MODULE 1: INTRODUCTION TO ENTREPRENEURSHIP

RELEVANCE OF ENTREPRENEURSHIP TO AN ORGANIZATION

1. Development of Managerial Capabilities - one of the benefits an entrepreneur gets is to develop

his managerial skills.
2. Creation of Organizations - because of entrepreneurship many organizations will exist.
3. Improving Standard of Living - entrepreneurship can lift up the economic status of an individual.
4. Means of Economic Development - not only the life of the entrepreneur is improved but also the
society where the business is located.

Concept of Entrepreneurship

The word “entrepreneur” was derived from the French verb enterprendre, which means “to undertake.”
This is pinpointing to those who “undertake” the risk of enterprise. The enterprise is created by an
entrepreneur and the process is called
“Entrepreneurship.”
Entrepreneurs are innovators. They are willing to take the risks and generate unique ideas that can provide
profitable solutions to the needs of the market and the society.

Factors Affecting Entrepreneurship

1. Personality Factors which include:
a. Initiative - doing things even before being told
b. Proactive - he can classify opportunities and seize it.
c. Problem Solver- he can retain good relations with other people.
d. Perseverance - he will pursue things to get done regardless of challenges.
e. Persuasion - he can entice people to buy even if they don’t want to.
f. A Planner - he makes plans before doing things and does not fail to monitor it.
g. Risk-taker - he is willing to gamble but he will calculate it first.

2. Environmental Factors - include political, climate, legal system, economic and social conditions
and market situations.

Common Competencies in Entrepreneurship

1. Decisive - an entrepreneur must be firm in making decisions.

2. Communicator - an entrepreneur must have a convincing power.
3. Leader - an entrepreneur must have the charisma to be obeyed by his employees.
4. Opportunity seeker - an entrepreneur must have the ability to be the first to see business
chances.
5. Proactive – an entrepreneur can control a situation by making things happen or by preparing for
possible future problems.
6. Risk Taker – an entrepreneur has the courage to pursue business ideas.
7. Innovative - the entrepreneur has big business ideas and he does not stop improving and thinking
of new worthwhile ideas for his business.

Core Competencies in Entrepreneurship

1. Economic and Dynamic Activity - Entrepreneurship is an economic activity because it involves

the creation and operation of an enterprise with a view to creating value or wealth by ensuring
optimum utilization of limited resources.
2. Innovative – The entrepreneur constantly looks for new ideas, thus he needs to be creative.
3. Profit Potential - The entrepreneur can be compensated by his profit coming from the operation.
 4. Risk bearing – The entrepreneur needs to gamble but wise enough to offset the risk.
Types of Entrepreneurs

1. Innovative Entrepreneurs - those who always make new things by thinking of new ideas. They
have the ability to think newer, better and more economical ideas.
2. Imitating Entrepreneurs - those who don’t create new things but only follow the ideas of other
entrepreneurs.
3. Fabian Entrepreneurs - They are skeptical about changes to be made in the organization. They
don’t initiate but follow only after they are satisfied.
4. Drone Entrepreneurs - those who live on the labor of others. They are die-hard conservatives
even ready to suffer the loss of business.
5. Social Entrepreneurs - those who initiate changes and drive social innovation and transformation
in the various fields such as education, health, human rights, environment and enterprise
development.

Career Opportunities of Entrepreneurship

1. Business Consultant - with the expertise of in the field of entrepreneurship, he can be a very
good source of advices to other entrepreneurs and would be business men.
2. Teacher - a graduate of an entrepreneurship can use his knowledge in teaching.
3. Researcher - the entrepreneur can be employed as a researcher by an enterprise.
4. Sales - the entrepreneurship graduate can apply as a salesman.
5. Business Reporter - the entrepreneur being expert in the field, can be employed as a business
reporter.

ASSESMENT
1. The entrepreneurs who create new ideas are called ______________.
a. Innovative b. Imitating c. Fabian d. Drone
2. The entrepreneur who lives on the labor of others is called __________.
a. Drone b. Fabian c. Imitating d. Innovative
3. These are entrepreneurs who are to follow the path shown by innovative entrepreneurs.
a. Innovative b. Imitating c. Social Entrepreneurs d. Fabian
4. Which of the following does not belong to the group?
a. Skills management b. Risk taking c. Conduct research d. Make no changes with his product
5. Entrepreneur means:
a. Risk taker b. To undertake c. To research d. To improve standard of living
6. It is a personality factor which means “doing things even before being told.”
a. proactive b. perseverance c. persuasion d. initiative
7. It is a personality factor which means convincing customers to buy the product.
a. Proactive b. Persuasion c. Self-confidence d. Risk-taker
8. Which of the choices is NOT part of the environmental factors?
a. Political b. Weather condition c. Climate d. Family background of the manager
9. All except one does NOT belong to the group. Which one is it?
a. Unfair trade practices b. Strikes c. Political protest d. Product
10. The entrepreneur who is skeptical about the changes in the company is called
a. Fabian b. Social entrepreneur
11. Which is NOT a career for an entrepreneur?
a. Business consultant b. Sales c. Research and Development d. Domestic Helper
12. They are entrepreneurs who drive social innovation and transformation in various fields.
a. Drone b. Social entrepreneur c. Fabian d. Imitating
13. Which of the statements below is true?
a. Entrepreneurs have limited career opportunities.
b. Entrepreneurs are prone to constant high income.
c. Entrepreneurs are contributors to the development of the society.
d. Entrepreneurs are the reasons for the unemployment problem.
14. Which of the statements is NOT true?
a. An entrepreneur will patiently wait for his efforts to bear fruit.
b. The profit of the entrepreneur is immediate.
c. All entrepreneurs are successful.
d. Entrepreneurs are researcher.
15. Which of the following is NOT true?
a. Entrepreneurship creates organizations.
b. Entrepreneurs improve the life of the entrepreneur alone.
c. Entrepreneurs improves the economy.
d. None of the choices

MODULE 2: RECOGNIZE A POTENTIAL MARKET

Entrepreneurial Ideas
- The creation of an entrepreneurial idea leads to the identification of entrepreneurial opportunities, which in turn
results in the opening of an entrepreneurial venture.
- The entrepreneurial process of creating a new venture is presented in the diagram below.

