Entrepreneurship

(Q3)

Ma. Luisa D. Cabanig, LPT

 Table of Contents

Module 1: Introduction to Entrepreneurship

Introduction 1
Learning Outcomes 1
Lesson 1: Introduction to Entrepreneurship 2
Assessment Tasks 8
Summary 10
References 10

Module 2: Recognizing a Potential Market

Introduction 12
Learning Outcomes 12
Lesson 1: Recognized a Potential Market 13
Assessments Tasks 16
Summary 18
References 18

Module 3 - Recognizing and Understanding the Market

Introduction 19
Learning Outcomes 19
Lesson 1: Recognized and Understand the Market 20
Assessments Tasks 25
Summary 27
References 27

Module 4 - Market Research

Introduction 29
Learning Outcomes 29
Lesson 1: Market Research 29
Assessments Tasks 34
Summary 36
References 36

Module 5 - 7 P’s of Marketing and Branding

Introduction 38
Learning Outcomes 38
Lesson 1: The Marketing Mix (7P’s) in Relation to 39
the Business Opportunity
2
Lesson 2: Develop a Brand Name 41
Assessments Tasks 43
Summary 45
References 45

3
Subject Code: Entrep

Subject Description: This deals with the concepts, underlying principles,

process, and implementation of business plan. The preliminaries of this
course include the following: 1) discussion on the relevance of the course; 2)
explanation of key concepts of common competencies; 3) explanation of core
competencies relatives to the course; and 4) exploration of career
opportunities.

Content Standards:
The learners demonstrate an understanding of:

1. key concepts of and underlying principles and core competencies in

entrepreneurship;
2. the processes of developing a business plan;
3. the environment and market in one’s locality/town; and
4. the process of starting and operating a simple business.

Performance Standards:
The learners shall be able to:
1. creates or provides a quality and marketable product and/or service in
Entrepreneurship;
2. present an acceptable detailed business plan;
3. creates a business vicinity map reflective of potential market in one’s
locality/town; and
4. starts and operates a business according to the business plan and
presents a terminal report of its operation.

Subject Requirements:
 Assessment Tasks
 Written Works - 40%
 Performance Tasks (Activity) - 60%
Quarterly Grade 100%

Final Grade = (Third Quarter Grade + Fourth Quarter Grade)/2

4
 MODULE 1
INTRODUCTION TO ENTREPRENEURSHIP

Introduction

Entrepreneurship is about innovation. Anything that we do about improvement, or

things that we made better implies innovation. Any person who takes the risks and invest
resources to make something new is better engaged in entrepreneurship. Entrepreneurship
is a way of inspiring creative individuals to pursue opportunities despite its risks. This applies
not only to business, but also to social services. Business opportunities are everywhere as
long there are people with money, and they are willing to satisfy their needs.

When you are planning to build a business, you should know first the origin of
that word, the one who involve it that kind of business and the benefit of it to you and to your
community. You should know the difference of entrepreneurship to entrepreneur, the concepts
and competencies of it, and the job opportunities after learning it.

Learning Outcomes

At the end of this module, the learners should be able to:

1. Define entrepreneurship; TLE_ICTAN11/12EM-Ia-;
2. Analyze the concepts and competencies in entrepreneurship; and
TLE_ICTAN11/12EM-Ia-1; and
3. Enumerate the career for Entrepreneurship. TLE_ICTAN11/12EM-Ia-
Lesson 1. Introduction to Entrepreneurship

The study of entrepreneurship leads us to attempt to answer a series of questions

such as: What happens when entrepreneurs act? Why do they act? How do they act?
(Stevenson and Jarillo, 1990). Why, when, and how do opportunities for the creation of goods
and services come into existence? Why, when, and how do some people and not others
discover and exploit these opportunities? And finally, why, when, and how are different modes
of action used to exploit entrepreneurial opportunities? (Shane and Venkataraman, 2000).

Entrepreneurship has several definitions. Any person who takes the risks and invest
his resources to make something new or better is engaged in entrepreneurship.

Different Meaning of Entrepreneurship

Hisrich, Peters, and Shepherds, (2008) defined entrepreneurship as the process of

creating something new with value by devoting the necessary time and effort, assuming the
accompanying financial psychic, and social risks, and receiving the resulting rewards of
monetary and personal satisfaction and independence.

Kuratko and (1989), however, defined entrepreneurship as the heart of the modern
business - a force behind innovative businesses that characterized the modern economy. It is
the dynamic process of creating incrementing wealth by individuals who assume the major
risks in terms of equity, time and/or career commitment of providing value for some product
or service.

Drucker (1985), on the other hand, defined entrepreneurship as the process of

extracting profits form new, unique and valuable combinations of resources in an uncertain
and ambiguous environment.

Timmons, J. (1989) defined entrepreneurship as the ability to create and build

something from practically "nothing".

2
 Stevenson and Gumpert (1991), defined entrepreneurship as innovative, flexibility
dynamism, risk-taking, creating, value creation, uniqueness, and growth orientation.

Reynolds (2005), defined entrepreneurship - the entrepreneurial functions - can be

conceptualized as the discovery of opportunities and the subsequent of new economic
activity, often via the creation of a new organization.

Relevance of the course

The word “entrepreneur” originates from a thirteenth-century French verb,

entrepreneur, meaning “to do something” or “to undertake.” By the sixteenth century, the noun
form, entrepreneur, was being used to refer to someone who undertakes a business venture.
The first academic use of the word by an economist was likely in 1730 by Richard Cantillon,
who identified the willingness to bear the personal financial risk of a business venture as the
defining characteristic of an entrepreneur. In the early 1800s, economists Jean-Baptiste Say
and John Stuart Mill further popularized the academic usage of the word “entrepreneur.” Say
stressed the role of the entrepreneur in creating value by moving resources out of less
productive areas and into more productive ones. Mill used the term “entrepreneur” in his
popular 1848 book, Principles of Political Economy, to refer to a person who assumes both
the risk and the management of a business.

Concept of Entrepreneurship

Entrepreneur is the person who have a characteristic to take risk in doing business, a
great thinker in terms of innovation.

