Entrep

RECOGNIZE AND UNDERSTAND THE MARKET
Recognize and Understand the Market

 There are three processes in creating a new venture, Entrepreneurial mind frame,
Entrepreneurial heart flame, and Entrepreneurial gut game. In opening a new venture or
business, you need to determine the Unique Selling Proposition (USP) and Value
Proposition (VP) of your product as well as your target market.
 Knowing Unique Selling Proposition (USP) and Value Proposition (VP) allows the
entrepreneur to prepare himself on how to advertise and sell his product even if it is similar
to others.
Value Proposition (VP)
 A business or marketing statement that summarizes why a consumer should buy a
company's product or use its service.
 The Value Proposition is what you are offering to customers for what they are paying.
 In creating Value Proposition, entrepreneurs will consider the basic elements:
 Target Customer
 Needs/opportunity
 Name of the product
 Name of the enterprise/company
 Example:
 Apple Iphone- The experience is product.
Unique Selling Proposition (USP)

 Refers to how you sell your product or services to your customers. You respond to the
wants and needs of your customers.
 Unique Selling Proposition (USP) is what sets you, your business and your product or
service apart from your competition.
 An entrepreneur should consider the following questions when thinking marketing concepts
that can persuade target customers.
 - What do the customers want?
 - What brand does well?
 - What does your competitor sell well?
Tips for creating an effective USP

 Identify and rank the uniqueness of the product or services character
 Be very Specific
 Keep it Short and Simple (KISS)
When promoting your product or service, make sure it is very specific and includes details that
make it different against the competitors. Keep it short and simple and think of a tagline that is
easy to remember. Right now, the proposed unique selling proposition is:
Example:
 Greenwich- “Sobrang cheesy talaga!
 Max’s Restaurant- “Sarap to the bones”
Value Proposition and Unique Selling Proposition

 The two propositions are used to differentiate the products from competitors. For example,
Jollibee is known to have a Filipino taste burger. This brand has a unique selling point
because of its tagline “Langhap Sarap”.
 Unique Selling Proposition and Value Proposition are two of the most famous tools used to
explain why prospect customers buy each product and service.
 USP and VP are frameworks of each business industry.
 A. Target Market:
 Market Targeting is a sage in market identification process that aims to
determine the buyers with common needs and characteristics. Prospect
customers are a market segment that an entrepreneurial venture intends to
serve.
Commonly used methods for segmenting the markets are follows:

1. Geographic segmentation – the total market is divided according to geographical
location.
• Variables to consider
 a. Climate
 b. Dominant ethnic group
 c. Culture
 d. Density (either rural or urban)
 2. Demographic Segmentation – divided based on consumers

 • Variables to consider
a. Gender
b. Age
c. Income
d. Occupation
e. Education
f. Religion
g. Ethnic group
h. Family size
 3. Psychological Segmentation – divided in terms of how customers think and

believe.
 Needs and wants
 Attitudes
 Social class
 Personality traits
 Knowledge and awareness
 Brand concept
 Lifestyle
 4. Behavioural Segmentation – divided according to customers’ behaviour pattern as
they interact with a company.
 Perceptions
 Knowledge
 Reaction
 Benefits
 Loyalty
 Responses
 B. Customer Requirements:
 -Customer requirements are the specific characteristics that the customers need
from a product or a service.
 - There can be two types of customer requirements:

 Service Requirement
 Output Requirement Service Requirement:

 *Output Requirements:
 Tangible thing or things that can be seen.
 C. Market Size
 - The entrepreneur’s most critical task is to calculate the market size, and the
potential value that market has for their start-up business. Market research will
determine the entrepreneurs’ possible customers in one locality.
 -Market size is like a size of the arena where the entrepreneurs will play their
business.
 - It is the approximate number of sellers and buyers in a particular market.
 *In determining the market size, the entrepreneur will conduct a strategic marketing
research from reliable sources using the following method:

 1.) Estimate the potential market – approximate number of customers that will buy the
product or avail your services.
 2.) Estimate the customers who probably dislike to buy your product or avail the services.
 3.) Estimate the market share.
Market Research
Process of determining the viability of a new service or product through research conducted
directly with potential customers.
With market research, companies can figure out their target market and get opinions and
feedback from consumers about their interest in the product or service.
it is a critical tool in helping companies understand what consumers want, developing products
that those consumers will use, and maintaining a competitive advantage over other companies
in their industry.
Purpose of Market Research

To Verify Market Need
A company must understand who needs a product and why they need it. It must
understand when and where people buy certain things and how they use them. The size and
diversity of a consumer base will necessarily dictate the ways in which a company attempts to
meet its demand. Thus, companies must conduct market research asking questions so that the
answers can shed light on the direction they need to go.
To Identify Competitors
Market Research helps businesses identify other players in the game(as well as those who
might be waiting on the sidelines). Knowing who you’re playing against is vital to planning a
strategy for defeat in any situation. In a business one, it helps companies position themselves;
they can copy the practices that work for others and disregard the ones that don’t.
To Improve Company Offering
Marker research also helps businesses create offerings that either fill a void or provide better
value than those already available. Potential products and services can be evaluated against
current market offerings, as well as tested before a full-scale market launch.
To Satisfy Customers
Surveying customers provides the feedback companies need to maintain or adjust their
practices in ways that satisfy the people they serve and build brand loyalty. If a business’s
number one goal is to maintain a profit and/or improve lives, then a happy customer is a good
indication that it’s doing that job well.
Benefits of Market Research