The Entrepreneurial Process of Creating New Venture

*Creation of entrepreneurial Ideas
*Identification of entrepreneurial Opportunities
*Opening of entrepreneurial Venture

Essentials in Entrepreneur’s Opportunity – Seeking

basic foundation that the entrepreneur must have in seeking opportunities:
Entrepreneurial mind frame
allows the entrepreneur to see things in a very positive and optimistic way in the midst of difficult situation.
Entrepreneurial heart flame
Entrepreneurs are driven by passion; they are attracted to discover satisfaction in the act and process of
discovery.
Entrepreneurial gut game
ability of the entrepreneur of being intuitive. This also known as intuition. The gut game also means
confidence in one’s self and the firm belief that everything you aspire can be reached.
Sources of Opportunities
There are many ways to discover opportunities. Looking at the big picture, some have noticed the emerging
trends and patterns for business opportunities. The following are some sources of opportunities:

1. Changes in the environment

Entrepreneurial ideas arise when changes happen in the external environment. A person with an
entrepreneurial drive views these changes positively. External environment refers to the physical environment,
societal environment, and industry environment where the business operates.
1.1 The Physical environment includes
a. Climate – the weather conditions.
b. Natural resources – such as minerals, forests, water, and fertile land that occur in nature and can be used
for economic gain.
c. Wildlife – includes all mammals, birds, reptiles, fish, etc., that live in the wild.
1.2 The Societal environment includes the various forces like
a. Political forces – includes all the laws, rules, and regulations that govern business practices as well as the
permits, approvals, and licenses necessary to operate the business.
b. Economic forces – such as income level and employment rate.
c. Sociocultural forces – customs, lifestyles and values that characterize a society.
d. Technological environment – new inventions and technology innovations.
1.3 The Industry environment of the business includes:
a. Competitors
b. Customers
c. Creditors
d. Employees
e. Government
 f. Suppliers

2. Technological discovery and advancement

A person with entrepreneurial interest sees possibility of business opportunities in any new discovery or
because of the use of latest technology.
3. Government’s thrust, programs, and policies
The priorities, projects, programs, and policies of the government are also good sources of ideas.
4. People’s interest
The interest, hobbies, and preferences of people are rich sources of entrepreneurial ideas, like the increasing
number of Internet Cafés at present could lead to the strong attachment of young people to computers.
5. Past experiences
The expertise and skills developed by a person who has worked in a particular field may lead to the opening
of a related business enterprise.

Forces of Competition Model

It is also known as the “five forces of competition”. An industry environment is a competitive environment.
Regardless of what product or services you have, competition is always present.

Competition – it is the act or process of trying to get or win something.

These are the five forces competing within the industry:
 Buyers
 Potential new entrants
 Rivalry among existing firms
 Substitute products
 Supplier

1. Buyers
The buyers are the ones that pay cash in exchange for your goods and services. One example is the influence
of the price or in the bargaining strategy. The buyer has a strong and magnified bargaining power. The threat of its
bargaining power will be less if the following factors are noticed:
a. There are several suppliers available in the market.
b. The buyer has the potential for backward integration.
c. The cost of switching the supplier cost is minimal.
d. The product represents a high percentage of the buyer’s cost.
e. The buyer purchases large portions of the seller’s product or services.

2. Potential New Entrants

A new entrant is defined as companies or businesses that have the ability to penetrate or enter into a
particular industry. This gives a threat to the business. This can be noticed if there is the presence of the following
factors:
a. Substantial capital requirement
b. Strict government policy
c. Difficulty in accessing distribution channels
d. Economies of scale
e. High cost of product differentiation
f. High switching cost
3. Rivalry among Existing Firms
Rivalry is a state or situation wherein business organizations are competing with each other in a particular
market. The intensity of rivalry among existing firms is characterized to the following factors:
a. Diversity of rivals
b. Number of competing firms
c. Characteristics of the products or services
d. Increased capacity
e. Amount of fixed costs
f. Rate of industry growth
4. Substitute Products
Substitute is one that serves the same purpose as another product in the. In case the price of butter
increases, preferably the consumer will gradually switch to margarine. A substitute product can give a big threat in the
industry environment if the following factors are noticed:
a. Switching cost is low
b. Preferences and tastes of the customers easily change
c. Product differentiation is highly noticeable
d. The quality of substitute products dramatically improves
e. The price of substitute product is substantially lower
5. Suppliers
The Suppliers are the one that provide something that is needed in business operations such as office
supplies and equipment. This can be noticed if there is the presence of the following factors:
a. The supplier has the ability for forward integration
b. Suppliers in the industry are few, but the sales volume is high
c. Substitute products are not readily available in the market
d. The switching cost is very high
e. The product or service is unique

ASSESSMENT:
1. It is the process of considering, evaluating, and pursuing market-based activities that are believed to be
advantageous for the firm.
A. Opportunity – seeking C. Opportunity – screening
B. Opportunity – seizing D. Sources of opportunity
2. This is essential to opportunity – seeking which allows the entrepreneur to see things in a positive and optimistic
light in the midst of crisis or difficult situations.
A. Entrepreneurial mind frame C. Entrepreneurial heart flame
B. Entrepreneurial gut game D. Entrepreneurial heart frame
3. It is the ability of entrepreneur that can sense without using the five senses, also known as intuition.
A. Entrepreneurial mind frame C. Entrepreneurial heart flame
B. Entrepreneurial gut game D. Entrepreneurial heart frame
4. One of the essetials of entrepreneur’s opportunity – seeking that refers to the driven passion of an individual.
A. Entrepreneurial mind frame C. Entrepreneurial heart flame
B. Entrepreneurial gut game D. Entrepreneurial heart frame
5. What variable of societal environment includes income level and employment rate?
A. Economic forces C. Political forces
B. Sociocultural forces D. Technological forces
For questions 6 and 7 refer to the following statements:
A. Preferences and tastes of the customers easily change.
B. The buyer has the potential for backward integration.
C. The cost of switching the supplier cost is minimal.
D. Product differentiation is highly noticeable.
6. Which are the factors of the substitute product that pose a great threat in the industry environment?
A. A, B, C, D B. A and C C. A and D D. B and C
7. Which are the factors that influence the buyer to have a less threats because of the bargaining power?
A. A only B. A and C C. A and D D. B and C
8. They are the ones who pay cash in exchange for your goods and services.
A. Buyers B. Competitors C. Sellers D. Suppliers
9. The intensity of rivalry among existing firms is characterized to the following factors except one:
A. Diversity of rivals
B. Number of competing firms
C. Characteristics of the products or services
D. The product represents a high percentage of the buyer’s cost
10.The following are the forces competing within the industry except one:
A. Potential new entrants and Substitute Products
B. Buyers and Suppliers
C. Rivalry among Existing Firms
D. Needs and Wants
11. Which of the following good sources of entrepreneurial ideas determine the interest, hobbies and preferences of
people.
A. Changes in the environment C. People’s interest
B. Technological discovery D. Past experiences
12. Societal environment includes the following, except:
A. Economic forces C. Political forces
B. Sociocultural forces D. Natural resources
13. Which among the following is the result of identifying entrepreneurial opportunities?
A. Creation of entrepreneurial ideas C. Sources of opportunity
B. Opening of entrepreneurial venture D. Entrepreneurial process
14.What entrepreneurial idea will you recognize, if you consider the new discovery and advancement of technology as
source of opportunity?
A. Changes in the environment B. Technological discovery and advancement
C. Government’s thrust, programs, and policies D. People’s interest
15.A source of entrepreneurial idea where expertise and skills developed by a person from its previous work can lead
to the opening of a related business enterprise.
A. Government’s thrust, programs, and policies B. Past experiences
C. People’s interests D. Technological discovery and advancement

