Tubal Ensc 20133 Technopreneurship 101

Republic of the Philippines
POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

OFFICE OF THE VICE PRESIDENT FOR BRANCHES AND
EXTENSIONS
MARAGONDON BRANCH
INSTRUCTIONAL MATERIALS
IN
ENSC 20133
TECHNOPRENEURSHIP 101
Compiled by: Checked by:
Engr. Melvin S. Tubal Assoc. Prof. Ayreenlee E. Resus

Faculty Chairman
Committee on Writing Instructional
Materials
Date: _________________ Date: ___________________
Approved by:
Engr. Rosalia Pinlac Dr. Agnes Y. Gonzaga

Head, Academic Programs Director
Date: _________________ Date: __________________

INTRODUCTION
Welcome to the Polytechnic University of the Philippines. This instructional materials will help
you become an effective learner and successfully meet the requirements of the course. You will
discover that you can learn in a very challenging way at your own pace. You can learn while
enjoying every activities in this course.
Happy learning!
THE POLYTECHNIC UNIVERSITY OF THE PHILIPPINES
VISION
PUP: The National Polytechnic University
MISSION
Ensuring inclusive and equitable quality education and promoting lifelong learning
opportunities through a re-engineered polytechnic university by committing to:
 provide democratized access to educational opportunities for the holistic development of

individuals with global perspective
 offer industry-oriented curricula that produce highly-skilled professionals with managerial

and technical capabilities and a strong sense of public service for nation building
 embed a culture of research and innovation
 continuously develop faculty and employees with the highest level of professionalism
 engage public and private institutions and other stakeholders for the attainment of social
development goal
 establish a strong presence and impact in the international academic community
PHILOSOPHY
As a state university, the Polytechnic University of the Philippines believes that:
 Education is an instrument for the development of the citizenry and for the enhancement
of nation building; and
 That meaningful growth and transmission of the country are best achieved in an
atmosphere of brotherhood, peace, freedom, justice and nationalist-oriented education
imbued with the spirit of humanist internationalism.
ii
SUBJECT: ENSC 20133 - TECHNOPRENEURSHIP
PREPARED BY: MELVIN S. TUBAL, REE
TEN PILLARS
Pillar 1: Dynamic, Transformational, and Responsible Leadership

Pillar 2: Responsive and Innovative Curricula and Instruction
Pillar 3: Enabling and Productive Learning Environment
Pillar 4: Holistic Student Development and Engagement
Pillar 5: Empowered Faculty Members and Employees
Pillar 6: Vigorous Research Production and Utilization
Pillar 7: Global Academic Standards and Excellence
Pillar 8: Synergistic, Productive, Strategic Networks and Partnerships
Pillar 9: Active and Sustained Stakeholders’ Engagement
Pillar 10: Sustainable Social Development Programs and Projects
SHARED VALUES AND PRINCIPLES
 Integrity and Accountability

 Nationalism
 Spirituality
 Passion for Learning and Innovation
 Inclusivity
 Respect for Human Rights and The Environment
 Excellence
 Democracy
iii
POLYTECHNIC UNIVERSITY OF THE PHILIPPINES
MARAGONDON BRANCH
GOALS
 Quality and excellent graduates

 Empowered faculty members
 Relevant curricula
 Efficient administration
 Development – oriented researches
 State-of-the-art physical facilities and laboratories
 Profitable income – generating programs
 Innovative instruction
 ICT – driven library
 Strong local and international linkages
PROGRAM OBJECTIVES
The College of Electrical Engineering Technology aims to achieve the following goals:
1. To offer career-focused programs of study with a well-chosen general education

component to enable students to cope with global standards for a meaningful and fruitful
life.
2. To inculcate in the students good moral values and work ethics.
3. To ensure teaching learning efficiency and effectiveness by means of highly qualified

and committed faculty members.
4. To encourage faculty members to produce appropriate, affordable, user-friendly

instructional materials that conform to national and global standards.
5. To promote a growing output-oriented consciousness in research, production, extension,

and community service.
6. To establish national and international linkages for student on-the-job training

requirements and funding and/or faculty-improvement assistance.
iv
ENSC 20133
TECHNOPRENEURSHIP
COURSE DESCRIPTION
COURSE TITLE : TECHNOPRENEURSHIP 101

COURSE CODE : ENSC 20133
COURSE CREDIT : 3 UNITS ( 3 hrs. lab )
PRE-REQUISITE : N/A
The course can be designed as a 3 -credit course (1 semester) or a sequence of 2-3 credits per
semester (2 semester) course. At the minimum, Technopreneurship 101 is a 3-credit required
course for ALL Engineering Majors. The context of teaching it in the Philippines will require
understanding the limitations in time, modifications of existing curriculum and requirements, and
availability of resource persons for guest lectures, interviews or surveys, including materials for
study and approaching potential investors. Every effort should be made to adapt it to the reality
of Philippine culture, regulations, and business environment or opportunities to start a venture
business.
COURSE OBJECTIVES
After this course, the student should be able to:
1. Understand the market needs or provide a solution to a key problem.
2. Understand and experience the entrepreneurial process from the generation of creative
ideas,
Institutional Program Outcomes Course Outcomes

Learning
Outcomes
1. Creative and The Bachelor of Science in ElectricalExplain and illustrate the
Critical Engineering program providesdifferent current theories,
Thinking combined knowledge and skills concepts, principles, and
among students even in the field of practices relevant to
entrepreneurial. Technopreneurship.
2. Effective Effectively communicate orally and inPresent and interpret accurate,
Communicati writing using the English language precise, reliable, relevant and
on updated principles in the
creation of new self that could
affect our relationship to
others, to ensure the
establishment of good rapport
with other people
3. Strong Demonstrate strong commitment to Apply critical thinking in the
v
Service competence, professionalism, analysis of one’s self in relation
Orientation independence, integrity and to our business dealings to our
objectivity, good corporate and social clientele.
responsibility and ethical practices in
performing functions.
4. Passion to Engage in life-long learning and an Be able to prepare specific
Life-Long understanding of the need to keep plan and technical knowhow in
Learning current of the developments in the solving problems.
specific fields of practice. e.g.
Continuing Professional Education.
5. Sense of BSEE graduates should possess Understanding the techniques
Nationalism general knowledge in gaining and used and adapted in local and
and Global understanding of the different international practices.
Responsiven cultures in the world and developing
ess an international objective
6. Community Describe how knowledge and Be involved in community
Engagement learning from the academic extension services and
study/disciplines relates to one’s practice voluntarism to
participation in community service, contribute in community and
civic, politics and government. human development.
7. Adeptness in Use the techniques, skills and Develop software applications
the modern engineering tools necessary and engineering tool
Responsible for engineering practice necessary.
Use of
Technology
8. High Level of Demonstrate attributes of Exercise empowered
Leadership persuasiveness, open-minded, and leadership and teamwork in
and confident leader. Manage time and addressing technical problems
Organizationa resources effectively. that may arise.
l Skills
9. Sense of Perform services with highest Observe the code of ethics and
Personal and standard of professionalism and in diligence in practicing the
Professional accordance with ethical profession.
Ethics requirements.
COURSE REQUIREMENTS
The course requirements are as follows:
1. Students are encouraged to attend the class sessions (online students) and complete all
the requirements (online and offline students).
2. The course is expected to have a minimum of four (4) quizzes and two (2) major
examination (Midterm and Final Examination).
3. Other requirements such as written outputs, exercises, assignments and the likes will be
given throughout the sessions. These shall be submitted on the due dates set by the
teacher.
Note: Some activities will be rated using the Rubrics.

vi
GRADING SYSTEM
The grading system will determine if the student passed or failed the course. There will be two
grading periods: Midterm and Final Period. Each period has components of: 70% Class
Standing + 30% Major Examination. Final Grade will be the average of the two periodical
grades.
Midterm Finals
Class Standing 70% Class Standing 70%
 Quizzes  Quizzes
 Activities  Activities
Mid-term Examination 30%  Project
Final Examination 30%
FINAL GRADE = (Midterm + Finals) /2
RUBRICS:
Unsatisfactory Work Satisfactory Work Very Good Work Excellent Work
1.0 1.5 - 2.5 3.0 - 4.0 4.5 - 5.0
Participation Student did not Student participated in Student participated in Student participated in
participate in this some aspects of this most aspects of this all aspects of this
electrical circuit activity. electrical circuit electrical circuit electrical circuit activity.
activity. activity.
Materials Student did not gather Student gathered some Student gathered most Student gathered all
any of the needed of the needed of the needed needed materials for
materials for this materials for this materials for this this project. Project
project. project. Project was project. Project was was completed as
completed partially as almost completed as instructed.
instructed. instructed.
Instructions/Procedure Students did not Students did not follow Students follow must Students follow
s attempt to perform the instructions to connect instructions to connect instructions to connect
task. series and parallel series and parallel series and parallel
circuits. Students were circuits as well as open circuits as well as open
not able to connect and short circuit and short circuit
open and short circuit. following safety rules following safety rules
Did not follow safety and guidelines to and guidelines to
rules and guidelines to handle equipment handle equipment
handle equipment properly. properly.
properly.
Performance Student did not attempt Student constructed Student was able to Student was able to
to construct a circuit basic circuit board, construct a partially construct a fully
board. however neither bulb working board, working board, both
provided would light. however either one lights and switches
switch or one light worked as instructed.
would not operate as
directed.
COURSE GUIDE
Week Topic Learning Methodolog Resources Assessme

Outcomes y nt
1 Orientation of Discussion of the Orientation PUP Student None
vii
University’s mission, vision, and Handbook
vision, mission, goals and objectives Discussion. Course
goals and of the University; Syllabus
objectives. course overview and
requirements.
Course
Overview
Classroom
policies
Lesson 1 - The Students will Lecture Internet Discussion/I
INTRODUCTIO understand terms Interactive nteraction.
N TO THE that is use in Discussion
TECHNOPREN Technopreneurship,
EURSHIP its history and its
importance.
2-3 Lesson 2 - The students will Lecture Internet Quiz on
Innovation and understand the previous
Ideas importance of a Giving the lesson.
good innovation in Student Idea
our society and the Discussion/I
for a
difference between nteraction
meaningful
research and
Innovation.
development.
Lesson 3 - The students will Lecture Internet Quiz on
4 Value know the benefits previous
Proposition per cost, proper Giving the lesson.
approach and the Student
difference between knowledge Discussion/I
solution driven and the nteraction
efficiency importance of
improvement benefits and
cost
5-7 Lesson 4 The students will Lecture Internet Quiz on
Customers understand the previous
importance of the Giving the lesson.
customer and why it Student
is the asset in every Discussion/I
knowledge
business. nteraction
the
importance of
the customer
and the
proper
approach on
them.
8 Lesson 5 The students will Individual Internet Assignment

Competitive understand the class
Advantage, of competitors, Lecture, Participation
Markets market structure and Discussion , Discussion
viii
creating you own
market.
9 MIDTERM EXAMINATION
Lesson 6 The students will Individual Internet Participation
10 Introduction to understand the , Discussion
Intellectual importance cost of Lecture,
Property protection, copyright, Discussion Assignment
trademarks and
trade secrets.
11-12 Lesson 7 The students will Lecture Internet Quiz on
Execution and learn the proper previous
Business Plan management of the Giving the lesson.
budget and roadmap Student
for research, knowledge Discussion/I
development and the nteraction
production. importance of
the sales and
marketing
plan
Lesson 8 The students will Individual Internet Quiz on
13-14 Financial learn the cash flow, previous
Analysis and assets and liability Lecture, lesson.
Accounting and the operating Discussion
Basics expenses. Discussion/I
nteraction
15 Lesson 9 Students will know Lecture Internet Quiz on

Business the proper way to previous
Models raise capital, the Giving the lesson.
time value of money Student
and revenue knowledge Discussion/I
generation. the nteraction
importance of
competitors
and strategic
partner.
16 Lesson 10 The students will Individual Internet Quiz on
The Product or learn the importance previous
Service of a good service Lecture, lesson.
and product, and the Discussion
product Discussion/I
development plan. nteraction
17 Lesson 11 The students will Individual Internet Participation

Ethics and learn the importance , Discussion
social of ethics and Lecture,
responsibility theoretical Discussion Assignment
framework in a
business.
18 FINAL EXAMINATION
ix
Reference:
 http://www.icym.edu.my/v13/announcement/979-what-is-
technopreneurship.html#:~:text=Technopreneur%20is%20the%20person%20who,an
%20organization%20to%20pursue%20it.
 https://www.techfunnel.com/information-technology/importance-of-technopreneurship-
every-cto-should-know/
 https://www.telsec.net/an-entrepreneurs-glossary-to-some-common-business-terms/
 https://denversouthedp.org/what-does-innovation-really-mean/
 https://startupistanbul.com/blog/2015/03/the-importance-of-innovation-in-
entrepreneurship/
 https://www.differential.com/posts/the-3-types-of-innovation-product-process-business-
model
 https://www.inc.com/encyclopedia/research-and-development.html#:~:text=Research
%20and%20development%20(R%26D)%20is,phase)%20is%20complex%20and
%20risky.
 https://study.com/academy/lesson/what-is-research-definition-purpose-typical-
researchers.html
 https://www.sid-israel.org/en/Development-Issues/What-is-Development
 https://quizlet.com/160289625/different-types-of-entrepreneurship-ide-versus-sme-flash-
cards/
 https://stats.oecd.org/glossary/detail.asp?ID=3123
 https://inbounddigital.net/digital-marketing-blog/market-driven-vs-product-driven/
 https://www.printwand.com/blog/benefits-vs-features-the-crucial-key-to-selling-your-
product
 https://www.investopedia.com/terms/v/valueadded.asp
 https://www.entrepreneur.com/article/282961
 https://www.coursehero.com/file/6877533/Efficiency-improvement-trap/#:~:text=View
%20full%20document-,Efficiency%20improvement%20trap%20Efficiency%20is
%20basically%20finding%20the%20best%20way,by%20an%20increase%20in
%20productivity.
 https://www.lenetek.com/blog/purpose-driven-problem-driven-solution-driven/
 https://www.inc.com/geoffrey-james/the-4-types-of-value-proposition.html
 https://www.investopedia.com/terms/c/cost-benefitanalysis.asp#:~:text=A%20cost
%2Dbenefit%20analysis%20(CBA,decision%20to%20pursue%20a%20project.
 https://www.investopedia.com/terms/c/customer.asp
 https://smallbusiness.chron.com/target-market-customer-profile-22543.html#:~:text=A
%20target%20market%20customer%20profile,buy%20your%20product%20or
%20service.&text=The%20target%20customer%20profile%20identifies,captivating
%20marketing%20materials%20and%20promotions.
 https://www.quantzig.com/blog/customer-profile
 http://www.businessdictionary.com/definition/competitor.html
 https://onceinteractive.com/blog/how-to-identify-your-competitors/
x
 https://corporatefinanceinstitute.com/resources/knowledge/strategy/product-
differentiation/
 https://study.com/academy/lesson/positioning-and-differentiation-in-consumer-
marketing.html
 https://online.aurora.edu/types-of-market-structures/
 https://www.investopedia.com/terms/m/market-segment.asp
 https://blog.remesh.ai/5-types-of-market-segmentation-how-to-use-them
 https://www.wipo.i nt/about-ip/en/
 https://www.inquartik.com/inq-intellectual-property-rights/
 https://www.everynda.com/blog/non-compete-v-non-disclosure/#:~:text=In%20summary
%2C%20a%20non%2Dcompete,and%20confidential%20information%20from%20being
 https://en.wikipedia.org/wiki/Construction_bidding#:~:text=Construction%20bidding
%20is%20the%20process,blueprints%20and%20material%20take%20offs.&text=Bids
%20are%20not%20only%20chosen%20on%20cost%20alone.
 https://theconstructor.org/construction/construction-bidding-process-decisions/35666/
 https://en.wikipedia.org/wiki/Electrical_contractor
 https://www.nationalfunding.com/blog/successful-electrical-business/
 https://esub.com/estimate-electrical-construction-projects/
 https://www.officialgazette.gov.ph/1995/02/24/republic-act-no-7920/
 https://teamstepup.com/marketing/why-engineers-should-be-involved-in-sales-and-
marketing/
 https://www.jumpfactor.net/how-to-market-engineering-services/
 https://smallbusiness.chron.com/example-marketing-plan-electrical-contractor-
73287.html
 https://www.investopedia.com/investing/what-is-a-cash-flow-statement/
 https://courses.lumenlearning.com/boundless-accounting/chapter/the-income-statement/
 https://www.accountingtools.com/articles/2017/5/11/break-even-time#:~:text=Break
%20even%20time%20is%20the,even%20time%20is%20two%20years.
 https://www.investopedia.com/terms/t/timevalueofmoney.asp
 https://www.cognism.com/revenue-generation#:~:text=Revenue%20generation%20is
%20one%20of,in%20order%20to%20generate%20income.
 https://blog.mycorporation.com/2017/12/ready-to-expand-your-business-here-are-6-
ways-to-raise-capital/
 https://www.investopedia.com/terms/d/distribution-channel.asp#:~:text=A%20distribution
%20channel%20represents%20a,sells%20directly%20to%20the%20consumer.
 https://en.wikipedia.org/wiki/Strategic_partnership
 https://smallbusiness.chron.com/roles-strategic-partnership-10038.html
 https://www.encyclopedia.com/finance/finance-and-accounting-magazines/goods-and-
services
 https://www.fiftyfiveandfive.com/difference-between-product-and-service-marketing/
 https://en.wikipedia.org/wiki/Minimum_viable_product#:~:text=A%20minimum%20viable
%20product%20has,the%20product%2C%20and%20no%20more.&text=The
%20process%20is%20iterated%20until,product%20as%20minimum%20feature%20set.
xi
 https://www.investopedia.com/terms/c/cogs.asp#:~:text=Cost%20of%20goods%20sold
%20(COGS,costs%20and%20sales%20force%20costs.
 https://www.conceptdraw.com/examples/gantt-chart-for-new-product-development
 https://spreadsheetpage.com/gantt-chart/product-development/
 https://www.investopedia.com/terms/c/code-of-ethics.asp#:~:text=A%20code%20of
%20ethics%20is,business%20honestly%20and%20with%20integrity.&text=A%20code
%20of%20ethics%20also,an%20employee%20code%20of%20conduct.
 https://www.investopedia.com/terms/s/social-entrepreneur.asp
xii
TABLE OF CONTENTS
Topic Page
Introduction
Orientation
Lesson 1 Introduction to Technopreneurship. 1
Unit 1: Technology and Entrepreneurship

Unit 2. Definition of terms 3
Lesson 2 Innovation and Ideas 8
Unit 1: The Technopreneur Innovation.