It helps Businesses strengthen their position
It minimizes any investment risk
It identifies potential threats and opportunities
It helps to discover yours and your competitor’s strengths and weaknesses
It facilitates strategic planning
lt helps in spotting emerging trends
It assists businesses to stay ahead of the competition
It provides revenue projections
It focuses on customer needs and demands
It helps to evaluate the success of a business against benchmark
WHAT QUESTIONS CAN BE ANSWERED THROUGH MARKET RESEARCH?
Who are my target audience?
What do they need?
What are their wants?
Which geographies have sales potential?
What can be the distribution channel?
Why they will need/want my products and services?
Who will be our competitors?
How’s the market environment?
What can I do to make my product and service more attractive?
What are Government rules and regulations in my target market?
What is the best entry strategy for my target market?
Advantage Disadvantage
Mitigates Risk Market Research is expensive
Improve Sales Market research takes time
Better Image on Customers Market research can only target a small population
Measure Brand Reputation
STEPS IN CONDUCTING MARKET RESEARCH

1. DETERMINE THE GOALS OF RESEARCH
The first step to effective market research is to determine the goals of the study. Each study
should seek to answer a clear, well-defined problem. For example, a company might seek to
identify consumer preferences, brand recognition, or the comparative effectiveness of different
types of ad campaigns. By defining your research aims, you'll be able to keep your research
focused and effective.
2. DETERMINE THE SAMPLE
The next step is to determine who will be included in the research. Market research is an
expensive process, and a company cannot waste resources collecting unnecessary data. The
firm should decide in advance which types of consumers will be included in the research, and
how the data will be collected. They should also account for the probability of statistical errors or
sampling bias.
3. GATHER YOUR DATA
There are 2 types of data collection, and both are based on asking questions:
Qualitative information is more investigative and involves a fewer number of respondents (focus
groups and in-depth interviews).
Quantitative information is used to draw specific conclusions and involves a large number of
respondents (surveys and questionnaires).
Some common methods for data collection include:
telephone polling
mailed questionnaires
online surveys
personal interviews
You can conduct a simple 'yes or no' survey over the phone but might need a face-to-
face meeting to understand personal choices such as color preferences.
4. INTERPRET AND ANALYZE YOUR FINDINGS
This step is about organizing your results and interpreting your findings. Basically, what have
you discovered?
Keep your research objectives front-of-mind when organizing and grouping your data. Look for
ways you can improve your data organization – this will make it easier to come to a conclusion
down the track.
One of the most important steps in the market research process is interpreting your findings.
What is the research telling you? By answering this question, you'll be able to understand what
the research has uncovered.
Here are some tips for data organization:
Identify any major trends – consider using lists, tables, diagrams and mind-maps to
organize your data.
Use your marketing plan to analyze your data to determine strengths, weaknesses,
opportunities, and threats (SWOT). You can do a SWOT analysis as part of your business plan.
5. DRAW CONCLUSION AND MAKE ACTION
lThe last step is for company executives to use their market research to make business
decisions. Depending on the results of their research, they may choose to target a different type
of consumer, or they may change their price point or other features of their product. The results
of these changes may eventually be measured in further market research, and the process will
begin all over again.
MARKET RESEARCH TIPS

Don’t Ignore Opportunity Costs
Steer Clear of Research Method Shortsightedness
Outline Your Objectives Before Starting Research
Study Your Customers
Share Research Results with Employees
Remember Research Is an Ongoing Process.
WHAT CAN BE REVEALED THROUGH MARKET RESEARCH

 It can reveal how customers and prospects view your existing business and products
 Show you if you are or are not meeting your customers' needs
 You may uncover some opinions about your business and/or products that you weren’t
aware of
 It can determine new business opportunities
 the weaknesses and strengths of your business
 the viability and profitability of a business
HOW OFTEN SHOULD YOU CONDUCT MARKET RESEARCH?
market research is not a time sensitive activity to be performed on set yearly dates, it is an
important aspect of a business. The frequency in which it is conducted varies according to a
business’s needs. Some businesses believe the research to be crucial and consider continual
market research a necessity, while others conduct market research only when they start a new
business, expand a product, have a product issue or need to introduce a new product to their
line.
1. START-UP
market research demonstrates the viability and profitability of a business. Initial market research
informs an owner of other competing products, their pricing, quality and offers. This information
allows a new business to capitalize in areas where the competitor’s product is lacking or
deficient, by choosing products, product names, and packaging that appeals to the
demographics of its potential customers.
2. FOLLOW-UP
following up on the initial market research of a launched product allows a business to develop
and improve the service or product based on sales and market research data. The information
gathered can help a business to develop better presentation, delivery, pricing structure and
sales promotion for the product.
additional periodical research allows a business to develop and improve all aspects of its
service, market and product presentations.
3. NEW PRODUCT INTRODUCTIONS
this research helps a company identify its customers’ additional needs and create products or
services that meet these needs while complementing the company’s original product.
Conducting market research at this point can identify factors like the number of repeat clients,
first-time buyers and the demographics the company sells to. This type of information allows the
company to make better new-product cost projections, identify product packaging that is
attractive to its customers and make better promotional decisions.
4. CONTINUAL RESEARCH
some companies consider ongoing market research to be crucial to the success of their
business. With new technologies, this ongoing research doesn't always require large amounts
of funding. Some business owners simply use existing statistics, create blogs, websites and
email to get customer feedback and needed market research information.
this allows a company to track sales, spot product or service issues, determine its market share
and collect other relevant information pertaining to the sale of its product.
TWO MAIN TYPES OF MARKET RESEARCH
PRIMARY RESEARCH
also known as “Field Research”
primary research is the pursuit of first-hand information about your market and the customers
within your market. It's useful when segmenting your market and establishing your buyer
personas.
examples:
a. Interview (telephone or face-face)
b. surveys (online or mail)
c. questionnaires (online or mail)
d. Focus Groups
Advantage Disadvantage
Obtain the information you want Expensive
Information is up to date Takes longer to obtain
Competitors will not have the information Difficult to obtain
Primary market research tends to fall into one of two buckets:

