Relevance of Entrepreneurship to an
Organization
g.
Risk-taker - which means that he is
willing to gamble but he will calculate it first.
1.
Development
of
Managerial
capabilities - this means that one of the
benefits an entrepreneur gets is to develop his
managerial skills.
2.
Environmental Factors which include
political, climate, legal system, economic and
social conditions and market situations.
2.
Creation of Organizations - which
means that because of entrepreneurships many
organizations will exist.
3.
Improving standard of living - this
means that entrepreneurship can lift up the
economic status of an individual.
4.
Means of economic development - this
means that 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, willing to take
risks and generate new ideas to make it unique
and profitable solutions to the present-day
problems.
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 - controlling a situation by
making things to happen or by preparing for
possible future problems.
6.
Risk Taker - they have the courage to
pursue their business ideas.
7.
Innovative - the entrepreneurs have big
business ideas and they do not stop improving
and thinking of new worthwhile ideas for their
business.
Core Competencies in Entrepreneurship
a.
Initiative - which means doing things
even before being told.
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.
b.
Proactive -which means he can classify
opportunities and seize it.
2.
Innovative - Entrepreneurs constantly
look for new ideas, thus he needs to be creative.
c.
Problem Solver - which means he can
retain good relations with other people.
3.
Profit Potential - The entrepreneur can
be compensated by his profit coming from the
operation.
Factors Affecting Entrepreneurship
1.
Personality Factors which include:
d.
Perseverance - meaning he will pursue
things to get done regardless of challenges.
e.
Persuasion - means that he can entice
people to buy even if they don’t.
f.
A Planner - meaning he makes plan
before doing things and do not fail to monitor it.
4.
Risk bearing – The entrepreneur needs
to gamble but wise enough to offset the risk.
Types of Entrepreneurs
1.
Innovative entrepreneur - They are
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 - They are
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 entrepreneur - They are those
who lives on the labor of others. They
are die-hard conservatives even ready to suffer
the loss of business.
5.
Social entrepreneurs - They are 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 man.
2.
Teacher - a graduate of
an
entrepreneurship can use his knowledge in
teaching.
3.
Researcher - the entrepreneur can be
employed as researcher by an
enterprise.
4.
Sales - the entrepreneurship graduate
can apply as salesman.
5.
Business Reporter - the entrepreneur
being expert in the field, he can be employed
as business reporter.
Business industries offers products and
services. The activity of making, buying, or
selling goods or providing services in exchange
of money is called business. Product is
something that is made or grown to be sold or
use, or something that is result of a process.
Services are those intangible products where
there is a skill involve and has a value.
Entrepreneurial Ideas
The creation of an entrepreneurial ideas 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.
(Aduana, 2017)
Creation
entreprene
of
Idea
urial
s
Identificatio
entreprene
n of
Opportuni
urial
ties
Opening
entreprene
of
Ventu
urial
re
Figure 1. The Entrepreneurial Process of
Creating New Venture
Essentials in Entrepreneur’s Opportunity
Seeking
These are the basic foundation that the
entrepreneur
must
have
in
seeking
opportunities:
Entrepreneurial mind frame. This allows the
entrepreneur to see things in a very positive and
optimistic way in the midst of difficult situation.
Being a risk - taker, an entrepreneur can find
solution when problems arise.
Entrepreneurial heart flame. Entrepreneur's
driven passion, they are attracted to discover
satisfaction in the act and process of discovery.
Passion is the great desire of an entrepreneur to
achieve his/her goals.
Entrepreneurial gut game. This refers to the
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
believe 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. While others are trying to find out
their target market. Some are the following
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
environmentinventions and technology innovations.
New
1.3 The industry environment of the business
includes:
a.
Competitors
b.
Customers
c.
Creditors
d.
Employees
e.
Government
f.
Suppliers
firm can start his/her business venture by
opening his/her own accounting firm.
For example, one factor in the physical
environment that can easily change is the
climate. The temperature is very high during
summer but very low during the rainy season.