According to Adam Hayes (2020) an entrepreneur is an individual who creates a new

business, bearing most of the risk and enjoying most of the rewards. The entrepreneur is
commonly seen as an innovator, a source of new ideas, goods, services, and business/or
procedures. They create a firm, which aggregates capital and labor to produce goods or
services for profit.

3
 Entrepreneurs have the power to achieve great things. They are the one that make
the economy of society going, so run in efficiently.

Factors Affecting Entrepreneurship

1. Economic Factors
a. Capital
b. Labor
c. Raw Materials
d. Market
e. Infrastructure
2. Social Factors
a. Caste Factor
b. Family Background
c. Education
d. Attitude of the Society
e. Cultural Value
3. Psychological Factors
a. Need Achievement
b. Withdrawal of Status Respect
c. Motives

Common Competencies in Entrepreneurship

According to Ideas for Leader competencies such as risk seeking assertiveness and
vision are considered typical of successful entrepreneur. But there are innate predispositions
or aspects of temperament; by using them as yardstick, it is wrongly concluded that only
certain types of people make good entrepreneurs or are capable of worthwhile innovations.
Furthermore, there are three levels of competencies, which all entrepreneurs need:

1. Personal competencies – These are the ability to ground yourself that you are secure
Ex. creativity, determination, integrity, tenacity, emotional balance, and self-criticism.
2. Interpersonal competencies – These are the ability that led to get along with people

4
Ex. communication, engagement/charisma, delegation, respect.
3. Business competencies – These are the ability you should have to be successful
Ex. business vision, resource management, networking, negotiating skills.

To understand competencies, it is important to make a list of competencies to become

a successful entrepreneur. To survive the business, you must understand the basic concept.

Core Competency in Entrepreneurship

The term first originated in a 1990 Harvard Business Review article by C.K.
Prahalad and Gary Hamel titled “The Core Competence of the Corporation." The authors
identify it as the “secret sauce” of business, enabling corporate growth, especially for an
executive who can leverage that competency.

Core competencies are the defining capabilities or advantages that a business may
have that distinguish it from the competition. It is the foundation for sharpening a company’s
competitive edge, and it guides brand reputation, business growth, and marketing strategy.

The concepts of core competencies can also be applied to someone’s personal skills
for the work advantage.

Personal competencies can include:

 Problem-solving skills
 Analytical thinking
 Technical competency
 Conflict resolution
 Adaptability

To have a successful business they need to have these core competencies:

 Quality
 Customer service
 Value
 Innovation
 Marketing

5
  Size and buying power

In possessing core competencies, it will give your business a competitive long-term

run. And core competencies can be learned with time.

Types of Entrepreneurs

The Lonely Entrepreneur gave five types of entrepreneur depending on background,

country and even sectors and this are:

1. Innovators Entrepreneur – types of entrepreneur who come up with completely new ideas
and turns them into viable businesses.
2. The Hustler Entrepreneur – hustler just work hard and willing to get their hands dirty. They
start small and think about to raise their capital to grow their businesses.
3. Imitators Entrepreneur – they are the type of entrepreneur who copy certain ideas and
improve it. They are always looking for ways to make a particular product better to sell it
in the market higher.
4. Researcher Entrepreneur – they are the type of entrepreneur who gave their entire time to
gather all the idea and failure is not an option, they look at all the possibilities before taking
risk.
5. Buyer Entrepreneur – buying things are their wealth. They are the type of entrepreneur who
have the money to buy promising businesses and find most suitable person to run and grow
it.

Career Opportunities of Entrepreneurship

The best thing about pursuing career in entrepreneurship is that you have a wide-open
possibility to choose from. You have the power to put your idea into reality, you can start your
own business and take a risk of being the owner.

There is different career path you can choose to make your dream into reality, if all
depends on your experience, skills, finances, and flexibility, as well your goals for the future.
This is some of the positions that will help you gain experience in the filed or industry where
you can launch your own business. (Doyle, A, 2020).

6
  Advertising, marketing, and Public Relations
 Business Development
 Design
 E-Commerce and Social Media
 Management
 Software, Web, or App Developer
 Real Estate
 Sales Manager/Account Executive
 Consultant
 Product Manager

Positions that will free up your after-hours time to work on your own projects:
 Accounting/Finance
 Civil Service
 Gigs and Flex Schedule Jobs
 Human Resources
 Insurance
 Teacher/School Administrator

The possibilities in entrepreneurship are endless. But the rewards can be very high. The
risk will forever be there, but if you have driven, creativity and desire to be the boss of your
own, this is really for you.

7
 Assessment Tasks

TASK NO. 1 (WRITTEN WORK)

Instructions: Give what is asked in the items below.

Items Answer
1. Give the three (3) importance of 1.
Entrepreneurship to the economy 2.
3.
2. Give three (3) relevance of 1.
Entrepreneurship to you as a student 2.
3.
3. Give three (3) characteristic of an 1.
Entrepreneur 2.
3.
4. Give three (3) famous Entrepreneur 1.
in the Philippines now 2.
3.

B. Instructions: You are tasked to write down at least three career

opportunities which attract you the most. Indicate what competencies you
need to enhance in order to become successful in these opportunities.
Write down you answer on the space provided.

_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
________________________

8
TASK NO. 2 (PERFORMANCE)

Instructions: As we face this COVID-19 Pandemic, and considering the market

situation, evaluate the importance of the following picture by using 1 to 5 rating
scale, 5 as the highest and 1 as the lowest. Justify your answer by 1 to 2
sentences only. Write your answer in the space provided.

Situation Rating Justification

Communication

Social Distancing

Shopping

Check Your Mental Health

Closed the Establishment

9
 Summary
To summarize this module:

 Entrepreneurship has several definitions. Any person who takes the risk and invests
his resources to make something new or better is engaged in entrepreneurship.
 The word entrepreneur has several meanings; however, common terms show that an
entrepreneur is a risk-taker, innovator, adventurer, searcher of change, and exploiter
of opportunities.
 Competencies in entrepreneurship are a combination of knowledge, skills, attitude,
and motives.
 Entrepreneur should have this; opportunity-seeking and imitative, persistence,
commitment, demand for efficiency and quality, taking calculated risks, goal setting,
information setting, systematic planning and monitoring, persuasion and networking,
and independence and self-confidence.
 Core competencies is one of the most important business in improving business.
 There are many career opportunities in finishing studying entrepreneurship. If you
possess ingenuity, creativity, leadership, and willingness to make risky decisions.

