is written down and then connected
by curves or lines to its minor or major
(previous or following) fact or idea, thus
building a web of relationships. It was Tony
Buzan, a UK researcher, who developed
the technique “mind mapping” discussed
in his book ‘Use your Head’ (1972).
4. Synectics
• a problem-solving technique that seeks to
promote creative thinking, typically among
small groups of people of diverse
experience and expertise.
• it is a creative idea generation and
problem solving technique that arouses
thought processes that the subject may
not be aware of.
5. Storyboarding

• Storyboarding has to do with developing a

visual story to explain or explore.
Storyboards can help creative people
represent information they gained during
research. Pictures, quotes from the user,
and other pertinent information are fixed
on cork board, or any comparable surface,
to stand for a scenario and to assist with
comprehending the relationships between
various ideas.
6. Role playing

• In the role playing technique, each

participant can take on a personality or
role different from his own. As the
technique is fun, it can help people reduce
their inhibitions and come out with
unexpected ideas.
7. Attribute listing
• Attribute listing is an analytical approach to
recognize new forms of a system or
product by identifying/recognizing areas of
improvement. To figure out how to
enhance a particular product, it is broken
into parts, physical features of each
component are noted, and all functions of
each component are explained and
studied to see whether any change or
recombination would damage or improve
the product.
8. Visualization and
visual prompts
Visualization is about thinking of challenges
visually so as to better comprehend the
issue. It is a process of incubation and
illumination where the participant takes a
break from the problem at hand and
concentrates on something wholly different
while his mind subconsciously continues to
work on the idea..
9. Morphological
analysis
• Morphological analysis has to do with
recognizing the structural aspects of a
problem and studying the relationships
among them. For example: Imagine the
problem is transporting an object from one
place to another by way of a powered
vehicle.
10. Forced relationships

• It is an easy technique involving the joining

of totally different ideas to come up with a
fresh idea. Though the solution may not be
strictly unique, it frequently results in an
assortment of combinations that are often
useful. A lot of products we see today are
the output of forced relationships (such as
a digital watch that also has a calculator,
musical birthday cards and Swiss army
knife).
11. Daydreaming
• Though mostly not met with approval,
daydreaming is truly one of the most
fundamental ways to trigger great ideas. The
word “daydream” itself involuntarily triggers an
uninhibited and playful thought process,
incorporating the participant’s creativity and
resourcefulness to play around with the present
problem.
12. Reverse thinking
• As the term ‘reverse thinking’ itself
suggests, instead of adopting the logical,
normal manner of looking at a challenge,
you reverse it and think about opposite
ideas. For example: ‘how can I double my
fan base?’ can change into ‘how do I make
sure I have no fans at all?’ You may notice
that the majority of participants would find
it easier to produce ideas for the ‘negative
challenge’ simply because it is much more
fun.
13. Questioning assumptions

• The majority of industries have an

orthodoxy – unspoken but deeply-held
beliefs that everyone stands by for getting
things done. Sadly, they fail to realize that
by questioning assumptions at every step
of service or product development, they
can actually enable the birth of fresh
possibilities and ideas.
14. Accidental genius

• Accidental genius is a relatively new

technique that utilizes writing to trigger the
best ideas, content and insight.
15. Brainwriting
• Brainwriting is easy. Instead of asking the
participants to shout out ideas, they are
told to pen down their ideas pertaining to a
specific problem or question on sheets of
paper, for a small number of minutes. After
that, each participant can pass their ideas
over to someone else. This someone else
reads the ideas on the paper and adds
some new ones.
16. Wishing

• This technique can be begun by asking for

the unattainable and then brainstorming
ideas to make it or at least an
approximation of it, a reality. Start by
making the wishes tangible. There should
be collaboration among the members of
the team to produce 20 to 30 wishes
pertaining to your business.
17. Socializing
• If employees only hang around with colleagues
and friends, they could find themselves in a
thinking rut. Let them utilize all those LinkedIn
connections to begin some fantastic
conversations. Refreshing perspectives will
assist with bringing out new thinking and
probably, one or two lightning bolts. Socializing
in the context of ideation can also be about
talking to others on topics that have nothing
whatsoever to do with the present problem.
18. Collaboration

• As the term indicates, collaboration is

about two or more people joining hands in
working for a common goal. Designers
frequently work in groups and engage in
collaborative creation in the course of the
whole creative process.
TECHNOPRENEURSHIP
PRODUCTS & SERVICES
Learning Objectives:

In this session, you will learn about the terms

product and services and their relation to your idea.
By the end of this session you should be able to:
1. Differentiate products from services.
2. Discuss important concepts related to products and
services
3. Demonstrate skills in presenting idea about products
and services attributes
2
 PRODUCT
Anything that can be offered to a market for
attention, acquisition, use or consumption to
satisfy a want or need. It includes:
Physical Objects

Organizaltions

Places

Persons

Events
3
 SERVICE
• consists of activities, benefits, or
satisfactions offered for sale that are
essentially intangible and do not result in the
ownership of anything

Experiences represent what buying

the products or services will do for a
customer

4
CLASSIFICATION OF PRODUCTS

A product used to manufacture other goods

Business
or services, to facilitate an organization’s
Product operations, or to resell to other consumers.

Consumer Product bought to satisfy an

Product individual’s personal wants

5
Types of Cosumer Products

Convenience Products

• Buy frequently and immediately

• Low priced

• Mass advertising

• Many purchase locations

6
Types of Cosumer Products

Shopping Products

• Buy less frequently

• Higher price

• Fewer purchase locations

• Comparison shop

7
Types of Cosumer Products

Specialty Products

• Special purchase efforts

• High price

• Unique characteristics

• Brand identification

• Fewer purchase location

8
Types of Cosumer Products

Unsought Products

• New innovations

• Requires much advertising

and personal setting

9
 INDIVIDUAL PRODUCT DECISIONS

PRODUCT ATTRIBUTES
The benefits of the products or services

BRANDING
it is a design that identifies and differentiates a product from
other products.

PACKAGING
design that protects the product from damage

LABELING
design that protects the product from damage

PRODUCT SUPPORT SERVICE

labor based services such as parts, service and warranty.
10
Brand

A name, term, symbol, design, or

combination thereof that identifies a
seller’s products and differentiates
them from competitors’ products.

11
Branding

Brand That part of a brand that can be spoken,

Name including letters, words, and numbers.

Brand The elements of a brand that

Mark cannot be spoken.

Brand
The value of company and brand names.
Equity

A brand so dominant that it comes to

Master
mind immediately when a product category,
Brand
use, attribute, or benefit is mentioned.
12
Benefits of Branding

Branding
distinguishes
products from
competition
Product New Product
Identification Sales

Repeat Sales

13
An Effective Brand Name

 Is easy to pronounce
 Is easy to recognize and remember
 Is short, distinctive, and unique
 Describes the product, use, and benefits
 Has a positive connotation
 Reinforces the product image
 Is legally protectable

14
Master Brands

A master brand
is an
overarching
brand name that
serves as the
main anchoring
point on which
all underlying
products are
based.

15
Manufacturers’ Brands Versus
Private Brands

Manufacturers’
The brand name of a manufacturer.
Brand

Private A brand name owned by a wholesaler

Brand or a retailer.

16
Advantages of
Manufacturers’ Brands

• Develop customer loyalty

• Attract new customers
• Enhance prestige
• Offer rapid delivery, can carry less inventory
• Ensure dealer loyalty

17
Advantages of
Private Brands

• Earn higher profits

• Less pressure to mark down prices
• Manufacturer may drop a brand or become a direct
competitor to dealers
• Ties to wholesaler or retailer
• No control over distribution of manufacturers’ brands

18
Trademarks

A Trademark is the exclusive right to use a brand

Many parts of a brand and associated

symbols qualify for trademark protection

The mark has to be continuously protected

Rights continue for as long as it is used

19
Packaging

Contain and Protect

Promote
Functions
of
Facilitate Storage, Use, Packaging
and Convenience

Facilitate Recycling

20
Labeling

Persuasive Informational

 Focuses on  Helps make proper

promotional selections
theme
 Lowers cognitive
 Information is dissonance
secondary
 Includes use/care

21
Global Issues in Branding

One Brand Name

Everywhere

Global Options
Adaptations &
for Branding Modifications

Different Brand Names

for Different Markets
22
Global Issues in Packaging

Labeling

Global
Considerations
for Packaging Aesthetics

Climate Considerations

23
Product Warranties

A confirmation of the quality or

Warranty performance of a good or service.

Express
A written guarantee.
Warranty
An unwritten guarantee that the
Implied
good or service is fit for the purpose for
Warranty which it was sold. (UCC)

24
Product Warranties

Express Written Guarantee

Warranty

Warranties

Implied
Unwritten Guarantee
Warranty

25
NATURE AND CHARACTERISTICS OF A
SERVICE
Intangibility
Can’t be seen, tasted, felt, heard,
or smelled before purchase.

Inseparability
Can’t be separated from service
providers.

Variability
Quality depends on who provides
them and when, where and how.

Perishability
Can’t be stored for later sale or
use 26
Most Common Service Businesses
• Insurance • Document shredding
• Sports and entertainment • Printing
• Tourism • Real state
• Banking • Dry cleaning
• Fitness centers
• Education
• Tax preparation
• Accounting
• Advertising

27
The Four Things a Service Business Must
Get Right (Frances X. Frei)

1. The Offering
- a service business can’t last long if the offering itself is fatally flawed.
- It must effectively meet the needs and desires of an attractive group of customers.
2. The Funding Mechanism
- Charge the customer in a palatable way.
- Create a win-win between operational savings and value-added services
- Spend now to save later
- Have the customer do the work
3. The Employee Management System
4. The Customer Management System

28
Knowing a Product from a Service
Identifying a good from a service can be easy if
you use a few simple tricks!

Goods and services differ in areas such as:

TANGIBILITY OWNERSHIP ABILITY TO MEARUREMENT

RETURN OF QUALITY

29
See you in our next class.
Thank you.
30
TECHNOPRENEURSHIP

TEAM FORMATION
Learning Objectives:
By the end of this session you should be able to:
1. Explain the concepts of team formation
2. Discuss the different stages of team formation
3. Form a team among your classmates and successfully
observed the different stages of team formation

2
WHAT IS A TEAM?

3
WHAT IS TEAM BUILDING?

“Team building” is a
philosophy of job design in
which employees are viewed
as members of independent
teams instead of as individual
workers.