1.1 Research vs development – translational research
1.2 Process, and business model
1.3 Innovation‐driven vs small‐medium enterprise
Unit 2: Enterprise and Idea 12
2.1 Organization‐driven vs market‐driven ideas
Lesson 3 Value Proposition 14
Unit 1: Benefits vs features: The Crucial Key to Selling Your Product

Unit 2: Benefits/cost 21
Lesson 4 Customers 26
Unit 1: Target customer profile
Lesson 5 Competitive Advantage 30
Unit 1: Competitors and product differentiation

Unit 2: Market structures 36
Lesson 6 Introduction to Intellectual Property 46
Unit 1: Cost of protection and Copyright
Lesson 7 Execution and Business Plan 49
Unit 1: Project development

1.1 Project Bidding
1.2 Project Proposal
1.3 Engineering Project
1.4 Plans Sign and Sealing
` 1.5 Business of Electrical Construction
Unit 2: Sales and marketing plans 58
xiii
Lesson 8 Financial Analysis and Accounting Basics 61
Unit 1: Cash flow statements and projection
Lesson 9 Business Models 65

Unit 1: Value of money
Unit 2: Strategic partners 72
Lesson 10 The Product or Service 78

Unit 1: Good product and Service
Unit 2: COGS and Product development plan 81
Lesson 11 Ethics and social responsibility 86

Unit 1: Social businesses
xiv
Lesson 1 – Introduction to the Technopreneurship
Unit 1 - Technology and Entrepreneurship
Overview:
This lesson will give the Students understanding the terms that is use in Technopreneurship, its
history and its importance.
Learning Objectives:
After successful completion of this lesson, you should be able to:
1. Discuss what is the difference of Technopreneurship and Entrepreneurship.

2. Learn its importance to the society especially we are dealing to the new normal in this
modern days.
Course Materials:
To understand Technopreneurship, we must first define Entrepreneurship.
Entrepreneurship is a way of thinking and acting that is opportunity obsessed, holistic approach
and leadership balanced for the purpose of wealth creation. Searches for change, responds to it
and exploits it as an opportunity. Innovation is the specific tool of entrepreneurs, the means by
which they exploit change as an opportunity for a different business or a different service.
Entrepreneurship pursuit of opportunity without regard to the resources currently under one’s
control.
Technopreneurship
Technopreneurship it is a simple entrepreneurship in a technology intensive context. It is a

process of merging technology prowess and entrepreneurial talent and skills.
Technopreneur is the person who destroys the existing economic order by introducing, new
products and services, by creating new forms of organizations and by exploiting new raw
materials. It is someone who perceives an opportunity and creates an organization to pursue it.
A person who undertakes risks that has the chance of profit. Technopreneurs distinguishes
themselves through their ability to accumulate and manage knowledge, as well as their ability to
mobilized resources to achieve a specified business or social goal.
1
Why is Technopreneurship so important?
Technopreneurship has allowed every business from infrastructure and software to e-commerce
and even trade to become more successful and perform business duties more seamlessly and
efficiently.
Technopreneurship has redefined e-commerce with the help of the internet. As the internet has
evolved, it has become a major global distribution arena for products and services. E-commerce
has become so diverse, thanks to Technopreneurship, that it can now be defined from several
perspectives. E-commerce can be defined by communications, trade, business processes, and
services. When it comes to trade, technopreneurship has improved the process by allowing
companies to provision better means to buy and sell their products, services, and information.
What is the difference between entrepreneurship and Technopreneurship?
As nouns the difference between entrepreneur and technopreneur. is that entrepreneur is a

person who organizes and operates a business venture and assumes much of the associated
risk while technopreneur is (informal) an entrepreneur in the field of technology.
Activities/Assessments:
Answer the following questions briefly:

1. What is the Importance of the Technopreneurship in the new setup of our society?
2. Difference of Entrepreneurship and Technopreneurship
Assignment:
What are the Characteristics of a successful Technopreneur?
Reference:
 http://www.icym.edu.my/v13/announcement/979-what-is-
technopreneurship.html#:~:text=Technopreneur%20is%20the%20person%20who,an
%20organization%20to%20pursue%20it.
 https://www.techfunnel.com/information-technology/importance-of-technopreneurship-
every-cto-should-know/
2
Lesson 1 – Introduction to the Technopreneurship
Unit 2- Definitions of Terms
Overview:
This lesson will help the student to familiarize in certain terminology used in technopreneurship.
1. Familiarize and learn different terminology in technopreneurship
Course Materials:
Advertising.
A paid public method of gaining attention to a product or business by paid announcements on

radio, TV, print or electronic media such as internet PPC (pay per click). Advertising is not to be
confused with marketing, public relations or SEO (Search Engine Optimization). There are
entire websites devoted to just advertising terms and vocabulary.
Angel Investors
An angel investor (also known as a business angel, informal investor, angel funder, or private
investor) is an affluent individual who provides capital for a business start-up, usually in
exchange for convertible debt or ownership equity while they are trying to find a more sustantial
investment in a business. A small but increasing number of angel investors are now investing
online through equity crowdfunding, or are organizing themselves into angel groups.
Barter.
Barter is a system of exchange where goods or services are directly exchanged for other goods
or services without using a medium of exchange, such as money. There are many formal barter
groups that network a large number of businesses looking to make non-money exchanges. That
aside, there are still many who still just do informal barters.
Business Acquisition.
3
This is the term used when you take ownership of another business in order to expand your
business or diversify your business holdings. This word if frequently used in conjunction with the
word merger, as in mergers and acquisitions.
Business Incubator.
Often confused with office business centres, these organizations do provide workspace, but
clients have to pay for business coaching courses and support services in the early-stage of
their businesses. These additional costs are normally covered by Employment Insurance
benefits to get entrepreneurs to start businesses, instead of returning to the workforce.
Consumer Direct Marketing.
A form of Network Marketing in which the distributors are all also consumers (often in the form
of Multi-Level Marketing companies). They must also buy the product for their personal use. The
term “consumer direct marketing” is generally considered a deceptive term because it simply
calls those who sell and promote products and services “consumers” instead of “distributors.”
Copyright.
Copyright, a term that is more associated with writers and music producers, is a form of
protection for published and unpublished literary, scientific and artistic works that a business
may create to associate with or promote their product or brand.
Corporation.
A corporation (basically a LLC) is a legal entity that is separate and distinct from its owners.
Corporations enjoy most of the rights and responsibilities that an individual possesses. That is,
a corporation has the right to enter into contracts, loan and borrow money, sue and be sued,
hire employees, own assets and pay taxes.
Due Diligence.
Due diligence is an investigation of a business or person prior to signing a contract, or an act

with a certain standard of care. Due diligence is done to collect other information which may
influence the outcome of a transaction.
Entrepreneur.
4
A person who organizes, operates and assumes the risk for a business venture. An
Entrepreneur is someone who exercises initiative by organizing a venture to take benefit of an
opportunity and, as the decision maker, decides what, how, and how much of a good or service
will be produced.
General Partnership.
An organizational structure in which each general partner shares in the administration, profits
and losses of the operation. A general partnership is an arrangement by which partners
conducting a business jointly have unlimited liability – which means their personal assets are
liable to the partnership’s obligations.
Independent Contractor.
An independent contractor is a person who has an independent trade, business, or profession in

which he or she offers their services to the public or to other businesses. The person contracting
for their services usually has the right to direct only the work, and not the means and methods of
accomplishing it.
Intrapreneur.
An intrapreneur is one who takes on entrepreneur-like ventures within a large corporate

environment. An intrapreneur or inside entrepreneur is typically a manager within a large firm,
who uses entrepreneurial skills without incurring the risks associated with those activities.
Intrapreneurs are usually employees within a company who are assigned to work on a special
idea or project, and they are instructed to develop the project much like an entrepreneur would.
Unlike entrepreneurs, intrapreneurs usually have the resources and capabilities of the firm at
their disposal.
Joint Venture.
A joint venture is a business arrangement in which two or more parties agree to pool their
resources for the purpose of accomplishing a specific task. This task can be a new project or
any other business activity. It is important to note that a joint venture differs from a strategic
alliance because it is a legal entity created by two or more businesses joining together to
conduct a specific business enterprise with both parties sharing profits and losses. It differs from
a strategic alliance in that there is a specific legal entity created.
Limited Partnership.
A limited partnership business arrangement is one in which the day-to-day operations of a small
business are controlled by one or more general partners, but funded by limited or silent partners
who are legally responsible for losses based on the amount of their investment.
Line of Credit.
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A line of credit is similar to a business loan, except that the borrower only pays interest on the
amount actually used. Much like a credit card, the business makes periodic payments against
the outstanding balance. The balance of a line of credit can be payed down at any time when
they funds are available and the business wants to save money on interest charges.
Marketing.
There are volumes of books written on marketing, but simplest explanation is that it is the
process of researching, promoting brands, selling and distributing a product or service.
Marketing can cover a broad range of practices – including advertising, publicity, promotion,
pricing, and even the packaging of goods or services.
Merger.
Mergers are transactions in which the ownership of companies or business organizations are
transferred or combined. A true merger in the legal sense occurs when both businesses
dissolve and move their assets and liabilities into a newly created entity.
Multi-level Marketing (MLM).
Multi-level marketing is a strategy that some direct sales companies use to encourage their
existing distributors to recruit new distributors by paying the existing distributors a percentage of
their recruits’ sales. The recruits are known as a distributor’s “downline.” Remember, these are
businesses in which a person receives proceeds not only from their own sales, but from the
sales made by people they have signed up, and potentially people those people have signed up
in turn, and so on. Many people just work on developing their downlines as opposed to product
sales, because it it more profitable.
Network Marketing.
A business in which a distributor network is needed to build the business. Usually, such
businesses tend to be MLM’s.
Networking.
The process of developing business contacts to form business relationships, increase your
knowledge and expand your business base. These are considered networking activities.
Office Business Centers.
Office business centres (often called shared offices or service offices) is an office or office
building that is fully equipped and managed. These are facilities where several businesses
share common space with a variety of infrastructure necessities built into the centre. This
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means that the business does not have to build walls, wire internet, set up telephone systems or
even purchase office furniture. All they need to do is choose an office and move in.
Outsourcing.
The act of outsourcing is the acquisition of standard operational services from another business.
Outsourced services typically including accounting, payroll, telemarketing, IT support,
advertising and more.
Patent
A patent is an exclusive right granted for an invention, such as a product or a process. This is a
property right granted to an inventor to exclude others from making, using, offering for sale, or
selling the invention for a limited time in exchange for public disclosure of the invention when
the patent is granted.
Sole Proprietorship.
A business owned and operated by one person. This person assumes all risk associated with
the business and its operations. In terms of taxes, he or she can file a joint personal and
business return.
Strategic Alliance.
A strategic alliance is a term given to ongoing relationship between two or more businesses in
which they combine efforts for a specific purpose or project.
Trademark.
A trademark is another form of legal protection for intellectual properties. They are more about
words, names, symbols, sounds or colours that distinguish brand, goods and services. Unlike
patents that that have a limited time span, trademarks can be renewed forever as long as they
are being used.

1. Familiarize yourself to terminology used for an easier understand of entrepreneurship.
2. Discuss the basic importance of clear understanding of what you are doing.
7
Quiz of this lesson will be given before the next lesson begin.
Assignment:
Research different types of innovation and its importance
References
 https://www.telsec.net/an-entrepreneurs-glossary-to-some-common-business-terms/
8
Lesson 2 – Innovation and Ideas
Unit 1- The Technopreneur Innovation
Overview:
This lesson will help the student to clearly understand the importance of a good idea in an
Innovation of a certain services or product in the development of the company or organization..
1. Understand and experience the entrepreneurial process from the generation of

creative ideas.
Course Materials:
What is Innovation?
Improving something that already exists
While Merriam-Webster won't like it, much of the time innovation actually means updating
something that's already out there. And while this might take the form of creating a new product
or piece of technology, much of the time we're really talking about processes.
Importance of Innovation?
Innovation is important in entrepreneurship. Innovation doesn't always mean to create

something new: innovators often take something that already exists, improve it, change it, make
it better and make it the best for their customers. Innovative ideas are what will make a startup
competitive.
Types of Innovation
Innovation has become such a buzzword it can be hard to remember what it actually means.
Depending on who you talk to, the bar for “innovation” might seem incredibly high (“Let’s be the
next Netflix!”), or far too low (“Let’s hang up some hammocks in our office!”). There are several
different ways a company can innovate; in this article, they are broken down into three general
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categories: product, process, and business model. By narrowing your focus on a specific type of
innovation, you can be a more effective and strategic innovator.
Product Innovation
When people think of innovation, often, they’re thinking of product innovation. Product
innovation can come in three different forms. 1) The development of a new product, such as the
Fitbit or Amazon’s Kindle. 2) An improvement of the performance of the existing product, such
as an increase in the digital camera resolution of the iPhone 11. 3) A new feature to an existing
product, such as power windows to a car.
Drivers of product innovation might be technological advancements, changes in customer

requirements, or outdated product design. Product innovation is generally visible to the
customer and should result in a greater demand for a product.
Process Innovation
Process innovation is probably the least sexy form of innovation. Process is the combination of
facilities, skills, and technologies used to produce, deliver, and support a product or provide a
service. Within these broad categories, there are countless ways process can improve.
Process innovation can include changes in the equipment and technology used in
manufacturing (including the software used in product design and development), improvement
in the tools, techniques, and software solutions used to help in supply chain and delivery
system, changes in the tools used to sell and maintain your good, as well as methods used for
accounting and customer service.
While product innovation is often visible to your customers, a change in process is typically only
seen and valued internally. Speaking generally, changes in process reduce costs of production
more often than they drive an increase in revenue. Of the three types of innovation, process is
typically the lowest-risk.
Examples:
One of the most famous and groundbreaking examples of process innovation is Henry Ford’s
invention of the world’s first moving assembly line. This process change not only simplified
vehicle assembly but shortened the time necessary to produce a single vehicle from 12 hours to
90 minutes.
Recently, Differential built a mobile sales dashboard for Grupo Bimbo. The baking company has
65 manufacturing plants and 2.5 million sales centers located in 22 countries, across 3
continents. As a result, the executive team members travel a lot, meeting with their direct
reports around the world. Having a mobile sales dashboard gives the team quick access to the
sales information and other KPI’s for each country, channel, and brand, cutting out guesswork in
sales decisions, and reducing meeting time.
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Digital Product Agency - Sales Tool
Business Model Innovation
Business model innovation does not necessarily imply changes in the product or even in the
production process, but in the way as it is brought to the market. Decision Innovation writes:
“Business model innovation is probably the most challenging of the innovation types as it will
likely present an organization with major requirements for change. Often, the very capabilities or
processes that have been optimized to make a company successful and profitable will become
the targets for transformation. In some cases, these changes can threaten elements of the
company identity and come into conflict with brand expectations or promises.
Whereas both product and process innovation can be incremental and moderate, business
model innovation is almost always radical, risky, and transformative.
When talking about business model innovation, without a doubt, names like AirBnB, Uber, or
Spotify will come up. These are perfect examples of fast-moving companies that were able to
disrupt age-old markets (hotel taxi, music) by tweaking or inverting their industry’s traditional
business model.
Because of these powerhouses, many might assume only startups are capable of massive
business model innovation. Startups have a big advantage due to their ability to iterate and
adapt their model as they are in the process of creating an initial business model design;
however, there are several large, well-established organizations that have leaned into their
advantages of a larger customer base and greater resources to challenge their existing
business model and “disrupt” themselves.
Examples:
IBM has managed changes in customer offers from mainframes to personal computers to
technology services.
Amazon found a new channel to the customer through technology by eliminating the traditional
retail distribution channel and developing direct relationships.
Instead of generic innovation goals, try to hone in your focus on a specific type of innovation.
Once you’ve done this, you can begin asking more helpful questions, such as “How might this
digital product’s ease of use improve?” or ”Where in our hiring process are we spending the
most time?” Answering these questions through interviews and research will you point you in a
clearer (though still sometimes risky) direction for your business’ innovation efforts.
Research and Development
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Research is a careful and detailed study into a specific problem, concern, or issue using the
scientific method. It's the adult form of the science fair projects back in elementary school,
where you try and learn something by performing an experiment. While, Development is a
process that creates growth, progress, positive change or the addition of physical, economic,
environmental, social and demographic components. ... The identification of these traps enables
relating to political – economic – social conditions in a country in an attempt to advance
development
Research and development (R&D) is a process intended to create new or improved technology
that can provide a competitive advantage at the business, industry, or national level. While the
rewards can be very high, the process of technological innovation (of which R&D is the first
phase) is complex and risky.

1. Learn the relationship between research and development in entrepreneurship.
2. Discuss the basic importance of clear understanding of Innovation.
Assignment:
How Innovation will help technopreneur in the future and why research is important for the
people who take this course.
Reference:
 https://denversouthedp.org/what-does-innovation-really-mean/
 https://startupistanbul.com/blog/2015/03/the-importance-of-innovation-in-entrepreneurship/
 https://www.differential.com/posts/the-3-types-of-innovation-product-process-business-
model
 https://www.inc.com/encyclopedia/research-and-development.html#:~:text=Research
%20and%20development%20(R%26D)%20is,phase)%20is%20complex%20and
%20risky.
 https://study.com/academy/lesson/what-is-research-definition-purpose-typical-
researchers.html
 https://www.sid-israel.org/en/Development-Issues/What-is-Development
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Lesson 2 – Innovation and Ideas
Unit 2- Enterprise and Idea
Overview:
This lesson will help the student to clearly understand the importance of a good idea in an
Innovation of a certain services or product in the development of the company or organization.
1. Understand the market needs or provide a solution to a key problem,
2. Explore the feasibility and creation of a business enterprise,
Course Materials:
Innovation Driven Enterprise
Pursue global opportunities based on bringing to customers new innovations that have a clear
competitive advantage and high growth potential.
Small Medium Enterprises
Small and medium-sized enterprises (SMEs) are non-subsidiary, independent firms which
employ fewer than a given number of employees. This number varies across countries. The
most frequent upper limit designating an SME is 250 employees, as in the European Union.
However, some countries set the limit at 200 employees, while the United States considers
SMEs to include firms with fewer than 500 employees.
Market Driven vs. Product Driven
Market driven means you’re building products that customers want to buy. Product driven
means that you’re building products then trying to find a market for them. Giving customers what
they want makes sense, right? Of course it does, but there’s just one problem – customers are
not always good at knowing what they want when it comes to new product categories. They’re
great at extrapolating features from existing products to new ones, but not so good at predicting
the success of completely new products.
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Consumer products companies, and B2B companies to a lesser extent, spend a good deal of
time and money trying to determine what customers want to buy. It’s smarter and less
expensive to do the homework up front rather than risking the launch of a new product that’s
doomed for failure. Steve Jobs surprised many people when he made the statement above
about product development, but Apple is one of the few companies that has been successful
with a product-driven approach over the last 15 years. The iPod, iPhone and iPad were home
runs, but prior efforts like the Apple Lisa, Apple III, Power Mac G4 Cube, and a few others never
made it to first base.
Market-driven is the less risky and more sensible approach in most cases. It requires
companies to look to current customers, potential customers, and channel partners for advice
and feedback that can help them make strategic product decisions. It also requires them to
know their market, know their customers, and know the competition in order to filter out
unnecessary requests and focus on products that can be successful.
A product-driven approach tries to take advantage of a company’s internal marketing and

technical expertise to develop products they think will fill a gap or reach a new customer base.
It’s risky, but companies that know the market needs and do the research can develop products
that leapfrog the competition. This is where innovation comes from, and, in my opinion, is the
only way to make great improvements.
Which Approach Works Best?
It depends on the circumstances. Market driven companies usually benefit from consistent
growth and strong customer/partner relationships. I believe that a product-driven approach is a
short-term strategy that can move a company forward in big steps, but that successful product-
driven companies must eventually transition to market-driven companies for long-term survival.