1. EXPLORATORY PRIMARY RESEARCH
this kind of primary market research is less concerned with measurable customer trends and
more about potential problems that would be worth tackling as a team. It normally takes place
as a first step — before any specific research has been performed — and may involve open-
ended interviews or surveys with small numbers of people.
2. SPECIFIC PRIMARY RESEARCH
specific primary market research often follows exploratory research and is used to dive into
issues or opportunities the business has already identified as important. In specific research, the
business can take a smaller or more precise segment of their audience and ask questions
aimed at solving a suspected problem.
SECONDARY RESEARCH
also known as “Desk Research”
l Secondary research is all the data and public records you have at your disposal to draw
conclusions. Secondary research is particularly useful for analyzing your competitors. Offers
reviews and critiques.
examples:
a. Research studies
b. Public libraries c. book interviews
e. internet f. textbook
The main buckets your secondary market research will into:
1. PUBLIC SOURCES
these sources are your first and most-accessible layer of material when conducting secondary
market research. They're often free to find and review.
2. COMMERCIAL SOURCES
these are valuable, but usually involve cost factors such as subscription and association fees.
commercial sources include research and trade associations, such as Dun & Bradstreet and
Robert Morris & Associates, banks and other financial institutions, and publicly traded
corporations.
3. INTERNAL SOURCES
they are usually the quickest, cheapest and most convenient source of information available.
10 Methods in Conducting Market Research
1. SURVEY
With surveys, companies reach out to participants to answer questions. They can conduct
surveys through various means, including:
- Phone
- Mail
- Online
- In person
4 Common Types of Market Research Survey

1. Brand Awareness Market Research Survey
Four types of brand awareness
a. Brand Recognition (aided research)
b. Brand Recall (Unaided Research)
c. Brand Dominance
d. Top-of-mind
2. Customer Satisfaction Market Research Survey
Types of Customer Satisfaction Surveys
a. Customer satisfaction score (CSAT)
b. Net Promoter Score (NPS)
c. Customer Effort Score (CES)
d. Milestone surveys
3. Product-Based Market Research Survey
4. Competition Based Market Research Survey
2. FOCUS GROUP
- is a group interview involving a small number of demographically similar people
or participants who have other common traits and experiences. Focus groups are used in
market research to understand better people's reactions to products or services or participants'
perceptions of shared experiences.
PURPOSE:
to promote self-disclosure among participants.
l to obtain in depth information on concepts, perceptions and ideas of the group.
l While primarily a group interview technique, the observations of interactions among group
members are considered a major part of the data collection.
3. QUALITATIVE INTERVIEW
A qualitative interview combines elements of the focus group and the one-on-one survey. It
involves speaking with one participant at a time and recording their responses.
the questions are often open-ended, and the researchers encourage the interviewee to give in-
depth answers.
case: Conduct a Qualitative Research before launching a new product
Before you go into production of a new product, it’s vital to get your product into the
hands of some members of your target market.
some questions that you could ask:
Is it easy to use?
does it do what it's supposed to?
Is the design appealing?
does it look as if it will stand out next to competing products in-store?
ls the packaging working?
Is the price right?
This type of customer research almost always reveals one or two important issues that
can then be ironed out before you launch your product.
4. SOCIAL MEDIA LISTENING