4
STAGES OF TEAM FORMATION

5
FORMING

This represents a time where the group is just starting to

come together. During this time, the following maybe
observed:
–Members are cautious with their behavior
–There is a desire to be accepted by all team members
–Conflict, controversy and personal opinions are avoided

Some believed that this cautious behavior prevents the team

members from getting any real work done. 6
PURPOSE OF FORMING STAGE

The focus for the group members during forming stage

is to become familiar with each other and their purpose,
not on work

7
OUTCOMES OF FORMING STAGE

• Gaining an understanding of the team purpose

• Determining how the team will be organized
• Identifying who will be responsible for what
• Discussion of major phases of the team’s purpose
• Identifying what will be the team’s schedule
• Outlining general group rules
• Discovery of what resources will be available for the team to be
used

8
STORMING
It is dealing with tension and defining group task. In storming,
conflict and competitions are at its greatest.
Why is that?
- The team members now have an understanding of the task and a
general feel for who they are as a group and who the group members
are
- They feel confident and begin to address some of the more important
issues surrounding the team members
- This stage is where the most dominant members of the team emerges
- Less confident members stay in their corner and keeps quiet. If this
happens, issues may still exist
- Every individual member should take part in the storming
process 9
STORMING cont’d
During the storming stage, all members have an increased need for
clarification and questions arise surrounding leadership, authority, rules,
responsibilities, structures, etc.

Such questions must be answered so that the team can move on to

the next stage.
10
NORMING
The norming stage is the time when all the team members become
a cohesive unit. During this time, the following maybe observed:
- Moral of the team is high
- They acknowledge the talents, skills and experience that each individual
brings to the team
- A sense of community is established
- The team remains focused on the team’s purpose and goal
- Roles and responsibilities are clear and accepted
- Commitment and unity is strong
- Agreements forms among the team
- Leadership begins to fade
- People develop a stronger commitment to the team goal, and you start
to see good progress towards it 11
PERFORMING

This is the final stage where groups become high-performing teams.

The team knows clearly WHY it is doing and WHAT is doing. At
this time
- Work and progress commences on the basis of relatively stable
structure
- Team members are focused on task completion and achievement
- Productivity, actions and results could be observed
- There is team unification and identity moving towards the
completion of goals
12
ADJOURNING

The adjourning stage is the break up of the team, hopefully when

the task is completed successfully. At this stage
- There is completion and disengagement
- Separation and endings from tasks or members

13
14
See you in our next class.
Thank you.

15
TECHNOPRENEURSHIP
Customers
Learning Objectives:

At the end of this session, you must be able to

1. Discuss the difference between customers and
consumers
2. Enumerate the different types of customers
3. Explain ways on handling customers

2
Customer vs Consumer
A customer is a person who buys
goods and services regularly from
the seller and pays for it to satisfy
their need.

Example:
when parents purchase a
product for their children, the
parent is the customer, and the
children are the consumers.

3
Customer vs Consumer
A consumer
– is someone who purchases the
product for his/her own need and
consumes it.
– cannot resell the good or service
but can consume it to earn
his/her livelihood and self-
employment.
– in simple word, is the end-user of
the goods or services is termed
as a consumer.
4
Customer as Consumer

Many times a
customer who
buys a product is
also the
consumer, but
sometimes it’s
not.

5
 WHO are our CUSTOMERS
Internal
• Internal customers have a relationship
with, and are within the company,
either through employment (collegues)
or as partners who deliver your
product or service to the end user.
• Less obvious but certainly still
significant, stakeholders and
shareholders are also internal
customers.

6
 WHO are our CUSTOMERS
External
• External customers are the
people that pay for and use
the products or services your
company offers.
• When brainstorming problems
and designing solutions, these
customers are who you’re
designing for.
7
 WHO are our CUSTOMERS
External
• External customers are persons who are
not directly connected to your
organization other than by purchasing
your product or service.
• These customers could be a one-time
purchaser or a person who’ve you worked
with long-term and to whom you’ve
provided add-ons or customization
options.
• External customers are also known as
“clients” or “accounts.”
8
WHO are our CUSTOMERS

9
Types of Customer

1. Tough or Aggressive Customers

2. Uncertain Customers
3. Irate or Angry Customers
4. Business-like customers
5. Knowledgeable Customers
6. Friendly Customers

10
Characteristics of Each
Type of Customer

11
Characteristics of Each
Type of Customer

12
Characteristics of Each
Type of Customer

13
How to Handle Customers
Tough Customers
Listen. Allow him/her to talk first
Clearly express your point as suggestions
Be courteous but firm
Uncertain Customers
Maintain eye contact
Break barriers
Listen
Ask the right questions

14
How to Handle Customers

Angry or Irate Customers

Be assertive. In-control but not angry
Be polite to the point
Be calm and have a clear voice
Don’t give hollow promises
Emphasize

15
How to Handle Customers
Knowledgeable Customers
Satisfy his desire for details
Understand that there is no way of fooling a knowledgeable
customer
Friendly Customers
Respond to warmth and ensure hospitality
Keep business in mind

16
Basic Needs of a CUSTOMER

1. Friendliness
2. Understanding and empathy
3. Fairness
4. Control
5. Options
6. Information

17
18
19
 TECHNOPRENEURSHIP

CUSTOMERS VALUE PROPOSITION

Learning Objectives:

At the end of this lesson, you should be able to:

1. Explain what a value proposition is
2. Discuss how value propostion impacts the success of a
business
3. Identify the value propositions given by some products
you commonly or oftenly purchase
CUSTOMERS VALUE PROPOSITION

3
 CUSTOMERS VALUE PROPOSITION

A value proposition refers to the value a company promises to

deliver to customers should they choose to buy their product.

An innovation, service, or feature intended to make a service or

product attractive to customers.

A value proposition is also a declaration of intent or a statement that

introduces a company's brand to consumers by telling them what the
company stands for and how it operates

It is usually a statement that answers the WHY someone should do

business with you.
4
CUSTOMERS VALUE PROPOSITION

5
CUSTOMERS VALUE PROPOSITION

Customer value proposition is a

business’s way of generating value in
their product or service when targeting
potential customers.

A value proposition must be carefully crafted in a

simple statement to address three main points of your
business:
 Who are your target customers?
 Why should the customer buy your brand?
 What are you delivering?
6
 CUSTOMERS VALUE PROPOSITION

What will happen

in the absence of Companies will be walking blindly
customer value in the marketplace. Businesses
proposition? will underplay the fact that their
target users have other options.
They will ignore the fact that their
product has deficiencies where
some of which may significantly
hamper their efforts in the
marketplace.
7
 CUSTOMERS VALUE PROPOSITION

Understand Value Proposition Creation

Know Your Target Customers
• more for more, more for the same, the
same for less, less for much less and • find out its acceptability in your
more for less! consumer’s mind.
• Identify all the benefits of your product • know what segments of the market will
• Differentiate your brand as the best use your product,
provider of this product or service • know how your customer will perceive the
• take a unique approach to show you benefits of the brand
innovate ways to value creation. • note how effective is your positioning
• classic example is the Starbucks coffee, statement and how well you can
they entered as the most expensive brand differentiate your product from other
but their quality was second to none. similar brands.
8
CUSTOMERS VALUE PROPOSITION

Describe Your Product Vision Test the Minimum Viable Product

It helps to clearly state the deliverables and Test the effectiveness of your product by
benefits that your brand promises to your testing the minimum viable product with the
customers. You must decide on which segments help of a small group of customers, called
of the market you will concentrate and what your ‘early adopters’. They will try to understand
positioning strategy will be. the product, its vision and benefits; they will
give you valuable feedback that can help you
Create Your Value Proposition Statement in important processes like idea generation,
By this time, you build your value proposition presentation, market analysis and learning
statement that must be simple and clearly defined;
it must answer questions like who are your target
customers, why should they buy your brand and
what you plan to sell.
9
CUSTOMERS VALUE PROPOSITION

How to Write a Value Proposition?

10
CUSTOMERS VALUE PROPOSITION

What your product

does for the customer

Ways that the features

make your customer’s life
easier by
increasing pleasure

Core of your value

Imagine all the ways
proposition
that your product
makes your
customer’s life better
11
CUSTOMERS VALUE PROPOSITION

How to Write a Value Proposition?

12
CUSTOMERS VALUE PROPOSITION

How does your provides the ‘reasons

product work ? to believe’
functioning attributes
of your product

13
CUSTOMERS VALUE PROPOSITION

How to Write a Value Proposition?

14
 CUSTOMERS VALUE PROPOSITION

The product experience is the way that

owning your product makes the customer feel.
It’s the sum total of the combined features and
benefits. Product experience is different to
features and benefits because it’s more about
the emotional reasons why people buy your
product and what it means for them in their own
Experience lives. The product experience is the kernel that
will help identify the market positioning and
What does it feel brand essence that is usually built out of the
like to use your value proposition.
product ?

15
CUSTOMERS VALUE PROPOSITION

16
CUSTOMERS VALUE PROPOSITION

How to Write a Value Proposition?