An individual with entrepreneurial drive can be
extremely imaginative and inventive in
identifying opportunities. He/she can venture a
business that responds to the needs of the
people during summer and rainy season.
2.
Technological
advancement
discovery
and
A person with entrepreneurial interest sees
possibility of business opportunities in any new
discovery or because of the use of latest
technology.
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.
For example, the prices are lower when there is
a competition among the stores.
These are the five forces competing within the
industry:
For example, an individual with knowledge in
repair and installation of a machine engine
discovers that additional engine parts that
considerably reduce fuel consumption.
•
Buyers
•
Potential new entrants
•
Rivalry among existing firms
3. Government’s thrust, programs, and
policies
•
Substitute products
•
Supplier
The priorities, projects, programs, and policies
of the government are also good sources of
ideas.
For example, the use of firecrackers to celebrate
New Year’s Eve is strictly prohibited. People
without entrepreneurial interest will view the
ordinance as a plain restriction. However, for an
entrepreneur, it is a business opportunity to
come up with a new product that will serve as a
substitute for firecrackers.
3. People’s interest
The interest, hobbies, and preferences of
people are rich source of entrepreneurial ideas.
Like the increasing number of Internet Café at
present could be led to the strong attachment of
young people to computers.
1. Buyers
The buyers are the one that pays cash in
exchange to your goods and services. For
example, the influenced 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 notice:
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.
5. Past experiences
d.
The product represents
percentage of the buyer’s cost.
The expertise and skills developed by a person
who has worked in a particular field may lead to
the opening of related business enterprise.
e.
The buyer purchases large portions of
the seller’s product or services.
For example, an accountant who has learned
the appropriate accounting and management
skills and techniques in a prominent accounting
a
high
2. Potential New Entrants
A new entrant is defined as the one who enters
something. For example, the level of capital
requirements, if the business requires huge
capital, new entrants should decline to join the
business. This gives a threat to the business.
This can be notice if there is the presence of the
following factors:
a.
Substantial capital requirement.
b.
Strict government policy.
c.
Difficulty
channels.
in
c.
Product
noticeable
differentiation
d.
The quality of
dramatically improves.
e.
The price of
substantially lower.
is
substitute
highly
products
substitute product
is
5. Suppliers
accessing
distribution
d.
Economies of scale.
e.
High cost of product differentiation.
f.
High switching cost
The Suppliers are the one that provide
something that is needed or wanted. For
example, if the supply and services being
offered is unstable or keep. The intensity of the
threat is strong in this kind of the competitive
force in the industry. This can be notice if there
is the presence of the following factors:
3. Rivalry among Existing Firms
Rivalry is a state or situation in which people or
groups are competing with each other. For
example, it depends on the Marketing strategy
of your competitor, like giving freebies and
special offers. The intensity of rivalry among
existing firms is characterized to the following
factors:
Diversity of rivals.
b.
Number of competing firms.
of
the
d.
Increased capacity.
e.
Amount of fixed costs.
f.
Rate of industry growth.
c.
Substitute products are not readily
available in the market
products
Definition of Terms
or
4. Substitute Products
Substitute means anything that takes the place
or function of another. For example, the
consumers decide to use margarine as a
substitute for butter. 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
notice:
a.
b.
Suppliers in the industry are few, but the
sales volume is high.
d.
The switching cost is very high. The
product or service is unique.
a.
c.
Characteristics
services.
a.
The supplier has the ability for forward
integration.
Switching cost is low.
b.
Preferences and tastes of the customers
easily change.
1.
Opportunity seeking - Process of
considering, evaluating, and pursuing marketbased activities that are accepted to be
beneficial for the business.
2.
Entrepreneurial process - can be
defined as the steps taken in order to begin a
new enterprise. It is a step-by-step method; one
has to follow to set up a business.
Entrepreneurial ideas - an innovative concept
that can be used for financial gain that is usually
centered on a product or service that can be
offered for money.
3.