tracking conversations around your industry, specific topics, and audiences at a high level. With
social listening, you begin to uncover various levels of insight.
types OF SOCIAL MEDIA LISTENING
new Product development or campaign tracking
sentiment tracking and breakdowns
alerts and news jacking
influencer and detractor mapping
audience and competitor deep desisting, you begin to uncover various levels of insight.
5. OBSERVATIONS
In market research, observation refers to the act of studying how consumers actually behave
when they shop. Often, it involves filming shoppers in a market environment, such as a store,
and analyzing their shopping habits or patterns. If they are unaware of the observation, this
method can show their natural selves, as opposed to how they think of themselves.
There several types of market observation categorized into six major subdivisions:
Disguised Observation
-conducted without the person knowing.
linen-disguised Observation
l - done when the person knows they are being observed.
human Observation
l - involves a person doing the observation.
there several types of market observation categorized into six major subdivisions:
mechanical Observation
l - involves using machines such as video cameras and audio recorders.
direct Observation
l - Involves observing the actual behavior.
indirect Observation
l - involves studying a particular occurrence obtained from a secondary source.
6. PURCHASED DATA
companies that lack the time or resources to conduct their own market research can purchase
research data from various sources.
example of this is Consumer Purchase Data. This data indicates purchase history, customer
buying patterns, and other relevant details, such as stock availability and product appearance.
7. FIELD TRIALS
ln a field trial, a company allows users to use a product under normal conditions and then
collects data provided by the participants.
for example, a company developing a novel type of toaster might recruit individuals to use the
toaster for a specified period. The participants would record and submit their impressions, which
the company would analyze to improve the product. Alternatively, a company might place a new
product in a store to see how shoppers respond to it.
8. PUBLIC DATA
public data is information that can be freely used, reused and redistributed by anyone with no
existing local, national or international legal restrictions on access or usage.
examples of public data in the enterprise include press releases, job descriptions and marketing
materials intended for the general public.
9. SALES DATA ANALYSIS

sales Analysis is the process of understanding how your business performs in terms of sales. It
provides insights into the past, present, and future performance of a business and can be used
to help you forecast trends, identify opportunities for growth, and develop a strategic action plan
for your company.
It can be helpful for businesses to understand how their sales are doing, especially if they want
to grow or make changes. It doesn’t have to be dull numbers or dry paragraphs. You can
visualize it in the form of bar graphs and charts.
9 Types of Sales Analysis Methods:
1. Sales Trend Analysis

2. Sales Performance Analysis
3. Predictive Sales Analysis
4. Sales Pipeline Analysis
5. Product Sales Analysis
6. Sales Effectiveness Analysis
7. Diagnostic Analysis
8. Prescriptive Analysis
9. Market Research
l9. Market Research

the technique could involve surveying your customers over the phone, by email, or in person.
You can also study your competitors and general sales statistics.
Once you get a good handle on the market conditions, you can evaluate your company’s
performance and identify the weaknesses of your sales team. It also identifies potential
business opportunities and gives a better understanding of your customers’ needs, thereby
improving your sales effectiveness.
10. COMPETITIVE ANALYSIS

competitive analysis is a secondary market research method where a company collects and
analyzes information about competitors in their market. It involves identifying all the primary and
secondary rivals to your business and determining their offerings, profits, marketing strategies
and more.
l
TYPES OF COMPETITIVE ANALYSIS FRAMEWORK:

l 1. SWOT analysis
l 2. Porter’s Five Forces
l 3. Strategic Group Analysis
l 4. Perceptual Mapping
l 5. Growth-share matrix
1. SWOT analysis
when to perform SWOT analysis?
l Before developing a new strategy
l During the making of quarterly performance reports
l While making the business plan for the next quarter/ year
l While calculating your strengths, weaknesses, opportunities, and risks
benefits of performing a SWOT analysis:
you get a clear idea about the market position of your business.
you can use this technique to develop and know your USPs
you come to know where exactly is your business lacking
this technique can help you come up with new groundbreaking strategies
you know where your competitors are lagging behind you. So, you can leverage those parts to
move ahead.
2. Porter’s Five Forces

when to perform Porter’s Five Forces?
when you want to keep a close watch on your rivals.
when you want to maximize your profitability.
for a complete knowledge of the environment and industry.
to make new business strategies.
to understand whether new products or services are potentially profitable.
to find out and improve weaknesses and to avoid mistakes.
benefits of Porter’s Five Forces:
helps you in adjusting the ongoing business strategies
you can pay attention to the all-around development of your business.
3. Strategic Group Analysis

when to use Strategic Group Analysis?
this framework is usually used to analyze sales and marketing strategies.
apart from that, it is also used in analyzing your target audience.
you can also use this technique when you want to compare your profit margin to theirs.
benefits of strategic group analysis:
It helps you in making long-term strategic decisions.
It helps you to stay in line with the companies that implement the same business strategies as
you.
It easily helps you eliminate the competitors that are not on your radar.
4. Perceptual Mapping
when to use Growth-Share Matrix?
lit helps you to prioritize your action plan with respect to your current position and market
situation.
you can decide on how to make the best use of your capital and resources.
when you want to have a detailed idea of your and your competitors’ strength and weaknesses.
benefits of Growth-Share Matrix:
lit gives you a birds-eye view of your product/service performance, opportunity, and threats.
you know the right allocation of your resources.
you know your strengths and weakness and can easily get ahead of your competitors.
5. Growth-share matrix
when to use Perceptual Mapping?
when you want to understand your product/service from the customer’s point of view.
benefits of Perceptual Mapping:
you understand your customer’s expectations from you and hence know to serve right.
you get to know about your market position from your customer’s point of view.
7 P’s of Marketing and Branding
Marketing Mix
 The marketing mix is a concept that is said to have been developed by professor and
academic, Neil H. Borden, who elaborated on James Culliton’s concept of business
executives being mixers of ingredients.
 The marketing mix was later refined by professor and author, Jerome McCarthy, to
specifically include four key components: Product, Place, Price, and Promotion. McCarthy
wrote about the ‘4 Ps’ in the 1960s in his book Basic Marketing: A Managerial Approach.
 The original 4 P’s stands for product, place, price and promotion.
Eventually, three elements have been added, namely: people, packaging, and
positioning to comprise the 7 P’s.
 The 7Ps includes:

 PRODUCT
 PLACE
 PRICE
 PROMOTION
 PEOPLE
 PACKAGING
 POSITIONING
7 P’s: Product
 Oftentimes, marketing strategy begins with the product. Marketers cannot develop a
distribution strategy or establish a price unless they know precisely what goods will be sold
to the market.
 This refers to what the company produces (whether it is an item or service, or a
combination of both) and is developed to meet the core need of the customer.
 GOODS
 Physical Objects. Goods are the material items that can be seen, touched or felt and are
ready for sale to the customers.
 Goods can be classified into types:
 Consumer Goods
 Digital Goods
 Business Goods
 Intermediate Goods
 Virtual Goods
 Consumer Goods
 Consumer goods are products bought for consumption by the average consumer.
 - Durable Goods.
 - Non-durable Goods.
 Digital Goods
 commodities or products that exist in a digital form, something that can be sold and
consumed online. They are different from digital services, since a service requires doing
something for someone while a good is selling something to someone.
 Virtual Goods
 non-physical asset that is traded in an online community or marketplace. They are
commonly found in video games, as well as on social media platforms. In the platforms that
provide virtual goods, especially video games, purchasing them enables users to level up
more quickly or to unlock features that would’ve otherwise been time-consuming
 Business Goods
 Various goods not for final consumption but for producing other goods or providing services.
 Business goods contrast with consumer goods, where no further processing is required to
obtain their benefits.
 Intermediate Goods
 Are goods sold between industries for resale or the production of other goods. These goods
are also called semi-finished products because they are used as inputs to become part of
the finished product.
 Services
 Are the non-physical, intangible parts of our economy. Intangible Activities. Services are
amenities, facilities, benefits or help provided by other people.
Services
A. Consumer Services
-are intangible products or actions that are typically produced and consumed simultaneously.
B. Professional Services
-are nonphysical products or services that individuals or companies provide to customers to
help them manage or improve a specific area of their businesses.
 Product-led Marketing
In a marketing mix, product considerations involve every aspect of what you're trying to sell.
This includes:
 Design
 Quality
 Features
 Options
 Packaging
 Market positioning
 There are five components to successful product-led marketing that are important for
product marketers to take into consideration:
 Get out of the way. Let your product or service sell itself.
 Be an expert (on your customers).
 Always be helping.
 Share authentic stories.
 Grow a product mindset. Focus on your product before you consider how to sell it.
7 P’s: Place
 It represents the location where the buyer and seller exchange goods or services.
 Ensures that the product is distributed properly and accessible in a convenient location at
the right time and at right quantity
 It is a crucial part of the marketing mix.
 It is also called as "distribution channel.”
 But what if:

 Customers are not near a retailer that is selling the product?
 A competing product is stocked by a much wider range of outlets?
 A competitor is winning because it has a team of trained distributors or sales agents who
are out there meeting customers and closing the sale?
Different Stages of Distribution Channel

Channel 1 contains two intermediaries. These intermediaries are the wholesalers and retailers.
Channel 2 is a distribution channel where there is one intermediary involved in between
manufacturer & customers. This intermediary is termed as a retailer.
Slide 21
Channel 3 is called a "direct-marketing" channel, since it has no intermediary levels. In this case
the manufacturer sells directly to customers.
Slide 22
Factors to consider while deciding on market mix place:

1. Avoid Competition- avoid opening up shop next to one of your competitors. If your
competitors already have a loyal customer base, then this could affect your sales.
2.Visibility- It's always better to have an office in the main road instead of behind a building on
a deserted street of the neighborhood. The location may cost more initially but in the long run
your business increases and more people will find out about your offerings.
3. High footfall- Find out the density of traffic in the area you want to set up your business in. If
people rarely visit the place for their purchasing requirements, then even a good business plan
would not be sufficient to ensure growth. Footfall is an important indicator of how effectively a
business brand and marketing are attracting consumers.
4.Accesibility- Make sure that your business location is easily accessible to potential
customers to inquire about your offerings. Nobody would go out their way to reach you when
there are similar businesses that are easily reachable.
Slide 25
7 P’s: Price
 The only P in the marketing mix that generates profit.
 Price is something given in return for a product or service in a commercial exchange
 The amount of money you charge for your product or service.
 Price is determined by different factors…
 What a buyer is willing to pay.
 What a seller is willing to accept.
 The competition is allowing to be charged.
 Importance of a right pricing strategy:
 In markets with dynamic volume and price pressure, the right pricing approach is essential
to remain competitive.
 Helps you define the particular price at which you can maximize profits on sales of your
product or service
7 P’s: Price- Different pricing strategies
 Penetration Pricing- used by companies to attract customers to a product or service by

offering a lower price than its competitors during the initial launch to gain a market share.
 Skimming Pricing- companies charge the highest possible price for a new product then
lower the price over time as the product decrease in popularity.
 3. Competition Pricing
 uses the competitors’ prices as benchmark and doesn’t consider the cost of its product and
consumer demand.
 Three options in competition pricing:
 To offer a lower price than the competitor
 Offer the same price as the competitor
 To offer a higher price than the competitor.
 4. Product- line Pricing
 Involves the separation of goods and services into cost categories in order to create various
perceived quality levels in the minds of consumers.
 5.Bundle pricing
 Companies group several products into a bundle and sell them an at a single price, rather
than attribute individual prices to each item.
 6. Premium Pricing
 A pricing strategy wherein companies charge their products high to present the image that
their products are high-value, luxury, or premium.
 7. Psychological Pricing
 A strategy that uses pricing to influence costumers’ spending or shopping habits to make
more or higher value sales.
 Kinds of Psychological Pricing