17
CUSTOMERS VALUE PROPOSITION

NEEDS WANTS
The customer’s needs are the
The emotional drivers of
rational things that the customer
decision making are things that
needs to get done. Interestingly,
we want to be, do or have. Our
needs are not always
wants are usually conscious (but
conscious. Customers can have
aspirational) thoughts about how
needs that they may not know
we’d like to improve our lives.
about yet. Designers call these
The wants speak more to the
“latent needs“. The needs speak
pull of our hearts and our
more to the pull of our heads
emotions
and rational motivations.

18
CUSTOMERS VALUE PROPOSITION

How to Write a Value Proposition?

19
CUSTOMERS VALUE PROPOSITION

Fears can be a strong driver of purchasing

FEARS behaviour and can be the hidden source of
wants and needs. For any product there is
a secret “pain of switching. “. Even if your
product is better than the competition, it
might not be a big enough improvement to
overcome the inertia of the status quo.

20
CUSTOMERS VALUE PROPOSITION

How to Write a Value Proposition?

Substitute 21
CUSTOMERS VALUE PROPOSITION

SUBSTITUTE
These are not just the obvious competitors,
but also existing behaviours and coping
mechanisms. Remember that people made
it this far in life without your product. If your
product isn’t better than the existing
solutions then you don’t have a real-world
value proposition.
22
CUSTOMERS VALUE PROPOSITION

SUBSTITUTE

23
Example of a Good Value Proposition

Why ? In their own words, “Airbnb exists

to create a world where anyone
can belong anywhere, providing
healthy travel that is local,
authentic, diverse, inclusive and
sustainable.”
Airbnb has now become an
experience-driven, mainstream
staple with a premium wing
called “Airbnb Plus,” with its own
value proposition.
24
Example of a Good Value Proposition

25
Example of a Good Value Proposition

Apple's Iphone
value proposition,
offering unique
experience

26
Summary
The customer value proposition is the keystone for effective
product marketing activities.
Good value proposition statement is built on the below fundamental
framework:
For ( the target customer)
Who (specific needs, demands, buying criteria etc.)
We provide (solution name / brand description)
That ( specifies benefits and business values to clients)
Unlike (the competition)
Who ( provide solution, features, functions, benefits)
Our company (better approach, solution, functions, benefits)
That (offers a better customer experience) 27
Market Identification
and Analysis
Learning Objectives:

At the end of this lesson, you are expected to:

1. Demonstrate an understanding of the concept of
the market
2. Explain the factors affecting the market
3. Discuss the importance of market analysis

2
WHAT IS MARKET?

• It is defined as the sum of all the

buyers and sellers in the area or
region under consideration (i.e
countries, cities, community)
• It is the value, cost, and price of items
traded as per forces of supply and
demand in a market. The market may
be a physical entity, or may be virtual

3
Environmental Scanning

• The monitoring, evaluating, and

disseminating of information from the
external and internal environments to
key people within the corporation to
avoid strategic surprise and ensure
the long-term health of the firm.

4
The External Environment

5
Societal Environment

6
WHAT IS MARKET?

7
WHAT IS MARKET ANALYSIS?

Market Analysis is a tool to

identify and assess the
attractiveness of business
opportunity

8
OBJECTIVES OF MARKET ANALYSIS

• Determine the attractiveness of market

• Find and identify new business
opportunities
• Targeting and dividing the market into
niche
• Positioning the products or brands in
the mind of customers
• Understand the dynamics of the
market

9
How does market analysis help?

A market analysis answers these

questions:
• Who are they?
• Where are they?
• What do they need?
• How do they make their buying
decisions?
• Where do they buy?
• How do you reach them with your
marketing and sales messages?

10
Dimensions of market analysis

• Market Size
• Market Segment
• Market Trends
• Market Growth Rate
• Market Profitability
• Industry Cost Failure
• Distribution Channel
• Key Success factors

11
Dimensions of market analysis

MARKET SIZE MARKET TRENDS

• Total Annual Size • Identify the trends in market
• Current and future Market segment within which the
Size product fits
MARKET SEGMENT • If the market segment is
• Geography and location growing and is projected to
• Customer Segment continue to grow, then it is
upward trend

12
Dimensions of market analysis

MARKET GROWTH RATE

• Market condition
• Sales growth of
complimentary products
• Product Life Cycle
MARKET PROFITABILITY
• Potential profit
• Factors that affect the market
profitability

13
Porter’s 5 Forces Model

14
Porter’s 5 Forces Model

15
Technology Push vs. Market Pull

16
Technology Push vs. Market Pull

17
Case Study – 2wheel personal transporter

18
Case Study – 2wheel personal transporter

19
Dimensions of market analysis

INDUSTRY COST STRUCTURE

• Key factors for success
• Formulating strategies to
develop a competitive
advantage
Distribution Channel
• Vendor to Consumer
(Logistics)
• A distribution channel can be
direct, or may include several
interconnected intermediaries
20
Dimensions of market analysis

Key Success Factors Performing Market Analysis

• Elements necessary to • Identify why a customer will
achieve marketing objectives buy your product
• Access to essential unique • Define your target market
resource through segmentation
• Ability to achieve economies • Conduct Market research
of scale • Incorporate findings into
• Access to distribution strategic business decisions
channels
• Technological progress

21
Identifying Market Segments and Targets

Ta r g e t m a r k e t i d e n t i f i c a t i o n , b y
definition, is the method used to sort
potential clients for sales and marketing
campaigns, advertising and
promotions using income, demographic,
and lifestyle characteristics of a market
and census information.

22
Example

A law firm mainly offers legal services. However, many law firms specialize in
certain types of legal issues. It presents the best picture of target market
identification because it specifies where potential clients exist. It is also true for
products that are sold to the public.

Another example of this is a major food producer of food and beverages. Although
the business may have several products, its sales and marketing planning
focuses on particular target markets for each product. Thus, they may study target
markets for each product to finely hone the scope of their target market
identification.

23
Steps in identifying target markets

• Defining sources where products

and/or services are most likely
needed.
• Researching the volume of products
and services sold and used over a
broad demographic area.
• Studying sources of raw materials
that are required to produce products
or services.
• Identifying major competitors to
determine the location of target
markets
24
Market Segmentation

M A R K E T S E G M E N TAT I O N
divides a market into well-defined
slices. A market segment consists
of a group of customers who
share similar set of needs and
wants. The marketer’s task is to
identify the appropriate number of
nature of market segment and
decide which one(s) to target.

25
Bases for Market Segmentation

26
Segmentation

Demographic Phycological B e h a v i o r a l G e o g r a p h i c
Characteristics Characteristics Characteristics Characteristics
• Age • Personality • Knowledge of • Rural
• Sex • Lifestyle product • Urban, rural,
• Income • Attitude towards suburban
• Education product • Region
• Stages in life cycle • Use of product • Climate
• Social class • Response to • City Size
• Occupation product • Population Density
• Religion
• Race

27
Segmentation

Demographic Phycological B e h a v i o r a l G e o g r a p h i c
Characteristics Characteristics Characteristics Characteristics
• Age • Personality • Knowledge of • Rural
• Sex • Lifestyle product • Urban, rural,
• Income • Attitude towards suburban
• Education product • Region
• Stages in life cycle • Use of product • Climate
• Social class • Response to • City Size
• Occupation product • Population Density
• Religion
• Race

28
See you in our next class.
Thank you.

29
 Technopreneurship
Creating Competitive Advantage
Learning Objectives:

At the end of this lesson, you are expected to:

1. Understand competitors as well as customers via competitor
analysis
2. Explain the fundamental marketing strategies based n
creating value for customer
3. Realize the need for balancing customer and competitor
organizations in order to become a truly market-centered
organization

2
What is Competitive Advantage?

Competitive Advantage
An advantage over
competitors gained by
offering consumers
grated value than
competitors offer.

3
Competitive Analysis

• The process of identifying

key competitors; assessing
their objectives, strategies,
strengths, and weaknesses,
and reaction pattern; and
selecting which competitors
to attack or avoid

4
Steps in Analyzing Competitors

5
Steps in the Process
- Identifying Competitors
Your company may face a wide range of competition. You must be
careful to avoid “competitor myopia” which is a scenario when a
company becomes so focused on its direct competitors that it
misses less obvious challengers, allows niche companies to exist in
the marketplace unchallenged, or underestimates new entrants to
the field.

Methods of Identifying Competitors:

• Industry point of view
• Market point of view

6
Steps in the Process
- Assessing Competitors

Assessing Competitors
• Determining competitor’s
objectives
• Identifying competitors’
strategies
• Assessing competitors’
strengths and weaknesses
(Bench marking)
• Estimating competitors’
7
reaction
Benchmarking

Types of Benchmarking
• Process – searching for the best way to perform a process
• Internal – enables users to compare similar activties within their own
organization
• Competitive – organization is compared to direct competitors or those
who are selling to the same customer base
• Functional or generic – enables users to compare themselves to
organization that are recognized as the best, whether they ar ein the
same industry or not

8
Sources of Information

• Competitive intelligence
• Relevant industry publications
• Electronic databases
• Internal company experts
• Industry observers such as professors or consultants
• Industry participants, such as suppliers and customers
• Competition itself

9
Steps in the Process
- Selecting Competitors
• Identify strong or weak competitors
–Customer value analysis
• Close or distant competitors
–Most companies compete against close competitors
• “Good” or “Bad” competitors
–The existence of competitors offers several strategic benefits

10
Designing Competitive Intelligence
Systems

• A well designed CI System

–Identifies types and sources of competitive information
–Continuously collect information
–Checks reliability and validity of information
–Interprets and organizes information
–Distributes information to decision makers and respond queries

11
Competitive Strategies

• Approaches to Marketing Strategy

– No single strategy is best for all companies
– Marketing strategy and practice often passes through three stages
• Entrepreneurial thinking
• Formulated thinking
• Entrepreneurial marketing