References
 Boitnoot, J. (27, September 2019). Why Core Competencies Matter for Your
Business Retrieved from https://www.entrepreneur.com/article/338909
 Doyle, A. (29 January 2020). The Best Job for Aspiring Entrepreneurship Retrieved
from ttps://www.thebalancecareers.com/best-jobs-for-aspiring-entrepreneurs-
4160409
 Drucker, P F. 1985. Innovation and Entrepreneurship: Practice and Principles. New
York: Harper Business
 Hayes, A. (1 July 2020) Entrepreneur. Retrieved from
https://www.investopedia.com/terms/e/entrepreneur.asp
 Hisrich, R.D., Peters, M.P., Shepherd D.A., (2008). Entrepreneurship. The McGraw
Hill Company

10
 Ideas for Leaders (2009). Three Competencies Every Entrepreneur Should Develop.
Retrieved from https://www.ideasforleaders.com/ideas/three-competencies-every-
entrepreneur-should-develop
 Kuratko, D. F. and Hodgetts, R. M. (1989), Entrepreneurship: A Contemporary
Approach. Chicago: Dryden Press.
 Reynolds, P.D. (2005). Understanding business creation: Serendipity and scope in
two decades of business creation studies. Small Business Economics, 24, 359-364.
 Stevenson, H. H. and Gumpert, D. E. (1991): The Heart of Entrepreneurship
 Stevenson, H.H. & Jarillo, J.C. (1990). A paradigm of entrepreneurship research:
Entrepreneurial management. Strategic Management Journal, 11, 17-27.
 Shane, S.A. & Venkataraman, S. (2000). The promise of entrepreneurship as a field
of research. Academy of Management Review, 25, 217-226.
 Timmons, J.A. (1989). The Entrepreneurial Mind, Andover, Mass., Brick House
Publishing.
 The Lonely Entrepreneur. (13 August 2018) 5 Types of Entrepreneurs. Retrieved
from https://lonelyentrepreneur.com/types-of-entrepreneurs/
 Ward, Susan, (6 August 2020). What is a Core Competency Retrieved from
https://www.thebalancesmb.com/core-competency-in-business-2948314
 Word Press. (26 December 2012). Factors Affecting Entrepreneurship. Retrieved
from https://relivingmbadays.wordpress.com/factors-affecting-entrepreneurship-
development

11
 MODULE 2
RECOGNIZING A POTENTIAL MARKET

Introduction

During ancient times, marketing was done through barter. With the introduction of
money, the flow of goods and services from producers to consumers became faster and more
efficient. For this modern world that everything is seems easy to do, but hard to become
successful. As this modern goes by the best way to improve our life is to improve our
knowledge, skills, and values.

In this course, we will learn the true characteristic of an entrepreneurship and how to
apply it in our future to be a successful businessman. After that we will learn the step by step
in developing a business plan and implement in our community without harming the
environment and giving the needs and wants of the society.

Learning Outcomes

At the end of this module, the learners should be able to:

1.Understand the sources of opportunities for business;
TLE_ICTAN11/12EM-Ia-1;
2. Identify the market problems and propose potential products or services
that will meet the market needs; and TLE_ICTAN11/12EM-Ia-1; and
3. Select the best product or services that will meet the market’s need with a
consideration of generating profit. TLE_ICTAN11/12EM-Ia-1.

12
Lesson 1. Recognizing a Potential Market

Marketing has contributed greatly to improving our material standard. We have

modern appliances, elegant houses, beautiful cars, and other symbols of convenience,
prestige, and wealth. As of now, the marketing system has become modern through the help
of modern payment system, and modern transportation and communication facilities.

Entrepreneurial Ideas

Entrepreneurs see opportunity in everything and they are willing to take risks. They
are generating a lot of ideas to pursue a business.
P4

Prior Inductive Basic Image Uncertainty

Reinforce/adapt/
reasoning of venture replace basic
Experience Experience
P3 image
Legitimacy
P1-3 P5
Experience

Exploration Planning Launch

Figure 2.1 Venture Creating Process
Source: Mehdivand, M., et al., (2012), “Intellectual capital and non-business performance:
the moderating role of entrepreneurial orientation”

Mehdivand, M., Zali, M., Madhoshi, M. and Kordnaeiji, A. (2012), shows the creation
process, which involves three stages; exploration, planning and launch. Planning is conducted
in three phases, as explained in Figure 1.1 (P1-3, P4, and P5). Cognitive factors are brought
into consciousness and are used to develop an idea and substantiate the reasoning behind
creating a new venture.

Essentials in Entrepreneur’s Opportunity Seeking

There are the basic foundations that the entrepreneur must have in seeking
opportunities. (DepEd Entrepreneurship)

13
1. Entrepreneurial mind frame- allows entrepreneur to see things in a very positive and
optimistic ways in the midst of difficult situation.
2. Entrepreneurial heart flame – they are attracted to discover satisfaction in the act and
process of discovery. You should have a passion to become a successful entrepreneur.
3. Entrepreneurial gut game – this is the ability of entrepreneur of being intuitive or intuition.
They believe that everything you aspire can be reached.

Sources Opportunities

The successful entrepreneurs don’t take risks blindly. They carefully craft strategies
that work. They focus on planning and seeking opportunities to start a business. Peter
Drucker’s gave 7 Sources of Opportunity for Business and this is the following:

1. The Unexpected – no one will know when disaster is going to strikes, so those who can
meet the needs of the masses first have a massive opportunity.
2. Industry and Market Disparities – you need to keep an eye to the convergence of
technologies that disrupt the market. The disparities can take the form of regulations,
changes in supply chains, outdated, and structural problems are going after when industry
boom.
3. Process Vulnerabilities/ Process Needs – process vulnerabilities can be internal or external.
Process needs involve finding the weak spots and solving them.
4. Incongruities – it happen when there is a gap between what is and what should be in terms
of performance. You are not making business to meet the standards of customers or you
want to meet your higher standards, all you need to do is manage their expectations.
5. Demographic Shifts – it can be the source of opportunities as well as a source of
incongruities.
6. Change in Perception – when products are associated with scandal or considered out of
date, changes in perception can kill sales. Changes in what is perceived as a luxury
product or “only for the poor”, can change the perception of customers.
7. New Knowledge – new discoveries is a thing when you are seeking opportunities. New
materials, new manufacturing methods, new style in doing business, net technologies are
all forms of “new knowledge”.