 Charm effect
 Premium effect
 Comparative
 BOGO (buy one get one)
 8. Optional Pricing
 the practice of selling one main product at a lower price, then selling accessories for that
product at a higher price
 9. Cost-plus Pricing
 Involves adding a markup to the cost of goods and services to arrive at a selling price
Formula for computing the cost-plus pricing:
Selling Price= cost (1+markup percentage)
 Material cost
 Labor cost
 Overhead cost
 10. Cost- based Pricing

 A pricing method in which a fixed sum or a percentage of the total cost is added (as income
or profit) to the cost of the product to arrive at its selling price.
 11. Value- based Pricing
 A price- setting strategy where prices are set primarily on consumers’ perceived value of
the product or service.
 12. Freemium Pricing
 Combination of the word “free” and “premium”
 Companies offer a free version of their product and create a premium version hoping that
consumers will eventually pay and upgrade the product to access more features.
 13. Economy Pricing
 A strategy where a company decrease the overall cost of production to produce a cheap
product but at high volume.
 14. Dynamic Pricing Strategy
 It’s a flexible pricing strategy where prices fluctuate based on market or costumer demand.
 15. Loss Leader Pricing

 Products are sold below their cost so companies can attract more customers or sell
unwanted stocks to get consumers in the door to buy other higher priced products.
7 P’s: Promotion
 Promotion is the fourth P in the Marketing Mix. Promotion refers to the complete set of
activities, which communicate the product, brand or service to the user
 The idea is to create an awareness, attract and induce the consumers to buy the product, in
preference over others
7 P’s: Promotion: Promotional Mix

 1.Advertising- It is the business or act of making something known to the public.
 Radio- Advertising by means of radio gives the advantage of selecting the territory and
audience to which the message is to be directed. It is also cheaper than TV advertising.
b) Television- This is the latest and the fast -developing medium of advertising and is getting
increased popularity these days.
c) Print- The print media carry their messages entirely through the visual mode. These media
consist of newspapers, magazines and direct mail.
d) Electronic- You can also advertise electronically through your company website and provide
important and pertinent information to clients and customers.
e) Word of mouth- Means that your customers tell other people about your
business and their experience using your product or services.
f) Generic- Generic advertising is advertising for a generic product rather than a
particular brand.
 2. Public relation or PR
 in public relations, the article that features your company is not paid for. The reporter,
whether broadcast or print, writes about or films your company as a result of information he
or she received and researched.
 3. Personal Selling
 Personal selling occurs when an individual salesperson sells a product, service or solution
to a client. Salespeople match the benefits of their offering to the specific needs of a client.
Today, personal selling involves the development of longstanding client relationships.
Five stages of personal selling process:

 4. Sales Promotion
 Sales promotion is any initiative undertaken by an organization to promote an increase in
sales, usage or trial of a product or service.
 Sales Promotion Techniques:
 Free Gifts
 Free Samples
 Free Trial
d) Costumer Contest
e) Special Pricing
 5. Direct marketing
 promotional method that involves presenting information about your company, product, or
service to your target customer without the use of an advertising middleman. It is a targeted
form of marketing that presents information of potential interest to a consumer that has
been determined to be a likely buyer.
 Forms of Direct Marketing:

 Brochure
 Coupons
 Catalogs
 Emails
 Fliers
 Phone calls
 Newsletters
h) Text messages
i) Phone calls
7 P’s: People
 This includes everyone who involved in the product or service whether directly or indirectly.
All these people have their own roles to play in the production, marketing, distribution and
delivery of the products and services to the customers
 People in the marketing mix might be:

 Costumer service providers
 Sales staffs
 Advisors/ experts
 Administrative staffs
 Support staffs

7 P’s: Packaging
 Refers to the materials used to wrap or protect goods.
 It is also the process of showing, presenting, or describing your product in a favorable way.
 Also informs the costumer immediately about what the product is.
 Five Basic Functions of Packaging

 1. Protection- provides protection for the effects of time and environment for the natural and
manufactured products.
 Natural deterioration
 Physical protection
 Safety
 Waste reduction
2. Containment- this involves merging of unit loads for shipping.