12
Porter’s Basic Competitive Strategies

• Overall cost leadership

– Lowest production and distribution cost
• Differentiation
– Creating an highly differentiated product line and marketing program
• Focus
– Effort is focused on serving a few market segment

13
Treachy and Wiersema’s Basic Competitive
Strategies: Value Disciples

• Operational Excellence
– Superior value via price and convenience
• Customer Intimacy
– Superior value by means of building strong relationships with buyer and
satisfying needs
• Product leadership
– Superior value via product innovation

14
Competitive Positions

• Market Leader
• Market Challenger
• Market Follower
• Market Nicher

15
Competitive Position - Market Leader
• Expanding the total demand
– Finding new users
– Discovering and promoting new product uses
– Encouraging greater product usage
• Protecting market share
– Prevent or fix weaknesses
– Fulfill value promise
– Keep prices consistent with value
– Build relationships
– Continuous innovation
• Expanding Market share
– Profitability rises with market share 16
Competitive Position - Market Challenger

• Challenge the market leader

– High risk but high gain
– Sustainable competitive advantage over
leader is key to success
• Challenge firms of the same size or
smaller regional and local firms
• Full frontal vs. indirect attacks

17
Competitive Position - Market Follower
Follow the market leader
• Advantages
– Learn from the market leader’s experience
– Copy or improve on the leader’s offerings
– Strong profitability

*Following the market leader does not mean

being a carbon copy of the leader

18
Competitive Position - Market Nicher

• Serving market niches

means targeting sub-
segments
• Good strategy for small
firms with limited
resources
• Earns high margins
rather than high volume
• Specialization is the
key
19
Balancing Customer and Competitor
Orientations
Companies can become so competitor centered that they lose
their customer focus

Types of Companies
1. Competitor-Centered companies
2. Customer-Centered companies
3. Market-Centered companies

20
Competitor vs. Customer Centered

21
See you in our class.
Thank you.
Session 2.1
Writing your Elevator Pitch

By the end of this session, you will be able to

1. Name what an elevator pitch should include
2. Write your elevator pitch.

Lecture:

Elevator Pitch

• a succinct and persuasive talk.

• It gets its name from only having the time it takes to ride an elevator from one
floor to another.
• Short because it’s not there to sell your idea but to make people want to know
MORE about you and your idea.
• the goal is to EARN a second conversation.
Five things that will help you write an Elevator Pitch

1. Engage with a relatable question – make it personal as if they can relate.

2. Explain what you do – must be in relation to your relatable question
3. Communicate your value – let the listener know what you have to offer that is of
value by showing you can solve the problem you present in your relatable
question
4. Promote an achievement – show your credibility
5. Demonstrate your passion – show how passionate you are
Some phrases to get acquainted with:

1. Relatable question – a question that personally engages the listener by directly

or indirectly making them identify with the problem you are trying to solve
2. Make it personal – personal promotion which may involve more personal passion

Sample elevator pitch applying the five things in writing elevator pitches:

• Have you ever had a job which you hated and you felt like nobody sees you or
really values you, and when you come home you feel really down?
• Well my company is called Careercake and we provide learning videos curated
and presented by recognized experts to help passionate people feel seen, heard
and valued I their career. It’s a subscription model similar to Netflix so people can
access our content directly.
• We help people compete while job hunting and once they are in the job, our
leading experts support them with challenges they may face in the
workplace, upskilling them, empowering them, inspiring them, add tons of
value and feel fulfilled.
• We currently support professionals in over 32 countries
• We absolutely love what we do
Session 3.1
Intellectual Property Rights

In this session, you will get to know more about the importance of intellectual
property rights in fostering innovation in businesses. By the end of this session you
should be able
to:
1. Explain the significance of intellectual property rights
2. Identify the different types of intellectual property

Lecture:
Intellectual Property (IP) - by which is meant proprietary interest in such intangible
yet commercially valuable things as trademarks, technology, and entertainment
content, Intellectual property rights are exclusionary rights given to authors, inventors,
and businesses for their literary and artistic works of authorship, useful and
ornamental inventions, and valuable information.

Every invention generally starts as an inventor’s trade secret. Before inventors market
their inventions, they need to secure one or more of the other forms of intellectual
property protection – patents, trademarks, and copyrights.

Types of Intellectual Property

Right

To protect your idea effectively when you launch your product, you need to
utilize one or more of the other three types of intellectual property before you
commence your marketing activities. The table below illustrated by James Yang, a
patent attorney whose practice encompasses all area of intellectual law including
patents, trademarks, copyrights and trade secrets, each of the four different types of
intellectual properties and what they might be used to protect in a broader sense.
 Registra
Infringem Comparat
Protects tion Term
ent ive Costs
Process
Make,
Utility Fuctional Use, Offer, 20 years
Yes Expensive
Patent Aspects Sale, upon filing
Import
Patent
Make,
Design Ornamenta Use, Offer, 15 years
Yes Moderate
Patent l Features Sale, upon filing
Import

Potentially
Used in indefinite, Inexpensiv
Trademarks Brands Optional
commerce limited by e
use
Works of Life Plus Inexpensiv
Copyrights Copying Optional
Authorship 70 years e
Potentially
Trade Misappropr indefinite,
Information No Depends
Secrets iation limited by
secrecy
Session 3.2
Ethics, Social Responsibility and Globalization

In this session, you will know more about the concepts of business ethics, role of social
responsibility and the challenges in ethics of globalization. By the end of this session, you
should be able to:

1. Realize the importance of Ethics in businesses

2. Identify violations of ethical code
3. Identify ethical dilemmas in business
4. Explain how demonstrating corporate social responsibility can impact businesses

Lecture:
Business Ethics

• the study of what is the right and wrong human behavior and conduct in business.2.
• a study of perceptions of people about morality, moral norms, moral rules, and
ethical principles as they apply to peoples and institutions in business.
• the study, evaluation, analysis and questioning of ethical standards, policies, moral
norms, and ethical theories that managers and decision makers use in resolving
moral issues and ethical dilemmas affecting business.

10 Myths about Business Ethics

1. Myth: Business ethics is more a matter of religion than management.

Diane Kirrane, in "Managing Values: A Systematic Approach to Business Ethics,"(Training

and Development Journal, November 1990), asserts that "altering people's values or
souls isn't the aim of an organizational ethics program – managing values and conflict
among them is ..."
2. Myth: Our employees are ethical so we don't need attention to business ethics.
Most of the ethical dilemmas faced by managers in the workplace are highly complex.
Wallace explains that one knows when they have a significant ethical conflict when there
is presence of a) significant value conflicts among differing interests, b) real alternatives
that are equality justifiable, and c) significant consequences on "stakeholders" in the
situation. Kirrane mentions that when the topic of business ethics comes up, people are
quick to speak of the Golden Rule, honesty and courtesy. But when presented with
complex ethical dilemmas, most people realize there's a wide "gray area" when trying to
apply ethical principles.
3. Myth: Business ethics is a discipline best led by philosophers, academics and
theologians.

Lack of involvement of leaders and managers in business ethics literature and

discussions has led many to believe that business ethics is a fad or movement, having
little to do with the day-to-day realities of running an organization. They believe business
ethics is primarily a complex philosophical debate or a religion. However, business ethics
is a management discipline with a programmatic approach that includes several practical
tools. Ethics management programs have practical applications in other areas of
management areas, as well.
4. Myth: Business ethics is superfluous -- it only asserts the obvious: "do good!"

Many people react that codes of ethics, or lists of ethical values to which the organization
aspires, are rather superfluous because they represent values to which everyone should
naturally aspire. However, the value of a code of ethics to an organization is its priority
and focus regarding certain ethical values in that workplace. For example, it’s obvious
that all people should be honest. However, if an organization is struggling around
continuing occasions of deceit in the workplace, a priority on honesty is very timely --and
honesty should be listed in that organization’s code of ethics. Note that a code of ethics
is an organic instrument that changes with the needs of society and the organization.

5. Myth: Business ethics is a matter of the good guys preaching to the bad guys.
Some writers do seem to claim a moral high ground while lamenting the poor condition of
business and its leaders. However, those people well versed in managing organizations
realize that good people can take bad actions, particularly when stressed or confused.
(Stress or confusion are not excuses for unethical actions -- they are reasons.) Managing
ethics in the workplace includes all of us working together to help each other remain
ethical and to work through confusing and stressful ethical dilemmas.
6. Myth: Business ethics in the new policeperson on the block.

Many believe business ethics is a recent phenomenon because of increased attention to

the topic in popular and management literature. However, business ethics was written
about even 2,000 years ago -- at least since Cicero wrote about the topic in his On Duties.
Business ethics has gotten more attention recently because of the social responsibility
movement that started in the 1960s.

7. Myth: Ethics can't be managed.

Actually, ethics is always "managed" -- but, too often, indirectly. For example, the behavior
of the organization's founder or current leader is a strong moral influence, or directive if
you will, on behavior or employees in the workplace. Strategic priorities (profit
maximization, expanding market share, cutting costs, etc.) can be very strong influences
on morality. Laws, regulations and rules directly influence behaviors to be more ethical,
usually in a manner that improves the general good and/or minimizes harm to the
community. Some are still skeptical about business ethics, believing you can't manage
values in an organization. Donaldson and Davis (Management Decision, V28, N6) note
that management, after all, is a value system. Skeptics might consider the tremendous
influence of several "codes of ethics," such as the "10 Commandments” in Christian
religions or the U.S. Constitution. Codes can be very powerful in smaller "organizations"
as well.
8. Myth: Business ethics and social responsibility are the same
thing.
The social responsibility movement is one aspect of the overall discipline of business
ethics. Madsen and Shafritz refine the definition of business ethics to be: 1) an application
of ethics to the corporate community, 2) a way to determine responsibility in business
dealings, 3) the identification of important business and social issues, and 4) a critique
of business. Items 3 and 4 are often matters of social responsibility. (There has been a
great deal of public discussion and writing about items 3 and 4. However, there needs
to be more written about items 1 and 2, about how business ethics can be managed.)
Writings about social responsibility often do not address practical matters of managing
ethics in the workplace, e.g., developing codes, updating policies and procedures,
approaches to resolving ethical dilemmas, etc.