1. Choose whether Market Driven or Product driven is the best choice for their company or
organization.
2. Discuss the basic importance of clear understanding of SME and IDE.
Assignment:
Pros and Cons in Market Driven vs Product Driven. Which will you choose and why?
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Reference:
 https://quizlet.com/160289625/different-types-of-entrepreneurship-ide-versus-sme-flash-
cards/
 https://stats.oecd.org/glossary/detail.asp?ID=3123
 https://inbounddigital.net/digital-marketing-blog/market-driven-vs-product-driven/
Lesson 3 – Value Proposition
Unit 1- Benefits vs features: The Crucial Key to Selling Your Product
Overview:
This lesson will help the students know the benefits per cost, proper approach and the
difference between solution driven and efficiency improvement
1. Understand the benefits per cost, the proper approach and relations to need.
2. Discuss how to transform features-only marketing into benefits.
Course Materials:
Benefits vs Feature
One of the biggest traps a marketing writer can fall into is confusing features vs. benefits. Often
when selling a product or service, copywriters merely present a list of features–and that’s simply
not enough to make a sale.
Both features and benefits are equally important for effective advertising copy, but at the end of
the day, it will be the benefits that give you the best advantages for converting customers.
The difference between benefits vs. features.
Features are defined as surface statements about your product, such as what it can do, its
dimensions and specs and so on.
Benefits, by definition, show the end result of what a product can actually accomplish for the
reader.
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It can be difficult to tell the difference between the two, as many features might sound like
benefits. For example, saying that a cell phone has a fast internet connection is actually
showcasing a feature, not a benefit. A benefit of fast internet would be the ability to quickly get
directions when you’re lost (before you become even more lost).
You should also never confuse either a feature or a benefit with an advantage. Advantages are
like the intermediary between features and benefits; they are effectively what the feature does to
eventually result in a benefit. For example, a 4G internet connection (feature) means that you
can access web applications in a shorter amount of time (advantage), which means that you
can quickly and easily find your way home when you’re lost (benefit). Be sure to make the
distinction and understand the relationship between features, advantages and benefits.
The biggest difference between features and benefits is that the latter affect an emotional level
that audiences can relate to. The fast internet feature sounds vaguely positive, but on its own,
there’s no strong, immediate reason why it’s positive. Meanwhile, almost every audience can
emphasize with being lost and wanting an immediate solution to the problem.
Why feature-only marketing is ineffective
Generally speaking, it’s better to “show” versus “tell”–show your audience the benefits of your
product vs. tell them about the features.
Since features work on a factual level rather than an emotional one, they’re often confusing or
hard for a customer to understand. For example, the technical specs on a laptop might not
make sense to a customer unless they’re familiar with computers. However, the benefit of
having a fast laptop that can store a lot of photos, videos and music is something that any
computer owner can relate to.
It’s just the nature of some features to be written in jargon that is hard for your average
customer to fully understand. This means that a large portion of your potential customer base
simply won’t understand your message if you provide nothing but technical specifications.
The worst aspect of feature-only marketing is that it puts the burden of understanding on the
reader. The audience is left to connect the dots between the specifications you’ve listed and
how it will benefit them. When you leave your audience to draw their own conclusions, you run
the risk of them drawing the wrong ones.
If, for instance, you market a car as being “fast,” the audience might interpret this as “thrilling”
and “exciting,” but they could just as easily perceive it as “reckless” and “unsafe.”
Transforming features into benefits
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The good news is that features can always be transformed into benefits. In fact, this process will
help you create the strongest benefits possible. To achieve this transformation, simply tell the
audience how the feature will benefit them.
The gas mileage on a car is a feature; the amount of money you can save on gas is a benefit.
Pockets on the front of a sweater is a feature; having a place for your keys and keeping your
hands warm in the winter are both benefits.
Home delivery is a feature; not having to interrupt your schedule to go to the store is a benefit.
Every one of your product’s features can be turned into a benefit with a little practice. Doing so
will also help you better understand what your audience is looking for in a product like yours.
This will assist you in reaching your audience, making sure they understand your message, and
ultimately selling your product or service.
Show benefits through storytelling
When you show the benefits of your product, think of it like telling a story. You want to engage
the audience and leave them feeling an emotional connection. Therefore, you should describe a
scenario in which a feature was beneficial to a person that the target audience can relate to.
And like all good stories, your story should have a “villain”–that is to say, a problem that your
brand was able to solve for someone. This makes your brand the “hero” of the story, which
makes the emotional connection between your brand and your audience that much stronger.
Storytelling could be use to demonstrate the benefits a chiropractor provides.
For example, a chiropractor could tell the story of a client whose back pain was preventing him
from working and how treatment allowed him to support his family again.
The target audience in this case would be people with back pain, who could emphasize with the
fear of not being able to perform work due to their affliction. By showing that the chiropractor
was able to solve this dilemma, it establishes a connection with the target audience who now
see the chiropractor as an answer to their own problems.
Benefits need to be beneficial to your target audience
Your brand can’t be the “hero” if you don’t know what problems your audience is having. Take
the time to get to know your target audience and figure our how your product or service can help
them solve the problems they face in life.
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Your benefits should change depending on the needs of the target audience. For example, a
company selling low-cost organizational materials could target both college students and
mothers. Although both groups use the product in great quantities, they are two different
audiences with very different needs.
For college students, the benefit of organizational materials is the ability to keep their stuff
separate from their roommates. The low cost leaves them more money for pizza with friends.
On the other hand, the benefit of the same product for moms would be the ability to organize
their children’s toys so that they don’t get lost or clutter the room. The low cost means the items
can be easily replaced if kids get too rough with them.
The more you know about the customer, the more benefits you can find for your product.
Knowing what your customer likes about your product also allows you to find new benefits that
you might not have realized yet. You might also discover that your audience has specific needs
that you haven’t prepared for; perhaps patrons of your laundry service are also looking for fast
and convenient dry-cleaning.
Verifying your benefits with features
Despite their lack of emotional connection, features have an important part to play in selling
your product. Features act as the “proof” for your benefits by helping you quantify the claims
you’re making. Without features, benefits are not as effective.
For example: “This house is the perfect place to raise a family” is not that effective because it
gives no reasons why this is the case.
“This house is located in a top school district, has an expansive backyard and three bedrooms
upstairs, making it the perfect place to raise a family” is much better because the features give
credence to the claims.
However, benefits don’t always need features to be verified. You can use testimonials in some
cases to give your claims social credence. The most effective testimonials are from customers
that reflect your target audience and present your brand as a solution to a problem they were
having.
For example: “This house is the perfect place to raise a family. I raised three children here, but
now that the kids are grown up we’re looking for something smaller.”
Benefits can be purely emotional
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Benefits don’t always have to solve a literal “problem”; some of them work on a strictly
emotional level. Emotional benefits come from features that your customers make a personal
connection to (not a practical connection), giving them a different reason to invest in your brand.
For example, the emotional benefit of buying hand-crafted jewelry is that nobody else in the
world will have the exact same item you have. This appeals to the customer’s emotional need
for independence and identity.
Some more examples: a wedding photographer helps you preserve the memories of your happy
day for generations to come, appealing to the customer’s emotional need for sentimentality. An
RV can help you escape from your everyday life to a peaceful, natural setting with emotional
resonance.
What Is Value-Added?
The term "value-added" describes the enhancement a company gives its product or service
before offering it to customers. It can be considered as an extra special feature added by a
company or producer to increase the value of a product or service.
Ways to Add Value
There are seven secrets to add value in your job and in the world around you. Any one of these
ideas or concepts can be sufficient for you to become financially successful. When you begin to
combine these ideas together, you’ll begin to move ahead more rapidly in your financial life than
you ever have before.
1. The Faster The Better
The first way to increase value is simply to increase the speed you deliver the kind of value
people are willing to pay for.
Successful people know everybody is impatient. A person who didn’t realize that they wanted
your product or service until today, now wants it yesterday. People perceive a direct correlation
between speed and the value of your offering.
A person who can do it for you fast is considered to be a better and competent person offering a
higher level of quality than a person who does it slowly, or whenever they get around to it.
2. Offer Better Quality
The second key to creating wealth is by offering better quality than your competitors at the same
price.
19
And remember, quality is whatever the customer says it is. Total quality management can best
be defined as: “Finding out what your customer wants and giving it to him or her faster than your
competitors.”
Quality does not just mean greater durability or excellence in design. Quality refers, first of all,
to utility, to the use that the customer needs to put the product or service. It is the customer’s
specific need, or the benefit that the customer seeks, that defines quality in his or her mind.
3. Add Value
The third way that you can become wealthy is by looking for ways to add value to everything
you do.
Remember, if everyone is offering the same thing, these factors of the product or service
become the basic minimum, or the expected norm in the market.
If you want to stand out as a person or as a producer, you have to “plus” whatever you are
doing so that your customer perceives you and your offering as being superior to that of your
competitors.
You can add value to a product or service by improving the packaging or the design. You can
increase its value by simplifying its method of use.
Apple transformed the entire world of computers by making them easy to use for the
unsophisticated person.
Simplicity became an enormous source of added value for Apple, and for countless other
companies that have followed the same route.
4. Increase Convenience
The fourth way of increasing wealth is by increasing the convenience of purchasing and using
your product or service.
Fast food stores by the thousands are a simple example of how much more people are willing to
pay for convenience than they are if they have to drive across town to a major shopping center
or a major grocery store.
5. Improve Customer Service
A fifth way of creating value and increasing wealth is by improving customer service. People
are predominantly emotional.
20
They are greatly impacted by the warmth, friendliness, cheerfulness and helpfulness of
customer service representatives. Many companies are using customer service as a primary
source of competitive advantage in a fast changing marketplace.
6. Changing Lifestyles
The sixth key to creating wealth is changing life styles, and the impact they are having on
customer purchasing patterns and behaviors throughout the country.
There is a national trend toward cocooning, or staying at home more and to making the home
environment more enjoyable. People’s tastes are very different from the tastes of people a
generation ago.
More people want to travel and take vacations, thereby creating a boom in the travel, leisure,
resort and cruise industries.
Changing lifestyles and demographics can create opportunities that will enable you to offer a
product or service to a clearly identifiable market that can make you wealthy in a short period of
time.
7. Offer Planned Discounts
The seventh key to creating to wealth is just planned discounting. This involves finding ways to
sell higher and higher volumes of products and services to more and more people at lower and
lower prices.
You’ve heard it said that, “If you want to dine with the classes, you have to sell to the masses.”
How could you offer a product or service of good value at an even lower price? How could you
squeeze out the costs of getting that product or service to the customer and pass the savings
onto him or her?
When you begin thinking of increasing the speed at which you deliver your product or service,
improving the quality, add value at every stage of production, increasing the convenience for
your customers, giving better customer service, catering to changing lifestyles and trends and
finding ways to reduce the actual cost, you will be astonished at the incredible number of ideas
and possibilities that exist around you.
And remember, one idea of insight for benefiting customers in a way that no one is currently
offering can be the springboard that launches you into a life of financial success and
achievement.

21
1. What is the Seven(7) ways to add value?
2. Why Benefits need to be beneficial to your target audience?
Assignment:
Create a Marketing Strategy on how will you sell your product to the consumers in innovative
ways of entrepreneurship.
Reference:
 https://www.printwand.com/blog/benefits-vs-features-the-crucial-key-to-selling-your-
product
 https://www.entrepreneur.com/article/282961
 https://www.coursehero.com/file/6877533/Efficiency-improvement-trap/#:~:text=View%20full
%20document-,Efficiency%20improvement%20trap%20Efficiency%20is%20basically%20finding
%20the%20best%20way,by%20an%20increase%20in%20productivity.
 https://www.lenetek.com/blog/purpose-driven-problem-driven-solution-driven/
Lesson 3 – Value Proposition
Unit 2- Benefits/cost
Overview:
This lesson will help the students know the benefits per cost, proper approach and the
difference between solution driven and efficiency improvement
1. Understand the relationship between benefits and cost
22
2. Discuss the difference between Solution Driven and Efficiency Improvement
Course Materials:
What Is a Cost-Benefit Analysis?
A cost-benefit analysis is a process business use to analyze decisions. The business or analyst
sums the benefits of a situation or action and then subtracts the costs associated with taking
that action. Some consultants or analysts also build models to assign a dollar value on
intangible items, such as the benefits and costs associated with living in a certain town.
Understanding Cost-Benefit Analysis
Before building a new plant or taking on a new project, prudent managers conduct a cost-benefit
analysis to evaluate all the potential costs and revenues that a company might generate from
the project. The outcome of the analysis will determine whether the project is financially feasible
or if the company should pursue another project.
In many models, a cost-benefit analysis will also factor the opportunity cost into the decision-
making process. Opportunity costs are alternative benefits that could have been realized when
choosing one alternative over another. In other words, the opportunity cost is the forgone or
missed opportunity as a result of a choice or decision. Factoring in opportunity costs allows
project managers to weigh the benefits from alternative courses of action and not merely the
current path or choice being considered in the cost-benefit analysis.
By considering all options and the potential missed opportunities, the cost-benefit analysis is
more thorough and allows for better decision-making.
KEY TAKEAWAYS
 A cost-benefit analysis (CBA) is the process used to measure the benefits of a decision
or taking action minus the costs associated with taking that action.
 A CBA involves measurable financial metrics such as revenue earned or costs saved as
a result of the decision to pursue a project.
 A CBA can also include intangible benefits and costs or effects from a decision such as
employee morale and customer satisfaction.
The Cost-Benefit Analysis Process
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A cost-benefit analysis (CBA) should begin with compiling a comprehensive list of all the costs
and benefits associated with the project or decision.
The costs involved in a CBA might include the following:
 Direct costs would be direct labor involved in manufacturing, inventory, raw materials,
manufacturing expenses.
 Indirect costs might include electricity, overhead costs from management, rent, utilities.
 Intangible costs of a decision, such as the impact on customers, employees, or delivery

times.
 Opportunity costs such as alternative investments, or buying a plant versus building one.
 Cost of potential risks such as regulatory risks, competition, and environmental impacts.
Benefits might include the following
 Revenue and sales increases from increased production or new product.

 Intangible benefits, such as improved employee safety and morale, as well as customer
satisfaction due to enhanced product offerings or faster delivery.
 Competitive advantage or market share gained as a result of the decision.
An analyst or project manager should apply a monetary measurement to all of the items on the
cost-benefit list, taking special care not to underestimate costs or overestimate benefits. A
conservative approach with a conscious effort to avoid any subjective tendencies when
calculating estimates is best suited when assigning a value to both costs and benefits for a cost-
benefit analysis.
Finally, the results of the aggregate costs and benefits should be compared quantitatively to
determine if the benefits outweigh the costs. If so, then the rational decision is to go forward with
the project. If not, the business should review the project to see if it can make adjustments to
either increase benefits or decrease costs to make the project viable. Otherwise, the company
should likely avoid the project.
Limitations of Cost-Benefit Analysis
For projects that involve small- to mid-level capital expenditures and are short to intermediate in
terms of time to completion, an in-depth cost-benefit analysis may be sufficient enough to make
a well-informed, rational decision. For very large projects with a long-term time horizon, a cost-
benefit analysis might fail to account for important financial concerns such as inflation, interest
rates, varying cash flows, and the present value of money.
Alternative capital budgeting analysis methods, including net present value, could be more
appropriate for these situations. The concept of present value states that an amount of money
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or cash in the present day is worth more than receiving the amount in the future since today's
money could be invested and earn income.
Solution Driven
When you are being problem-driven, you approach product development and design not just
based on specific features being requested of you, but by determining the underlying problems
that your product is supposed to solve.
Being solution-driven means that problems have already been determined either by you or for
you, and you focus solely on solving them, that is finding, developing or providing solutions.
Being purpose-driven on the other hand means that you start not with a problem or a solution,
but much earlier in the development cycle. You start with a purpose of the product development,
and then dig deeper into formulating the problem and eventually solving it (finding a solution).
Efficiency Improvement
Efficiency improvement trap. Efficiency is basically finding the best way to attain a given goal. It
mainly concerns itself with the way things are done. In most cases, an increase in efficiency is
accompanied by an increase in productivity. However, organizations enhancing their efficiency
should be vigilant to avoid being caught up in an “efficiency improvement trap. ” While efficiency
deals with the quantity and quality of a product and mainly concerns itself with how things are
being done, productivity mainly concerns itself with an operations end result. Itis hence clear
that by using efficiency as a way to find the most appropriate way to reach a goal in a given
operation, the end results of the operation i.e. productivity will be more impressive with every
increase in efficiency. However, organizations find themselves deep into the efficiency trap by
concentrating so much on cost cutting measures as opposed to the production of the right
quantity of production units.
4 Types of Basic Value Propositions
1. "Our prices are the lowest."
To execute this value proposition, you must lower your cost of goods so that you can afford to
sell at a lower price. This requires a manufacturing and distribution methodology that squeezes
every drop of extra operational cost.
For example, if your competitor is outsourcing to China, you'll might outsource to, say, Ethiopia,
where labor costs are even lower. Similarly, if shipping is a big expense, you might locate your
manufacturing locally to the customer.
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The advantage of a "lowest price" value proposition is that it's extremely easy to explain to the
customer. You've got the lowest price. Case closed.
The disadvantage is that you're forced to fight endless price wars because competitors following
may leapfrog your cost-of-goods or sell at a loss to build marketing share. ,
2. "Our product is uniquely better."
To execute this value proposition, you determine, through interviews and market research,
which features will cause customers to consider your product superior to the competition. Then
you build that product and market it to that set of customers.
For example, if you're launching a line of "designer" desk chairs, you use a type of fabric makes
your potential buyers feel "successful." Similarly, Volvo sells to safety-conscious parents
because their product is seen as "safer" than other cars.
The advantage of a "uniquely better" value proposition is that you avoid price wars as long as
what you're offering remains unique.
The disadvantage is that competitors will quickly come up with "knock-off" imitations that they
can sell for less.
3. "We make things easier for you."
This value proposition is all about creating a hassle-free customer experience with products or
services that are traditionally difficult to buy or use. The customer will pay more in order to save
time and mental energy.
The classic example of this is Fedex, which can charged a premium because it "absolutely,
positively" promises on-time delivery. Generally, though, companies make things easier by
having a salesperson do the legwork for the customer.
The advantage of a "make things easier" value proposition is that the customer stops thinking
about your product or service and just buys it
The disadvantage is that you're always in danger of becoming a commodity that can easily be
swapped out. (E.g. UPS rather than Fedex.)
4. "We take ownership of customer results."
This is the holy grail of value propositions. You perform a strategic function inside the
customer's business better than they could possible perform it themselves. As a result, you're
seen as part of the "enterprise" rather than a vendor.
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For example, rather than selling the customer office supplies (a commodity), you become the
de-facto facilities manager, ensuring that employees get what they need when they need it,
while controlling overall costs.
The advantage of a "customer results" value proposition is that once you're ensconced in the
customer's operations, it can become prohibitively expensive to replace you.
The disadvantage is that you must employ high-priced experts who understand your customer's
business, probably because they've worked in the customer's industry.