3. Information- the packaging conveys necessary information to the consumers
4. Utility of use- The convenience packaging has been devised for foods, household chemicals,
drugs, adhesives, paints, cosmetics, paper goods and a host of other products
5. Identification- packaging helps to distinguish from one brand to another.
6. Convenience- Wholesalers, retailers, middlemen, warehouse keepers and consumers
demand convenience in packaging i.e. they should be light-weight and conveniently packed so
as to be carried by hand
7. Promotion-companies use attractive colors, logos, symbols and captions to promote the
product that can influence customer purchase decision.
 Packaging decisions:
 Packaging concept
 Engineering test
 Visual test
 Dealer test
 Consumer test.
7 P’s: Positioning
 Refers to a process used by marketers to create an image in the minds of a target market. It
is designed to improve the image and visibility of a brand, company, or product.
 Examples:
 McDonald’s positions itself as a place to get quick and cheap meals
 Microsoft and Apple position themselves as a tech company that offers innovative and user-
friendly products.
 THREE BASIC CONCEPT FOR POSITIONING

 FUNCTIONAL POSITIONS- This is used when the brand or products provide solutions to
problems, provide benefits to customers, and get a favorable perception from investors,
stockholders, and consumers.
 SYMBOLIC POSITIONS- It deals with self-image enhancement, ego identification,
belongingness, social meaningfulness, and affective fulfillment.
3. EXPERIENTIAL POSITIONS- It creates sensory and cognitive simulation in the minds of the
customer.
 POSITIONING PROCESS
 A continuous and reiterative process which companies do to ensure strong, positive and
stable positioning in a consumer’s mind. Positioning process enables companies to define
the positioning of a brand, product or service.
Steps of the positioning process:

1. Confirm your understanding of market dynamics
2. Identify your competitive advantages
3. Choose competitive advantages that define your market “niche”
4. Define your positioning strategy
5. Communicate and deliver on the positioning strategy
 Step 1: Confirm Your Understanding of Market Dynamics

 At the start of the positioning process, you need a firm understanding of your target market
and answers to the following questions:
 Which target segment will your positioning strategy focus on?
 What factors do consumers think are important to consider before making a purchase
decision?
 What do customers think about your competitors in the same category?
 Step 2: Identify Your Competitive Advantages
 Competitive Advantage refers to the factors that allow you to outperform the competition.
This enables a business to achieve and maintain stronger profitability, a better growth
profile, or greater customer loyalty. A competitive advantage is often referred to as a “
protective moat.”
 Competitive advantage may come from the following:
 Price
 Features
 Benefits
Step 3: Choose Competitive Advantages That Define Your Niche
- Your list of competitive advantages represents a set of possible positioning strategies you
could pursue for your product. Next step is to examine how these factors fit into customer
perceptions of your broader competitive set. A perceptual map is a great tool for this step.
Perceptual map allows marketers to understand about the gaps that currently exist in the market
and where their product can easily fit in. It helps you to easily analyze the gaps representing
opportunities in niches that are currently not being addressed by the existing products.
Step 4: Define Your Positioning Strategy
Step 5: Communicate and Deliver on the Positioning Strategy

It is an important step and begins with a positioning statement.
• Positioning statement- a description of your product and target audience and explains how it
fulfills a market need in a way that its competitors don’t.
Your positioning strategy builds on a competitive advantage and so it is important to deliver on

the promises you are making while positioning your product. You must be able to meet the
expectations that your positioning strategy sets in your customers’ minds. You should design
your positioning strategy to endure over time, while recognizing that it can and should be
adjusted from time to time to reflect changes in the competitive set, your target segment, market
trends, and so forth
 Key Steps in Creating an Effective Market Positioning Strategy:
 Determine the company’s uniqueness by comparing to competitors
 Identify current market position
 Analyze competitors’ positioning strategy
 Develop a positioning strategy.
Lesson 2: Developing a Brand Name
 What is Branding?
 Brand Name is a name, symbol, or other feature that distinguishes a seller's goods or
services in the marketplace.
 Your brand is one of your greatest assets because your brand is your customers' over-all
experience of your business.
 What is Branding Strategy?

 a long-term design for the development of a popular brand in order to achieve the goals and
objectives.
 A well-defined brand strategy shakes all parts of a business and is directly linked to
customer needs, wants, emotions, and competitive surroundings.
 7 STEPS TO CREATE YOUR BRANDING STRATEGY TO ATTRACT MORE

COSTUMERS
 CONDUCT LOCAL MARKET RESEARCH
 understand and know what it is that your target market actually wants. You also have to
consider the location of your audience. But before you start surveying you need to answer
some core questions in regards to your business structure and goals:
a. How large of a geographic area do you serve?
b. How far are people willing to physically travel to get your services?
c. How large is your local market?
d. How many competitors do you have? What are their unique selling points?
 MASTER YOUR BRAND MESSAGE

 • Your brand message should tell you what it is that your audience values and needs
most.
 A branding message will include:
 a.Brand Values
 b.Your Unique Selling Point
 c. Tone
 d.Benefits
 e.Calls-to-Action
THE BRAND MESSAGING FORMULA

If you are going to create a brand message or taglines, it should put your audience front and
center.
A local branding formula can be broken down like this:
” WE HELP [audience] IN [area] [achievement benefit] THROUGH [services] THAT [features].”
Example: “We help victims of workplace injury in Candon City, get the justice and compensation
they deserve through legal services that focus on aggressive yet compassionate
representation,”
3. IMPLEMENT LOCAL SEO

Local SEO is a search engine optimization(SEO) strategy that helps your business be more
visible in local search results on google. If you want to attract and engage customers in your
area, you will definitely need local SEO. This is where you optimize your site for local search
results.
Slide 80
Your local SEO strategy should include:

a. A mobile-friendly and attractive website design.
b. Fast website load speed.
c. Citation building in local and niche-related directions.
d. Link building with high-authority websites in your niche and local area.
 4. BUILD STRATEGIC PARTNERSHIP