9. Myth: Our organization is not in trouble with the law, so we're ethical.
One can often be unethical, yet operate within the limits of the law, e.g., withhold
information from superiors, fudge on budgets, constantly complain about others, etc.
However, breaking the law often starts with unethical behavior that has gone unnoticed.
The "boil the frog" phenomena is a useful parable here: If you put a frog in hot water, it
immediately jumps out. If you put a frog in cool water and slowly heat up the water, you
can eventually boil the frog. The frog doesn't seem to notice the adverse change in its
environment.
10. Myth: Managing ethics in the workplace has little practical
relevance.

Managing ethics in the workplace involves identifying and prioritizing values to guide
behaviors in the organization, and establishing associated policies and procedures to
ensure those behaviors are conducted. One might call this "values management."
Values management is also highly important in other management practices, e.g.,
managing diversity, Total Quality Management and strategic planning.
Session 3.3
Intellectual Property Code of the Philippines
In this session, you will be familiar with the IP Code of the Philippines. By the end of this
session, you should be able to:
1. Acquaint yourself with the RA 8293 otherwise known as "Intellectual Property
Code of the Philippines”.
2. Determine the different laws on Intellectual Property aside from R.A 8293
3. Identify functions of IPO (Intellectual Property Office)

Lecture:
The Intellectual Property Code of the Philippines was signed into law 23 years ago
today and became effective on January 1,1998. But did you know the intellectual
property system in the Philippines existed before the country even declared itself an
independent state?

What is intellectual property?

Intellectual property (IP) is the creative work of a person which can be protected legally.

For more comprehensive discussion of the law, the Director General of the IP
Office of the Philippines has been invited as a guest in a talk show. Watch it here:
https://www.youtube.com/watch?v=XCoclguXGS8 . Also, the actual copy of the law could
be found here: https://boi.gov.ph/wp-content/uploads/2018/02/RA-8293.pdf .
Intellectual Property Code of the Philippines covers:
[a] Copyright and Related Rights;
 An article from copyrightalliance.org defined copyrights as a collection of rights
that automatically vest to someone who creates an original work of authorship – like a
literary work, song, movie or software. These rights include the right to reproduce the
work, to prepare derivative works, to distribute copies, and to perform and display the
work publicly

Figure 3.1

[b] Trademarks and Service Marks;

As defined by Merriam Webster a device (such as a word) pointing distinctly to the

origin or ownership of merchandise to which it is applied and legally reserved to the
exclusive use of the owner as maker or seller.

Figure 3.2

[c] Geographic Indications;

A geographical indication (GI) is a sign used on products that have a specific

geographical origin and possess qualities or a reputation that are due to that origin. In
order to function as a GI, a sign must identify a product as originating in a given place. In
addition, the qualities, characteristics or reputation of the product should be essentially
due to the place of origin. Since the qualities depend on the geographical place of
production, there is a clear link between the product and its original place of production
(World Intellectual Property Organization).

Figure 3.3

Figure 3.4

[d] Industrial Designs;

An industrial design is the ornamental or aesthetic aspect of an article. Design, in

this sense, may be three-dimensional features (shape or surface of an article), or the two-
dimensional features (patterns or lines of color). Handicrafts, jewelry, vehicles, appliances
- the subject of industrial designs ranges from fashion to industrial goods. (IPO
Philippines).
 Figure 3.5

[e] Patents;

A patent is an exclusive right granted for a product, process or an improvement of

a product or process which is new, inventive and useful. This exclusive right gives the
inventor the right to exclude others from making, using, or selling the product of his
invention during the life of the patent.

Figure 3.6
[f] Layout-Designs (Topographies) of Integrated Circuits;

A layout-design of an integrated circuit refers essentially to the three-dimensional

character of the elements and interconnections of an integrated circuit. An integrated
circuit (IC) is an electronic circuit in which the elements of the circuit are integrated into a
medium, and which functions as a unit. Currently the medium used to create this unit is a
solid semiconductor such as silicon. The circuit is integrated into the piece of silicon,
commonly called a "chip" or a "silicon chip". The terms "integrated circuit",
"semiconductor" and "silicon chip" are used synonymously as commercial ICs are usually
fabricated from silicon semiconductors (IPO-Singapore).

Figure 3.7

and [g] Protection of Undisclosed Information (n) [TRIPS].

According to World Trade Organization (WTO), Undisclosed information acquired
by the person without knowledge or notice that the information is secret at the time of
acquisition, shall be entitled to protection under this Law. owner to maintain its secrecy or
limit its use. The TRIPS (Trade-Related Aspects of Intellectual Property Rights)
Agreement is a minimum standards agreement, which allows Members to provide more
extensive protection of intellectual property if they so wish. Members are left free to
determine the appropriate method of implementing the provisions of the Agreement within
their own legal system and practice.

Philippine Laws on Intellectual Property

R.A. 8293 - An Act prescribing the Intellectual Property Code and establishing the
Intellectual Property Office, providing for its powers and functions, and for other
purposes

R.A. 165 - An Act creating a patent office, prescribing its powers and duties, regulating
the issuance of patents, and appropriating funds therefore
R.A. 166 - An Act to provide for the registration and protection of trade-marks, trade-
names, and service marks, defining unfair competition and false marking and providing
remedies against the same, and for other purposes

Presidential Decree No. 49 - Decree on the protection of intellectual property

Session 6.2
Techniques in Delivering a Winning Business Pitch
In this session, you will get to know the strategies to have a winning business pitch. By
the end of this session, you should be able to:

1. Present your business plan using the guide and techniques in delivering a pitch
deck

Lecture:
Techniques in Delivering a Winning Business Pitch

After a business plan has been written, the next stage often involves pitching the plan to
prospective investors. This very fact means that the plan authors and management team
should be one and the same and that ‘outsourcing’ the business plan writing process
should not be considered. It is not just the content of the business plan that is being
scrutinized. The capabilities of the management team are also on show and hence their
ability to deliver a presentation in a clear, concise and convincing manner are vital to the
overall objective – that of convincing an investor to invest in the business. These
prospective investors are not investing in a physical document but in an idea and in those
proposing to deliver the idea.

The rule of thumb for investors is that for every 100 investments they make, only 10 will
go big.

Let me take that rule of thumb a step further. For every 1,000 pitches an investor hears,
he or she will fund only 100 of them. Statistically, the odds for success are not great. You
can beat the statistics, however, by crafting a pitch that that turns heads and gets funded.

What are the ingredients of an ultra-compelling, irresistible, outstanding, and

unforgettable pitch?

1. Take only ten minutes.

Timing is critical. The less time your pitch takes, the better.

A brilliant idea means nothing unless you can distill it to a few

moments of sheer power. The more concise you can be, the
more effective you will be. Here are a few timing pointers:

• If you say that you’ll take “only X minutes,” then take at

least one minute less.
• If you are told, “You only have X minutes to pitch,” then
take at least five minutes less.
 • If you say, “One last thing” or something similar, then make sure it’s truly the one
last thing.
• Move at a good pace. Don’t rush at the end.
• If you’re using slides, don’t get stuck on one slide for more than three minutes.

Here’s the great thing about taking ten minutes. If the investors are really interested, they’ll
ask questions. If they’re not interested, then you will have saved them (and yourself)
some time.

2. Turn your pitch into a story.

Storytelling is a scientifically-proven way to capture a listener’s attention and hold it.

Besides, it makes your pitch unforgettable.

Investors are bored with spreadsheets, valuations and numbers. If they want that
information, they can get it. What you can offer that no term sheet can convey is the story
and pathos behind your startup. Everyone loves a good story, even the most data-driven
investor.

So, tell your story and tell it right. You're bound to gain attention, and the funding will
follow.

3. Be laser-focused.

Investors' time is their most valuable asset. If you

convey a respect for their time, they will interpret
that respect as your ability to treat their funding with
respect.

Because time is important, you need to develop an

absolute focus on the core components of your
pitch.

4. Explain exactly what your product or service is.

Show your potential investors a picture of, or give them the actual product to handle.

Be careful not to drone endlessly on about your product. Honestly, investors don’t really
care about your product as much as they care about the money that your product will
make. The sooner you get to the good stuff -- the money -- the better.
5. Explain exactly what is unique about your product or service.

If you are not producing or providing anything different from the run-of-the-mill widget,
don’t even go to the meeting. Go back to your drawing board, and design something
better.

6. Explain exactly who your target audience is.

Use demographic and psychographic features to pinpoint your customers. Show investors
a picture of a customer along with relevant data points.

7. Explain exactly how you intend to acquire these customers.

Business success comes down to marketing. If you have a marketing idea, method,
technique or process, this is your chance to showcase it. Contrary to pithy maxims, great
products don’t sell themselves. You sell the product. To be persuaded, investors have to
see an airtight strategy for getting the product to market.

Most VCs are well aware of the advantages of digital marketing and won’t take a second
glance at a product that isn’t backed by a tactical plan for online marketing.
8. Explain your revenue model.

Investors invest because they want to make

a return on that investment. An investor will
care about your pitch if you can answer
this question: How will my company
make you? rich

The answer, in investor-speak, is your

revenue model. Specifically identify which
type of revenue model you are embracing,
and how you intend to apply it.

9. Be wildly enthusiastic.

Whatever you think of Shark Tank or Barbara Corcoran, you can’t argue with her
insightful gem regarding pitching a business idea: "My whole focus is on trying to size up
the entrepreneur. I am looking at how much wild enthusiasm do they genuinely have for
their product. You can't fake passion."