14
Forces of Competition Model

Merriam-Webster’s defined competition as the act of or process of competing. This is

done when one business tries to win over another business clients by offering better deals or
by other means.

Michael E. Porter of Harvard Business School made a simple framework for assessing
and evaluating the competitive strength and position of a business organization. And he called
it Poster’s Five Forces of Competitive Positions Analysis. This is a useful both in
understanding the strength of an organization’s current competitive position, and strength of
a position that an organization may look to move into.

The five forces are:

1. Supplier power – this is driven by the number of suppliers of each essential input;
uniqueness of the product or services; relative size and the strength of the supplier; and
cost of switching from one supplier to another.
2. Buyer power – as assessment of how easy it is for buyers to drive prices down. This is
driven by the; number of buyers in the market; importance of each individual buyers to the
organization; and cost to the buyers of switching from one supplier to another.
3. Competitive rivalry – the main driver is the number and capability of competitors in the
market. Many competitors, offering undifferentiated products and service, will reduce
market attractiveness.
4. Threat of substitution – it is when close substitute products exists in the market, it is
increases the likelihood of the customers switching alternatives in response to price
increases. This increase is both powers of supplier and the attractiveness of the market.
5. Threat of new entry - the profitable market attracts new entrants, which erodes profitability.
Unless it is incumbents have strong and durable barrier to entry.

15
Assessment Tasks

TASK NO. 1 (WRITTEN WORK)

A. Instructions: Give at least five (5) names of entrepreneurs that you know.
May it be from your locality or within the Philippines, identify the nature of their
business, name of their business, and their customers.

Businessman/woman Nature of their Name of their Customers

Business Business

16
TASK NO. 2 (PERORMANCE)
A. Instructions: As we face the new normal, the change in market happened.
Complete the table below by supplying it with products that you consider similar.
Write the product not the brand. Then describe and differentiate its characteristics
and uses.
No. Primary Product Substitute Product
(Product name) (Product name)
1.

2.

3.

4.

5.

17
Summary
To summarize this module:
 Market where the two parties can gather to facilitate the exchange of goods
and services and that is the seller and the buyer.
 There are steps to follow in venturing given by Mehdivand
 .Entrepreneur should seek opportunity, and that is mind frame, heart flame,
and gut game.
 Entrepreneurs are risk takers and Peter Druckers gave 7 Sources of
Opportunity in creating a business. (1) the unexpected, (2) industry and market
disparities, (3) process vulnerabilities/ process needs, (4) Incongrities, (5)
Demographic Shifts, (6) Change in Perception, (7) New Knowledge
 Competition is one of the reasons why market is exist.
 There are five forces in market competition; supplier power, buyer power,
competitive rivalry, threat of substitution, and threat of new entry.

References
 DepEd. (2020-2021). Entrepreneurship, Module 2
 Mehdivand, M., Zali, M., Madhoshi, M. and Kordnaeiji, A. (2012), “Intellectual
capital and non-business performance: the moderating role of entrepreneurial
orientation”
 Merriam Webster. (n.d) Meaning of competition. Retrieved
from https://www.merriam-webster.com/dictionary/competition
 Porter, M. (11 June 2013). Porter’s Five Forces of Competitive Position
Analysis
 Wilhite, T., (10 July 2020). Peter Drucker's 7 Sources of Opportunity for
Businesses. Retrieved from https://toughnickel.com/business/The-Seven-
Sources-of-Opportunity-for-Businesses-per-Drucker

18
 MODULE 3
RECOGNIZING AND UNDERSTANDING THE
MARKET

Introduction

Everybody can create a business, but not all business are giving mark to people’s
mind. Products and services can be similar to purpose, image, taste and etc., that’s why the
entrepreneur need to be unique on their product/services. People go to market everyday they
have a lot of options to choose from, but if that product/service give an impact or satisfied their
needs, they will be your regular customers. Market is a competition, you need to be unique
and original to make your business last.

You already understand the best products or services that market needs. Now you will
learn more about market recognize and understand.

Learning Outcomes

At the end of this module, the learners should be able to:

1. Describe the unique selling proposition and value proposition that
differentiate one’s product/services; TLE_ICTAN11/12EM-Ia-1;
2. Determine who the customers are in term of, target market, customers
requirement, and market size; and TLE_ICTAN11/12EM-Ia-1;and
3. Identify the products/services they will going to use in their dreamed
business. TLE_ICTAN11/12EM-Ia-1.

19
Lesson 1. Recognizing and Understanding the Market

Marketing has contributed greatly to improving our material standard. We have

modern appliances, elegant houses, beautiful cars, and other symbols of convenience,
prestige, and wealth. As of now, the marketing system has become modern through the help
of modern payment system, and modern transportation and communication facilities.

Value Proposition (VP)

Value Proposition provides a declaration of intent or statement that introduces a

company’s brand to consumers by telling them what the company stands for, how it operates,
and why it deserves their business. It can be also the business or marketing statement that a
company uses to summarized why a customers should buy a product or services of their
business. (A. Twin, 2020). In creating value proposition the entrepreneur should consider this
element. (Maverick, 2020).

 Target Customers
 Needs/Opportunity
 Name of the product
 Name of the enterprise/company

Competition in market is one of the reasons why it exist, that’s why creating a value
proposition to promote your product or services is really needed. The value proposition is the
only opportunity of the company to communicate to your target market. That’s why creating a
powerful value proposition, the more easily for sales team to get in to their prospect. There a
tips in creating a strong value proposition given by Melody Astley (2019).

1. Identify a specific problem being dealt with by a specific audience

2. Articulates how the product/service being sold solves this specific problem.
3. Communicate the audience-specific intangible and quantifiable benefits of the
solution.