MODULE 3: RECOGNIZE AND UNDERSTAND THE MARKET

Value Proposition (VP) - is a business or marketing statement that summarizes why a consumer should buy a
company's product or use its service. This statement is often used to convince a customer to purchase a particular
product or service to add a form of value to their lives.

In creating Value Proposition, entrepreneurs will consider the basic elements:

 Target Customer
 Needs/opportunity
 Name of the product
 Name of the enterprise/company

Unique Selling Proposition (USP) - refers to how you sell your product or services to your customer. You will
address the wants and desires of your customers.

Tips for the entrepreneur on how to create an effective unique selling proposition to the target customers
are:
 Identify and rank the uniqueness of the product or services character
 Be very Specific
 Keep it Short and Simple (KISS)

Unique Selling Proposition and Value Proposition - two of the most famous tools used to explain why prospect
customers buy each product and service. Base on each definition, we learn that USP and VP are frameworks of each
business industry. The two propositions are valuable for the entrepreneurs.

3 factors that will determine your customers:

A. Target Market
Market Targeting is a sage in market identification process that aims to determine the buyers with common
needs and characteristics.
Target marketing allows you to focus your marketing money and brand message on a specific market that is
more likely to buy from you than other markets.

Commonly used methods for segmenting the markets are follows:

1. Geographic segmentation - the total market is divided according to geographical location.
 Variables to consider
a. Climate
b. Dominant ethnic group
c. Culture
d. Density (either rural or urban)
2. Demographic Segmentation - divided based on consumers
 Variables to consider
a. Gender
b. Age
c. Income
d. Occupation
e. Education
f. Religion
g. Ethnic group
h. Family size
3. Psychological Segmentation - divided in terms of how customers think and believe
 Variables to consider
a. Needs and wants
b. Attitudes
c. Social class
d. Personality traits
e. Knowledge and awareness
f. Brand concept
g. Lifestyle
4. Behavioral Segmentation - divided according to customers’ behavior pattern as they interact with a company.
 Variables to consider
a. Perceptions
b. Knowledge
c. Reaction
d. Benefits
e. Loyalty
f. Responses

B. Customer Requirements
Customer requirements are the specific characteristics that the customers need from a product or a service.

2 types of customer requirements:

1. Service Requirement:
An intangible thing or product that cannot be touched but the customer can feel the fulfillment. There are
elements in service requirement like on-time delivery, service with a smile, easy-payment etc. It includes all aspects of
how a customer expects to be treated while purchasing a product and how easy the buying process goes.
2. Output Requirements:
Tangible thing or things that can be seen. Characteristic specifications that a consumer expects to be fulfilled
in the product. Costumers will avail services as a product, then various service requirements can take the form of
output requirements.

C. Market Size
The entrepreneur’s most critical task is to calculate the market size, and the potential value that market has for
their start-up business. Market research will determine the entrepreneurs’ possible customers in one locality.
Market size - like a size of the arena where the entrepreneurs will play their business. It is the approximate number of
sellers and buyers in a particular market.
The first step is to estimate the potential market – approximate number of customers that will buy the product
or avail your services. The second step is to estimate the customers who probably dislike to buy your product or avail
the services. The third step is for the entrepreneur to estimate the market share, that means plotting and calculating of
the competitor’s market share to determine the portion of the new venture. Market size becomes the most important
factor if you ever need to raise funding for your business.

Assessment
_____1. What is the relationship between unique selling proposition and value proposition?
a. a framework of each business industry
b. meets your competitors needs wants
c. persuades another to exchange money for a product or service
 d. connected with only one particular thing
_____2. The following variables are to be considered in behavioral segmentation, except
a. perception b. brand concept
c. reaction d. benefits