A good technique for increasing your energy level is to add about 50 percent more energy
than you feel comfortable with. Entrepreneurs must crawl out of their comfort zone.

Wild enthusiasm will not obscure your sophistication, insight, integrity and realism. It will
only enhance it.

10. Dress to kill.

11. Practice your pitch.

12. Anticipate questions, and answer them ahead of time.

If an investor is interested, he or she will ask more questions. Be ready for these
questions.

By formulating skillful and persuasive answers to the tough questions, you will
demonstrate the panoply of abilities and traits that investors love to see.
13. Show them the exit

Here’s the clincher on a killer pitch: an exit strategy. Starstruck startups usually overlook
this critical component when they’re pitching. They’re so sold on their sexy product that
they cannot conceive that there will ever be an exit.

Every investor wants to make a lot of money in a short amount of time. What is a “short
amount of time”? A five-year benchmark is a safe time frame. Your plan and pitch, then,
should explicitly answer the investor’s unstated question: How will this make me a lot
of money in five years?

The answer is your exit strategy. Is it an IPO? An acquisition? Licensing? To answer sales
revenue or valuation is to shipwreck your plan from the startup. Investors want big
payoffs, not marginal returns. They want to retire comfortably on a big yacht, not just
get their money back in a little equity package.

Conclusion

The goal of a successful pitch is to have investors begging to invest in your company.
Sure, that sounds too good to be true, but it is possible.

When you successfully deliver on what an investor wants, you will have a truly irresistible
pitch.

Pitching to an investor is not a last-minute afterthought – it is the culmination

Session 6.1
Detailed Guide in Writing a Pitch Deck

In this session, you will get to know how to write a business pitch deck. By the end of this session
you should be able to:

1. Create your business plan pitch using the detailed guidelines

Lecture:

A business pitch is a presentation by one or more people to an investor or group of investors,

though it can also be an email, letter, or even an impromptu conversation. The goal of a business
pitch is generally to secure the resources and funding necessary to move forward with a business
plan or to continue with an already established business or venture.

Detailed Guide in Writing a Pitch Deck

1. Introduce yourself and your business

Start by introducing yourself and the business that you are pitching. It is often useful to share
some details of your background including your industry experience, previous business ventures,
and your role within the company. If you have decided to incorporate storytelling into the
presentation (often a powerful strategy), begin the story in this part of the presentation.

2. Define the problem

Identify a problem that you have discovered in the market. This could be:

• An unfulfilled need in the market

• A problem that will occur in the future as market conditions change
• A practical problem that could be solved with an invention
• A very specific problem affecting certain kinds of businesses, and so on

Your summary of this problem be concise and easy-to-understand. You may have to include
supporting data which proves the problem exists including statistics, demographics, and external
reports.

3. Describe your solution

Share the solution to the problem that you identified a moment ago. For example, if the problem
was that local businesses struggle to manage their employee rosters — the solution might be an
innovative new piece of software that makes employee management easy. Deliver a short
description of your solution.
You may find it useful to include some of the business’ branding elements as you introduce the
solution. This will give the impression of you have a complete and robust product or service that
is ready for market.

4. Explain your business case in greater depth

In this section of the presentation, you will delve deeper into the details of your business case
and how your business will flourish in current market conditions. This section of the presentation
can touch on aspects like:

• Market analysis
Showcase facts and figures about the current market conditions which support up
your business case. In the example mentioned earlier (employee management
software), you could provide data that shows many businesses have this problem
and there aren’t many effective solutions available.
• Customer needs
Are customers interested in the solution that you are providing? Does it meet all of
their needs? Share any data you have which shows that your business’ solution is
what customers are looking for.
• Competitive position
How competitive will the business be compared to other businesses already in the
market? What gives your business a competitive advantage?
• Marketing strategy
How do you intend to market your solution to consumers?
• Risks
Which risks affect the business and how do you plan to mitigate them?

You should provide plenty of data throughout this section of the presentation, including
statistics, surveys, and demographical data. However, it is important that the data be presented
in a way that is easy for your prospects to understand. Using videos and rich media in your
presentations is key to present your message in an engaging way as well as advanced features
such as augmented reality to really impress your prospects.
 5. Detail your business model

The aim of this section is to explain how your business will operate on a day to day basis. Discuss
any other relevant aspects of your business model including:

• What it takes to make your products and services

Discuss the design of your product, licensing requirements, intellectual property rights,
manufacturing agreements, size of labor force, current funding arrangements, and so
on. If your products or services aren’t ready for market, tell the prospects what is
required to become fully operational and turn a profit
• What it takes to sell your products and services
How the business will market and distribute its products, or how it will deliver its services.
How big will the advertising campaign be? Is the product sold in stores or offered online?
• How the customer pays to obtain your products and services The
pricing strategy, payment methods, payment timing, customer financing agreements
and so on.

6. Share more details of your team

Tell the prospective investors about the unique skills, industry knowledge, expertise that your
team has. If there are any advisors or business mentors associated with the business, go into
their backgrounds as well. Talk about the current structure of your company and how it might
change if the investors were to come on board.

7. Showcase the financial performance of the business

In this part of the pitch, you will share how much the business is currently making and what you
expect to make in the future. Be sure to provide data that backs up any earnings forecasts.

8. Financial needs

At this point, you will share the valuation of your company with the investors and how you
reached this figure. Explain how much capital has already been put into the business —
including your labor. Share details of the current investors and how much capital they have
placed into the business.
Importantly, you must show the investors how much capital you require and how they will be
paid back for their investment. Will it be an initial public offering (IPO) or will investors simply
receive their investment back (plus profit) at a certain date? What will happen if certain targets
are not met? What business exit strategies will be available for investors? How much equity
will they have?

The investors will probably know a lot more about investing than you do as a business owner.
They will probably begin asking questions at this point, so be prepared with answers.

9. Key milestones

It’s often worth finishing up with a graphic that demonstrates the key milestones for your
business. This will help the investors understand the timeline associated with your business,
including its development, their initial investment, and when they might see a profit. Discuss
how milestones may be affected if there are delays or unforeseen challenges.

10. Conclusion and questions

Finally, conclude your presentation and take questions. If you decided to use storytelling in your
pitch, conclude the story here. Be prepared to take additional questions and remember to thank
the investors for their time.
Session 5.4
FINANCIAL PLAN
This section shows the progress of business’ financial condition and performance over
time. It can be done by preparation of income statements, schedule on profits expected each year,
all cash outflows and inflows, and other method of financing needed to maximize and enhance
business’ performance. At the end of the session, the learners shall be able to:
1. Create a comprehensive financial analysis of the business.

Lecture:

A financial plan is essential to any business plan. But it’s also essential to you as a
business owner, to give you a solid grasp of your finances. This is one of the main things we’ve
been building up to throughout this guide.

A. Investment needs

What will be your financial needs? (Monthly/Yearly)

- Fixed investment Working capital Administrative costs

- Equipment/machinery - Raw material - Admin salaries and supplies
- Land and building - Product/manufacturing cost
B. Source of funds
- Loan
- Group investment
- Accumulated group savings
- Grant
- Any other

C. Sales

How to break down your sales?

While sorting your businesses costs into groups is generally an easy task, splitting down
your sales into different groups of items can be tricky. How much detail should you include in your
financial plan?
 The level at which you forecast your sales depends on two things:

▪ What level of detail is important?

▪ What level of detail is easily understandable?

D. Financial Statements

✓ The Income Statement: (How did we do?)

Sometimes called the profit and loss (P&L) statement, the income statement shows you money
coming in the door (revenue), money going out the door (expenses), and what's left over (income,
or profit). The income statement is important because it can be used along with the balance sheet
to calculate the return you are earning on your investment.

a. Revenue – this is the very first section of the income statement shows all the revenue your
business generated over the period. This is how much money you made before any
expenses are taken out.
b. Cost of Goods Sold - also known as cost of sales or simply COGS. This includes the
cost to produce goods, cost of services rendered, and cost of inventory. Expenses in this
section include:
▪ Cost of raw materials
▪ Cost of labor
▪ Commission for employees
c. Gross Profit - Gross profit will be used to cover all of the company’s other expenses.
Gross Profit = Total Revenue – COGS
d. Operating Expenses - These are also referred to as Selling, General, and Administrative
expenses (SG&A) and show general expenses of a company’s operation. This will include
expenses such as:
▪ Administrative salaries
▪ Marketing expenses
▪ New product research
▪ Depreciation expense (wear and tear on assets over time)
e. Operating Profit - This represents earnings from a company’s normal operations before
any additional income or expenses are considered.
Operating Profit = Total Revenue – COGS – Operating Expenses
 ✓ The Balance Sheet: (Where are we at?)

The balance sheet provides a quick look at company assets, liabilities, and shareholders’
equity at a given point in time. Unlike the income statement, the balance sheet does not show
performance over a period of time. Instead, it shows cumulative totals and outstanding payments.

The balance sheet fundamentally relies on the accounting equation, which says that
a
company’s assets must equal the sum of its liabilities and shareholders’ equity.

a. Assets - An asset is anything a company possesses that has value. An asset can be
something that is directly sold or something that is used by the company to sell a service
or to manufacture and sell a product that can be sold.
b. The liabilities section simply shows everything that the company owes.
c. Shareholders’ Equity - Shareholders’ equity, also called capital or net worth, is the
amount of money that would be left if a company were to pay off all liabilities and liquidate
all of its assets. That’s why it’s often thought of as “what’s left over.” Shareholders’ equity
will show the amount a shareholder invested in the company plus or minus any company
earnings or losses.
✓ Cash Flow Statement: (How much cash is left?)