1. What is the four(4) types of Basic Value Propositions?
2. What CBA stands for and its meaning?
Assignment:
Individual:
Create a short video clip with a minimum time of 30 seconds on how will you advertise
your product to the consumer effectively.
Reference:
 https://www.inc.com/geoffrey-james/the-4-types-of-value-proposition.html
 https://www.investopedia.com/terms/c/cost-benefitanalysis.asp#:~:text=A%20cost
%2Dbenefit%20analysis%20(CBA,decision%20to%20pursue%20a%20project.
27
Lesson 4 – Customers
Unit 1- Target customer profile
Overview:
This lesson will help the students to understand the importance of the customer and why it is the
asset in every business.
1. Understand the importance of customer who always buy your product.

2. Discuss the knowledge used when creating captivating marketing materials and
promotions.
Course Materials:
What Is a Customer?
A customer is an individual or business that purchases another company's goods or services.

Customers are important because they drive revenues; without them, businesses have nothing
to offer. Most public-facing businesses compete with other companies to attract customers,
either by aggressively advertising their products or by lowering prices to expand their customer
bases.
KEY TAKEAWAYS
 Customers are the individuals and businesses that purchase goods and services from
another business.
 To understand how to better meet the needs of its customers, some businesses closely
monitor their customer relationships to identify ways to improve service and products.
 The way businesses treat their customers can give them a competitive edge.
 Although consumers can be customers, consumers are defined as those who consume
or use market goods and services.
Understanding Customers
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Businesses often honor the adage "the customer is always right" because happy customers are
more likely to award repeat business to companies who meet or exceed their needs. As a result,
many companies closely monitor their customer relationships to solicit feedback on methods to
improve product lines. Customers are categorized in many ways. Most commonly, customers
are classified as external or internal.
External customers are dissociated from business operations and are often the parties
interested in purchasing the final goods and services produced by a company. Internal
customers are individuals or businesses integrated into business operations, often existing as
employees or other functional groups within the company.
Studying Customers
Businesses frequently study their customers' profiles to fine-tune their marketing approaches
and tailor their inventory to attract the most customers. Customers are often grouped according
to their demographics, such as age, race, gender, ethnicity, income level, and geographic
location, which all may help businesses cultivate a snapshot of the "ideal customer" or
"customer persona." This information helps companies deepen existing customer relationships
and reach untapped consumer populations to increase traffic.
Customers are so important that colleges and universities offer consumer behavior courses
dedicated to studying their behavioral patterns, choices, and idiosyncrasies. They focus on why
people buy and use goods and services and how it impacts companies and economies.
Understanding customers enables businesses to create effective marketing and advertising
campaigns, deliver products and services that address needs and wants, and retain customers
for repeat business.
Customer Service
Customer service, which strives to ensure positive experiences, is key to a successful

seller/customer dynamic. Loyalty in the form of favorable online reviews, referrals, and future
business can be lost or won based on a good or bad customer service experience. In recent
years, customer service has evolved to include real-time interactions via instant message chats,
texting, and other means of communication. The market is saturated with businesses offering
the same or similar products and services. What distinguishes one from another is customer
service, which has become the basis of competition for most businesses. This is a key element
of Sigma Six.
Customers vs. Consumers
The terms customer and consumer are nearly synonymous and are often used interchangeably.
However, there exists a slight difference. Consumers are defined as individuals or businesses
that consume or use goods and services. Customers are the purchasers within the economy
that buy goods and services, and they can exist as consumers or alone as customers.
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What is Target Customer Profile?
A target market customer profile identifies the customer most likely to buy your product or
service. While some companies create products around a customer profile, others identify the
customer profile once marketing strategies are developed. The target customer profile identifies
shared characteristics, behaviors and attitudes the target customers have, and this knowledge
is used when creating captivating marketing materials and promotions. Having a solid and
suitable target customer profile may increase your company’s profits because people in need
are buying the products or services.
1. Define who your target customer is based on who would purchase the company’s
products or services. Identify the common age group, gender and occupation to get a
generic persona. Narrow the generic persona by adding a general location, marital
status, income level, common education level and nationality.
2. Identify why these target customers act as they do based on the persona profile created
in the previous step. For example, identify why this target customer always buys the
cheapest product or why he invests in the newest products on the market. This step
allows you to identify customer buying habits.
3. Analyze how often the target customer uses social media to find products and
communicate with people, such as Facebook, Twitter, StumbleUpon and MySpace.
People often use social media to find new products and articles, so you can learn about
their browsing habits and online behavior. This is useful, as marketing and advertising
often happens on social media sites.
4. Create your marketing campaigns based on your target persona. For example, a high-
priced and modern business suitcase designed for lawyers, business owners and
executives requires a specific target buyer. In this case, your target customer profile may
be single or married, live in a downtown area, be between 25 and 40 years of age, be
well-educated and have a high-paying job. The product may appeal to any nationality,
despite being created with a western persona in mind. This customer may be willing to
pay the higher price for a high-quality product and is willing to invest in modern and
trending suitcases.
BENEFITS OF CUSTOMER PROFILING
#1. Tailor relevant audience
This is one of the most significant benefits of customer profiling. Customer profile provides
businesses the ability to tailor communications based on the specific interests of the customer.
This, as a result, will enhance engagement, experience, and ultimately improve sales.
#2. Enhance response rates
Customer profile helps businesses in communicating with the right people at the right time. This
drives better results from campaign and sales. Also, this insight initiates a nurturing process to
lead the potential prospects through the buying process. These are multi-layered benefits of
customer profiling when it comes to boosting response rates.
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#3. Better customer acquisition
A customer profile helps you understand your best customers and this, in turn, can help you to
look for prospects with the same characteristics. These prospects can turn out to be the
potential customers. Such customers will always have a higher propensity to be interested in
your service and offering. This is one of the most remarkable benefits of customer profiling.
#4. Improve market penetration
When a customer profile template is analyzed well, a lot of potential opportunities can be
uncovered. This can help you understand that what is the percentage of the target market are
you talking to and what is the market penetration level of your business? This is one of the most
important benefits of customer profiling as it opens up the door for future growth and stability

1. Why costumer is important in any kind of business?
2. What is Target Customer Profile?
Assignment:
Individual:
Conference presentations (preparing and giving oral/ poster presentations). Submit a
proper presentation of Customer profiling and how will you execute it.
Reference:
 https://www.investopedia.com/terms/c/customer.asp
 https://smallbusiness.chron.com/target-market-customer-profile-22543.html#:~:text=A
%20target%20market%20customer%20profile,buy%20your%20product%20or
%20service.&text=The%20target%20customer%20profile%20identifies,captivating
%20marketing%20materials%20and%20promotions.
 https://www.quantzig.com/blog/customer-profile
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Lesson 5 – Competitive Advantage
Unit 1- Competitors and product differentiation
Overview:
This lesson will help the students to understand the class of competitors, market structure and
market segments.
1. Understand the importance of having a healthy business competition in the market.

2. Discuss the market structure and market segments.
Course Materials:
What Is a Business Competitor
Any person or entity which is a rival against another. In business, a company in the same
industry or a similar industry which offers a similar product or service. The presence of one or
more competitors can reduce the prices of goods and services as the companies attempt to
gain a larger market share. Competition also requires companies to become more efficient in
order to reduce costs. Fast-food restaurants McDonald's and Burger King are competitors, as
are Coca-Cola and Pepsi, and Wal-Mart and Target.
Types of Competitors
Before we start on the ways that you can identify your competitors, let’s first talk about the types
of competition that you have in the field. There are 5 types of competitors: direct, potential,
indirect, future, and replacement.
Direct competitors are competitors who are directly vying for your customers. If you’re a
residential painter, your direct competitors are other residential painters in your service area. If
you have an online course about confidence, they’re the other ones who have courses about
confidence. When most new business owners think about their competition, direct competitors
are what come to mind.
Potential competitors are those competitors who do the same thing that you and target the
same kinds of customers but aren’t selling in your market area and aren’t likely to do so. They
could be your competition if they decided to enter, but either don’t have the infrastructure or
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have chosen to ignore your area. An example of a potential competitor would be a residential
painting company in another city.
Indirect competitors are businesses that are in the same category, but they sell different
products and services than you. This would be the difference between a strictly industrial painter
and a residential painter. You’re still doing similar things, but the target market between the two
of you are different.
Future competitors are like potential competitors, but they’re much more ready and likely to
enter your market. This might be the larger national company that hasn’t entered your local
market yet. Think of them as between potential and direct competition.
Replacement competitors are those who provide an alternative to the services that you offer
that solves the same pain points. If there is more than one way to solve the problems you solve
with your business, you may have a replacement competitor. For our residential painter, this
would be any DIY store that sells painting supplies.
So How Do I Identify My Competitors?
Once you have your list of keywords, the next step in the process is to find out who your
competitors are using this list. There are several methods you can use to find them, including
through social media and forums, looking through the pages of Google, and market research.
First Page of Google Search and Bing
Perhaps the easiest way to discover the competitors in your area is through doing a Google
search for your keyword. Most of your customers will search for you through a simple search
like ‘<service you provide> + city name,’ so you might search “painters in atlanta” or “atlanta
painters” to start.
Note the top ten companies which show up in your searches, including the ones which show up
in the advertisement section at the top of the page and in the map section for each of your
keywords.
Social Media and Forums
Search Facebook, Twitter, Instagram, and Pinterest for your keywords if that makes sense.
These places will give you a better view of the competitive landscape – and may even be more
up fresh than the original search that you did using your original search parameters.
It’s easy to forget that there have been searches for everything out there and that the answer
was most likely recorded on Quora, Reddit, or another similar forum.
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Real World Competitors
Of course, you can’t ignore your direct competitors in town. You’ll want to pay special attention
to these. Go to their websites and study how they do business. Read their reviews. You can
even do real-world research by going to their stores.
Market Research
Some companies hire market researchers and do surveys to discover their list of their client’s
competitors and where they fit into the ecosystem. You can perform your own market research
by digging into searches, looking through trade journals, and more, but if you have a lot of
competitors then it may be faster to leave it up to the experts.
Once you have your list, sort the competitors into the five areas we mentioned above.
Choosing Your Competition
When you dig into this process, you might find possible competitors coming out of the
woodwork. Don’t get overwhelmed! The list is just an overview of the entire field. Some of these
competitors will be more of a threat than others. If you’ve already been in business for a while,
you’re probably beating some of them already.
The first focus is direct competitors closest to you in the search engine rankings. People use the
internet to find businesses, so find the sites that are just above you in the rankings. We trust
search engines to make choices for us, so getting ranked higher will make searchers more likely
to investigate your business over the competition. By focusing on the sites closest to you in the
rankings you’ll avoid overanalyzing all the competition.
Potential and future competitors can be used for market research. If you see someone is doing
well, investigate what they’re doing. Could you be using those strategies yourself?
The goal with indirect competitors is to highlight the differences between you and them. The
general public may not know the things that might differentiate two indirect competitors, like
between a handyman and a general contractor, for instance. Both do carpentry but a general
contractor will wave off jobs that are too small.
You can use your site to educate people about the differences and target keywords that are
specific to your market segment. A contractor might focus on home renovation keywords, while
a handyman would focus on small repair keywords.
Finally, to compete with replacement competition you’ll need to educate the visitor on why
you’re the better option than the competition. What do you offer that the competition can’t? Do
you save time? Money? Offer a superior experience? Lean in on that and make your case.
34
As you move up in rankings and grow your business, the competition priority might change. You
might grow big enough to attract the attention of a future competitor. A direct competitor could
go out of business. Competitor analysis shouldn’t be done once. Do an update of your list once
or twice a year and see what has changed in the whole field, but do a monthly or quarterly
analysis on your closest competitors to see how you’re doing against them. That will let you
know if your strategies are working.
What is Product Differentiation?
Product differentiation is the introduction of unique, distinctive characteristics or features to a

product to ensure a USP (unique selling proposition) of the product. The differentiation enables
a company to achieve a competitive advantage over other companies offering similar product
substitutes. It is an essential marketing process that is of vital economic importance to a
business.
Breaking Down Product Differentiation
The product differentiation process may be as simple as redesigning of packaging to introducing

a brand new functional feature in a product. The different factors through which the process is
implemented include:
1. Price differentiation
Products in the market are differentiated solely on the price factor. This establishes a price
hierarchy for a particular product from lower to higher costs.
2. Non-price differentiation
Products, in this case, are differentiated by form, shape, feature, function, color, customization,
durability, quality, services, etc.
Types of Product Differentiation
1. Vertical Differentiation
Vertical differentiation focuses on differentiation in a product based on quality. In any market, a

quality hierarchy exists for a particular type of product that ranks products of one kind from a
position of low quality to the highest quality product.
Essentially, vertical differentiation is aimed at differentiating the product in order to move up the
hierarchy toward higher quality and use the trait as a competitive advantage to sell the product.
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2. Horizontal Differentiation
Horizontal differentiation is when products are differentiated according to a specific feature. The
differentiation can be about colors, packaging, shapes, flavors, etc.
Advantages of Product Differentiation
1. Provides economic benefits
Product differentiation is economically advantageous to a company. It provides a reason for

consumers as to why their product is worth investing in, as opposed to all the other substitute
products available in the market. A successful differentiation campaign boosts sales for a
company by a significant margin and gives it a competitive advantage in the market as to why
they deserve a consumer’s investment more than the others.
2. Helps achieve a higher price point
In addition, product differentiation helps a company operate at a higher price point just because
of that additional benefit or feature introduced in a product. When that one distinct feature or
difference introduced in the product makes it better than its substitutes, consumers more often
than not perceive it to be worth the increased price.
3. Promotes brand loyalty
Another implication of product differentiation is that very often, it brings brand loyalty into the
picture. When a company efficiently differentiates its products, and a few essential products
stand out, it usually brings out brand loyalty on the consumer’s part.
This is because once a consumer is satisfied with a few products of a brand, they tend to just
start buying other products from that one particular brand. The consumer believes that the
company’s other products are as good and stand out just as much as the ones they use.
Product Positioning
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Car makers will position their affordable starter cars as having those attributes. A position is the
place a product, company, or brand occupies in consumers' minds relative to the competition's
offerings. Positioning is a process that affects potential customers' perception of a brand,
product, or company. It is very important for marketers to realize that you can position a product
in any manner that you want, but it does not ensure that the customer will see the product the
way it is marketed.
For example, defunct car manufacturer Oldsmobile tried to make their cars cool again. They
developed new car designs and came up with the slogan, 'It is not your father's Oldsmobile.' No
matter what the marketers tried to position their product as attractive to the younger generation,
the process failed. Younger consumers could not get the image of older people driving large
Oldsmobile’s around town, and to them it still made the product unattractive.

1. Difference between product positioning and Product Differentation?
2. What is the four(4) kind of competitor?
Assignment:
Answer the following Questions:

1. What are the 5 common positioning strategies?
2. What are 4 elements of a positioning statement?
Reference:
 http://www.businessdictionary.com/definition/competitor.html
 https://onceinteractive.com/blog/how-to-identify-your-competitors/
 https://corporatefinanceinstitute.com/resources/knowledge/strategy/product-
differentiation/
 https://study.com/academy/lesson/positioning-and-differentiation-in-consumer-
marketing.html
37
Lesson 5 – Competitive Advantage
Unit 2- Market structures
Overview:
This lesson will help the students to understand the class of competitors, market structure and
market segments.
1. Understand the importance of having a healthy business competition in the market.

2. Discuss the market structure and market segments.
Course Materials:
What Are Market Structures?
“Market structures” refer to the different market characteristics that determine relations between
sellers to each another, of sellers to buyers and more. There are several basic defining
characteristics of a market structure, such as the following:
 The commodity or item that’s sold and the extent of production differentiation.
 The ease or difficulty of entering and exiting the market.
 The distribution of market share for the largest firms.
 The number of companies in the market.
 The number of buyers and how they work with or against the sellers to dictate price and
quantity.
 The relationship between sellers.
Types of Market Structures
There are four basic types of market structures.
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Pure Competition
Pure or perfect competition is a market structure defined by a large number of small firms
competing against each other. A single firm doesn’t have significant marketing power, and as a
result, the industry produces an optimal level of output because firms don’t have the ability to
influence market prices. Supply and demand determine the amount of goods and services
produced, along with the market prices set by the companies in the market. Products are
identical to competitors’ products, and there are no significant barriers to entering and exiting
the market.
The pure competition market structure is rare in the real world. This is a theoretical model that is
helpful when looking at industries with similar characteristics. In other words, it’s a good
reference point for other market structures. The best examples of pure competition market
structures are stock, agricultural and craft markets.
Monopolistic Competition
Like pure competition, monopolistic competition is a market structure referring to a large number
of small firms competing against each other. However, firms in monopolistic competition sell
similar but highly differentiated products. Lowest possible cost production, which leads to
optimal output in a pure competition market structure, is not assumed.
These factors give firms in a monopolistic competition market power to charge higher prices
within a certain range. The products are remarkably similar, but small differences become the
basis for firms’ marketing and advertising. Differentiation can include style, brand name,
location, packaging, advertisement, pricing strategies and more.
Examples include fast food restaurants, clothing stores, breakfast cereal companies, service
and repair markets, tutoring companies and beauty salons and spas. Products and services at a
beauty salon are quite similar, but these companies will use certain value propositions, such as
quality of services and appealing pricing, to draw more customers. They may even advertise
brand-name beauty products that are themselves in monopolistic competition — there is little
that separates makeup and hair products, as far as what constitutes these products and their
use.
Producers freely enter the market when profits are attractive. There is easy entry and exit in
monopolistic competition.
Oligopoly
An oligopoly is dominated by a few firms, resulting in limited competition. They can collaborate
with or compete against each other to use their collective market power to drive up prices and
earn more profit.
Entering into an oligopoly is difficult. The most powerful companies have control over raw
materials, patents and financial and physical resources that create barriers for potential entries.
39
This is what helps set high prices. However, if prices are too high, buyers will head to product
substitutes in the market.
Products may be homogenous or differentiated. Typically, there are three to five dominant firms,
but this number can vary depending on the market. For instance, video gaming consoles are an
oligopoly with three companies — Microsoft, Sony and Nintendo — dominating the market.
Other examples of oligopolies are the automobile and gasoline industries.
Pricing, profits and production levels change as the dynamic relationship between sellers and
buyers changes.
Pure Monopoly
A monopoly exists when there’s a single firm that controls the entire market. The firm and
industry are synonymous. This firm is the sole producer of a product, and there are no close
substitutes. Because there are no alternatives, the firm has the highest level of market power.
Hence, monopolists often reduce output, increase prices and earn more profit.
Entry or exit is blocked in a pure monopoly. This can occur for more than one reason, as seen in
two of the best examples for pure monopolies: public utilities and professional sports leagues.
Public utilities are considered natural monopolies because they have economies of scale — a
firm receives certain cost advantages due to its size — in an extreme way. New firms cannot
start up because it would be incredibly expensive to reach scale in a short amount of time.
Building a maze of pipes and wires to be able to compete with the firm would require a lot of
capital, and there would be legal barriers to entry. That’s why there are typically government
monopolies (or government regulations) for natural monopolies.
What Is a Market Segment?
A market segment is a group of people who share one or more common characteristics, lumped
together for marketing purposes. Each market segment is unique, and marketers use various
criteria to create a target market for their product or service. Marketing professionals approach
each segment differently, after fully understanding the needs, lifestyles, demographics, and
personality of the target consumer.
Understanding Market Segments
A market segment is a category of customers who have similar likes and dislikes in an
otherwise homogeneous market. These customers can be individuals, families, businesses,
organizations, or a blend of multiple types. Market segments are known to respond somewhat
40
predictably to a marketing strategy, plan, or promotion. This is why marketers use segmentation
when deciding a target market. As its name suggests, market segmentation is the process of
separating a market into sub-groups, in which its members share common characteristics.
To meet the most basic criteria of a market segment, three characteristics must be present.
First, there must be homogeneity among the common needs of the segment. Second, there
needs to be a distinction that makes the segment unique from other groups. Lastly, the
presence of a common reaction, or a similar and somewhat predictable response to marketing,
is required. For example, common characteristics of a market segment include interests,
lifestyle, age, gender, etc. Common examples of market segmentation include geographic,
demographic, psychographic, and behavioral.
KEY TAKEAWAYS
 A market segment is a group of people in a homogeneous market who share common