_____3. What is the function of Value Proposition?

a. used to power up sales
b. used to convince customer to purchase a particular product or services.
c. help customers buying habits
d. provide value to your customers
4. Give an example in promotion using Value Proposition and Unique Selling proposition.
a. with the slogan “Langhap Sarap” b. ordinary sari-sari store
c. multinational business d. fruit shake stand
5. ___________________ will determine possible customers in one locality.
a. Market design b. Market strategy c. market research d. market size
_____6. The term behavioral segmentation refers to:
a. divided based on consumers
b. divided in terms of how customers’ think and believe
c. divided according to geographical location
d. divided according to customers behavior pattern as they interact with a company
_____7. What is market size?
a. Tangible things that can be seen
b. Size of arena where the entrepreneur will play their business
c. The most important part to the success of the company
d. Another variation of segmentation marketing.
_____8. These are considered favorable indicators for doing business in that particular location.
a. structure of the segment b. capability of the business
c. size and growth of the segment d. segmentation marketing
_____9. This selects the type of customer requirement
a. service requirement c. service responsibility b. service oriented d. service fulfillment
_____10. This refers to how you sell your products or services to your customer.
a. Value proposition c. Selling proposition b. Unique selling proposition d. Marketing concept
_____11. The following are tips for the entrepreneur on how to create an effective unique selling proposition to the
target customers, except
a. Identify and rank the uniqueness of the product or services characteristic
b. Be very specific
c. Keep it short and simple
d. Completeness of proportion
_____12. Geographic segmentation refers to:
a. Divided according to geographical location
b. Divided based consumers.
c. Divided in terms for customers think and believe
d. All of the above
_____13. Service requirement is a/an ___________________ thing or product that cannot be touched but customer
can feel he fulfillment.
a. Tangible c. Service b. Intangible d. Output
_____14. Tangible things that can be seen refers to
a. Service requirement c. customer requirements b. Output requirement d. Entrepreneur’s output
_____15. What is the first step in conducting strategic marketing?
a. Estimate the potential market
b. Estimate the customers who are probably dislike to buy your product
c. Estimate the market share
d. Estimate business funding.
MODULE 4: MARKET RESEARCH
Market Research or Marketing Research Process - can be defined as the process of gathering, analyzing and
interpreting the information about the products or the services to be offered for sale to the potential consumers in the
market (De Guzman, 2018, p. 25).
DATA COLLECTION - is the most valuable tool in any type of research study. Inaccurate data collection may cause
mistakes and ultimately lead to invalid results. (Edralin, 2016, p. 80).

TIPS in COLLECTING DATA

 Organize collected data as soon as it is available
 Know what message you want to get across and then collect data that is relevant to the message
 Collect more data
 Create more data
 Take note of interesting or significant data

3 Different data collection

SURVEY (Questionnaire), INTERVIEW and FOCUS GROUP DISCUSSION - evaluate their suitability under different
circumstances

SURVEYS - the most common way to gather primary research with the use of questionnaires or interview schedule.
These can be done via direct mail, over the phone, internet (e.g. Google) or email, face-to-face or on the Web (e.g.
Skype or Viber).

When designing or constructing your own research questionnaire, remember the following guidelines. (Edralin, 2016)
 Keep it as simple as possible
 Make sure it is clearly appealing and easy to read
 Cluster or block related questions
 Move from complex questions to more specific questions
 Make sure questions are concise and easily understood
 Avoid questions that are difficult to answer
 Make sure response scales used are consistent with categories that are mutually exclusive

INTERVIEW - one of the most reliable and credible ways of getting relevant information from target customers. It is
typically done in person between the researcher/entrepreneur and a respondent where the researcher asks pertinent
questions that will give significant pieces of information about the problem that he will solve.
Interviews normally last from 15 to 40 minutes, but they can last longer, depending on the participants’ interest
in the topic. In a structured interview, the researcher asks a standard set of questions and nothing more.
Personal interviews are the traditional method of conducting an interview. It allows the researcher to
establish relationship with potential participants and therefore gain their cooperation.
Telephone interviews are less expensive and less time-consuming, but the disadvantages are that the
response rate is not as high as the face-to-face interview, but considerably higher than the mailed questionnaire.

FOCUS GROUP DISCUSSION (FGD) - is an excellent method for generating and screening ideas and concepts. It
can be moderated group interviews and brainstorming sessions that provide information on user’s needs and
behaviors.

The following are considerations in the use of focus group discussions in market research:
 The length of the session is between 90 and 120 minutes.
 Conduct focus groups discussion with 8 to 10 participants per group.
 Assign an expert moderator / facilitator who can manage group dynamics.
 Use a semi-structured or open-format discussion
 Strive for consistency in the group’s composition

What I Have Learned

1. It is information gathered directly from the respondents who answered a set of questions.
_________________________
2. It is the traditional method of data collection which is normally done in person with the respondents.
__________________________
3. It obtains information on general attitudes, and understands the circumstances under which customers might
require your product or services and understand their desired outcomes. _______________________
4. It is one of the most reliable and credible ways of getting relevant information from target customers.
__________________________
5. It is the most valuable tool in any type of research study. __________________
6. A data gathering technique where it can be done via direct mail, over the phone, internet or e-mail.
____________________
7. They also allow the researcher to clarify indefinite answers and when necessary, seek follow-up information.
_______________________
8. It is an excellent method for generating and screening ideas and concepts. ________________________
9. It can be moderated group interviews and brainstorming sessions that provide information on user’s needs and
behaviors. __________________
10.It normally lasts from 15 - 40 minutes, but they can last longer, depending on the participants’ interest in the topic.
_____________________
11.It is type of interview which is less expensive and less time-consuming ______________________

Assessment
1. It is the process of gathering, analyzing and interpreting the information about the product or the services to be
offered for sale in the market, the market and about past, present and any potential consumers for the products.
A. Data Gathering B. Primary Research C. Secondary Research D. Market Research
2. A data gathering technique where it can be moderated to group interviews and brainstorming sessions that provide
information on user’s needs and behaviors.
A. Personal Interview B. Focus Group Discussion C. Survey D. Data Gathering
3. A data gathering technique where it can be done via direct mail, over the phone, internet or e-mail.
A. Data Gathering B. Survey C. Focus Group Discussion D. Personal Interview
4. It is one of the most reliable and credible ways of getting relevant information from target customers
A. Primary Research B. Secondary Research C. Interview D. Data Gathering
5. It is the most common way to gather data with the use of questionnaires or interview schedule.
A. Interview B. Focus Group Discussion C. Survey D. Data Gathering
6. It is the traditional method of data collection which is normally done in person with the respondents.
A. Personal Interview B. Focus Group Discussion C. Survey D. Data gathering
7. It is an excellent method for generating and screening ideas and concepts
A. Data Gathering B. Survey C. Focus Group Discussion D. Personal Interview

MODULE 5: 7 P’S OF MARKETING AND BRANDING

The 7 P’s of Marketing Mix
There are several important frameworks which you can utilize for the purpose of marketing your product and
services. A very crucial structure among these is the “7 P’s of Marketing. The framework of “7 Ps of marketing”
includes product, place, price, promotion people, packaging and positioning. Realizing these P’s in the most ideal
manner can turn out to be very profitable, however, you should totally see each description of the 7 P’s first.