The cash flow financial statement, also called the statement of cash flows, shows how
much money is coming into and going out of a company. In other words, cash flow statements
report how much cash a company generated during the statement period. Because accrual basis
accounting makes keeping track of cash difficult, the cash flow statement supplements the
income statement and helps business owners understand the true state of their cash.
Session 5.3
MARKETING PLAN
This section presents the marketing strategies of the business. At the end of the session,
the learners shall be able to:
1. Create a comprehensive marketing strategy to promote the company’s product and/or
service.

Lecture:

Once you have decided your marketing objectives, you need to strategize to achieve your goal,
which each capture and cover your target market and provide customer satisfaction.

MARKETING MIX
The marketing mix refers to the set of actions, or tactics, that a company uses to promote
its brand or product in the market. The 4Ps make up a typical marketing mix - Price, Product,
Promotion and Place. However, nowadays, the marketing mix increasingly includes several other
Ps like Packaging, Positioning, People and even Politics as vital mix elements.

Many businesses rely on this to be able to formulate sound marketing plan for their
business.
• Product - what your product offers that your customers value, and whether/how you should
change your product to meet customer needs.
• Pricing - for example, you might aim simply to match the competition, or charge a premium
price for a quality product and service. You might have to choose either to make relatively
few high margin sales, or sell more but with lower unit profits. Remember that some
customers may seek a low price to meet their budgets, while others may view a low price
as an indication of quality levels.
• Place - how and where you sell. This may include using different distribution channels.
For example, you might sell over the Internet or sell through retailers.
• Promotion - how you reach your customers and potential customers. For example, you
might use advertising, PR, direct mail and personal selling.
 Source: https://www.businessstudynotes.com

What is the importance of the marketing mix?

All the elements of the marketing mix influence each other. They make up the
business plan for a company and handled right, can give it great success. But handled
wrong and the business could take years to recover. The marketing mix needs a lot of
understanding, market research and consultation with several people, from users to
trade to manufacturing and several others.
Among all these elements, business owners give importance to promotion. This is
where they put huge amount of capital to leverage on creating and enticing new
customers, retain old and loyal customers and penetrate customers of their competitors.
Session 5.2
TECHNICAL PLAN
This section presents the production and operational aspect of the business. At the end
of the session, the learners shall be able to:
1. Outline manufacturing process and identify resources needed for each process.
2. Describe company’s operation and the flow of orders for good and/or services.
3. Illustrate a physical plant (floor plan) depicting the flow of movements.

Lecture:

The product and service description describes the features of your product or service, the
unique selling points offered by your product or service, and how your product or service satisfies
client needs and expectations.
Type of Business Operation
✓ Production/Manufacturing- type of business that converts inputs such as materials, labor
and overhead etc. into finished products.
✓ Service – type of business that provides services, instead of products
✓ Merchandising – type of business that sells products to its customers
✓ Other

Product Description and Specification

This includes product information such as product description, product technical details,
product drawing and specifications. You may also include her the product name and product logo
to be able to provide identity to the product and/or service of the company.

Material Requirements
This includes information such as direct and indirect materials needed to produce a product
or to render service. Similarly, this section presents whether the materials are design for
manufacture (DFM) of design for assembly (DFA). Example: if you will produce a cabinet, the
direct material such as wood is considered a DFM materials because it will undergo process of
cutting, polishing, and painting. On the other hand, direct materials such as screws, nails, hinges
are considered DFA materials because they are ready to use for assembling the product. Indirect
materials are those materials used in packaging the product, or materials used in making the
product but do not become part of the product itself.
 Also included in this section are the machineries and equipment needed to facilitate
production of goods and/or services. It is also important to have the list of suppliers to identify
the sustainability and availability of supplies.

Labor Requirements
Manpower or workers are one of the important resources needed to run a business. Here,
labor requirements are referring to the direct and indirect workers involved in production
department. List the number and types of employees you need to run your business now and
that you might have to employ in the future as your business grows.

Manufacturing Process
Manufacturing processes defined by a specified combination or sequence of steps, or
by a particular operation on a particular material or component. The manufacturing process
consists of many procedures and consumes plenty of resources and energy.
When a manufacturing company begins production of a new material, it has a choice
as to the manufacturing process it uses. The type of process depends on the facility, the staff,
and the information systems available. Each process has its advantages and some are best at
certain tasks, for example, large batches of finished goods, or small numbers of custom items.
When the decision is being considered about which manufacturing process to use, there are a
number of questions that should be asked; what are the volumes to be produced, what are the
requirements to make the product, and does the company manufacture a similar product? There
are a number of basic manufacturing processes that they can select from; production line,
continuous flow, custom manufacturing, and fixed position manufacturing.
Session 5.1
BUSINESS PLAN Overview
This session of the plan provides the explanation of the structure of business, highlighting
each section in detail and linking this with what was covered previously in other module. At the
end of this session, the learners shall be able to:
1. Define business plan.
2. Identify and analyze the important component of a business plan.
3. Differentiate a traditional business plan vs lean business plan.
4. Construct a lean business plan.

Lecture:

A. What is Business Plan?

A business plan is the blueprint for implementing

a business idea and the roadmap for a successful
business by helping to minimize business risk. It is a
data-base of information related to the details of a
business activity such as production processes, raw
material, finance, support services and market.

A business plan is a written description of your

business's future, a document that tells what you plan
to do and how you plan to do it. A good business plan
guides you
through each stage of starting and managing your business. You’ll use your business plan
as a roadmap for how to structure, run, and grow your new business. It’s a way to think
through the key elements of your business.

Who reads the business plans?

The business plan may be read by employees, investors, bankers, venture capitalists,
suppliers, customers, advisors, and consultants.

There are three perspectives should be considered in preparing the plan:

✓ Perspective of the entrepreneur
✓ Marketing perspective
✓ Investor’s perspective

Why have a Business Plan?

The business plan is valuable to the entrepreneur, potential investors, or

even new personnel, who are trying to familiarize themselves with the venture, it goals,
and objectives.
✓ It helps determine the viability of the venture in a designated market
✓ It provides guidance to the entrepreneur in organizing his or her planning activities
✓ It serves as an important tool in helping to obtain financing.
 Presenting the Plan?

It is often necessary for an entrepreneur to orally present the business plan before
an audience of potential investors. In this typical forum the entrepreneur would be expected
to provide a short (perhaps 20-minutes or half-hour) presentation of the business plan.

B. Key Components of a Business Plan

• Outline of a Traditional Business Plan

1. Introductory Page
- Name and address of business
- Name(s) and address (es) of principal(s)
- Nature of business
- Statement of financing needed
- Statement of confidentially of report
2. Executive Summary
- What is the business concept or model?
- How is this business concept or model unique?
- Who are the individuals starting this business?
- How will they make money and how much?
3. Environmental and Industry Analysis
- Future outlook and trends
- Analysis of competitors
- Market segmentation
- Industry and market forecasts
4. Description of Business Venture
- Product(s) or Service(s)
- Size of business
- Office equipment and personnel
- Background of entrepreneurs
5. Production Plan/Operational Plan
- Manufacturing process (amount subcontracted) and Description of company’s
operations
- Physical plant
- Machinery and equipment and Technology utilization
- Names of suppliers of raw materials
- Flow of orders for goods and/or services
6. Marketing Plan
- Pricing
- Distribution
- Promotion
- Product forecasts and control
7. Organizational Plan and Assessment of Risk
- Form of ownership
- Identification of partners or principal shareholders, authority of principals
- Management-team background and Roles and responsibilities of members of
organization
- Evaluate weakness of business and Contingency Plans
- New technologies
 8. Financial Plan
- Pro forma income statement
- Pro forma balance sheet
- Cash flow projections
- Break-even analysis
- Sources and applications of funds
9. Appendix (contains backup material)
- Letters
- Market research data
- Leases or contracts
- Price lists from suppliers.

• Outline of a Lean Business Plan

LEAN BUSINESS PLAN

Example of a Lean Business Plan
ELEMENTS OF A BUSINESS PLAN

✓ Basic information: This is written in the introductory page which includes name and
address of the business; name(s) and address (es) of the principal(s) / owners, and the
nature of the business. It may also include the vision and mission statement of the group.
✓ Executive Summary: Three to four pages summarizing the business plan.
✓ Environmental and Industry Analysis: One to two pages presenting the future
trends of the market, analysis of the competitors, how you segment your market and the
industry forecast.
✓ Description of Business Venture: What is the type of business - manufacturing,
service or trading? What are the products and services the company is offering, office
personnel and office equipment and the background of the technopreneurs/owners.

✓ Production and Operational Plan: Explain briefly why this particular business has
been selected.

For example, a group has decided to make baskets because a member is a skilled
basket maker, there is a regular market for this product and the required raw material
is available locally.
✓ Marketing Plan: This section includes pricing, distribution, promotion, product/service
forecast and controls.
✓ Organizational Plan and Assessment of Risk: It includes the type or form of
ownership, the principal owners or shareholders, management team background and
roles and responsibilities of members of the organization. Likewise, this presents the
evaluation of weakness of the business, new technologies and contingency plans.
✓ Financial Plan: This covers the sources and application of funds and financial
statement analysis

such as pro forma income statement, pro forma balance sheet, cash flow projections
and break- even analysis.
✓ Appendix: It includes backup materials such as letters, market research data, lease
or contract and price list from suppliers.
Session 4.4
BUSINESS MODEL
At the end of this session, learners will be able to organize a business model that would present
the overview of the product/service proposal. They shall be able to:

1. Identify how the enterprise creates and deliver value to customer;

2. Analyze the different component of a business model canvas;
3. Construct a business model canvas (BMC).

Lecture:
A. BUSINESS as a PROCESS

The economic role of the firm is to organize capabilities and resources that will enable it
to transform materials and other inputs into higher value products for delivery to satisfy the
needs and/or wants of customers.

B. BUSINESS MODEL

A business model is a company's plan for making a profit. It identifies the products or
services the business will sell, the target market it has identified, and the expenses it
anticipates.