marketable characteristics.
 The criteria for a market segment are that there is homogeneity among the segment's
main needs, the segment must be unique, and the segment's members must produce a
common reaction to marketing tactics.
 Common market segment traits include interests, lifestyle, age, and gender.
How to Conduct Segmentation Research
Market segmentation can be split into four distinct stages within a larger market research
method. This is separate from the segmentation divides themselves.
1. Set an objective
What is the purpose of this market segmentation process? Identify variables of customer
segmentation, then develop a hypothesis based on those findings.
2. Identify customer segments
Establish a research design, collect data, analyze the results, and develop your segments. This
step will validate or disprove your hypothesis in part.
3. Evaluate the target segment
There are a number of potential consumers to choose from. For the purpose of market
segmentation, you must choose your most viable option and move your product forward from
there.
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Think of this step as a service to your future customer base. Identify the most specific use case,
and your company will be able to offer a more personalized product or service. Think of your
company as a resource, not a selling point.
This step in market segmentation can be performed in a variety of manners, but using an online
focus group can be a fast and efficient way to discover new segments or dig into pre-existing
customer segments, like using the Remesh platform in the video below.
4. Develop market segmentation strategy
Select your target segment and identify the implications of this segment or persona. Make
moves based on target segment, project goals, and product status.
5. Identify launch plan
Identify key stakeholders, ideate and communicate the launch plan internally, then execute the
project using your target segments.
What are the 5 Types of Market Segmentation?
There are 5 ways to break down your customer profile into unique segments, including
behavioral, psychographic, demographic, geographic, and firmographic!
Behavioral Segmentation: A Customer’s Choices
Behavioral segmentation digs deeper into customer habits than demographic segmentation. It’s
also one of the most popular customer profile types to be integrated into a marketing plan.
This type of market segmentation is comprised of behavior patterns, like customer loyalty or
engagement level. This is specific to customer interactions with a brand or company. Other
behavioral segmentation variables can include:
 benefit sought from product or service

 readiness to buy or purchase
 usage-based segmentation
Behavioral segmentation is used to gain insights into customer experience, allowing for
improvements in customer success. Some questions to consider:
 How engaged are your customers throughout the buyer’s journey?
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 What specific trends in timing or occasion do your customers tend to prefer your
products?
 How much time are your customers spending in the buyer’s process?
Behavioral segmentation is also used for marketers to determine future customer leads. It’s also
used in determining which prospects in the market are more likely to purchase your product.
Similar to psychographics, behavioral segments are primarily collected based on a consumer’s

digital footprint. New improvements in technology compile metadata from customers in order to
better understand their preferences.
Psychographic Segmentation: A Customer’s Lifestyle
Psychographics are a type of customer segmentation that focus on inner or qualitative traits.
Psychographic segmentation variables can include:
 habits
 hobbies, activities, or interests
 values or opinions
 personality or attitude
 lifestyle
 social status
Psychographic attributes are the ones that aren’t obvious just by looking at your customer, like
demographic segmentation. Instead, psychographics require deeper analysis.
By defining a customer persona this way, you’ll be more equipped to tailor your marketing
strategies. And, you’ll appeal to customer tastes.
Defining Brand Personality Traits Through Psychographic Segmentation
Psychographic segmentation is used to develop a “brand personality,” or brand personification.

In other words, the personality traits that your brand exemplifies.
For example, let’s say your insights team discovers your customer base purchases a new type
of running shoe every year. Your market research team also knows that people who are
interested in new running shoes value high energy and independence.
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Then, you can use that finding as a feature in your brand style. This could help sell other
products related to fitness under those same traits. For example, your commercials might be
fast-paced and emphasize the strength of the individual.
There are a few ways to collect demographics...
1. Interviewing existing clients
Depending on your relationship with a customer, you can more or less ask them directly about
their consumer habits. Some quantitative feedback questions might sound like:
 How likely are you to purchase Company X’s sneaker again?

 If you like Sneaker X, would you try Hoodie Y from the same company?
If you’re running out of ideas, you might start looking into some unusual places to collect
customer feedback. Or, you might begin investigate into potential customers you're not currently
interviewing.
When you ask qualitative questions, you can discover meaningful insights about your
customers. These questions might sound like:
 What do you enjoy about running?

 Walk me through your running routine.
These questions lead to further insights into a customer’s lifestyle. These questions, especially
when asked to larger groups of people, are typically asked by creating a survey. However,
online focus groups are becoming increasingly popular customer feedback tools, as well.
2. Observing customer data
This type of psychographic probe is more low key, and becoming increasingly efficient with the
advancement of A.I. technologies. For companies studying consumers, A.I. systems have
allowed for a deeper understanding of consumer insights.
Some questions to consider:
Where are your consumers on the internet?
How can you use their Instagram or Pinterest clicks to better market your products?
Analyzing your customer’s social media and digital habits will enable you to optimize your
product marketing strategy – and probably contribute to your market segmentation strategy, as
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well. An increasingly popular example of this method in play is coming with the rise of voice
technology.
Voice search is an essential asset in psychographic segmentation. Customers use devices like
Google Home or Amazon’s Alexa to discuss personal preferences, interests, and other
potentially sensitive data. Now, consumer data is available for companies to sculpt customer
profiles.
With this access to detailed customer information comes some concerns over data privacy and
the ethical corporate use of it. Some risks can include:
 Data exploitation
 Identity tracking
 Voice and facial recognition
Without consent and transparency, this data could easily make consumers less inclined to share
their information with brands. If used responsibly, these technologies can create a fully tailored
consumer marketplace, speed up efficiency, and increase time to market.
Demographic Segmentation: A Customer’s Profile
Demographics are the breakdown of your customer personas in the market for cursory traits like
age or gender. These traits offer basic information on your customers, and are often considered
one of the more broad segmentation types. Examples of demographic segmentation include
age, income, family size, education, or gender.
Dive into these segments to cut down on time and resources to understand your target
audience. Or, tap into potential consumers that have yet to be honed in on. Demographics are
generally less invasive to collect than other segmentation types.
Other demographic segmentation variables can include:
 Occupation
 Marital status
 Political party status
 Race
 Religion
 Living status (if your subject is a homeowner or renter)
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Bullets_Num-Outline-04
Geographic Segmentation: A Customer’s Home
Geographic are the study of your customer based on their physical location, which can effect
more physical interactions in the market. Consumers grouped together in similar locations may
share similar preferences, which means this type of market segmentation is great to pair
alongside more abstract types, like behavioral.
Geographic segmentation variables can include:
 city
 state
 country
 population density
 economic status
 zip code
 regional climate
However, geographic segmentation can also include geographic regions that aren’t technically
defined, such as neighborhoods.
For example, consider a company that is advertising a subscription model lawn care service.
The company would likely be more successful in targeting a suburban area where residents
need extra yard care. The campaign would be less successful in an urban area, where
consumers might be more interested in a food delivery service.
Firmographic Segmentation: The Customer’s Company
Firmographics are used to describe the attributes of firms or businesses. Put simply,
firmographics are to firms and investors as demographics are to people. Companies can use
this type of segmentation to determine whether or not a smaller firm is apt for an investment.
With millions of firms across the globe, businesses can use firmographics to identify prospects
based on size, scale, and funding. Firms can also be broken down into sections of:
 non-profits
 businesses
 governmental entities
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 agencies
 small-retail shops
 independent contractors
Investing in a smaller firm or company always comes with a risk. Therefore, investors have to be
precise in segmenting venture opps in order to minimize that risk.
Segmentation variables for firms typically include things related to a smaller company’s
potential. For example, before investing in a new application, venture capital firms look for
company strengths. These can include things like the vision of the executive team or the
product’s target market.
Other firmographic segmentation variables can include:
 performance and annual revenue

 average sales cycle
 size and employee population
 ownership (public, private, government, etc.)
 organizational trends
Common Segmentation Mistakes to Avoid
Once you’ve created segments, keep an eye out for common mistakes that marketers and
researchers make.
Making your segments too small or specialized
Segments that are too small will be more difficult to organize or inaccurate, and they can distract
from your objective. Like sample size, an over-segmented group can yield data that is not
statistically or directionally significant.
Not allowing your segments to change
Stay focused on ROI. If your strategy isn’t working efficiently for your business, it may be time to
switch things around.
Ignoring new potential personas
Customer profiles change. Don’t get too attached to your segments, as they will evolve with the
market.
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1. Difference between market structure and market segments?
2. What is the four basic types of market structures?
Assignment:
Study Lesson 1 to Lesson 5 for the preparation on the upcoming midterm examination.
Reference:
 https://online.aurora.edu/types-of-market-structures/
 https://www.investopedia.com/terms/m/market-segment.asp
 https://blog.remesh.ai/5-types-of-market-segmentation-how-to-use-them
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Lesson 6 – Introduction to Intellectual Property
Unit 1- Cost of Protection and Copyright
Overview:
This lesson will help the students to understand the importance cost of protection, copyright,
trademarks and trade secrets.
1. Understand the importance of Intellectual Property rights

2. Discuss the difference of Non-Compete Agreement and Non-Disclosure Agreement.
Course Materials:
What is Intellectual Property?
Intellectual property (IP) refers to creations of the mind, such as inventions; literary and artistic
works; designs; and symbols, names and images used in commerce.
The Importance of Intellectual Property Rights
The purpose of intellectual property rights is to encourage new creations, including technology,
artwork, and inventions, that might increase economic growth. Intellectual property rights
increase the incentives for individuals to continue to produce things that further create job
opportunities and new technologies, while enabling our world to improve and evolve even faster
What Are Intellectual Property Rights?
Intellectual property rights are legal rights that provide creators protection for original works,
inventions, or the appearance of products, artistic works, scientific developments, and so on.
There are four types of intellectual property rights (IP): patents, trademarks, copyrights, and
trade secrets.
Types of Intellectual Property Rights
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Patent
A patent is used to prevent an invention from being created, sold, or used by another party
without permission. Patents are the most common type of intellectual property rights that come
to people’s minds when they think of intellectual property rights protection. A Patent Owner has
every right to commercialize his/her/its patent, including buying and selling the patent or
granting a license to the invention to any third party under mutually agreed terms.
There are three different categories that patents can fall under:
a) Utility: A utility patent protects the creation of a new or improved product, process,
composition of matter, or machine that is useful.
b) Design: A design patent protects the ornamental design on a useful item.
c) Plant: A plant patent protects new kinds of plants produced by cuttings or other
nonsexual means..
Trademark
Trademarks are another familiar type of intellectual property rights protection. A trademark is a
distinctive sign which allows consumers to easily identify the particular goods or services that a
company provides. Some examples include McDonald’s golden arch, the Facebook logo, and
so on. A trademark can come in the form of text, a phrase, symbol, sound, smell, and/or color
scheme. Unlike patents, a trademark can protect a set or class of products or services, instead
of just one product or process.
Copyright
Copyright does not protect ideas. Rather, it only covers “tangible” forms of creations and original
work–for example, art, music, architectural drawings, or even software codes. The copyright
owner has the exclusive right to sell, publish, and/or reproduce any literary, musical, dramatic,
artistic, or architectural work created by the author.
Trade Secret
Trade secrets are the secrets of a business. They are proprietary systems, formulas, strategies,
or other information that is confidential and is not meant for unauthorized commercial use by
others. This is a critical form of protection that can help businesses to gain a competitive
advantage.
Although intellectual property rights protection may seem to provide a minimum amount of
protection, when they are utilized wisely, they can maximize the benefit and value of a creation
and enable world-changing technology to be developed, protected, and monetized.
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Non-Compete Agreement and Non-Disclosure Agreement
In summary, a non-compete agreement is just a one-way agreement that’s designed to prevent

a business from unfair competition from a former employee or contractor, while the non-
disclosure agreement is often (but not always) a mutual agreement that’s designed to protect
private and confidential information from being disclosed to competitors and the public-at-large.

1. Difference between copyright and trademark?
2. What is the importance of Intellectual Property Right?
Assignment:
Give a 3 samples each of Intellectual Property Right from patent, trademark, copyright and trade
secret.
Reference:
 https://www.wipo.i nt/about-ip/en/
 https://www.inquartik.com/inq-intellectual-property-rights/
 https://www.everynda.com/blog/non-compete-v-non-disclosure/#:~:text=In%20summary
%2C%20a%20non%2Dcompete,and%20confidential%20information%20from%20being
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Lesson 7 – Execution and Business Plan
Unit 1- Project development
Overview:
This lesson will help the students to learn the proper management of the budget and roadmap
for research, development and production.
1. Understand the importance of Project Bidding and Proposal in Engineering

2. Discuss the plan sign and sealing.
Course Materials:
Project Bidding
Construction bidding is the process of submitting a proposal (tender) to undertake, or manage

the undertaking of a construction project. The process starts with a cost estimate from blueprints
and material take offs.
Construction Bidding Process
The basic construction bidding process involves:
1. The client or general contractors send bid invitations to the contractors or the
subcontractors.
2. The contractors or the subcontractors receive the invitation that includes:
 Scope of Work
 Time of Completion
 Penalty
 Pre-Qualification Details
3. Contractors or Sub-Contractors download the tender document and review the project
based on their respective cost codes.
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4. Contractors or Sub-Contractors submit their bid to the client or general contractor.
5. The general contractor or client awards the bid to the subcontractors with a most
competitive bid and it is converted into a commitment.
Decisions in Construction Bidding Process
The three major decisions in the construction bidding process are:
1. The Project Delivery Method

2. The Procurement Method
3. The Contract Model
1. THE PROJECT DELIVERY METHOD
There are four traditional project delivery methods. They are:
1. Design-Bid-Build or Design Tender

2. Construction Management at Risk
3. Design-Build D-B
4. Integrated Project Delivery (IPD)
The four major project delivery systems mentioned above share the common goal of helping the
owners built new structures on time and on budget. These methods also ensure quality and
performance requirements.
1. Design-Bid-Build or Design Tender
This is the traditional method and is commonly employed for the construction of non-residential
buildings, mainly under government projects. In a DBB method, the owner hires a designer or
an architect independently. This is performed by the contractor who is managing the
construction. Once the design is completed by the architect, bids are solicited from the
contractor by the owner so that the designs can be executed.
The bid covers:
 Total cost of the building structure

 Money for the subcontractors
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 General contractor’s costs
 Overhead costs
 Profit
Important advantages of DBB are:
 The Owner has a great control over the design and construction
 A high ease of implementation
 The cost of construction is easily determined as the architect provides a design before
awarding the contract
Disadvantages of DBB are:
 The Owner must have substantial expertise in the work

 Availability of resources
 High responsibility for project execution
 Mange increasing costs due to the design errors
2. Construction Management at Risk (CMAR Method)
The CMAR method is an alternative to the DBB method that helps in reducing the costs. In this
method, design and construction are handled by different firms. Here the construction manager
is involved in the project from the start of project, even before the design of the project. The CM
can even help in choosing the architect for the project. Once this step is done, the project is
moved forward by the CM and the architect. They work together during the design phase.
This method is mainly employed for complex projects. The CM is chosen by the owner on the
basis of his or her experience and qualifications and not on the basis of the lowest price
criterion. The bid of CM to the owner is a guaranteed maximum price (GMP). This cost
represents the:
 Pre-construction service
 Actual construction
 The Fee of Construction manager
 Possible Contingencies
After the completion of the design, the construction manager solicits the bids from the
contractors. If by chance, the actual costs exceeds the GMP , the risk is on the CM. And this
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burden won’t be taken by the owner. If the project is built below GMP, the savings received by
the owner may be shared with the CM as per the agreement made between them.
Advantages of CM at Risk Method are:
 Great Cost Control

 Reduced risk for Owners
 Superior Project Management
3. Design-Build D-B
In DB Method, the owner provides the contract to a single entity that can handle both the design
and construction. Here, one price covers both the phases of construction. This entity is called a
design-builder or design-build contractor. In DB, the design-builders is accountable to the owner
for all aspects of the project.
4. Integrated Project Delivery (IPD)
The IPD method is also called an Integrated team method. This is one of the newly developed
projects delivery methods. This method employs, owner, architect and contractor as a team,
and the risk is shared equally.
2. CONSTRUCTION PROCUREMENT METHOD
After the selection of the project delivery method, the next step is to bother about the
procurement method through which the construction services are obtained. Construction
procurement is generally classified into:
 Best Value Method (BVS)

 Negotiated method
 Sole Source or Direct Select
 Low Bid
1. Best Value Source Method (BVS)
In this method, the buyers and the contractors are awarded the contract based on price and
performance. These records taken into consideration are past performance, robust
management approach, qualifications of the staff and other specific factors.
2. Negotiated Tendering
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In this method, the contactors are selected without any form of advertising or competitive
bidding. A potential builder is chosen and negotiated with reference to the price and the
technical requirements. The contractor who makes a favorable proposal is taken into
consideration by the government. This proposal is not opened publicly.
3. Sole Source or Direct select
In this procurement method, a single source procurement method. This is a non-competitive

method that only uses a single provider who can fulfill all the requirements of the project.
4. Low Bid or Lowest Bid
Competitive bidding with the lowest bidder is the principle behind the low bid procurement
method. This is one of the traditional procurement methods. Government and public
construction entities are built as per this procurement method
3. CONTRACT MODEL
The contract format that is presented in the construction bidding process must be carefully
developed. The owner is supposed to suggest the type of contract he is willing to make. The
type of contract developed determines how cost and the profit are covered. Top used contract
types are:
 Cost Plus Fee Contract

