Entrepreneurship Reviewer

Entrepreneurship - the process of opening up a business.

- proactive process of developing a business venture to make a profit.
- involves seeking opportunities for market, establishing and operating a business out of the opportunity and
assessing its risks and rewards through close monitoring of the operations.
- came from the latin word
“entre” - in between and
“prendre” - to take

Entrepreneur - risk taker

- wise
- has a plan
- innovative
- determined enough

SRP - suggested retail price (DTI approved)

ARP - actual retail price

Benefits of Entrepreneurship
- produces more job
- amplifies economic activities of different sectors of society.
- introduces new and innovative products and services.
- improves people’s living standards

Entrepreneur - a person who organizes and operates a business.

- has the capacity to manage a business and has the innate ability and extra ordinary dedication to put up a
business.
- the sole of proprietary.

5 Levels of entrepreneurial development

(SELIP)
Self employment/ employed
- teaches you everything from sales, marketing, management, accounting, finance and HR.
Employer and Manager
- teaches you how to employ, train and manage people who work for you.
Leader/ Business Owner
- has an enterprise that works without you having to work in it.
- have built your employees and management team to a place they do the work of your business.
Investor
- relies on the cash flow and capital in order for them to invest.
Pinnacle/ Entrepreneur
- uses other people’s money, ideas, talent and time to create wealth.
The true entrepreneur:
(IVVM)
Idealization - entrepreneurs dream enormously
Visualization - entrepreneur start to create plans
Verbalization - involves sharing their ideas.
Materialization
Terms that are coined to suit an entrepreneur’s field ( T S I E)
Technopreneur - the core of their business is technology
Social Entrepreneur - profitable institutions
Intrapreneur - business developers, large companies.
Extrapreneur - who hops from one company to act as an innovation champion

Common traits of entrepreneur:

(PARHSDBI)
Proactive - reactive; address issues before hand.
Agents of change - innovation champion; they see opportunities in complex situation.
Risk taker
Have a sharp eye for opportunities
Sociable
Networkers - networkers knows the key to connect with people.
Decisive - they do not settle for unclear areas.
Balanced - their minds are balanced between analytical and creative mind.
Innovative - the minds of entrepreneurs are rich with big ideas.

Pro’s and Con’s of entrepreneur and employee

Entrepreneur
- opportunity income is unlimited.
- provide jobs.
- can venture into expansion of business.
- prepare policies and memo of the business.
- has flexible time.
Employee
- income id fixed per month
- can only work with current employer
- follows policies and memo
- has limited time for vacation.
Recognizing the Potential Market

The entrepreneurial process

- beginning and most considered as difficult.
- entrepreneurs take note of interesting trends.

Major sources of opportunities

- new trend
- problems in the environment

Minor sources
- feedback from the business retailers

Developing a Business Plan

- entrepreneur should formulate a business plan - is a comprehensive paper that details the marketing and
tactics of the business; core guide of the entrepreneur.

Determining the Capital Needed

- calculate the resources needed.
- careful calculation (real needs)

Running the Business

- entrepreneur should use the resources allocated for the new venture
- business plan should be critically observed.
- entrepreneur should have a control and monitoring system.

Scanning the Marketing Environment

- is the starting point of any new venture that involves understanding and knowing completely the environment.

3 S of Opportunity spotting and assesment

- is the framework of the entrepreneurs.
- opportunity; business idea

S1: Seeking the opportunity

- fist and most difficult process.
- involves the development of new ideas from various sources.

Macro-environmental Sources
(STEEPLED)
- represents the general environment
S - sociocultural factors - general view of locality’s norms and perception
T - technological factors - entrepreneurs should always be up to date; innovations.
E - Economic Factors - the factors include income, expenses and resources.
E - Environmental factors - determine if the business will comply with the environmental standards or will just
be a hazard for people, animal and nature.
P - Political factors - mostly induced by government policies and administrations
L - Legal factors - laws and regulation that can restrict or allow business activities.
E - ethical factors - guide on how to be ethical in running a business.
D - Demographic factors - characteristic of the people in the target market.

Industry - source of current trend on what is happening in the industry.

New discovery or knowledge - these are the new trends that can be care business model of a new venture.
Futuristic opportunities - projected new opportunities.

Micro-market Sources ( C C U I T L )
Consumer preferences, interest and perception - these are the current needs(something you must have) and
wants (something you wish)
Competitors - recognizing the competitors will aid the entrepreneur to develop a product
Unexpected opportunities from customers
Irritants in the market place - entrepreneurs see opportunities in complex situation.
Talents, hobbies and expertise - business opportunities can also came from the entrepreneur.
Location - look at their ecosystem and they will be able to spot a business opportunity.

Methods in Generating Ideas ( F P B B )

Focused Group Discussion (FGD)
- free flowing discussion
Problem solving analysis
- the participants are already given an inventory of product or service problem.
Brainstorming - share (wider) creative ideas.
Brain writing or Internet brain storming - similar to brain storming but it is not face to face instead writing or
online.

S2: Screening the Opportunity

- process of cautiously selecting the best opportunity.
- internal intent - main objective
- external intent - needs of the target.

Risk appetite - tolerance of business risks

Time - most critical resources of entrepreneur.
- should only be dovoted to worthwhile opportunities.