A new business in development has to have a business model, if only in order to attract
investment, help it recruit talent, and motivate management and staff. Established businesses
have to revisit and update their business plans often or they'll fail to anticipate trends and
challenges ahead. Investors need to review and evaluate the business plans of companies
that interest them.

C. HOW BUSINESS MODEL WORKS

A business model is a high-level plan for profitably operating a particular business in

a specific marketplace. A primary component of the business model is the value proposition.
This is a description of the goods or services that a company offers and why they are desirable
to customers or clients, ideally stated in a way that differentiates the product or service from
its competitors.
 A business model for a new enterprise should also cover projected startup costs and
sources of financing, the target customer base for the business, marketing strategy, a review
of the competition, and projections of revenues and expenses.
EXAMPLE OF A BUSINESS MODEL CANVAS
Session 4.3
STRATEGIC THINKING (Creating Your Competitive Advantage)

At the end of this session, learners shall be able to develop research expertise, analytical
thinking, innovation, problem-solving skills, communication and leadership skills, and
decisiveness. Learners shall be able to:

1. Define strategic thinking and analyze steps in strategic thinking process.

2. Determine the importance of strategic thinking in creating competitive advantage
and its benefits.
3. Utilize a strategic business tool in creating/increasing competitive advantage.

Lecture:
STRATEGIC THINKING
Definition

• Strategic thinking is simply an intentional and rational thought process that focuses on
the analysis of critical factors and variables that will influence the long-term success
of a business, a team, or an individual.

• Strategic thinking includes careful and deliberate anticipation of threats and

vulnerabilities to guard against and opportunities to pursue. Ultimately strategic
thinking and analysis lead to a clear set of goals, plans, and new ideas required to
survive and thrive in a competitive, changing environment. This sort of thinking must
account for economic realities, market forces, and available resources.
Strategic Thinking Process
Strategic Business Tools
✓ PEST Analysis (PESTEL)

- It is a strategic business tool traditionally used by organizations to evaluate macro-

economic factors which can impact the business. It examines opportunities and threats
due to Political, Economic, Social and Technological forces.
- There are several variations of the framework including PESTLE, STEEPLE, STEER
and STEEP. Regardless of which framework you choose, performing this type of
analysis gives you the lay-of-the-land in terms of what is happening in the external
business environment.

✓ TOWS analysis: Developing strategies from SWOT analysis

- Once you have identified and prioritized your SWOT results, you can use them to
develop short-term and long-term strategies for your business. After all, the true value
of this exercise is in using the results to maximize the positive influences on your
business and minimize the negative ones.
- One way to do this is to consider how your company’s strengths, weaknesses,
opportunities, and threats overlap with each other. This is sometimes called a TOWS
analysis.
- Look at the strengths you identified, and then come up with ways to use those
strengths to maximize the opportunities (these are strength-opportunity strategies).
Then, look at how those same strengths can be used to minimize the threats you
identified (these are strength-threats strategies).
- Continuing this process, use the opportunities you identified to develop strategies that
will minimize the weaknesses (weakness-opportunity strategies) or avoid the threats
(weakness-threats strategies).

The following table might help you organize the strategies in each area:
✓ Porters Five Forces Model - Competitive Position Analysis

- Porter's Five Forces of Competitive Position Analysis were developed in 1979

by Michael E Porter of Harvard Business School as a simple framework for
assessing and evaluating the competitive strength and position of a business
organization.

- This theory is based on the concept that there are five forces that determine
the competitive intensity and attractiveness of a market. Porter’s five forces help to
identify where power lies in a business situation.
✓ Blue Ocean and Red Ocean Strategy
- W. Chan Kim & Renée Mauborgne coined the terms red and blue oceans to denote
the market universe. Red oceans are all the industries in existence today – the
known market space, where industry boundaries are defined and companies try to
outperform their rivals to grab a greater share of the existing market. Cutthroat
competition turns the ocean bloody red. Hence, the term ‘red’ oceans.

- Blue oceans denote all the industries not in existence today – the unknown market
space, unexplored and untainted by competition. Like the ‘blue’ ocean, it is vast,
deep and powerful –in terms of opportunity and profitable growth.

- Blue ocean strategy is the simultaneous pursuit of differentiation and low cost to
open up a new market space and create new demand. It is about creating and
capturing uncontested market space, thereby making the competition irrelevant. It
is based on the view that market boundaries and industry structure are not a given
and can be reconstructed by the actions and beliefs of industry players.
Session 4.2
PURSUING YOUR IDEAS
At the end of this session, learners will be able to ascertain whether the proposed project is worth
pursuing or not based on the market analysis. Learners shall be able to:

1. Identify the strength and weaknesses of the company. and pinpoint the opportunities and
threats present in the external environment;
2. Apply a SWOT analysis in decision making.

Lecture:
SWOT Analysis
Definition

SWOT analysis is a tool for examining an organization/company and its environment. It is

the first stage of planning and helps marketers to focus on key issues. SWOT stands for strengths,
weaknesses, opportunities, and threats. Strengths and weaknesses are internal factors.
Opportunities and threats are external factors. A strength is a positive internal factor. A weakness
is a negative internal factor. An opportunity is a positive external factor. A threat is a negative
external factor.
Objective

The main purpose of the analysis has to be to add value to your products and services so
that you can recruit new customers, retain loyal customers, and extend products and services to
customer segments over the long-term.

SWOT ANALYSIS
 EXAMPLE OF SWOT ANALYSIS

Simple Rules in doing a SWOT Analysis

✓ Be realistic about the strengths and weaknesses of your organization.
✓ It should distinguish between where your organization is today, and where it could be
in the future.
✓ It should always be specific. Avoid grey areas.
✓ Always apply the tool in relation to your competition i.e. better than or worse than
your competition.
✓ Keep your audit short and simple. Avoid complexity and over analysis
✓ It is subjective.
Session 4.1
Identifying and Assessing your Target Customers
At the end of this session, learners will be able to recognize the importance of correctly identifying
customers’ needs and shall be able to:

1. Ask the right questions to accurately identify needs;

2. Pinpoint and assess target customers using different tools and techniques.

Lecture:
A. Know your Customer Needs:

• What do you offer to customers??

✓ Products (Ex. Bake goodies, gadgets, food, accessories)
✓ Services (Ex. Haircut, massage, computer repair, tutoring)
✓ Products and Services (Ex. Internet services and wifi router, computer and repair)
✓ Mode of delivery (Personal delivery, via 3PL)
✓ Mode of Payment (COD, credit card, cash before delivery, online payment)

• What do you know about your customers?

The more you know about your customers, the
more effective your sales and marketing efforts will
be. It's well worth making the effort to find out:
✓ Who they are
✓ What they buy
✓ Why they buy it

• The customer's current supplier

Chances are your potential customer is already buying something similar to your
product or service from someone else. Before you can sell to a potential customer, you
need to know:

✓ who the customer's current supplier is

✓ if the customer is happy with their current supplier
✓ if buying from you would offer the customer any benefits - and, if so, what those
benefits would be
• Ten (10) things you need to know about your customers.

1. Who they are

If you sell directly to individuals, find out your customers' gender, age, marital status and
occupation. If you sell to other businesses, find out what size and kind of business they
are. For example, are they a small private company or a big multinational?

2. What they do
If you sell directly to individuals, it's worth knowing their occupations and interests. If you
sell to other businesses, it helps to have an understanding of what their business is trying
to achieve.

3. Why they buy

If you know why customers buy a product or service, it's easier to match their needs to
the benefits your business can offer.

4. When they buy

If you approach a customer just at the time they want to buy, you will massively increase
your chances of success.

5. How they buy

For example, some people prefer to buy from a website, while others prefer a face-to-
face meeting

6. How much money they have

You'll be more successful if you can match what you're offering to what you know your
customer can afford.

7. What makes them feel good about buying

If you know what makes them tick, you can serve them in the way they prefer.

8. What they expect of you

For example, if your customers expect reliable delivery and you don't disappoint them,
you stand to gain repeat business.

9. What they think about you

If your customers enjoy dealing with you, they're likely to buy more. And you can only
tackle problems that customers have if you know what they are.

10. What they think about your competitors

If you know how your customers view your competition, you stand a much better chance
of staying ahead of your rivals.

Ways on how to reach your customers and gather

information about them.
✓ Face to face or Personal interview
✓ Sites that provide feedback on business ideas
(Foundersuite, Quirky).
✓ Market Research (CrowdPicker, Google Trends).
✓ Online Surveys (Survey Monkey, Google Consumer
Surveys).
✓ Q&A Sites (Quora, Stack Overflow).
✓ Social Networking Sites (Facebook, Twitter, IG)
✓ Others (Linkedin)
B. Why “Identifying Customer Needs” Matters:

• Appropriately identifying customers’ needs is essential for safeguarding

customer satisfaction and loyalty. If you fail to properly identify customers’
needs, or if you are indifferent to their needs, they will take their business
elsewhere.

• Customers have unique needs. Assuming what a customer wants based on

previous clients can drive the customer away.

• Identifying customers’ needs allows representatives to cross-sell related

products or services. Cross-selling can make the original purchase better, easier
to use, or more versatile, and is financially beneficial to the organization.

• Often, customers either aren’t clear about what they need or they don’t really know
what they want. Effective customer service representatives need to be trained to ask
the right questions, listen, and tailor suggestions in order to assist customers
satisfactorily.

• Identifying clients’ needs creates satisfied customers, and satisfied customers are
less likely to have reason to enter into disputes with your organization or
contemplate legal action.

C. Key Points:

• To ensure customer satisfaction, you must correctly identify customers’ needs.

• To identify needs, you must both listen and ask the right questions.
• After identifying needs, always check for additional or related needs.
• Use your knowledge and experience to identify and present the right products,
services, and solutions to meet your customers’ needs.