1. PRODUCT
The first P in the Marketing Mix is the Product. Marketing strategy typically starts with the product. Marketers
can’t plan a distribution system or set a price if they don’t know exactly what the product will be offered to the market.
Product refers to any goods or services that is produced to meet the consumers’ wants, tastes and preferences.

GOODS
A. CONSUMER GOODS
B. BUSINESS GOODS

PRODUCT

SERVICES
• A. CONSUMER SERVICES
• LAWN CARE
• HAIR STYLING
• B. PROFESSIONAL SERVICES
• ENGINEERING
• ACCOUNTING
• CONSULTANCY

The two (2) types of products

There are 2 types of goods. Consumer Goods and Business Goods
Consumer Goods Business Goods
The demand for consumer goods is a 'direct demand'. The demand for business goods is a 'derived demand'. It
is derived from the demand for consumer goods, which
are made using the business goods.
The number of buyers is great. Business goods have only limited number of buyers.
The buyers are found scattered in different parts of the The buyers are found to be concentrating in certain
country / world. regions only.
Each purchase will generally be of small value. Each purchase involves a very high amount (in money
terms).
Buying is much influenced by emotions. Buying cannot be influenced by emotions.
After-sale service is important in the case of consumer After-sale service is of paramount importance in the
durables. case of all business goods.
There are a number of middlemen in the market. The manufacturers of industrial goods supply directly to
their customers.
A buyer of consumer goods may not have thorough A buyer of industrial goods must have complete
knowledge of the goods he buys and uses. knowledge of the goods he buys and uses.
The reputation of the seller or manufacturer may not The reputation of the manufacturer is always important
always be given importance in buying consumer goods. in buying industrial goods.
The reputation of the manufacturer is always important
in buying industrial goods.
Inducements to the buyers in the form of cash discounts, Such inducements may not be common in the marketing
free gifts, etc. are made always by those marketing of industrial goods.
consumer goods.
The market for consumer goods is affected by fashion The market for industrial goods is affected by
and style changes. technological changes

2. PLACE
Place is the second P in the Marketing Mix. Place represents the location where the buyer and seller
exchange goods or services. It is also called as the distribution channel. It can include any physical store as well as
virtual stores or online shops on the Internet.
It is one thing having a great product, sold at an attractive price. But what if:
• Customers are not near a retailer that is selling the product?
• A competing product is stocked by a much wider range of outlets?
• A competitor is winning because it has a team of trained distributors or sales agents who are out there meeting
customers and closing the sale?
Place matters for a business of any size. It is a crucial part of the marketing mix.
The main function of a distribution channel is to provide a link between production and consumption.

Channel 1 contains two stages between producer and consumer - a wholesaler and a retailer. A wholesaler typically
buys and stores large quantities of several producers' goods and then breaks into bulk deliveries to supply retailers
with smaller quantities.
For small retailers with limited order quantities, the use of wholesalers makes economic sense.
Channel 2 contains one intermediary. In consumer markets, this is typically a retailer. A retailer is a company that
buys products from a manufacturer or wholesaler and sells them to end users or customers. In a sense, a retailer is an
intermediary or middleman that customers use to get products from the manufacturers.
Channel 3 is called a "direct-marketing" channel, since it has no intermediary levels. In this case the manufacturer
sells directly to customers.

3. PRICE
The third P in the Marketing Mix is price. The price is a serious component of the marketing mix. In the
narrowest sense, price is the value of money in exchange for a product or service. Generally speaking, the price is the
amount or value that a customer gives up to enjoy the benefits of having or using a product or service. Thus,
customers exchange a certain value for having or using the product – a value we call price. In commerce, price is
determined by what (1) a buyer is willing to pay, (2) a seller is willing to accept, and (3) the competition is allowing to
be charged.

The Different Pricing Strategies and Its Definition

Pricing Strategies Definition
Penetration Pricing The price charged for products and services is set
artificially low in order to gain market share. Once this is
achieved, the price is increased.
Skimming Pricing A company charges a higher price then slowly lowers
the price to make the product available to a wider
market because it has a considerable competitive
advantage.
Competition Pricing A pricing method in which a seller uses prices of
competing products as a benchmark instead of
considering own costs or the customer demand.
Product Line Pricing The practice of reviewing and setting prices for multiple
products that a company offers in coordination with one
another.
Bundle Pricing The act of placing several products or services together
in a single package and selling for a lower price than
would be charged if the items were sold separately.
Premium Pricing Setting the price of a product higher than similar
products.
Psychological Pricing Psychological pricing is the practice of setting prices
slightly lower than rounded numbers, in the belief that
customers do not round up these prices, and so will treat
them as lower prices than they really are.
Optional Pricing The company earns more through cross-selling products
along with a basic core product.
Cost Plus Pricing Cost plus pricing involves adding a markup to the cost of
goods and services to arrive at a selling price.
Cost Based Pricing A pricing method in which a fixed sum or a percentage
of the total cost is added (as income or profit) to the cost
of the product to arrive at its selling price.
Value Based Pricing A price-setting strategy where prices are set primarily on
consumers' perceived value of the product or service.

4. PROMOTION
The fourth P in the Marketing Mix. Promotion refers to the complete set of activities, which communicate the
product, brand or service to the user. The idea is to create an awareness, attract and induce the consumers to buy the
product, in preference over others. The following are the most common medium in promoting a product and this is
called promotional mix.

PROMOTIONAL MIX
1. ADVERTISING
• Radio
Advertising by means of radio gives the advantage of selecting the territory and audience to which the
message is to be directed. It is also cheaper than TV advertising.
• Television
The latest and the fast-developing medium of advertising and is getting increased popularity these days. It is
more effective as compared to radio as it has the advantages of sound and sight.
• Print
Carry their messages entirely through the visual mode. These media consist of newspapers, magazines and
direct mail.
• Electronic
 Can also advertise electronically through your company website and provide important and pertinent
information to clients and customers.
• Word of Mouth
It is mportant for every business, as each happy customer can steer dozens of new ones your way.
• Generic
The promotion of a particular commodity is without reference to a specific producer, brand name or
manufacturer.
2. PUBLIC RELATIONS OR PR
In public relations, the article that features your company is not paid for. The reporter, whether broadcast or
print, writes about or films your company as a result of information he or she received and researched.
3. PERSONAL SELLING
Personal selling occurs when an individual salesperson sells a product, service or solution to a client.
Salespeople match the benefits of their offering to the specific needs of a client.