20
 Value proposition should be memorable sentence, phrase or even a tagline, they can
follow any format, as long as the value proposition is unique.
Unique Selling Proposition (USP)

Encyclopedia defined unique selling proposition as the factor or consideration by seller

as the reason that one product or services is different from better than that of the competition.

As entrepreneur, getting a customers in a big market is one of your concern that’s why
you are before creating a product or services to offers you should ask this; What the
customers wants? What brand does well in the market? What your competitor does well?

Theodore Levitt, author and professor at Harvard Business School, says:

“Differentiation is one of the most important strategic and tactical activities in which companies
must constantly engage.”

There are 4 tips on creating a unique value proposition by Idea Buddy;

 Find what your audience wants
 Check your competitors
 Make a list
 Define your promise

Creating a unique selling proposition is special ingredients that makes business

different from others in market. That’s why in order to be remembered in crowded market
place, you need to be worth remembering.

A. Target Market

The Economic Times define target market is the end consumer to which the company
wants to sell its product. Target marketing involves breaking down the entire market into
various segments and planning marketing strategies accordingly to each segment to increase
the market share.
With the article made by Mandy Porta in Inc.com here are sine tips to help you define
your target market.

21
  Look at your current customer’s base – Who are your current customers, and why do
they buy from you? Look for the common characteristic and interests. Which ones
bring in the most business?
 Check out your competition – Whoa are your competitors targeting? Who are their
current customers? Don’t go after the same market.
 Analyze your product/services – Write out a list of each feature. List the benefits it
provides and the benefits to others. After you have your benefits listed, make a list of
people who have a need that your benefit fulfills.
 Choose specific demographics to target – Find out who need your product or service,
and the one who most likely to buy it. Consider these following factors:
Age, Location, Gender, Income level, education level, Marital or family status,
Occupation and Ethnic background
 Consider the psychographics of your target – this is the personal characteristic of a
person, including:
Personality, Attitudes, Values, Interest/hobbies. Lifestyle, and Behavior
 Evaluate your decisions – Once you finally decided on a target market, be sure to
consider these questions:
Are there enough people who fit my criteria?
Will my target really benefit from my product/service? Will they see a need for it?
Do I understand what drives n=my target to make decisions?
Can they afford my product/service?
Can I reach them with my message? Are they easily accessible?

B. Customers

Conductor made an article about “Identifying and meeting customer needs”. They said
identifying a customers is the first step for business and in creating a product you need to see
the customer’s problems. The easiest way to make it is to find the specific need of your
customers. This is the four steps procedure to meet the needs of the customers.

22
Four-step procedure to meet the needs of customers.

 Identify what your customers need from you through keyword research, focus groups,
or social listening.
 Distribute the information to relevant stakeholders in your organization.
 Craft product features or create content that speaks to your customer’s needs.
 Collect customer feedback on how your efforts meet their expectations.

Why “Identifying Customer Needs”

In creating a business you need to find the needs of your customers, that’s why
Simplify Training made an article about “Identifying Customer Needs” and this is the following;

 Correctly identifying customers’ needs is essential for ensuring customers satisfaction

and loyalty.
 Customers have unique needs.
 Identifying customers’ needs allows representatives to cross-sell related products or
services.
 Customers aren’t clear about what they need or they don’t really know what they want.
That’s why service representative need to be trained to ask the right questions, listen
ad tailor suggestions in order to assist customers satisfactory.
 Identifying clients’ needs creates satisfied customers, and satisfied customers are less
likely to have reason to enter into dispose with your business legal action

If you develop a strong system for how you discover, analyze and address customer
needs, your business will be set up for long-term success.

C. Market Size

Determining the market size is one of the crucial task of entrepreneur, and the potential
value that market has for their start up business.

23
 As describe in by Alejandro Cremandes (2018), on his book The Art of Startup
Fundraising, the market needs to be in billions. You need to have perfect team and product
to make your investors comes and makes your investment attractive. To calculate the market
size, you need to look at the date on the number of potential customer, or number of
transaction each year. And there are variety of ways to acquire the data of your customers.
Census and labor bureau hold a lot of information, and most industries have compile that type
of data. And you can also make your own research or purchase studies.

24
Assessment Tasks

TASK NO. 1 (WRITTEN WORK)

A. Instructions: Identify at least three products or services which can be related to
your dreamed business. Focus on how you will meet the needs of your target
market especially in this time of COVID-19. Write at least three reasons why you
are proposing this products or services. Write your answer in the space provided.

PRODUCTS/SERVICES REASONS OF CHOOSING THE

PRODUCTS/SERVICES
1.

2.
1.
Disinfectant 3.
1.

2.
2.
Face Mask 3.
1.

2.
3. \
Alcohol 3.
1.

2.
4.
Computer/Laptop/phone
3.
1.

2.
5. 3.
New Clothes

25
TASK NO. 2 (PERFORMANCE)
A. Instructions: Give at least 6 products being advertised on television. Evaluate
each one according to its unique selling proposition and value proposition.
Product Name USP VP
1.

2.

3.

4.

5.

6.

26
 Summary
To summarize this module:

 Marketis a competition, you need to be unique and original to make your business
last.
 Having a unique value proposition is one of the thing why product or services are in-
demand in market, that’s why creating have an elements to follow; target customers,
needs/opportunity, name of product, name of the enterprise/company.
 Product and services that we saw in market can be all the same in face, function, taste
or etc., that’s why creating a unique selling proposition is a big impact.
 Don’t be afraid to create new product and services.
 Target market is the end consumer to which the company wants to sell its product.
 Business is existing because there are customers and entrepreneur exist to produce
the needs and wants of consumers.
 Knowing the market size is one of the thing you need to consider in opening a
business.