 GMP Contract
 Time and Material Contract
 Fixed Price Contract
 Lease Leaseback
ELECTRICAL CONTACTOR
An electrical contractor is a business person or firm that performs specialized construction work
related to the design, installation, and maintenance of electrical systems.
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An electrical contractor is different from an electrician; an electrician is an individual tradesman
and an electrical contractor is a business person or company that employs electricians. Both
usually hold licenses and insurances to properly and safely operate a business, protecting the
employees and home owners/business owners from insurance liabilities. These requirements
vary from state to state. Electricians may work for an electrical contractor, or directly for
individuals or companies.
How to Run a Successful Electrical Business
1. Benchmark Your Performance
If your company is growing and profitable, it may be tempting to continue with business as
usual. But are you as profitable as you could be? Perhaps your competitors have a formula for
how to run a successful electrical business that’s more potent than yours.
Business benchmarking is sort of like a voltage drop test. You’re comparing your numbers to
those of your peers. CliftonLarsonAllen provided three years of benchmark data for electrical
and mechanical contractors. For example, it took contractors an average of 69.6 days to convert
their receivables into cash. How long is it taking your business? Check out data relevant to your
business to make sure you’re keeping pace.
2. Keep Your Business Plan Current
If you don’t have a business plan, it might be time to create one. Running an electrical business
successfully involves having a plan in place for how you’ll reach your goals.
If you’ve created a business plan in the past, also keep in mind that it can “expire” quickly.
That’s because circumstances change. Maybe it’s something good, like a new residential
community is about to be built nearby. Or maybe it’s something bad, like a new electrical
contractor opened up in your town and hired away some of your best people.
Whatever the circumstances, it’s important to keep a current plan. A common way to begin is
with a “SWOT” analysis. SWOT stands for strengths, weaknesses, opportunities and threats.
Once you identify them, you can create or update your business plan.
3. Stay Tuned In to Your Customers’ Needs
Getting customers can be a challenge, so it’s vital to keep them. When possible, check in to see
how things have worked out since your last job. Perhaps your customer remodeled a bathroom
and your role was to install several new fixtures and GFCI receptacles. Maybe adding new
fixtures to another bathroom would spruce it up without a complete remodeling job, a small
project you could propose. Maybe you’d want to bring a new NFPA 70 standard to the attention
of a customer you haven’t seen for a while.
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Also, as innovative electrical system products come to market, like surge protectors with
energy-saving features, your customers might appreciate an occasional product update. It may
also keep your name top of mind the next time they need an electrician.
Business owner maintains safety while fixing fuse box, part of how to run a successful electrical
business
4. Keep Your Technology Up to Date
Almost daily, new small business technology hits the market that enhances personal safety and
business productivity. You don’t need to buy new technology for its own sake, but to help you
grow and maximize your profitability. Whether it’s software for customer relationship
management, bookkeeping, making financial projections, tracking time, managing work orders,
or job bidding, it’s all out there and getting better all the time. Technology’s long-term benefits
can make it a worthwhile investment.
5. Maintain Sufficient Working Capital
Running short on cash can be costly in more ways than one — when it forces you to maintain a
balance on a credit card account, lose out on discounts from suppliers, or prevents you from
purchasing productivity-enhancing technology. Leveraging working capital loans and other
forms of small business financing are key to running a successful electrical business. They can
tide you over during a dry cash flow spell.
6. Evaluate Your Bidding Track Record
There are two aspects to bidding a job successfully when running an electrical business: getting
a healthy share of the available work and charging the right price. If your bids aren’t competitive,
you won’t get much business. If they’re too competitive, you could lose money. Take a fresh
look at how you’re pricing jobs, and how you’re deciding which projects to bid on (and be
prepared to say no to new business). Make sure you’ve accounted for all the costs you need to
cover, including overhead, with some money left over for a fair profit.
Also, consider your success ratio. If you’re consistently losing out to a competitor, try to
determine the reason. And remember, cost isn’t the only variable, though it’s typically the most
important. Are you getting your bids in promptly? Are they detailed, professional and clearly
presented? Where applicable, can you provide customers with more than one option when
bidding?
7. Optimize the Size of Your Business
Knowing how to run a successful electrical business includes knowing how big, or small, your
business should be. The “Goldilocks principle” applies here — not too hot, not too cold … not
too big, not too small. Too small is when you’re so busy doing administrative tasks that you
don’t have enough time to do the work that’s the focus of your business. Too large can mean
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having greater capacity — and larger associated expenses — than the available work. It’s
essential to find the right balance.
8. Maintain Your High Safety Standards
The risk of personal injury inherent in running an electrical business is one of the reasons you
can command a good price for your work. But easing up on safety precautions, for whatever
reason, is not only bad for business, but could mean the end of your business. Make sure you
have proper safety training programs in place, as well as a workers’ compensation policy.
9. Think About Your Talent Pipeline
If key people in your business are closing in on retirement, or might just decide to move on to
another opportunity, don’t be left in the lurch. It’s not always easy to find skilled younger workers
moving into this field, but don’t let the challenge deter you. Consider partnering with a local
community college to offer internships or apprenticeships, to keep new talent flowing into your
business.
10. Ask for Referrals
No list of tips on how to run a successful electrical business is complete without a reminder to
ask your customers to refer their friends to you. Sometimes it just doesn’t occur to them to do
so. But if they’re happy with your work, and if you help them remember you by staying in touch,
they’ll become your best — and least expensive — marketing tool.
Why Electrical Contractors Need Estimating
Estimating is a crucial part of the construction process and it’s impossible for any company or
industry to avoid it. Without estimating, owners don’t know what it will cost for a project to be
completed. Electrical contractors, in particular, need estimating because there are a lot of
individual parts that must be ordered and installed. The costs of conduits, wiring, and more can
fluctuate over the year, just like the cost of electricity and other office-related costs. Electrical
contractors need estimating to ensure that all of their costs will be covered and they will be able
to turn a profit on every project.
Tips to Improve Electrical Estimating in Construction.
1. Review Cost Codes
No two businesses will use the same cost codes. Companies might use just a few cost codes,
or they might have hundreds of cost codes. More cost codes mean that the company can track
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items in detail, however, they can be complicated to function. Companies should review their
cost codes to determine whether their cost codes are functional or not and if it’s making sense
for the business.
2. Carefully Determine Overhead
Overhead costs include all indirect costs incurred during the life of a project, such as utilities for
the office and marketing costs. Accurately estimating overhead costs is extremely important, as
an underestimated cost can lead to the project becoming unprofitable for the contractor and
may even end up costing the contractor money.
3. Mobile Time Tracking
Mobile time tracking is an easy way to improve accuracy for estimating and costing electrical
projects. Paper or manual time tracking doesn’t provide accurate information, and switching
from manual to mobile time tracking helps improve labor cost estimation. It’s easier to know how
much time a team needs to complete a specific cost code or certain projects. More accurate
information leads to more accurate estimates, decreasing the number of budget overages by
the end of the project.
4. Review Old Projects
One of the best ways to improve estimating is to look at old projects. Projects that are similar to
the current bid can provide valuable data since an estimator might be able to see that similar
projects always end up overbudget on labor costs or material costs and account for that in their
new project estimate. Historical data can also be used to determine the general overhead during
certain times of the year and more. They can also use it as a way to validate their estimates. If
past projects always use a certain labor amount, then using that data to validate the labor cost
can be beneficial.
5. Determine if the Project is a Good Fit
While some projects may seem to be appealing for a contractor, it is important to take the skill
set of the workers into account. Using new technology or materials that your workers are
unfamiliar with may greatly slow down the progress of the project and If your workers are not
comfortable in the specialized field of the project they are working in, it may not be worth
investing your time and money in.
Sign and Seal

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In RA7920 SEC. 26. Seal of Professional Electrical Engineer. – All licensed professional
electrical engineers may obtain a seal of a design prescribed by the Board bearing the
registrant’s name, the certificate number and the legend “Professional Electrical Engineer.”
Plans, specifications, reports and other professional documents prepared by or executed under
the immediate supervision of and issued by a licensee, shall be stamped on every sheet with
said seal when filed with government authorities or when submitted or used professionally:
Provided, however, That it is unlawful for anyone to stamp or seal any document with said seal
after the registrant’s name has been delisted from the roster of professional electrical engineers
or after the validity of his professional license has expired.
The registrant shall be allowed again to use his seal or stamp in the documents he prepares,
signs or issues only after he is reinstated to the practice of his profession and reissued a new
professional license.

1. Why estimating the materials is important?
2. What is title of RA7920?
Assignment:
Make a Presentations to companies about your Electrical Project, How will you do the project
bidding, estimation of materials and plans sign and seal.
Reference:
 https://en.wikipedia.org/wiki/Construction_bidding#:~:text=Construction%20bidding
%20is%20the%20process,blueprints%20and%20material%20take%20offs.&text=Bids
%20are%20not%20only%20chosen%20on%20cost%20alone.
 https://theconstructor.org/construction/construction-bidding-process-decisions/35666/
 https://en.wikipedia.org/wiki/Electrical_contractor
 https://www.nationalfunding.com/blog/successful-electrical-business/
 https://esub.com/estimate-electrical-construction-projects/
 https://www.officialgazette.gov.ph/1995/02/24/republic-act-no-7920/
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Lesson 7 – Execution and Business Plan
Unit 2- Sales and marketing plans
Overview:
This lesson will help the students to learn the proper management of the budget and roadmap
for research, development and production.
1. Understand the importance of Involvement of the Engineers in sales and marketing.

2. Discuss the sales management and the right marketing strategies for engineers.
Course Materials:
How to Involve Engineers in Sales & Marketing
Content Creation
Technical content is very difficult to compose properly without a solid engineering background.
Your audience – being technically versed – will spot errors, out of place information, and beating
around the bush, in a heartbeat. These professionals tend to enjoy content that is concise,
accurate, and to the point, which requires solid technical know-how.
That’s why for industrial manufacturing companies engaging in inbound marketing, should be
involving their engineers in content creation. It is a proven effective way to deliver the type of
specialized content required to build trust and resonate with your target audience. This will
boost the effectiveness of all marketing materials, from blog posts and website content, to
brochure ad copy.
Lead Qualification
Engineers can fully comprehend the technical aspects and details of your products and
solutions. This means that they can reliably identify the characteristics of the companies for
which your offerings could be a good fit. Engineers provide valuable insight, in setting the right
parameters for lead identification and qualification.
Sales & Marketing Strategy
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Engineers are not strangers to being involved in company purchasing decisions. This same
process transfers to your sales & marketing strategy. Engineers can help with laying down the
specifications for potential sales prospects and identifying decision-makers. This way you can
address the right people within the right companies, optimizing your marketing efforts and
increasing sales leads.
Sales Management
Once you are in advanced discussions with a lead, the challenge shifts from sales
communication to finding the product and service that best fit their needs. Engineers have the
technical know-how required to identify the needs of prospect customers, and propose the best
solution. For this reason you may even consider turning engineers into sales representatives,
providing bonuses for closing clients.
The RIGHT Marketing Strategies for Engineers
Unfortunately, many engineering marketing campaigns are sadly ineffective. A lack of

fundamental awareness of industry-specific challenges along with the cookie-cutter marketing
approach taken by most inbound agencies can ultimately end up being a waste of time, money,
and resources.
Yet the fact that so many engineering marketing efforts end up with abysmal ROI and poor
conversion rates doesn’t mean that inbound digital marketing won’t work for you. On the
contrary, it can be highly effective; you just need to have the right marketing strategy.
You’ll need to know:
 Exactly who you are going to target

 Which keywords are the right buyer keywords
 What their buyer journey is, along with pain points
 How you can solve their problems
 What types of content will resonate with them
MARKETING PLAN FOR ELECTRICIAN
Current Situation
Your plan should explain your current situation, including how long you’ve been an electrical
contractor, when you started your own business and who your clients are. If you’re a startup
business, explain your background and experience in electrical contracting. Describe the target
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market you want to pursue, such as developers who need electricity installed in their new
buildings, homeowners with remodeling projects or businesses that need upgraded electrical
services.
SWOT Analysis
Use a SWOT analysis to figure out and stay on top of your company’s Strengths, Weaknesses,
Opportunities and Threats. For instance, your company’s strengths might include your past
experience as a contractor and the fact that you already have clients to jumpstart your business.
Weaknesses represent potential problems for your firm, such as a lack of qualified, licensed
electricians on staff or no centralized office space to run your business. Opportunities might
consist of a high number of upcoming construction projects in your area that need electrical
services, or the fact that one of your competitors is going out of business, so their clients need
to find a new electrical services supplier. When it comes to threats, look for outside
circumstances that affect your business, such as competing electrical contractors who go after
the same contracts as you.
Promotions
Identify the strategies you plan to use to convince businesses and homeowners to contract for
your electrical services. For instance, include sales calls to contractors and remodeling firms as
well as getting in touch with government agencies to find out what they require to give you an
electrical contract. Using telephone directory advertising is another form of promotion. Other
tactics include direct mail, sales letters and a website that outlines what you offer and why
prospects should call your firm rather than another electrical contractor.
Budget
Figure out how much to spend on your marketing efforts by setting a budget. According to
"EC&M" magazine, contractors should plan to spend from four to six percent of their gross sales
on marketing efforts. If you appeal to residential homeowners or property managers, include up
to 25% for Yellow Page ads, says EC&M. Include from 15 to 30 percent for direct mail efforts,
such as sales letters to contractors and postcards to residences to encourage them to hire you
for their electrical needs.

1. What do we mean by SWOT and its importance?
2. Give the best marketing strategy for Electrical Engineering to succeed in business.
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Assignment:
Invite a Successful Professional Electrical Engineer and Arrange a Seminar with a Topic of
“Business Plan for Electrical Engineer”. Make a budget plan for the speaker and arrange the
date and time of the seminar.
Reference:
 https://teamstepup.com/marketing/why-engineers-should-be-involved-in-sales-and-
marketing/
 https://www.jumpfactor.net/how-to-market-engineering-services/
 https://smallbusiness.chron.com/example-marketing-plan-electrical-contractor-
73287.html
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Lesson 8 – Financial Analysis and Accounting Basics
Unit 1:-Cash flow statements and projection
Overview:
This lesson will help the students to learn the proper management of the cash flow statement
and how to use it for the benefit of the company or organization.
1. Understand the importance of Financial Statement of the amount of cash entering and
leaving on a company.
2. Discuss the Balance sheet and Income Statement
Course Materials:
What Is a Cash Flow Statement?
The statement of cash flows, or the cash flow statement, is a financial statement that
summarizes the amount of cash and cash equivalents entering and leaving a company.
The cash flow statement (CFS) measures how well a company manages its cash position,
meaning how well the company generates cash to pay its debt obligations and fund its operating
expenses. The cash flow statement complements the balance sheet and income statement and
is a mandatory part of a company's financial reports since 1987.1
How to Use a Cash Flow Statement
The CFS allows investors to understand how a company's operations are running, where its
money is coming from, and how money is being spent. The CFS is important since it helps
investors determine whether a company is on a solid financial footing.
Creditors, on the other hand, can use the CFS to determine how much cash is available
(referred to as liquidity) for the company to fund its operating expenses and pay its debts.
KEY TAKEAWAYS
 A cash flow statement is a financial statement that summarizes the amount of cash and
cash equivalents entering and leaving a company.
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 The cash flow statement measures how well a company manages its cash position,
meaning how well the company generates cash to pay its debt obligations and fund its
operating expenses.
 The cash flow statement complements the balance sheet and income statement and is a
mandatory part of a company's financial reports since 1987.
The Structure of the CFS
The main components of the cash flow statement are:
 Cash from operating activities

 Cash from investing activities
 Cash from financing activities
 Disclosure of noncash activities is sometimes included when prepared under the

generally accepted accounting principles, or GAAP
It's important to note that the CFS is distinct from the income statement and balance sheet
because it does not include the amount of future incoming and outgoing cash that has been
recorded on credit. Therefore, cash is not the same as net income, which on the income
statement and balance sheet, includes cash sales and sales made on credit.
How Cash Flow Is Calculated
Cash flow is calculated by making certain adjustments to net income by adding or subtracting
differences in revenue, expenses, and credit transactions (appearing on the balance sheet and
income statement) resulting from transactions that occur from one period to the next. These
adjustments are made because non-cash items are calculated into net income (income
statement) and total assets and liabilities (balance sheet). So, because not all transactions
involve actual cash items, many items have to be re-evaluated when calculating cash flow from
operations.
As a result, there are two methods of calculating cash flow, the direct method, and the indirect
method.
Direct Cash Flow Method
The direct method adds up all the various types of cash payments and receipts, including cash
paid to suppliers, cash receipts from customers and cash paid out in salaries. These figures are
calculated by using the beginning and ending balances of a variety of business accounts and
examining the net decrease or increase in the accounts.
Indirect Cash Flow Method
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With the indirect method, cash flow from operating activities is calculated by first taking the net
income off of a company's income statement. Because a company’s income statement is
prepared on an accrual basis, revenue is only recognized when it is earned and not when it is
received. Net income is not an accurate representation of net cash flow from operating
activities, so it becomes necessary to adjust earnings before interest and taxes (EBIT) for items
that affect net income, even though no actual cash has yet been received or paid against them.
The indirect method also makes adjustments to add back non-operating activities that do not
affect a company's operating cash flow.
Balance Sheet and Income Statement
As we have already discussed, the cash flow statement is derived from the income statement
and the balance sheet. Net earnings from the income statement are the figure from which the
information on the CFS is deduced. As for the balance sheet, the net cash flow in the CFS from
one year to the next should equal the increase or decrease of cash between the two
consecutive balance sheets that apply to the period that the cash flow statement covers. (For
example, if you are calculating cash flow for the year 2019, the balance sheets from the years
2018 and 2019 should be used.)
Income Statement
The purpose of the income statement is to show managers and investors whether the company
made or lost money during the period being reported. The important thing to remember about
an income statement is that it represents a period of time. This contrasts with the balance sheet,
which represents a single moment in time.
The income statement can be prepared in one of two methods. The Single Step income
statement takes a simpler approach, totaling revenues and subtracting expenses to find the
bottom line. The more complex Multi-Step income statement (as the name implies) takes
several steps to find the bottom line, starting with the gross profit. It then calculates operating
expenses and, when deducted from the gross profit, yields income from operations. Adding to
income from operations is the difference of other revenues and other expenses. When
combined with income from operations, this yields income before taxes. The final step is to
deduct taxes, which finally produces the net income for the period measured.
Break Even Time
Break even time is the amount of time required for the discounted cash flows generated by a
project to equal its initial cost. For example, if it takes two years for a project to generate $1,000
on a discounted basis to offset its $1,000 startup cost, the project's break-even time is two
years.
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1. Method of calculating cash flow.
2. Importance of Break even time in cash flow.
Assignment:
Research the accrual accounting, depreciation, operating expenses and give its meaning and
application.
Reference:
 https://www.investopedia.com/investing/what-is-a-cash-flow-statement/
 https://courses.lumenlearning.com/boundless-accounting/chapter/the-income-statement/
 https://www.accountingtools.com/articles/2017/5/11/break-even-time#:~:text=Break
%20even%20time%20is%20the,even%20time%20is%20two%20years.
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Lesson 9 – Business Models
Unit 1-Value of Money
Overview:
This lesson will help Students to know the proper way to raise capital, the time value of money
and revenue generation.
1. Understand the importance of giving a good Gantt plan.