The most important elements that are always present in a opportunity ;

- Has superior value for customers.
- solves compelling problems.
- is a potential cash cow
- Matches with the entrepreneurs skills, resources and appetite.

S3: Seezing the opportunity

- “publishing through”

Innovation - positively improving an existing product or service.

Breakthrough Innovation
- establish the platform on which future innovations in an area are developed. Must be protected by a patent.

Technological Innovation
- technological advancements of an existing product or service.

Ordinary invention
- the market has a strong influence.

Product or Service planning and development process

- the opportunity is tested.

Idea stage
- determines what are the feasible product or service that can perfectly suit the opportunity.

Concept stage
- consumer acceptance test.

Product development stage

- leverage on the information generated from the prospective costumers via concept stage.

Test Marketing stage

- validates the work done.

Market is categorized into:

(PAQTSM)
- Potential market - who express some level of interest in a prouct
- Available market - sub set of P.M. who have interest, income and access to the product.
- Qualified Available market - refinement of the available market.
- tenetrated market - already actively using the product,
- Served marked - serviciable available market.
- Market demand - total volume of sales that is generated by a defined customer group in a defined
geographical data.

Internal environment - refers to the business itself.

Buying Roles ( I I D B U )
Initiator - who first suggest the idea
Influencers - these people’s views and advice can influence the eventual selection of what to buy
Decider -has the final say on what to buy
Buyer - who makes the actual purchase
User - the person/s who end up actuallu using the product,

Demographics - categorize customers

Psychographics - to define the customers motivation, perceptions, preferences and lifestyle.

- motivation - goes to the roots of the customers needs and wants
- perception - a way a person chooses to interpret information

Technographics - classifies people according to their level of expertise in using a product or a service.

Marketing Plan - a written document that specifies when, how, to whom a business plan to market its product
or brand.

Occupation - to determine the customers income, daily routine and where the goods and services
can be properly positioned.

Aspirations - customers needs and wants.

Occasions - can affect customers buying behavior.

Loyalty - result of maintaining satisfied customers.

Market Aggregation - when an entrepreneur wants to target a broader market as possible.

Interview - most reliable and credible way of getting information fro the target customers.

Observation - one of the preferred and practical method of operating ideas.

The Marketing Plan

Visual Proposition - simply states why a customer should buy a certain product or service.

Unique Selling Proposition - refers to how you will sell the product or service to your customers.

Tips on how to create an effective unique selling proposition to the target customers:
Identify and rank the uniqueness of the product or service attribute.
Be very specific.
KISS (keep it short and simple)

Marketing research - comprehensive process of understanding the customers intricacies and the industries they
revolve in.

Market size - the size of the arena where the entrepreneurs will play.

Customer requirements - are said to be considered as the lifeblood of the business.

Primary and secondary target market

Market intelligence - includes the customers profiling, drives the entrepreneur on what correct strategies and
tactics they can employ.

Market segmentation - the process of grouping similar or homogeneous customers according to psychographic,
demographic, geographic and behavior.

Demographic segmentation - also called as socioeconomic segmentation, is the process of grouping customers
according to relevant socioeconomic variables of for the business venture.
- income and social class, occupation, gender and age.

Psychographic segmentation - grouping customers according to their perception, way or life, motivations and
inclinations.
- perception - individual receives stimuli using external senses.

Physiological needs - involves the needs of a person; they seek to avoid pain and give pleasure.
- physiological motivation - involve customers preferences.

Geographic segmentation - grouping custoers according to their location.

Behavioral segmentation - grouping customers according to their actions (occasion, loyalty)

The 7 Marketing P’s

Product - what product is the most appropriate for the opportunity.
Place - what location is the best suited for the business.
Price - what is the most appropriate price
Promotion - what is the most effective advertisement.
People - what type of people to be hired.
Packaging - what is the best packaging for the product
Positioning

Common Pricing Strategies

Bundling - two or more products or service in one reduced price.
Penetration Pricing - this refers to setting low price to increase market share
Skimming - setting high price to low price.
Competitive pricing - bench marking prices of competitors
Product line pricing - refers to pricing different products with a parallel product array.
Psychological pricing - this consider the psychology and positioning of price
(e.g. 199 to 200)
7. Premium pricing - refers to selling a very high price.
8. optional pricing - refers to adding an extra product on top of the original.
9. Cost based pricing - basis of markup is the cost of sales.
10. Cost Plus pricing - the product is based on a certain percentage or cost.

Promotion - presenting the products to the public.

Promotional tools

Advertising - a type of communication that influences the behavior of customers. (TV promotion, radio
promotion)
Objective of advertising
- informing the public
- build a trustworthy image
- increasing sales

Selling - act of trading a product or service for a price for free

Sales promotion - short term promotional gimmicks; “below the line”
Common example of sales promotion
- reward
- product or service bundles
- discounts
- trade fairs
Public relation - image building initiatives of the entrepreneur to make the name of the business (Press
conference, Launching events)

Fundamental of brands

Brand - refers to the identity of a company or product.

Brand management - supervison of the tangible and intangible elements of brands.

Branding - the process of integrating the strategies formed fro the marketing mix