References

 Astley, M., (15 January 2019). The 3 Components of a Strong Value Proposition.
Retrieved from https://www.finlistics.com/blog/the-3-components-of-a-strong-value-
proposition
 Conductor, (2021). Identifying and Meeting Customer Needs. Retrieved from
https://www.conductor.com/learning-center/customer-needs/
 Cremades, A., (23 September 2018). How To Effectively Determine Your Market Size
from the Book The Art of Startup Fundraising & Serial entrepreneur.
 DepEd, (2020-2021). Entrepreneurship, Quarter 1 Module 3
 Encyclopedia (n.d) Unique Selling Proposition (USP). Retrieved
from https://www.entrepreneur.com/encyclopedia/unique-selling-proposition-usp

27
 Idea Buddy. Net. (28 January 2020). 4 Easy Tips to Create Your Unique Selling
Proposition (USP). Retrieved from https://ideabuddy.net/blog/unique-selling-
proposition/index.html
 Forbes. (23 September 2018). How to Effectively Determine Your Market Size.
Retrieved from https://www.forbes.com/how-to-effectively-determine-your-market-
size/?sh=78df74a013d
 Maverick, J.B., (22 February 2020). Element of Value Proposition. Retrieved from
https://www.investopedia.com/what-are-elements-effective-value-proposition.asp
 Porta, M., (n.d). How to Define Your Target Market Retrieved from
https://www.inc.com/guides/2010/06/defining-your-target-market.html
 Simplifying Training. (n.d). Identifying Customer Needs Steps Retrieved from
https://simplifytraining.com/course/identifying-customer-needs/
 Twin, A., (5 July 2020). Value Proposition. Retrieved from
https://www.investopedia.com/terms/v/valueproposition.asp

28
 MODULE 4
MARKET RESEARCH

Introduction

Starting a business is not that easy, the firms and business companies who are famous
as of today, didn’t start that big, they conduct a research about the customers’ needs and
wants. In order for firm and business companies to recognize the needs and wants of market
or the customers, they need to conduct the market research.

The Market Research or Marketing Research Process can be defined as the process
of gathering, analyzing and interpreting the information about the products or services to be
offered for sale to the potential consumers.

Learning Outcomes
At the end of this module, the learners should be able to:

1. Define market research; TLE_ICTAN11/12EM-Ia-1;

2. Identify the importance of data gathering; and TLE_ICTAN11/12EM-Ia-1\;
and
3. Identify the different data gathering technique . TLE_ICTAN11/12EM.

Lesson 1. Market Research

According to Philip Kotler (n.d.), “A market of all the potential customers sharing a
particular need or wants who might be willing and able to engage in exchange to satisfy that
need and wants.”
To become a successful entrepreneur, you must develop the ability to select and offer
the right products or services to your customers. Your ability to make the choices will surely
determine your success or failure.

29
 One of the initial pieces’ information needed by entrepreneur is the market potential
for the product or services. To build a strong marketing plan with reasonable and measurable
market goals and objectives the entrepreneur should gather information on the industry and
market. The best way to start is first visualize the process as an inverted pyramid from the
book Entrepreneurship by Robert D. Hisrich, Michael P. Peters and Dean A. Shepherd

General environment and demographic trends

National Food industry trends

Local environmental and demographic trends

Local food industry trends

Local competition
strengths and
weaknesses

Market positioning

Market objectives

Figure 4.1 An Upside-Down Pyramid Approach to Gathering Market Information

Source: Hisrich, R.D., et al., (2008) Entrepreneurship

The Figure 1.1 means that we start with very broad-based data and information and
work down until we can develop a positioning strategy and quantifiable goals and objectives.
Once all the analysis has been completed, the entrepreneur is ready to clarify the product and
service offering, actual market positioning in the competitive environment, and market
objectives.

30
Data Collection

Gathering information in the market is the way to know what your customers’ needs
and wants. Business Jargons defined Data Collection as the process which researcher
collects the information from all the relevant sources to find the answers in their research
problem. It is also the most valuable tool to any study. It helps to ensure that the data you
collect are useful, sufficiently accurate to your business plan. By this you enhanced your
understanding to meet your customers’ expectations and allow you to create products or
services that appeal to customers.

5 Steps To Collect Data by Lotame Solutions Inc.

1. Determine What Confirmation You Want to Collect

2. Set a Time frame for Data Collection
3. Determine Your Data Collection Method
4. Collect the Data
5. Analyze the Data and Implementation Your Findings

There are many methods to collect data to meet the customer’s information. But in this
lesson we will consider three different data collection techniques - Survey, Interview, Focus
Group Discussion to evaluate different concerns.

Survey

Survey is one of the most ways to directly ask customers for information. There are
many ways to conduct survey; you can conduct in online, email, over the phone or in person.
And at this time of pandemic, one of the easiest methods is creating an online survey as you
are the host on your created website and you can also share a link on social media.

Merriam-Webster defined survey to examine as condition, situation or value, it can

also be query in order to collect data for the analysis of some aspect of group or area.

31
 England Insights Queries published an article about “Writing an Effective
Questionnaire (2018) and this is the following;

The formula for effective survey research involves three key elements:

1. Asking the right questions

2. Asking those questions of the right sample of people
3. Using the data correctly, without misrepresentation.

Writing good questions should follow these rules;

1. Keep language simple

2. Avoid using jargon
3. Be specific
4. Avoid phrasing in the negative
5. Avoid double-barreled questions
6. Avoid any questions wording that could “lead”
7. Read the questions out loud
8. Test understanding and clarify of the questions someone who is not involved in the project

Interview

Interview is the most reliable ways in getting the relevant information from target
customers. It is typically done between the entrepreneur and a respondent that’s why the
entrepreneur are having an idea of what is the problem in the market, what is needed to
improve wand what is lacking. And getting the customers feedback provides an entrepreneur
to think of what business is going to be in demand.

Merriam-Webster defined a formal consultation usually to evaluate qualifications (as

of a prospective student or employee), it can also be a meeting at which information is
obtained (as by a reporter, television commentator, or pollster) from a person

32
 Interview usually last anywhere from 15-30 minutes. The lengths of an interview is
depend on the several factors. There are different types of interviews but this is some in
meeting the needs of customers (Wilkinson, 2020).

The Telephone Interview - Human resources will call you to confirm the basic details on
your resume. They may also ask about your availability and the best time for you in-person
interview. It usually last 15 minutes.
The video interview - (skype, google meet, facetime, and zoom), some recruiter use this
for them to see how you react to different questions.
Group Interview - it can be two ways, you ask individual interview, asking exactly the same
questions that you would ask in an individual interview, to the whole group allowing
candidates the chance to compete to impress and how to react on one another.