2. Discuss that Direct cost of producing the good includes all of the costs and expenses
directly related to the production of goods.
Course Materials:
What Is the Time Value of Money (TVM)?
The time value of money (TVM) is the concept that money you have now is worth more than the
identical sum in the future due to its potential earning capacity. This core principle of finance
holds that provided money can earn interest, any amount of money is worth more the sooner it
is received. TVM is also sometimes referred to as present discounted value.
Understanding Time Value of Money (TVM)
The time value of money draws from the idea that rational investors prefer to receive money
today rather than the same amount of money in the future because of money's potential to grow
in value over a given period of time. For example, money deposited into a savings account
earns a certain interest rate and is therefore said to be compounding in value.
KEY TAKEAWAYS
Time value of money is based on the idea that people would rather have money today than in
the future.
Given that money can earn compound interest, it is more valuable in the present rather than the
future.
The formula for computing time value of money considers the payment now, the future value,
the interest rate, and the time frame.
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The number of compounding periods during each time frame is an important determinant in the
time value of money formula as well.
Further illustrating the rational investor's preference, assume you have the option to choose
between receiving $10,000 now versus $10,000 in two years. It's reasonable to assume most
people would choose the first option. Despite the equal value at the time of disbursement,
receiving the $10,000 today has more value and utility to the beneficiary than receiving it in the
future due to the opportunity costs associated with the wait. Such opportunity costs could
include the potential gain on interest were that money received today and held in a savings
account for two years.
Time Value of Money Formula
Depending on the exact situation in question, the time value of money formula may change
slightly. For example, in the case of annuity or perpetuity payments, the generalized formula has
additional or less factors. But in general, the most fundamental TVM formula takes into account
the following variables:
FV = Future value of money
PV = Present value of money
i = interest rate
n = number of compounding periods per year
t = number of years
Based on these variables, the formula for TVM is:
FV = PV x [ 1 + (i / n) ] (n x t)
Time Value of Money Examples
Assume a sum of $10,000 is invested for one year at 10% interest. The future value of that
money is:
FV = $10,000 x (1 + (10% / 1) ^ (1 x 1) = $11,000
The formula can also be rearranged to find the value of the future sum in present day dollars.
For example, the value of $5,000 one year from today, compounded at 7% interest, is:
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PV = $5,000 / (1 + (7% / 1) ^ (1 x 1) = $4,673
Effect of Compounding Periods on Future Value
The number of compounding periods can have a drastic effect on the TVM calculations. Taking
the $10,000 example above, if the number of compounding periods is increased to quarterly,
monthly, or daily, the ending future value calculations are:
Quarterly Compounding: FV = $10,000 x (1 + (10% / 4) ^ (4 x 1) = $11,038
Monthly Compounding: FV = $10,000 x (1 + (10% / 12) ^ (12 x 1) = $11,047
Daily Compounding: FV = $10,000 x (1 + (10% / 365) ^ (365 x 1) = $11,052
This shows TVM depends not only on interest rate and time horizon, but also on how many
times the compounding calculations are computed each year.
Revenue Generation
Revenue generation is one of the most important activities any business can engage in. It is
defined as a process by which a company plans how to market and sell its products or services,
in order to generate income.
It may involve some or all of the following tasks:
 Establishing the business goals for the financial year, e.g., monthly or annual revenue
targets.
 Aligning the sales and marketing strategy to match the revenue targets.
 Creating an organizational structure that ensures the revenue generation strategy can
be implemented successfully.
 Reviewing all sales and marketing procedures and making sure that best practice is
being applied in all areas of the business.
 Using metrics to measure the progress of revenue generation and adjusting the strategy
as necessary.
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 Providing training and education for staff, so that all colleagues are working to maximize
revenue generation.
Raising Capital
Here are six ways you can raise the money you need to expand your business.
1. Bootstrap your business
Provided that your business isn’t operating in an industry that requires lots of startup capital, like
manufacturing or transportation, you can potentially fund your own venture—and it may be more
feasible than you think.
For instance, even if you don’t have enough in savings to run the operation, you could get a
0% / low interest APR business credit card, offering you the chance to borrow cash for a period
of time without incurring interest.
Perhaps you think funding the business yourself carries lots of risk—and it does. But it’s
important to consider your potential.
Brent Gleeson, a leadership and team building coach specializing in organizational

transformations, states, “if you believe in your vision and have an absolute refusal to accept
failure as an option, you should feel comfortable investing your own money into the business.”
Investing some of your own money will usually make investors and lenders more willing to
partner with you down the line.
2. Launch a crowdfunding campaign
There are many crowdfunding success stories out there. And with the right product and pitch,
you can be one of them.
For instance, in 2013, Formlabs, a maker of affordable desktop 3D printers, raised $3 million on
Kickstarter. This capital allowed the company to scale their operation and achieve their goal of
manufacturing affordable 3D printers for the public.
Eventually, the 3D printer maker caught the attention of venture capitalists. During a series A
round, Formlabs closed $19 million in investments, giving them the chance to expand beyond
their initial goals.
Crowdfunding gives you the opportunity to connect with like-minded people who you wouldn’t
normally be able to engage. You can gauge interest in your product and understand what’s
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resonating with people and what’s not. This shows you how to improve your product and your
pitch. Most importantly, crowdfunding can help you raise money to fund your business.
So, how do you launch a successful crowdfunding campaign to raise capital for your business?
Nathan Resnick, a serial entrepreneur who’s had success raising money on crowdfunding sites,
stresses that you must develop your story, as “people on crowdfunding sites like Kickstarter or
Indiegogo want to know how you turned your idea into a reality.”
Your video pitch must show the value of your product, the need it serves, and why you require
support. Having a good website and doing PR outreach helps as well.
3. Apply for a loan
Even as technology creates new ways of raising capital, traditional financing products remain
the primary way small businesses fund their operations. According to the Small Business
Administration (SBA), almost 75% of financing for new firms comes from business loans, credit
cards, and lines of credit.
Generally speaking, the small business loans with the most favorable rates and terms are going
to be SBA loans and term loans from banks and other financial institutions. To get approved,
you typically need to meet requirements like the following:
 You have been in business for 2 years or more

 The business has strong annual revenues (typically at least $100,000)
 Good credit (like a score of 640+)
These aren’t hard and fast rules and will differ depending on the lender. If you don’t qualify for a
term loan with a good APR, there are other, albeit more expensive, types of funding available.
If you have outstanding invoices, you could opt for invoice financing to get that money faster.
Or, if you need cash for machinery, tech devices, office furniture, or something similar, consider
equipment financing.
Before applying for a small business loan, make sure to prepare any loan documents you’ll
need to show ahead of time. You’ll be asked to show a profit and loss statement, balance
sheets, tax returns and bank statements. In some cases your personal information may be
checked as well.
4. Raise capital by asking friends and family
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Raising capital through friends and family is a viable option for many. According to the Global
Entrepreneurship Monitor, 5% of US adults have invested in a company started by someone
they know.
Caron Beesley, a content marketing specialist and SBA contributor, advises that you ideally
select a friend or family member with solid business skills. She also suggests that you “narrow
your list down to friends or family who have faith that you will succeed, who understand your
plans, and who are clear about the risks.”
Once you’ve done that, Beesley stresses that you must demonstrate passion and due diligence
by having a sound business plan and direction. Also, be realistic about how much money is
needed.
Finally, make sure to agree on what form the funding will take. They could be a loan or equity in
your company. If the money is a loan, agree to a repayment plan and use a P2P lending
website to document everything and manage the loan.
5. Find an angel investor
By definition, angel investors are accredited individuals with a net worth exceeding $1 million or
annual income of more than $200,000. They typically operate alone, but may team up with other
angel investors and form a fund.
Knowing this, angel investors can be a good source of capital for your business. First, you must
have a solid business plan put together and a great pitch ready. You have to capture their
attention with enthusiasm and promising data points about your company’s current situation and
future potential.
You may be wondering how you find angel investors. This might seem difficult, but many
resources exist.
For instance, Funding Post arranges for angel investor showcases around the country. And the
Angel Capital Association is a great platform to seek out, meet, and arrange pitches to angels.
6. Get investment from venture capitalists
Venture capitalists (VCs) typically want to invest in slightly more mature companies than angel
investors and sometimes want to have more of a say in managing the day-to-day operations.
Since VCs have a responsibility to achieve certain returns for the firm or fund, they want
scalable and cash-flow positive companies with proven and scalable products and businesses.
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If your company satisfies these requirements, you could apply for an investment with a VC firm.
It’s not the easiest thing to accomplish, but plenty of small businesses have done it successfully.
Your pitch is crucial to obtaining funding. Sequoia, one of the most successful VC firms on the
planet, stresses, “you need to convey the main reasons why an investor should love your
business in the first 5 minutes.” Sequoia partners state you can do this in three simple steps,
which are:
 Explain what’s changed. Detail the innovation, industry shift, or problem that presents
substantial opportunity for your company.
 Explain what you do. In one sentence, show how your company can capitalize on this
opportunity.
 Explain the facts. Get to your company’s story and financials quickly. Lay out the
opportunity with numbers. Discuss the team and their abilities and experience.

1. What are the alternatives tools for Gantt Char?
2. What is the Formula and Calculation for COGS?
Assignment:
You will create an Electrical Service Company and make a Gantt Chart for product
development.
Reference:
 https://www.investopedia.com/terms/t/timevalueofmoney.asp
 https://www.cognism.com/revenue-generation#:~:text=Revenue%20generation%20is
%20one%20of,in%20order%20to%20generate%20income.
 https://blog.mycorporation.com/2017/12/ready-to-expand-your-business-here-are-6-
ways-to-raise-capital/
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Lesson 9 – Business Models
Unit 2-Strategic Partner
Overview:
This lesson will help the students to learn the importance of Strategic Partner in a Business.
1. Understand the importance of channel distribution and strategic partner.

2. Discuss that price structure and price elasticity are one of the main part in business
models.
Course Materials:
What is a pricing structure?
A pricing structure fundamentally answers the question, “How much do I charge for my
product?” by helping you figure out the relationship between the value of your product or service
(and especially how your customers perceive that value) and the costs incurred to
create/provide it.
Your pricing structure defines your pricing setup for products or services, including your core
price points plus discounts, offers, and strategy.
Your pricing structure is powerfully influential over how your company is perceived from the
outside and how fast it’s likely to grow. A company with a solid grasp of their buyer personas
and the competitive value of their product charges a fair price. That equals big growth.
Every pricing structure begins with a pricing objective. Change the objective, and you’ll have to
change the structure, too. Whether you’re attempting to break into a competitive field, hawking a
high-value and very innovative product, catering to a broad array of buyer personas, or playing
to a narrow field, adapt your pricing structure accordingly.
Pricing structure vs. pricing strategy: What’s the difference?
You might expect to see written below a whole host of pricing strategy buzzwords: penetration
pricing, price skimming, product line pricing. However, a pricing strategy is not the same as a
pricing structure.
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Pricing structure involves your whole approach to pricing across your company but with a
specific emphasis on how your pricing relates to the features of your product being made
available and how it affects customer use of your product.
Pricing strategy is less concerned with your customers than it is with the competitiveness of
your product in the market. Even with original products that have value, you will almost certainly
have competition in the market. Pricing strategy concerns the method of setting your price
points in a way that establishes your product as competitive in the eyes of potential buyers.
Price Elasticity
Price elasticity of demand measures the responsiveness of quantity demanded for a

product to a change in price. It is one of the most important concepts in business,
particularly when making decisions about pricing and the rest of the marketing mix.
The Price Elasticity of Demand
In economics, the demand for a certain good or service is represented by the demand curve.
The demand curve is plotted on a graph with price labeled on the y-axis and quantity labeled on
the x-axis. The resulting curve is downward-sloping; thus, increases in price result in a fall in
demand for a given product. Just the amount by which demand falls with an increase in price is
measured by the price elasticity of demand; the price elasticity of demand is measured by the
percentage change in quantity demanded divided by the percentage change in price.
So, if price increases by 10 percent, and demand falls by -0.5 percent, the price elasticity of
demand would be -0.5. However, by convention, price elasticity is expressed as a positive
number. The elasticity would thus be expressed as 0.5, not -0.5.
Analyzing the Price Elasticity of Demand
After calculating the price elasticity of demand, one of five results may be obtained. An elasticity
equal to one is said to be unit elastic; that is, any change in price is matched by a change in
quantity demanded. An elasticity of between zero and one is said to be relatively inelastic, when
large changes in price cause small changes in demand. An elasticity equal to zero is said to be
perfectly inelastic, when a change in price does not change the quantity demanded.
A relatively elastic good is where elasticity lies between one and infinity, and a small change in
price results in a relatively large change in demand. The last category is that of a perfectly
elastic good, when a minute change of price results in an infinitely large change in demand.
Applying the Price Elasticity of Demand

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The price elasticity of demand for a certain good or service has considerable implications for
businesses. If an ice cream shop, for example, were to increase the price of vanilla ice cream by
10 percent, and if demand fell by 5 percent as a result, management would then know that the
price elasticity of demand for that particular good was elastic. But if they also increased the
price of their top-selling flavor, chocolate, by the same amount, and if prices remained the
same, then they would have a relatively inelastic product. Thus, elasticities differ with respect to
variety of product in question. Businesses must therefore make pricing decisions based on
these elasticity assumptions.
Impact on Business Management Problems
Price elasticity of demand affects a business's ability to increase the price of a product. Elastic
goods are more sensitive to increases in price, while inelastic goods are less sensitive.
Assuming that there are no costs in producing the product, businesses would simply increase
the price of a product until demand falls. Things become more complicated, however, after
introducing costs.
What Is a Distribution Channel?
A distribution channel is a chain of businesses or intermediaries through which a good or

service passes until it reaches the final buyer or the end consumer. Distribution channels can
include wholesalers, retailers, distributors, and even the Internet.
Distribution channels are part of the downstream process, answering the question "How do we
get our product to the consumer?" This is in contrast to the upstream process, also known as
the supply chain, which answers the question "Who are our suppliers?"
A distribution channel, also known as placement, is part of a company's marketing strategy,

which also includes the product, promotion, and price.
Understanding Distribution Channels
A distribution channel is a path by which all goods and services must travel to arrive at the
intended consumer. Conversely, it also describes the pathway payments make from the end
consumer to the original vendor. Distribution channels can be short or long, and depend on the
number of intermediaries required to deliver a product or service.
Goods and services sometimes make their way to consumers through multiple channels—a
combination of short and long. Increasing the number of ways a consumer is able to find a good
can increase sales. But it can also create a complex system that sometimes makes distribution
management difficult. Longer distribution channels can also mean less profit each intermediary
charges a manufacturer for its service.
Direct and Indirect Channels

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Channels are broken into two different forms—direct and indirect. A direct channel allows the
consumer to make purchases from the manufacturer while an indirect channel allows the
consumer to buy the goods from a wholesaler or retailer. Indirect channels are typical for goods
that are sold in traditional brick-and-mortar stores.
Generally, if there are more intermediaries involved in the distribution channel, the price for a
good may increase. Conversely, a direct or short channel may mean lower costs for consumers
Types of Distribution Channels
While a distribution channel may seem endless at times, there are three main types of channels,
all of which include the combination of a producer, wholesaler, retailer, and end consumer.
 The first channel is the longest because it includes all four: producer, wholesaler,
retailer, and consumer. The wine and adult beverage industry is a perfect example of
this long distribution channel. In this industry—thanks to laws born out of prohibition—a
winery cannot sell directly to a retailer. It operates in the three-tier system, meaning the
law requires the winery to first sell its product to a wholesaler who then sells to a retailer.
The retailer then sells the product to the end consumer.
 The second channel cuts out the wholesaler—where the producer sells directly to a
retailer who sells the product to the end consumer. This means the second channel
contains only one intermediary. Dell, for example, is large enough to sell its products
directly to reputable retailers such as Best Buy.
 The third and final channel is a direct-to-consumer model where the producer sells its
product directly to the end consumer. Amazon, which uses its own platform to sell
Kindles to its customers, is an example of a direct model. This is the shortest distribution
channel possible, cutting out both the wholesaler and the retailer.
KEY TAKEAWAYS
 A distribution channel represents a chain of businesses or intermediaries through which

the final buyer purchases a good or service.
 Distribution channels include wholesalers, retailers, distributors, and the Internet.
 In a direct distribution channel, the manufacturer sells directly to the consumer. Indirect
channels involve multiple intermediaries before the product ends up in the hands of the
consumer.
Choosing the Right Distribution Channel
80
Not all distribution channels work for all products, so it's important for companies to choose the
right one. The channel should align with the firm's overall mission and strategic vision including
its sales goals.
The method of distribution should add value to the consumer. Do consumers want to speak to a
salesperson? Will they want to handle the product before they make a purchase? Or do they
want to purchase it online with no hassles? Answering these questions can help companies
determine which channel they choose.
Secondly, the company should consider how quickly it wants its product(s) to reach the buyer.
Certain products are best served by a direct distribution channel such as meat or produce, while
others may benefit from an indirect channel.
If a company chooses multiple distribution channels, such as selling products online and
through a retailer, the channels should not conflict with one another. Companies should
strategize so one channel doesn't overpower the other.
Strategic Partner
A strategic partnership (also see strategic alliance) is a relationship between two commercial
enterprises, usually formalized by one or more business contracts. A strategic partnership will
usually fall short of a legal partnership entity, agency, or corporate affiliate relationship. Strategic
partnerships can take on various forms from shake hand agreements, contractual cooperation's
all the way to equity alliances, either the formation of a joint venture or cross-holdings in each
other.
Role of Strategic Partner
A strategic partnership can be made with other business entities, or can be used to describe a
more active role in company growth taken on by a key department. With an external strategic
partnership, you are looking for a complementary relationship where both sides see rewards. An
internal strategic partnership can help to create an organizational structure that promotes
growth.

1. What are the types of distribution channel?
2. Difference between Pricing Structure and Pricing Strategy?
81
Assignment:
Conference presentations (preparing and giving oral/ poster presentations) about the topic of
Lesson 9 Unit 1 and 2.
Reference:
 https://www.profitwell.com/blog/pricing-structure
 https://www.tutor2u.net/business/reference/price-elasticity-of-demand#:~:text=Price
%20elasticity%20of%20demand%20measures,rest%20of%20the%20marketing%20mix.
 https://smallbusiness.chron.com/use-elasticity-demand-business-management-
problems-10523.html
 https://www.investopedia.com/terms/d/distribution-channel.asp#:~:text=A%20distribution
%20channel%20represents%20a,sells%20directly%20to%20the%20consumer.
 https://en.wikipedia.org/wiki/Strategic_partnership
 https://smallbusiness.chron.com/roles-strategic-partnership-10038.html
82
Lesson 10 – The Product or Service
Unit 1:- Good product and Service
Overview:
This lesson will help the students to learn the importance of a good service and product, and the
product development plan.
1. Understand the importance of giving a quality service to the customer.