Five Stage Personal Selling Process. The five stages are:

• Prospecting
• Making first contact
• The sales call
• Objection handling
• Closing the sale

4. SALES PROMOTIONS
Sales promotion is any initiative undertaken by an organization to promote an increase in sales, usage or trial
of a product or service.
Sales Promotion Technique
• Free Gifts
There are many ways to utilize this particular sales promotion technique. A newly opened store, for example,
may offer the first 10 customers free items worth 100 pesos.
• Free Samples
Providing free samples is a technique used to introduce new products to the marketplace.
• Free Trial
A free trial is a way for a consumer to try a new product while eliminating risk.

• Customer Contests
Contests offer the customer a chance to win prizes like cash or store merchandise.
• Special Pricing
Special pricing is used to offer consumers a lower price for a period of time or to purchase in multiple
quantities.
5. DIRECT MARKETING
Promotional method that involves presenting information about your company, product, or service to your
target customer without the use of an advertising middleman.

Forms of Direct Marketing

Brochure Catalogs Fliers Newsletters Post cards
Coupons Email Phone calls Text messages

5. PEOPLE
The fifth P in the Marketing mix is People. Your team, the staff that makes it happen for you, your audience,
and your advertisers are the people in marketing. This consist of each person who is involved in the product or service
whether directly or indirectly.
6. PACKAGING
Packaging is the sixth P in the Marketing Mix. Packaging is a silent hero in the marketing world. Packaging
refers to the outside appearance of a product and how it is presented to the customers.

Five Basic Functions of Packaging

1) Protection:
 One of the major functions of packaging is to provide for the effects of time and environment for the natural
and manufactured products. The protection function can be divided into some classes.
A. Natural deterioration:
It is caused by the interaction of products with water, gases and fumes, microbiologic organisms like bacteria,
yeasts and molds, heat, cold, dryness, contaminants and insects and rodents.
B. Physical protection:
The packaging is also used for physical protection, which include improving shock protection, internal product
protection and reducing shock damage caused from vibration, snagging, friction and impact.
C. Safety:
A special kind of protective packaging is required for products that are deemed harmful to those who transport
them or use them. The packaging should also be done so that children could not easily use or dispose them.
D. Waste reduction:
Packaging also serves to reduce the amount of waste especially in case of food distribution.
2) Containment:
This involves merging of unit loads for shipping. It starts with spots of adhesives on the individual shippers that
stick them together, straps of steel and plastic, entire coverings of shrinkable or stretchable plastic films and paper or
corrugated wraps that surround an entire pallet of product.
3) Information:
The packaging conveys necessary information to the consumers. The common information that packaging
provides include general features of the product, ingredients, net weight of the contents, name and address of the
manufacturers, maximum retail price (MRP).
4) Utility of use:
The convenience packaging has been devised for foods, household chemicals, drugs, adhesives, paints,
cosmetics, paper goods and a host of other products.
5) Promotion:
Companies use attractive colors, logos, symbols and captions to promote the product that can influence
customer purchase decision.
Packaging Decisions:
i. Packaging concept:
This defines what the package should be or do for the particular product in terms of size, shape, materials,
color, text, and brand mark and tamperproof ability
ii. Engineering tests:
This will ensure that the package stands up under normal conditions
iii. Visual tests:
This is to ensure that the script is legible and colors are harmonious
iv. Dealer tests:
This is to ensure that the dealers find the packages attractive and easy to handle
v. Consumer tests:
This is to ensure favorable consumer response
7. POSITIONING
Finally, the seventh P in the Marketing Mix is Positioning. When a company presents a product or service in a
way that is different from the competitors, they are said to be “positioning” it. Positioning refers to a process used by
marketers to create an image in the minds of a target market. Solid positioning will allow a single product to attract
different customers for not the same reasons.
3 basic concepts for positioning:
Functional Positions deal with solving a problem, providing benefits and getting a favorable perception from
investors,
stockholders and consumers.
Symbolic Positions deal with self-image enhancement, ego identification, belongingness, social meaningfulness and
affective fulfilment and
Experiential Positions deal with providing sensory or cognitive stimulation.
Steps of the Positioning Process
Step 1: Confirm Your Understanding of Market Dynamics
At the start of the positioning process, you need a firm understanding of your target market. If you don’t have
answers to the questions, you should consider conducting formal or informal marketing research to reach a better
understanding of your target market and the market dynamics around it.
Steps of the Positioning Process
Confirm your understanding of market dynamics
Identify your competitive advantages
Choose competitive advantages that define your market “niche”
Define your positioning strategy
Communicate and deliver on the positioning strategy
Step 2: Identify Your Competitive Advantages
A competitive advantage is some trait, quality, or capability that allows you to outperform the competition. It
gives your product, service, or brand an advantage over others in purchasing decisions. Competitive advantage may
come from and or all of the following:
Price: Something in your production process or supply chain may make it possible for you to provide comparable
value at a lower cost than competitors.
Features: You may provide tangible or intangible features that your competitors do not:
Benefits: You may provide unique benefits to customers that your competitors cannot match. Benefits are intangible
strengths or outcomes your customer gets when they use your offering.
Step 3: Choose Competitive Advantages That Define Your Niche
Your list of competitive advantages represents a set of possible positioning strategies you could pursue for
your product, service, or brand. The next step is to examine how these factors fit into customer perceptions of your
broader competitive set.
How to Create an Effective Market Positioning Strategy?
Create a positioning statement that will serve to identify your business and how you
want the brand to be perceived by consumers.
1. Determine company uniqueness by comparing to competitors
Compare and contrast differences between your company and competitors to identify opportunities. Focus on
your strengths and how it can exploit these opportunities.
2. Identify current market position
Identify your existing market position and how the new positioning will be beneficial in setting you apart from
competitors.
3. Competitor positioning analysis
Identify the conditions of the marketplace and the amount of influence each competitor can place on each
other.
4. Develop a positioning strategy
Through the preceding steps, you should achieve an understanding of what your company is, how your
company is different from competitors, the conditions of the marketplace, opportunities in the marketplace, and how
your company can position itself.