Essentials
of
entrepreneur’s
opportunity seeking - These are the basic
foundation that the entrepreneur must have in
seeking opportunities, such as entrepreneurial
mind frame, heart flame and gut game.
4.
Sources of opportunity - can be attain
by assessing and looking at changes in the
environment; technological discovery and
advancement; government’s thrust, programs,
and policies; people’s interest, and past
experiences.
5.
External environment - refers to the
physical environment, societal environment,
and industry where the business operates.
6.
Government - refers to the local
government (municipality, city, or provincial) or
the national government and its branches.
7.
Competition – it is the act or process of
trying to get or win something.
8.
Substitute – anything that takes the
place or function of another.
9.
New entrants – the one who enters
something.
10.
Suppliers – are the one that provide
something that is needed or wanted.
11.
Buyers – are the one that pays cash in
exchange to your goods and services. Rivalry –
is a state or situation in which people or groups
are competing with each other.
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
There are many competitors in the market to
establish superiority to them. Entrepreneurs
should think some alternative and how it works
better. An important aspect in Value Proposition
must be truthful that will establish credibility to
the consumers.
Example: Potential value proposition is most
common in small businesses of your locality.
Aling Charing Sari-sari Store open only from
6:00 am to 6:00 pm, but Aling Charing noticed
that there are customers who go nearby town to
look for a convenience store at around 10:00 pm
to 6:00 am. She believes that this is a great
opportunity for her store to operate 24/7. In this
example, proposed value proposition: “Charing
Sari-sari Store, opens 24/7”.
The business describes sari-sari store – a
basic retail store. The assurance from this value
proposition is because of the phrase “opens
24/7”, Aling Charing Sarisari Store opens 24/7,
which make it different from other competitors.
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. As entrepreneur,
you think of marketing concept that persuade
your target customers. The following questions
you may ask in doing this, What the customers
want? What brand does well? What your
competitor does well?
Some tips for the entrepreneur on how to create
an effective unique selling proposition to the
target customers:
• Identify and rank the uniqueness
of the product or services character
•
Very Specific
•
Keep it short and simple (KISS)
As entrepreneur, present the best feature of
your product or services that are different from
other competitors. Identifying the unique selling
proposition requires marketing research that
you will learn from the other modules. In
promoting your products or services, make sure
that it is very specific and put details that
emphasize the differentiator against the
competitors. Keep it short and simple and think
of a tagline that is easy to remember. Right now,
the proposed unique selling proposition:
“Charing Sari-sari Store, opens 24/7”.
Readers get confused between value
proposition and unique selling proposition. The
two propositions are used to differentiate the
products from competitors. For example,
Jollibee is known to have a Filipino taste burger.
This brand has a unique selling point because
of its tagline “Langhap Sarap”
Unique
Value
Proposition
and
Value
Proposition are two most famous tools used to
explain why prospect customers buy each
products and services. Based on each
definition, we learn that USP and VP are
frameworks of each business industry. The two
propositions are valuable for the entrepreneurs.
After you understand the value proposition and
the unique selling proposition, now it’s time to
understand the target market, customers
requirement and market size. A.
Target
Market
Market Targeting is a sage in market
identification process that aims to determine the
buyers with common needs and characteristics.
Prospect customers are market segment that
entrepreneurial venture intends to serve.
In targeting a specific market, it will exclude
people even if it will not fit your criteria. Rather,
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. Product is more
affordable, efficient, and effective way to reach
potential clients and generate business.
Commonly used methods for segmenting the
market are follows.
1. Geographic segmentation – the total
market is divided according to geographical
location.
Variables to consider:
c.
Reaction
d.
Benefits
Climate
e.
Loyalty
b.
Dominant ethnic group
f.
Responses
c.
Culture
2. Demographic Segmentation – divided
based 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 for 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
Segmentationdivided
according to customers behavior pattern as they
interact with a company.
•
Knowledge
a.
d.
Density (either rural or
urban)
•
b.
Variables to consider:
a.
Perceptions
B. Customer Requirements
Customer requirements are the specific
characteristics that the customers need from a
product or a service.