Focus Group Discussion (FGD)

Focus group is a gathering of small number of people who share common interest in
specific issues/events and who are asked to take part in an interactive discussion. Their
intention is to comprehend and determine the range of individuals though and preferences
rather than generalize how respondent might answer (Yun, 2008).

The following to consider in using focus group discussion in market research (Crossman,
2019);

 Identify the main objective of the focus group.

 Carefully develop your focus group questions. Your focus group should generally last
1 to 1 1/2 hours, which is usually enough time to cover 5 or 6 questions.
 Call potential participants to invite them to the meeting. Focus groups generally consist
of six to 12 participants who have some similar characteristic (e.g., age group, status
in a program, etc.). Select participants who are likely to participate in discussions and
who don’t all know each other.
 Send a follow-up invitation with a proposed agenda, questions up for discussion, and
time/location details.
 Three days before the focus group, call each participant to remind them of the meeting.

33
Assessment Tasks

TASK NO. 1 (WRITTEN WORK)

A. Instructions: Explain briefly the following:
1. What is Market Research?
______________________________________________________________
______________________________________________________________
______________________________________________________________
______________________________________________________________
______________________________________________________________
______________________________________________________________
______________________________________________________________

2. Enumerate and discuss the three data gathering techniques.

______________________________________________________________
______________________________________________________________
______________________________________________________________
______________________________________________________________
______________________________________________________________
______________________________________________________________
______________________________________________________________
______________________________________________________________
______________________________________________________________
______________________________________________________________
______________________________________________________________
______________________________________________________________
______________________________________________________________
______________________________________________________________

34
TASK NO. 2 (PERFORMANCE)
A. Instructions: Conduct a survey among 10 senior high school students in your school
or any school about “Milk Tea”. Use the survey form below.

SURVEY FORM

Name of Respondent (Optional):

Age Gender: Male Female Grade Level

What are your reasons for buying the product?

Where do you buy the product?

Is it available when you need it? Yes Sometimes No

What do you see as a substitute if it is not available?

Is the price affordable for you? Yes No

Source: DepEd 2020-2021, Entrepreneurship

35
 Summary
To summarize this module:
 Starting a business is not that easy that’s why market research is needed to be done
before opening or creating a business.
 Market research process of gathering, analyzing and interpreting the information about
the products or services to be offered for sale to the potential consumers.
 Data collection is the most valuable tools in getting information of your future
customers especially when you are getting their needs and wants.
 Survey are one of the way to directly ask customers for information.
 Interview is one of the most reliable and credible ways of getting relevant information
from target customers.
 Focus group discussion is an excellent method in generating and screening ideas and
concepts.

References
 Business Jargons. (n.d) Data Collection. Retrieved from
https://businessjargons.com/data-collection.html
 Crossman, A., (6 January 2019). How to Use Focus Groups in Marketing Research.
Retrieved from https://www.thoughtco.com/use-focus-groups-in-research-3026533
 DepEd, (2020-2021). Entrepreneurship, Quarter 1 Module 4.
 England Insight Queries. (January 2018). Writing an Effective Questionnaire.
Retrieved from https://www.england.nhs.uk/bitesize-guide-writing-an-effective-
questionnaire.pdf
 Indeed. (25, January 2021). Q&A: How Long Do Interviews Last? Retrieved from
https://www.indeed.com/career-advice/interviewing/how-long-do-interviews-last
 Lotame Solutions Inc., (13 May 2019). 5 Steps in Collecting Data. Retrieved
from https://www.lotame.com/what-are-the-methods-of-data-collection/ May 13, 2019
 Hisrich, R.D., Peters, M.P., Shepherd D.A., 2008. Entrepreneurship. The McGraw Hill
Company

36
 Merriam-Webster, (n.d). Meaning of Interview. Retrieved from https://www.merriam-
webster.com/dictionary/interviewMerriam-Webster, (n.d). Meaning or Survey
Retrieved from
 Wilkinson, M., (n.d). The 6 Different Types Of Interviews (And The Pros And Cons of
Each) Retrieved from https://www.coburgbanks.co.uk/blog/assessing-applicants/6-
different-types-of-interview/
 Yun, H.J., (2018). Meaning of Focus Group. Retrieved from
https://www.britannica.com/topic/focus-group

37
 MODULE 5
7P’S OF MARKETING AND BRANDING

Introduction

You are entering a new world when you enter business. As you learn the data
gathering, let all move on to marketing and branding. Entering to the business world is not
that easy, you need to follow every step before you starts, you need to consider everything.
As you consider everything before starting a business, you need to name your business, and
copying the name of others is a big no, you need to be unique that will be keep to the mind of
people.

This modules introduce the Marketing Mix, also known as 7P’s of Marketing. It is
composed of product, place, price and promotions. This is the strategy of selecting and
applying the best potential means to achieve the company visions and to gain competitive
edge.

Learning Outcomes
At the end of this module, the learners should be able to:

1. Identify the 7P’s in the Marketing Mix; TLE_ICTAN11/12EM-Ia-1

2. Identify the commonly used brand strategy; and TLE_ICTAN11/12EM-Ia-1
3. Developed a brand name. TLE_ICTAN11/12EM-Ia-1

38
Lesson 1. The Marketing Mix (7P’s) in Relation to the Business
Opportunity

The Economic Times define marketing mix as the set of action, or tactics that
accompany uses to promote its brand or products.
The marketing mix is a marketing strategy tool. Traditionally there are 4P’s of
Marketing Mix, and that is Product, Price, Place and Promotion and other distribution activities
needed to meet marketing objectives. But now there are 7P’s.

The 7P’s model was originally devised by E. Jerome McCarthy and published in 1960
in his book Basic Marketing. A Managerial Approach.

All the elements of the marketing mix influence each other. They help the companies
to review and define key issues that affect the marketing of its products and services.