Developing a Brand Name

Brand Name - is a name, symbol, or other feature that distinguishes a seller's goods or services in the marketplace.
Your brand is one of your greatest assets because your brand is your customers' over-all experience of your business.

Brand strategy - is a long-term design for the development of a popular brand in order to achieve the goals and
objectives. A well-defined brand strategy shakes all parts of a business and is directly linked to customer needs,
wants, emotions, and competitive surroundings.

Branding - is a powerful and sustainable high-level marketing strategy used to create or influence a brand. Branding
as a strategy to distinguish products and companies and to build economic value to both customers and to brand
owners, is described by Pickton and Broderick in 2001.

Commonly Used Branding Strategies

1) Purpose
"Every brand makes a promise. But in a market in which customer confidence is little and budgetary
observance is great, it’s not just making a promise that separates one brand from another, but having a significant
purpose," (Allen Adamson).
Business purpose - purpose can be viewed in two ways:
a. Functional. This way focuses on the assessments of success in terms of fast and profitable reasons.
b. Intentional. This way focuses on fulfillment as it relates to the capability to generate money and do well in the world.
2) Consistency
 The significance of consistency is to avoid things that don’t relate to or improve your brand. Consistency aids
to brand recognition, which fuels customer loyalty.
3) Emotion
There should be an emotional voice, whispering "Buy me". This means you allow the customers to have the
chance to feel that they are part of your brand. You should find ways to connect more deeply and emotionally with
your
customers.
4) Flexibility
Marketers should remain flexible too in this rapidly changing world. Consistency targets at setting the standard
for your brand, flexibility allows you to adjust and differentiate your approach from your competition.
5) Employee Involvement
It is equally important for your employees to be well versed in how they communicate with customers and
represent the brand of your product.
6) Loyalty
Loyalty is an important part of brand strategy. At the end of the day, the emphasis on a positive relationship
between you and your existing customers sets the tone for what potential customers can expect from doing business
with you.
7) Competitive Awareness
Do not be frightened of competition. Take it as a challenge to improve your branding strategy and craft a
better value in your brand.

Assessment

______________1. It is a set of controllable and interrelated variables composed of product, place, price and
promotions that a company assembles to satisfy a target group better than its competitor.

______________2. The amount of money that a customer pays for to enjoy a product or service.

______________3. It is any initiative undertaken by an organization to promote an increase in sales, usage or trial of
a product or service

______________4. It occurs when an individual salesperson sells a product, service or solution to a client.

______________5. It can be intangible or tangible as it can be in the form of services or goods.

______________6. The way your product or service appears from the outside.

______________7. A marketing model that modifies the 4Ps model.

______________8. It is responsible for every element of your sales, marketing strategies, and activities.

______________9. It refers to how a business creates awareness in the market.

______________10. It claims a new space in the mind of the customer different from the spaces occupied by existing
products.

______________11. The ultimate marketing strategy.

______________12. This is where your product or service is actually sold.

______________13. The place occupied by products in the hearts and minds of the consumers.

______________14. A name, symbol, or other feature that distinguishes a seller's goods or services in the
marketplace.

______________15. A powerful and sustainable high-level marketing strategy used to create or influence a brand

QUARTER CHALLENGE 1

1. The entrepreneurs who create new ideas are called

A. Innovative C. Fabian B. Imitating D. Drone

2. The entrepreneur who lives on the labor of others is called

A. Drone C. Imitating B. Fabian D. Innovative

3. These are entrepreneurs who are to follow the path shown by innovative entrepreneurs.

A. Innovative C. Social Entrepreneurs B. Imitating D. Fabian

4. Which of the following is NOT a function of an entrepreneur?

A. Skills management C. Conduct research B. Risk taking D. Make no changes with his product

5. Entrepreneur means:

A. Risk taker C. To research B. To undertake D. To improve standard of living

6. It is a personality factor which means “doing things even before being told”

A. proactive C. persuasion B. perseverance D. initiative

7. It is a personality factor which means convincing customers to buy the product

A. Proactive C. Self-confidence B. Persuasion D. Risk taker

8. Which of the choices is NOT part of the environmental factors?

A. Political C. climate B. Weather condition D. family background of the manager

9. All except one does NOT belong to the group, which one is it?

A. Unfair trade practices C. Political protest B. Strikes D. Product

10. The entrepreneur who is skeptical about the changes in the company is called?

A. Fabian C. Drone B. Social entrepreneur D. Imitating

11. The following are the forces competing within the industry except one, which one is it?

A. Potential new entrants and Substitute Products B. Buyers and Suppliers

C. Rivalry among existing firms D. Needs and Wants

12. They are the ones that provide something that is needed or wanted.

A. Buyers C. Buyers B. Competitors D. Sellers

13. It refers to the physical environment, societal environment, and industry environment where the business
operates.

A. Entrepreneurial mind frame C. Entrepreneurial heart flame

B. External Environment D. Entrepreneurial heart frame

14. They are the ones who enter something.

A. Buyers C. Suppliers B. new entrants D. Sellers

For questions 15 to 16 refer to the following statements:

A. Substantial capital requirement

B. Substitute products are not readily available in the market

C. Difficulty in accessing distribution channels

D. The product or service is unique

E. Characteristics of the products or services

F. Increased capacity

15. In Potential New Entrants the intensity of its threat will be affected by the presence of the following barriers.

A. A and C C. A only B. A, B, C and D D. All of the above

16. In rivalry among existing firms, the industry is attributable to the following factors.
A. E and F C. A and B B. A, B, C and D D. All of the above

17. Which of the following includes the industry environment of the business?

A. Competitors C. Creditors B. Customers D. All of the above

18. It is the process of considering, evaluating, and pursuing marketbased activities that are believed to be
advantageous for the firm.

A. Opportunity seeking C. Opportunity screening B. Opportunity seizing D. Sources of opportunity

19. This is essential to opportunity-seeking which allows the entrepreneur to see things in a positive and optimistic
light in the midst of crisis or difficult situations.