There can be two types of customer
requirements:
1. Service Requirement
2. Output
Requirement
Requirement:
Service
Intangible thing or product that is not able to be
touched but customer can feel the fulfillment.
There are elements in service requirement like
on-time delivery, service with a smile, easypayment etc. It includes all aspects of how a
customer expect to be treated while purchasing
a product and how easy the buying process
goes.
Output Requirements:
Tangible thing or things that can be seen.
Characteristic specifications that a consumer
expects to be fulfilled in the product. Costumer
that will avail services as a product, then various
service requirements can take the form of output
requirements. For example, if the consumer
hires a multi cab, then on-time arrival becomes
an output requirement. Customer buys gadgets
(phone speaker), the specification like the
loudness and clarity are the output
requirements.
C. Market Size
Entrepreneur’s most critical task is to calculate
the market size, and the potential value that
market has for their startup business. Market
research will determine entrepreneur possible
customers in one locality.
What is Market Size?
Market size is like a size of arena where the
entrepreneurs will play their business. It is the
approximate number of sellers and buyers in a
particular market. Companies are interested in
knowing the market size before launching a new
product or service in the area. In determining the
market size, entrepreneur will conduct a
strategic marketing research from reliable
sources using the following method. First step is
to estimate the potential market – approximate
number of customers that will buy the product or
avail your services. Second step is to estimate
the customers who probably dislike to buy your
product or avail the services. 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 become
the most important if you ever need to raise
funding for your business.
The 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,
•
Keep it simple as possible.
•
Make sure it is clearly appealing
and easy to read.
•
Cluster or block related questions.
•
There are different ways to collect the data. The
most important methods you can consider are
surveys, focus group discussion and
interviews.
Move from complex questions to
more specific questions.
•
Make sure questions are concise
and easily understood.
DATA COLLECTION is the most valuable tool
of any type of research study.
•
Inaccurate data collection may cause mistakes
and ultimately lead to invalid results.
•
Avoid questions that are difficult to
answer.
Make sure any response scales
used are consistent with categories
that are mutually exclusive.
TIPS in GATHERING 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
•
Regularly run experiments or
collect data
•
Challenge your assumptions
•
Set reasonable expectations
•
Take note
significant data
of
interesting
Interviews normally last from 15 to 40 minutes,
but they can last longer, depending on the
participants’ interest in the topic.
or
In this lesson, we will consider the three different
data collection techniques –
SURVEY (Questionnaire), INTERVIEW and
FOCUS GROUP DISCUSSION – and
evaluate their
circumstances.
suitability
under
INTERVIEW is one of the most reliable and
credible ways of getting relevant information
from target customers. It is typically done in
personal 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. The interview is also helpful even
when the business has already started because
the customers’ feedback provides the
entrepreneur a glimpse of what the customers
think about the business.
different
SURVEYS are 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 Web (e.g.
Skype or Viber).
When designing or constructing your own
research questionnaire, remember the following
guidelines. (Edralin, 2016)
In a structured interview, the researcher asks a
standard set of questions and nothing more
(Leedy and Ormrod, 2001).
•
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. It generates highest
response rates in survey research.
They also allow the researcher to
clarify indefinite answers and when
necessary,
seek
follow-up
information.
•
Telephone interviews are less
expensive and less time consuming,
but the disadvantages are that the
response rate is not as high as the
face-toface
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 a 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.
•
Usually, conduct focus groups
discussion with 8 to 10 participants
per group.
•
Assign an expert moderator /
facilitator who can manage group
dynamics.
•
Use a semi-structure or openformat discussion.
Strive for consistency in the group’s composition
(for example, it may not be advisable to have
business customers and retail customers in the
same focus group, their needs are very
different).
Marketing Mix is a set of controllable and
connected variables that a company gather to
satisfy a customer better than its competitor. It
is also known as the “Ps” in marketing.
Originally, there were only 4Ps but the model
has been continually modified until it became
7P’s. The original 4 P’s stands for product,
place, price and promotion. Eventually, three
elements have been added, namely: people,
packaging and positioning to comprise the 7
P’s.