2. Discuss that a quality service require a good and excellent product.
Course Materials:
Products:
Tangible products are often thought to be easier to market as they can be shown,
demonstrated, touched, displayed and are easier for your audience to understand in terms of
value or whether they are needed. Whether this is true or not is difficult to call, especially when
you consider the blurred lines of the B2B technology world, where products and services are
becoming more and more entwined.
Services:
Services, being intangible, can be harder to show value. You can’t see or touch a service.
Often, then, the goal of marketing services is to create good relationships with your target
audience, developing and building trust. You are essentially selling yourself.
Good product and service
Goods and services are the outputs offered by businesses to satisfy the demands of consumer
and industrial markets. They are differentiated on the basis of four characteristics:
Tangibility: Goods are tangible products such as cars, clothing, and machinery. They have
shape and can be seen and touched. Services are intangible. Hair styling, pest control, and
equipment repair, for example, do not have a physical presence.
83
Perishability: All goods have some degree of durability beyond the time of purchase. Services
do not; they perish as they are delivered.
Separability: Goods can be stored for later use. Thus, production and consumption are typically
separate. Because the production and consumption of services are simultaneous, services and
the service provider cannot be separated.
Standardization: The quality of goods can be controlled through standardization and grading in
the production process. The quality of services, however, is different each time they are
delivered.
For the purpose of developing marketing strategies, particularly product planning and
promotion, goods and services are categorized in two ways. One is to designate their position
on a goods and services continuum. The second is to place them into a classification system.
The goods and services continuum enables marketers to see the relative goods/services
composition of total products. A product's position on the continuum, in turn, enables marketers
to spot opportunities. At the pure goods end of the continuum, goods that have no related
services are positioned. At the pure services end are services that are not associated with
physical products. Products that are a combination of goods and services fall between the two
ends. For example, goods such as furnaces, which require accompanying services such as
delivery and installation, are situated toward the pure goods end. Products that involve the sale
of both goods and services, such as auto repair, are near the center. And products that are
primarily services but rely on physical equipment, such as taxis, are located toward the pure
services end.
Minimum Viable Product
A minimum viable product has just enough core features to effectively deploy the product, and
no more. Developers typically deploy the product to a subset of possible customers—such as
early adopters thought to be more forgiving, more likely to give feedback, and able to grasp a
product vision from an early prototype or marketing information. This strategy targets avoiding
building products that customers do not want and seeks to maximize information about the
customer with the least money spent.

1. Characteristics of a good product and services.
2. What is minimum viable product?
84
Assignment:
By Group:
Conduct an Online Seminar about Products, Services, Costumer, market structure, and
Marketing strategy for Engineer.
Reference:
 https://www.encyclopedia.com/finance/finance-and-accounting-magazines/goods-and-
services
 https://www.fiftyfiveandfive.com/difference-between-product-and-service-marketing/
 https://en.wikipedia.org/wiki/Minimum_viable_product#:~:text=A%20minimum%20viable
%20product%20has,the%20product%2C%20and%20no%20more.&text=The
%20process%20is%20iterated%20until,product%20as%20minimum%20feature%20set.
85
Lesson 10 – The Product or Service
Unit 2:- COGS and Product Development Plan.
Overview:
This lesson will help the students to learn the importance of a cost of goods sold, and the
product development plan.
1. Understand the importance of giving a good Gantt plan.

2. Discuss that Direct cost of producing the good includes all of the costs and expenses
directly related to the production of goods.
Course Materials:
What Is Cost of Goods Sold – COGS?
Cost of goods sold (COGS) refers to the direct costs of producing the goods sold by a company.
This amount includes the cost of the materials and labor directly used to create the good. It
excludes indirect expenses, such as distribution costs and sales force costs.
Cost of goods sold is also referred to as "cost of sales."
KEY TAKEAWAYS
 Cost of goods sold (COGS) includes all of the costs and expenses directly related to the
production of goods.
 COGS excludes indirect costs such as overhead and sales & marketing.
 COGS is deducted from revenues (sales) in order to calculate gross profit and gross
margin. Higher COGS results in lower margins.
 The value of COGS will change depending on the accounting standards used in the
calculation.
Examining Costs Of Goods Sold (COGS)
Formula and Calculation for COGS
86
COGS=Beginning Inventory+P−Ending Inventory
where
P=Purchases during the period
Inventory that is sold appears in the income statement under the COGS account. The beginning
inventory for the year is the inventory left over from the previous year—that is, the merchandise
that was not sold in the previous year. Any additional productions or purchases made by a
manufacturing or retail company are added to the beginning inventory. At the end of the year,
the products that were not sold are subtracted from the sum of beginning inventory and
additional purchases. The final number derived from the calculation is the cost of goods sold for
the year.
COGS only applies to those costs directly related to producing goods intended for sale.
The balance sheet has an account called the current assets account. Under this account is an
item called inventory. The balance sheet only captures a company’s financial health at the end
of an accounting period. This means that the inventory value recorded under current assets is
the ending inventory. Since the beginning inventory is the inventory that a company has in stock
at the beginning of its accounting period, it means that the beginning inventory is also the
company’s ending inventory at the end of the previous accounting period.
What Does the COGS Tell You?
The COGS is an important metric on the financial statements as it is subtracted from a

company’s revenues to determine its gross profit. The gross profit is a profitability measure that
evaluates how efficient a company is in managing its labor and supplies in the production
process.
Product Development Plan(Gantt Chart)
Product development is a process most people don’t think about. But as a product development
project manager, you know that from large electronics like televisions to small utensils like ink
pens, products go through a lengthy development lifecycle.
So, when it comes to the organization of a product development project, project managers must
be prepared with the right tools for the job. And a Gantt chart is one of the most useful tools a
87
project manager can employ. With a comprehensive view of all of a project’s components, these
valuable charts help keep projects moving from start to finish.
One thing that’s great about Gantt charts is that they can be built in Microsoft Excel, which
allows them to be easily shared and used. So if you’re in the market for one of the most
powerful project management tools you can find, our Product Development Gantt Chart, which
is free to download and use, is here to help you plan and keep your project progressing
successfully.
Using a Gantt Chart for Developing a New Product
The planning and management of a product development project is a big job. From the idea-
generation phase to the commercialization and product launch, managing a large project such
as this takes patience, organization, and all of the skills you possess as a project manager.
88
Gantt charts give multiple views of your project. Leads, tasks, budget data, dates, and progress
are all arranged nicely for a clear view on one side. On the other, the chart shows a clean
timeline of the project throughout its lifecycle.
Alternatives to Gantt Charts for Product Development
Gantt charts are not the only tools available for managing a product development project. You
can find many online applications, such as Wrike and Smartsheet, that allow you to create
product roadmaps.
A product roadmap is a visual tool that outlines the goals, milestones, the timeline, and
resources for developing a product. Gantt charts are used for all kinds of projects because they
give this exact information, in a very versatile way. By tweaking the data inputs and outputs,
Gantt charts easily take the form of a product roadmap for product development.
Benefits of Gantt Charts for Product Development
One benefit of using a Gantt chart for product development is that you can enter your work
breakdown structure using product development phases, and still get a clear picture of your
schedule, dependencies, and project timeline.
Another advantage is that as a project manager, you’re likely already familiar with the
mechanics of Gantt charts. If you haven’t used them before, you’ve almost certainly used similar
tools for other projects. So, there’s no learning curve to worry about.
89
One final advantage to mention in relation to this particular Product Development Gantt Chart
template is that it’s available for free. The online Gantt chart tools mentioned earlier, along with
most others you’ll find, come with a price tag.
The key features of this Product Development Gantt Chart are:
 The timeline table: a task management table where you can add, delete, organize, and
sort tasks.
 The timeline bar chart: a chart showing information about the planned and actual
schedule, relationships and progress for each task.
 The Gantt bar: a bar showing the task duration.
 The dates: start and end dates, as well as task duration.
 Progress: view a project’s status.

1. What are the alternatives tools for Gantt Char?
2. What is the Formula and Calculation for COGS?
Assignment:
90
You create an Electrical Service Company and make a Gantt Chart for product development.
Reference:
 https://www.conceptdraw.com/examples/gantt-chart-for-new-product-development
 https://spreadsheetpage.com/gantt-chart/product-development/
91
Lesson 11 – Ethics and social responsibility
Unit 1- Social businesses
Overview:
This lesson will help the students to learn the importance of ethics and theoretical framework in
a business.
1. Understand the importance of code of ethics.

2. Discuss the social entrepreneurship and social enterprise.
Course Materials:
What Is a Code of Ethics?
A code of ethics is a guide of principles designed to help professionals conduct business

honestly and with integrity. A code of ethics document may outline the mission and values of the
business or organization, how professionals are supposed to approach problems, the ethical
principles based on the organization's core values, and the standards to which the professional
is held.
A code of ethics also referred to as an "ethical code," may encompass areas such as business
ethics, a code of professional practice and an employee code of conduct.
KEY TAKEAWAYS
 A code of ethics sets out an organization's ethical guidelines and best practices to follow
for honesty, integrity, and professionalism.
 For members of an organization, violating the code of ethics can result in sanction
including termination.
 In some industries, including banking and finance, specific laws govern business
conduct. In others, a code of ethics may be voluntarily adopted.
Understanding a Code of Ethics
Business ethics refers to how ethical principles guide a business's operations. Common issues
that fall under the umbrella of business ethics include employer-employee relations,
92
discrimination, environmental issues, bribery and insider trading, and social responsibility. While
many laws exist to set basic ethical standards within the business community, it is largely
dependent upon a business's leadership to develop a code of ethics.
Both businesses and trade organizations typically have some sort of code of ethics that their
employees or members are supposed to follow. Breaking the code of ethics can result in
termination or dismissal from the organization. A code of ethics is important because it clearly
lays out the rules for behavior and provides the groundwork for a preemptive warning.
Regardless of size, businesses count on their management staff to set a standard of ethical
conduct for other employees to follow. When administrators adhere to the code of ethics, it
sends a message that universal compliance is expected of every employee.
Compliance-Based Code of Ethics
For all businesses, laws regulate issues such as hiring and safety standards. Compliance-based
codes of ethics not only set guidelines for conduct but also determine penalties for violations.
In some industries, including banking, specific laws govern business conduct. These industries
formulate compliance-based codes of ethics to enforce laws and regulations. Employees usually
undergo formal training to learn the rules of conduct. Because noncompliance can create legal
issues for the company as a whole, individual workers within a firm may face penalties for failing
to follow guidelines.
To ensure that the aims and principles of the code of ethics are followed, some companies
appoint a compliance officer. This individual is tasked with keeping up to date on changes in
regulation codes and monitoring employee conduct to encourage conformity.
This type of code of ethics is based on clear-cut rules and well-defined consequences rather
than individual monitoring of personal behavior. Despite strict adherence to the law, some
compliance-based codes of conduct do not thus promote a climate of moral responsibility within
the company.
Value-Based Code of Ethics
A value-based code of ethics addresses a company's core value system. It may outline
standards of responsible conduct as they relate to the larger public good and the environment.
Value-based ethical codes may require a greater degree of self-regulation than compliance-
based codes.
Some codes of conduct contain language that addresses both compliance and values. For
example, a grocery store chain might create a code of conduct that espouses the company's
commitment to health and safety regulations above financial gain. That grocery chain might also
93
include a statement about refusing to contract with suppliers that feed hormones to livestock or
raise animals in inhumane living conditions.
Code of Ethics Among Professionals
Financial advisers registered with the Securities and Exchange Commission or a state regulator
are bound by a code of ethics known as fiduciary duty. This is a legal requirement and also a
code of loyalty that requires them to act in the best interest of their clients.
Certified public accountants, who are not typically considered to be a fiduciary to their clients,
still are expected to follow similar ethical standards, such as integrity, objectivity, truthfulness,
and avoidance of conflicts of interest, according to the American Institute of Certified Public
Accountants (AICPA).
Example of a Code of Ethics
Many firms and organizations have adopted a code of ethics. One good example comes from
the CFA Institute (CFAI), the grantor of the Chartered Financial Analyst (CFA) designation and
creator of the CFA exams. CFA charter holders are among the most respected and globally
recognized financial professionals. According to the CFAI's website, Members of CFA Institute,
including CFA charter holders, and candidates for the CFA designation must adhere to the
following code of ethics :
 Act with integrity, competence, diligence, respect and in an ethical manner with the
public, clients, prospective clients, employers, employees, colleagues in the investment
profession, and other participants in the global capital markets.
 Place the integrity of the investment profession and the interests of clients above their
own personal interests.
 Use reasonable care and exercise independent professional judgment when conducting
investment analysis, making investment recommendations, taking investment actions,
and engaging in other professional activities.
 Practice and encourage others to practice in a professional and ethical manner that will
reflect credit on themselves and the profession.
 Promote the integrity and viability of the global capital markets for the ultimate benefit of
society.
 Maintain and improve their professional competence and strive to maintain and improve
the competence of other investment professionals.
Social Entrepreneurship
94
Social entrepreneurship is a way to connect you to your life's purpose, help others find theirs,
and make a difference in the world, all while eking out a living.
What Is a Social Enterprise?
A social enterprise or social business is defined as a business that has specific social objectives
that serve its primary purpose. Social enterprises seek to maximize profits while maximizing
benefits to society and the environment. Their profits are principally used to fund social
programs.
Understanding Social Enterprises
The concept of a social enterprise was developed in the UK in the late 1970s to counter the
traditional commercial enterprise. Social enterprises exist at the intersection of the private and
volunteer sectors. They seek to balance activities that provide financial benefits with social
goals, such as providing housing to low-income families or job training.
Funding is obtained primarily by selling goods and services to consumers, although some
funding is obtained through grants. Because profit-maximization is not the primary goal, a social
enterprise operates differently than a standard company.
While earning profits is not the primary motivation behind a social enterprise, revenue still plays
an essential role in the sustainability of the venture. Sustainable revenue differentiates a social
enterprise from a traditional charity that relies on outside funding to fulfill its social mission. This
goal does not mean social enterprises cannot be profitable; it's simply that their priority is to
reinvest profits into their social mission, rather than fund payouts to shareholders.
The Organization for Economic Cooperation and Development (OECD) identifies social
enterprises as being highly participatory, with stakeholders actively involved and a minimum
number of paid employees.
KEY TAKEAWAYS
 A social enterprise is a business with social objectives that serve its primary purpose.
 Maximizing profits is not the primary goal of a social enterprise as is with a traditional
business.
 Unlike a charity, social enterprises pursue endeavors that generate revenues, which
fund their social causes.
 Regarding employment, preference is given to job-seekers from at-risk communities.
Special Considerations
95
Employees of social enterprises come from many backgrounds, but priority is given to those
who are from at-risk sections of the community. These include long-term unemployed workers,
those who have historically worked in jobs where they were informally paid, and members of
marginalized groups. The social enterprise may seek to provide a living wage, which in most
cities is above the minimum wage. Sometimes, drawing employees from at-risk groups may be
the stated social goal of the enterprise.
Social Enterprise vs. Social Entrepreneurship
A social enterprise is not to be confused with social entrepreneurship, which tends to focus on
individuals who develop solutions to social and environmental problems using existing business
techniques and strategies. Social entrepreneurs seek innovative ways and operate to drive
change, whereas social enterprises form to fulfill a business purpose and solve societal needs
through their commercial activities.
Examples of a Social Enterprise
Many social enterprises successfully maximize improvements in social well-being. For example,
Warby Parker is an American eyeglass retailer that donates a pair of glasses to someone in
need for every pair sold. Tom's, a California-based retailer, similarly has pledged to donate a
pair of shoes or sunglasses for every pair sold. Also, Climate Smart trains businesses and gives
them software tools that let them track and cut their greenhouse gas emissions.

1. Importance of Code of ethics in the field of engineering.
2. Difference between Social Enterprise and Social Entrepreneurship.
Assignment:
Study Lesson 6 to Lesson 11 for the preparation of the Final examination.
Reference:
 https://www.investopedia.com/terms/c/code-of-ethics.asp#:~:text=A%20code%20of
%20ethics%20is,business%20honestly%20and%20with%20integrity.&text=A%20code
%20of%20ethics%20also,an%20employee%20code%20of%20conduct.
 https://www.investopedia.com/terms/s/social-entrepreneur.asp
96

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Republic of the Philippines

POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

Compiled by: Checked by:

Engr. Melvin S. Tubal Assoc. Prof. Ayreenlee E. Resus

Date: _________________ Date: ___________________

Engr. Rosalia Pinlac Dr. Agnes Y. Gonzaga

Date: _________________ Date: __________________

THE POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

PUP: The National Polytechnic University

 provide democratized access to educational opportunities for the holistic development of

 offer industry-oriented curricula that produce highly-skilled professionals with managerial

 embed a culture of research and innovation

 establish a strong presence and impact in the international academic community

As a state university, the Polytechnic University of the Philippines believes that:

Pillar 1: Dynamic, Transformational, and Responsible Leadership

SHARED VALUES AND PRINCIPLES

 Integrity and Accountability

 Quality and excellent graduates

1. To offer career-focused programs of study with a well-chosen general education

2. To inculcate in the students good moral values and work ethics.

3. To ensure teaching learning efficiency and effectiveness by means of highly qualified

4. To encourage faculty members to produce appropriate, affordable, user-friendly

5. To promote a growing output-oriented consciousness in research, production, extension,

6. To establish national and international linkages for student on-the-job training

COURSE TITLE : TECHNOPRENEURSHIP 101

After this course, the student should be able to:

1. Understand the market needs or provide a solution to a key problem.

Institutional Program Outcomes Course Outcomes

The course requirements are as follows:

Note: Some activities will be rated using the Rubrics.

Week Topic Learning Methodolog Resources Assessme

8 Lesson 5 The students will Individual Internet Assignment

15 Lesson 9 Students will know Lecture Internet Quiz on

17 Lesson 11 The students will Individual Internet Participation

Lesson 1 Introduction to Technopreneurship. 1

Unit 1: Technology and Entrepreneurship

Lesson 2 Innovation and Ideas 8

Unit 1: The Technopreneur Innovation.

Lesson 3 Value Proposition 14

Unit 1: Benefits vs features: The Crucial Key to Selling Your Product

Unit 1: Target customer profile

Lesson 5 Competitive Advantage 30

Unit 1: Competitors and product differentiation

Lesson 6 Introduction to Intellectual Property 46

Unit 1: Cost of protection and Copyright

Lesson 7 Execution and Business Plan 49

Unit 1: Project development

Lesson 9 Business Models 65

Lesson 10 The Product or Service 78

Lesson 11 Ethics and social responsibility 86

Unit 1 - Technology and Entrepreneurship

After successful completion of this lesson, you should be able to:

1. Discuss what is the difference of Technopreneurship and Entrepreneurship.

To understand Technopreneurship, we must first define Entrepreneurship.

Technopreneurship it is a simple entrepreneurship in a technology intensive context. It is a

What is the difference between entrepreneurship and Technopreneurship?

As nouns the difference between entrepreneur and technopreneur. is that entrepreneur is a

Answer the following questions briefly:

What are the Characteristics of a successful Technopreneur?

Unit 2- Definitions of Terms

After successful completion of this lesson, you should be able to:

1. Familiarize and learn different terminology in technopreneurship

A paid public method of gaining attention to a product or business by paid announcements on

Consumer Direct Marketing.

Date: _ Date: ___

Date: _ Date: __