A. Entrepreneurial mind frame C. Entrepreneurial heart flame

B. Entrepreneurial gut game D. Entrepreneurial heart frame

20. It is the ability of entrepreneur that can sense without using the five senses, also known as intuition.

A. Entrepreneurial mind frame C. Entrepreneurial heart flame

B. Entrepreneurial gut game D. Entrepreneurial heart frame

21. What is the function of Value Proposition?

A. used to power up sales B. determine customers buying habits

C. convince customer to purchase a particular product or services. D. provide value to your customers

22. This is an example of promotion using Value Proposition and Unique Selling Proposition.

A. fruit shake stand B. with the slogan “Langhap Sarap”

C. ordinary sari-sari store D. multinational business

23. These are the types of requirements, which one is a type of customer requirement?

A. service responsibility C. service requirement

B. service-oriented D. service fulfillment

24. This is considered as favorable indicators for doing business in a particular location.

A. structure of the segment C. size and growth of the segment

B. capability of the business D. segmentation marketing

25. What is market size?

A. Tangible things that can be seen B. The most important part to the success of the company

C. Size of arena where the entrepreneur will play their business D. Another variation of segmentation marketing

26. This refers to how you sell your products or services to your customer.

A. Value proposition C. Selling proposition

B. Marketing concept D. Unique selling proposition

27. Service requirement is a _________ thing or product that cannot be touched but the customer can feel the
fulfillment of buying or using it.

A. Intangible C. Service B. Tangible D. Output

28. The following are tips for the entrepreneur on how to create an effective unique selling proposition to the target
customers, except

A. Completeness of proportion B. Identify and rank the uniqueness of the product or services characteristic.

C. Be Very specific D. Keep it short and simple

29. ________________ will determine the entrepreneur’s possible customers in one locality.

A. Market design C. Market strategy B. Market size D. Market research

30. The following are variables to consider in behavioral segmentation, except.

A. perception C. reaction B. brand concept D. benefits

31. It is the most common way to gather primary information/data with the use of questionnaires or interview schedule.

A. Interview C. Survey B. Focus group discussion D. Data gathering

32. It is the traditional method of data collection which is normally done on a face-to-face manner with the
respondents.

A. personal interview C. survey B. focus group discussion D. data gathering

33. It refers to a type of focus group discussion where it obtains information on general attitudes, understands the
circumstances under which customers might require your product or service, and understand their desired outcomes.

A. trend explanation C. feature prioritization B. exploratory D. comparative analysis

34. It is a type of FGD where customers go to get similar information, services or products and what attracts them to
those resources.

A. trend explanation C. feature prioritization B. exploratory D. comparative analysis

35. A data gathering technique where it can be moderated to group interviews and brainstorming sessions that
provide information on user’s needs and behaviors.

A. personal interview C. survey B. focus group discussion D. data gathering

36. It refers to information gathered directly from the respondents who answered a set of questions.

A. primary research C. survey B. secondary research D. data gathering

37. It is a type of discussions in FGD if trade-offs have to be made among various customer needs.

A. trend explanation C. feature prioritization B. exploratory D. comparative analysis

38. A data gathering technique where it can be done via direct mail, over the phone, internet or e-mail.

A. data gathering C. focus group discussion B. survey D. personal interview

39. It is the process of gathering, analyzing and interpreting the information about the product or the services to be
offered for sale in the market, the market and about past, present and any potential consumers for the products.

A. data gathering C. secondary research B. primary research D. market research

40. It is an important aspect of any type of research study, it can impact the results of a study and ultimately lead to
valid or invalid results.

A. data collection C. secondary research B. primary research D. market research

41. Which one is not a P in Marketing Mix?

A. Price B. People C. Participant D. Promotion

42. Which statement supports Marketing Mix?

A. The marketing mix is also known as the “M’s” in marketing.

B. Marketing Mix is a set of controllable and connected variables that a company gathers to satisfy a target group
better than its competitor.

C. There are only 4 P’s in Marketing Mix.

D. None of the above

43. Select the best definition of Product.

A. A product is an item that is built or produced to satisfy the needs of a certain group of people, it can be intangible or
tangible.

B. A product is an item that is built or produced primarily to gain profit; it can be intangible or tangible.

C. A product is an item that is built or produced to compete in the world of business; it can be intangible or tangible.

D. None of the above

44. Choose the best statement that applies to Consumer Goods.

A. A buyer of consumer goods must have complete knowledge of the goods he buys and uses.

B. After-sale service is of paramount importance in the case of all consumer goods.

C. The market for consumer goods is affected by technological changes.

D. A buyer of consumer goods may not have thorough knowledge of the goods he buys and uses.

45. What factors would change in the distribution channel if there will be no Intermediary like producer and consumer?

A. Nothing will take place, since it has no intermediary levels. In this case the manufacturer cannot sell to customers.

B. Direct-marketing will take place, since it has no intermediary levels. In this case the manufacturer sells directly to
customers.

C. The company will utilize technology to reach the customers.

D. All of the above

46. What is the advantage of Penetration Pricing?

A. A firm has three options and these are to price lower, price the same or price higher than competitors

B. A firm can create the perception that the products must have a higher value than competing products because the
prices are higher.

C. The company earns more through cross-selling products along with a basic core product.

D. The company will gain market share because the price charged for products and services is set artificially low.

47. Promotions refer to the partial set of activities, which communicate the product, brand or service to the user. The
idea is to make people aware, attract and induce to buy the product, in preference over others. Find the error.

A. partial set of activities B. which communicates the product

C. idea is to make people aware, attract and induce to buy the product D. No error

48. How would you promote a product?

A. By offering Free Gifts, Free Samples, Free Trial, Customer Contests, Special Pricing

B. By offering Brochure, Catalogues, Fliers, Newsletters

C. By offering Post cards, Coupons, Email, Phone calls, Text messages

D. None of the above

49. The following are interpretations of the word Brand except

A. a legal instrument B. a logo C. a business D. a vision

50. How can you define your business's purpose?

A. Purpose can be defined in two ways: Functional which focuses on the evaluations of success in terms of immediate
and commercial reasons and Intentional which focuses on success as it relates to the ability to make money and do
well in the world.

B. Purpose can be defined in two ways: National which focuses on the evaluations of success within the country for
commercial reasons and International which focuses on success as it relates to other countries to make money and
do well in the world.

C. All of the above

D. None of the above