STAGES OF DISTRIBUTION CHANNEL
The 7 P’s of Marketing Mix
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.
1. 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 are
produced to meet the consumers’ wants, tastes
and preferences. An example of goods includes
tires, MP3 players, clothing and etc. Goods
can be categorized into business goods or
consumer goods. A buyer of consumer goods
may not have thorough knowledge of the goods
he buys and uses. An example of services
includes hair salons and accounting firms.
Services can be divided into consumer services,
such as hair styling or professional services,
such as engineering and accounting.
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
2. PLACE
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.
The price is a serious component of the
marketing mix. What do you think is the
meaning of a Price?
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.
One example of a pricing strategy is the
penetration pricing. It is when the price charged
for products and services is set artificially low in
order to gain market share. Once this is
attained, the price can be higher than before.
For example, if you are going to open a Beauty
Salon, you need to set your prices lower than
those of your competitors so that you can
penetrate the market. If you already have a
good number of market share then you can
slowly increase your price.
4. PROMOTION
Promotion refers to the complete set of
activities, which communicate the product,
brand or service to the user. The idea is to
attract people to buy your product over others.
Advertising, Personal Selling, Sales Promotion,
Direct Marketing, and Social Media are
examples of promotion.
5. PEOPLE
Your team, a staff that makes it happen for you,
your audience, and your advertisers are the
people in marketing. This consists of each
person who is involved in the product or service
whether directly or indirectly.
People are the ultimate marketing strategy.
They sell and push the product. People are one
of the most important elements of the marketing
mix today. This is because of the remarkable
rise of the services industry. Products are being
sold through retail channels today. If the retail
channels are not handled with the right people,
the product will not be sold. Services must be
first class nowadays. The people rendering the
service must be competent and skilled enough
so that that the clients will patronize your
service.
Therefore, the right people are essential in
marketing mix in the current marketing scenario.
while the other buyer is looking for a phone that
is durable and has longer battery life and yet
they buy the same exact phone.
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 welldefined brand strategy shakes all parts of a
business and is directly linked to customer
needs, wants, emotions, and competitive
surroundings
Experts believe that a good brand can
result in better loyalty for its customers, a better
corporate image and a more relevant identity.
As more customers continue to differentiate
between
emotional
and
experienced
companies, a brand may be the first step
forward in your competition instead of price
points and product features. The question is,
can you build a brand which truly talks to your
audience?
6. PACKAGING
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. The best packaging should be
attractive enough and cost efficient for the
customers. Packaging is highly functional. It is
for protection, containment, information, utility of
use and promotion.
7. 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. For example, two people are
interested in buying a phone; one wants a
phone that is cheaper in price and fashionable
Branding is a powerful and sustainable highlevel 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, are described by Pickton and Broderick
in 2001.
Commonly Used Branding Strategy
5) Employee Involvement
1) Purpose
It is equally important for your employees to be
well versed in how they communicate with
customers and represent the brand of your
product
"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).
How can you define your business' purpose?
According to Business Strategy Insider, purpose
can be viewed in two ways:
a.
Functional. This way focuses on
the assessments of success in terms of
fast and profitable reasons. For example,
the purpose of the business is to make
money.
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 significant 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 have chance to feel that they are part
of your brand.
You should find ways to connect more deeply
and emotionally with your customers. Make
them feel part of the family and use emotion to
build relationships and promote brand loyalty.
4) Flexibility
Marketers should remain flexible to 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.
According to Kevin Budelmann, "Effective
identity programs require sufficient consistency
to be identifiable, but sufficient variation to keep
things fresh and human" so if your old tactics
don't work anymore, don't be afraid to change.
It doesn’t mean it worked in the past it may still
work now.
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.