Table 5. 1 The Marketing Mix (7P’s)

Source: Dave Chaffey, Digital Marketing: Strategy, Implementation and Practice

(www.smartinsights.com)

The 7P’s Marketing Mix

Product – an item that is built or produced to satisfy the need of a certain group of people.
In developing the right product, you have to answer the following questions:
 What does the client want from the service or product?
 How will the customer use it?

39
 Where will the client use it?
 What features must the product have to meet the client’s needs?
 Are there any necessary features that you missed out?
 Are you creating features that are not needed by the client?
 What’s the name of the product?
 Does it have a catchy name?
 What are the sizes or colors available?
 How is the product different from the products of your competitors?
 What does the product look like?

Price – It is very important component of the marketing mix. The price of the product is
basically the amount that a customer pays for to enjoy it. Pricing always help shape the
perception of your product in consumers eyes.

Here are some of the important questions that you should ask yourself when you are setting
the product price:
 How much did it cost you to produce the product?
 What is the customers’ perceived product value?
 Do you think that the slight price decrease could significantly increase your market
share?
 Can the current price of the product keep up with the price of the product’s
competitors?

Place – placement or distribution is a very important part of the product mix. You have to
position and distribute the product in a pace that is accessible to potential buyers.
Here are some of the questions that you should answer in developing your distribution
strategy:
 Where do your clients look for your service or product?
 What kind of stores do potential clients go to? Do they shop in a mall, in a regular brick
and mortar store, in the supermarket, or online?
 How do you access the different distribution channels?
 How is your distribution strategy different from your competitors?
 Do you need a strong sales force?

40
 Do you need to attend trade fairs?
 Do you need to sell in an online store?

Promotion – it is very important component of marketing mix it can boost brand recognition
and sales. Promotion is comprised of various elements like:
 Sales Organization
 Public Relations
 Advertising
 Sales Promotion
Word of mouth is also type of product promotion. Word of mouth is circulating through internet.
In creating an effective product promotion strategy, you need to answer the following
questions:
 How can you send marketing messages to your potential buyers?
 When is the best time to promote your product?
 Will you reach your potential audience and buyers through television ads?
 Is it best to use the social media in promoting the product?
 What is the promotion strategy of your competitors?

People – it is important to discover whether there are enough people, for your target market
that in demand in your certain product and services. It is important to hire and train the right
people in any aspects of your business. When you find the right people in your business, the
product, or services that your business creates will perform the best they can.

Process – the system and processes of the organization affect the execution of the service.

Physical Evidence – there should be a physical evidence that the service was delivered. It’s
also shows in how a business and its product are perceived in the marketplace.

Lesson 2. Develop a Brand Name (Alton, 2015)

Choosing a brand name for your product, service business, is one of the effective ways
of marketing and one of the most challenging aspect in starting a business. It is important to
decide what your name should mean and represent. Because the name of your
product/service is a sample of your work, so it should be great.

41
 Larry Alton made an article about “Make It Memorable: Tips for Creating an Effective
Brand Name” this are the following;

5 Tips for Developing Your Brand Name

1. Check Availability – check the availability of the brand name you have chosen; it would be
an embarrassment it that someone had already have it.
2. Don’t Get Cute – don’t just chose a name that sounds clever. In the best result, you should
have this criteria;
Easy to spell – spelling is important
Easy to pronounce – it’s so hard for businessman to create a product that nobody can
pronounce it properly
3. Aim for Simplicity – one-word brand name is always ideal for brand name. Avoid going three
or more as much as possible. Long names complicate everything, it should be easy to
remember, strong and repeatable to customers.
4. Think about the Logo – after choosing the name, logo always come second. Your brand
name and logo will become synonyms with each other, and they can’t be looked
independently.
5. Consider Future Growth – think about the future growth of your company. You may have a
specialized product but doesn’t mean that should limit your company in selling that for a
lifetime.

42
Assessment Tasks
TASK NO. 1 (WRITTEN WORK)
A. Instructions: See the pictures and explain the difference of this new normal
market to the traditional market before this pandemic. Write your answer in the
space provided.
Situation Explanation

Market on Wheels

Online Barter

Online Shopping

Wearing Face Mask & social

distancing while on supermarket

Limited Customers in Restaurant

43
TASK NO. 2 (PERFORMANCE
A. Instructions: Write down the first the company or product that come to your
head when you see the colors above.

What the first brand you think when you see this colors?

B. Instructions: Create a new product and give it a name. Sketch it. Once you
have chosen the name for your product write a short explanation. In your
explanation you should describe your product and explain how and why you
chose its name.

_____________________________________________________
_____________________________________________________
_____________________________________________________
_____________________________________________________

44
Source: DepEd 2020-2021, Entrepreneurship
 Summary
To summarize this module:
 The 7 Key Elements of the 7P’s of Marketing are the following, product, price,
promotion, process, and physical evidence.
 Product is an item that is built or produced to satisfy the need of a certain group of
people.
 Price is the amount that a customers pay for enjoy the product to services being
produce.
 In order to have a business you have to find the perfect place to distribute the
product/services that accessible to potential buyers.
 Promotion is one of the thing that boost the brand to have a recognition and sales.
 It is very important to hire and train the right people in any aspects of your business.
 Then system and process in delivering the product and services you created have a
big impact in your organization.
 There should be physical evidence that your product/services are effective.
 Choosing a brand name for your product, service business, is one of the effective ways
of marketing and one of the most challenging aspect in starting a business.
 The 5 tips in creating a brand name are; check availability, don’t get cute, aim for
simplicity, think about the logo, and consider future growth.

References
 Alton, L. (Oct. 20, 2015). make it memorable: Tips for creating an effective brand
name Retrieved from https://www.business.com/articles/5-tips-for-creating-an-
effective-brand-name/
 DepEd, (2020-2021). Entrepreneurship, Quarter 1 Module 5
 Chaffey, D. (n.d). Digital Marketing: Strategy, Implementation and Practice Retrieved
from www.smartinsights.com

 Economic Times., (n.d). Definition of Marketing Mix Retrieved

from https://economictimes.indiatimes.com/definition/marketing-mix

45
 Marketing Mix., (n.d). The Marketing Mix 7P’s Retrieved from
https://marketingmix.co.uk/marketing-mix-7ps/

46