QUARTER 1 CHALLENGE
1. The entrepreneurs who create new ideas
are called? Innovative
2. The entrepreneur who lives on the labor
of others is called? Drone
3. These are entrepreneurs who are to
follow the path shown by innovative
entrepreneur. Imitating
4. Which of the following is NOT a function
of an entrepreneur? Make no changes
with his product
5. Entrepreneur means: To undertake
6. It is a personality factor which means
“doing things even before being told”
initiative
7. It is a personality factor which means
convincing customers to buy the product.
Persuasion
8. Which of the choices is NOT part of the
environmental
factors?
family
background of the manager
9. All except one does NOT belong to the
group? Product
10. The entrepreneur who are skeptical
about the changes in the company is
called? Fabian
11. The following are the forces competing
within the industry except one: Needs
and Wants
12. They are the one that provides
something that is needed or wanted.
Buyers
13. It refers to the physical environment,
societal environment, and industry
environment where the business
operates. External Environment
14. They are the one who enters something.
new entrants
15. In Potential New Entrants the intensity of
its threat will be affected by the presence
of the following barriers. A and C (A.
Substantial capital requirement. &
Difficulty in accessing distribution
channels.)
16. In rivalry among existing Firms the
industry is attributable to the following
factors. E and F (Characteristics of the
products or services. & Increased
capacity)
17. Which of the following includes the
industry environment of the business?
All of the above
18. It is the process of considering,
evaluating, and pursuing market-based
activities that are believed to be
advantageous for the firm. Opportunity
seeking
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.
Entrepreneurial mind frame
20. It is the ability of entrepreneur that can
sense without using the five senses, also
known as intuition. Entrepreneurial
mind frame
21. What is the function of Value
Proposition? convince customer to
purchase a particular product or
services.
22. Give example in promotion using Value
Proposition
and
Unique
Selling
Proposition. with the slogan “Langhap
Sarap”
23. Select type of customer requirement.
service requirement
24. Considered favorable indicators for doing
business in that particular location. size
and growth of the segment
25. What is market size? size and growth of
the segment
26. This refers to how you sell your products
or services to you customer. Unique
selling proposition
27. Service requirement _____________
thing or product not able to touch but
customer can feel the fulfillment.
Tangible
28. Tips for the entrepreneur on how to
create an effective unique selling
proposition to the target customers,
except. Completeness of proportion
29. ________________
will
determine
entrepreneur possible customers in one
locality. market research
30. The following variable to consider in
behavioral segmentation, except. brand
concept
31. It is the most common way to gather
primary research with the use of
questionnaires or interview schedule.
survey
32. It is the traditional method of data
collection which is normally done on a
face-to-face
manner
with
the
respondents. personal interview
33. It refers to a type of focus group
discussion where it obtains information
on general attitudes, understand the
circumstances under which customers
might require your product, or service,
understand their desired outcomes.
exploratory
34. It is a type of FGD where customers go
to get similar information, services or
products and what attracts them to those
resources. 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. focus group discussion
36. It refers to information gathered directly
from the respondents who answered set
of questions. primary research
37. It is a type of discussions in FGD if tradeoffs have to be made among various
customer needs. feature prioritization
38. A data gathering technique where it can
be done via direct mail, over the phone,
internet or e-mail. survey
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. 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. data collection
41. Which one is not a P in Marketing Mix?
Price
42. Which statement supports Marketing
Mix? There are only 4 P’s in Marketing
Mix.
43. Select the best definition of Product. A
product is an item that is built or
produced primarily to gain profit; it
can be intangible or tangible.
44. Choose the best statement that applies
in Consumer Goods. 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? Direct-marketing will take
place, since it has no intermediary
levels in this case the manufacturer
sells directly to customers.
46. What is the advantage of Penetration
Pricing? Direct-marketing will take
place, since it has no intermediary
levels in this case the manufacturer
sells directly to customers.
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 be aware, attract
and induce to buy the product, in
preference over others. Find the error.
partial set of activities
48. How would you promote a product? By
offering Free Gifts, Free Samples,
Free Trial, Customer Contests,
Special Pricing
49. The following are interpretation of the
word Brand except. a business
50. How can you define your business'
purpose? 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.