 A strategic partnership is a business partnership that involves the sharing if resources
between twin or more individuals or companies to help all involved succeed. Strategic
partners are usually non-competing business and often share both the risks and reward of
the decisions of both companies.
FOCUS ON MUTUAL BENEFIT

This kind of relationship can work on person and online. The goal is to build relationships
that mutually beneficial and funnel leads to each brand for different (yet related) services.
As a marketer, you can help your clients build this partnership through outreach and content
marketing. Some great platforms for this are Linkedln and email marketing.
 5. SHARE TARGETED CONTENT ON SOCIAL MEDIA

 If your market research determined that your audience is active on social media, and you
know those platforms are, then you can grab the chance to create content that woks to grab
their attention
What to focus on contents?

a. Informative
b. Accurate
c. Relevant
d. Timely
e. Well-Written
f. Engaging
g. On-brand (tone, values, style)
Effective media contents Not effective media contents

A client video testimonial saying how Sharing your latest blog post without a
working with a lawyer helped them get the caption.
compensated they deserve
An infographic about navigating the legal A trending video of a cat
process.
Sharing videos of actual work processes A rant about current events and politics
in your business online.
 6. ATTEND NETWORKING EVENTS
 People still value human connection, making networking and in-person marketing highly
effective. Attending local networking events help you build those strategic partnership, and
allows you to brush shoulder with some big players in your industry, that may turn into a
potential client.
 7. RUN PPC AND CAMPAIGN

 Launching a pay per click (PPC) ad campaign could be a way to upgrade your search
engine marketing efforts. The primary platforms for this are Google Ads and Facebook Ads,
and both allows you to target a certain audience based on interested and geographical
location.
GOOGLE ADS VS. FACEBOOK ADS

Google Ads
You will bid on keywords that will trigger your ads to be shown whenever a user searches for
the term in google.
Facebook Ads
You can add a tracking pixel to your website in order to remarket to users that have already
visited your site. Because of modern technology facebook comes up with paid advertising
features to help business and individuals in their digital marketing campaigns. .
 Personal branding
 Corporate Branding
 Individual branding
 Attitude branding
 Product branding
 Service branding
 Online branding
Lesson 2: Types of Branding Strategies
1. Purpose
Evernote: “Get organized. Work smart. Remember everything.”
2. Consistency
Netflix: “We want to entertain the world.”
3. Emotion
Uber’s Anti Racism Billboard:
“Move the way you want”
4. Flexibility
Starbucks: “To inspire and nurture the human spirit - one person, one cup and one neighbor at a
time.
Slide 94
5. Employee involvement
Microsoft Corp.: “Be what is next”
6. Loyalty
Shein: “She in, shine out”
7. Competitive Awareness
Marketing Management Practices
These are the operations/steps/procedures performed by an entrepreneur in his business in
order to express excellent service to his customers and have a long-lasting business.
Estimate Potential Market Demand

 Estimation is an educated guess. The best way to be very certain and confident about
estimates for potential market demand is to look for facts in the industry where the
entrepreneur intends to enter.

 Terms to define:
 Market – refers to the group of consumers who are interested in your product or willing to
buy your product
 Market demand – is the specific quantity of a product that consumers can afford and want
to buy at the given price of that product or service
 Potential market demand – It is an estimate of the total volume that would be purchased by
a designated group of consumers in a particular marketing environment in a specific time
duration
 Why is it important to estimate a potential market demand?

 Estimating the potential market demand is important because it will allow you to see if the
market demand is large enough to support your business.
Analyze the competitors
 It is the process of identifying competitors in your industry and researching their different
marketing strategies. It’s about understanding why the target market is buying or will buy
from the competitor. Knowing what the competitor is marketing includes:
 Competitor’s product or services
 How much these product and services cost
 How these products are distributed
 How they are made known to the target market
 The best way to do this is to go out there and see the competition yourself. Some
entrepreneurs even go to the extent of buying the products or using the services of
competitors.
Why is it important to analyze your competitors?

Analyzing your competitors is important because it allows you to see the strengths and
weaknesses in comparison to your own and to find a gap in the market.
Adopt a Good Product Name for Branding
Will my product's name be remembered? When a name is different or unusual, it may attract
attention, and perhaps arouse curiosity. Is it something that is interesting, such as one that is
part of a rhyme or evokes humor?
 Is it distinct enough from other names, to prevent people from confusing your product with
another? If the name is meaningful and fits with the product, it tends to generate higher
recognition and recall.
Characteristics of a Good Brand Name

 Distinctive
 Simple
 Meaningful
 Universally
 Short
 Compatible with product
TYPES OF BRAND NAMES

TYPES
HISTORICAL Historical brand names are used when
naming the company after a historical figure.
ACRONYMS Having a slight variation in the spelling of a
word can create a brand new, unique name
for your company.
MISSPELLED Having a slight variation in the spelling of a
word can create a brand new, unique name
for your company.
ALPHANUMERIC This means that brands use a combination of
letters and numbers in their name.
FOUNDING This occurs when the company is named
after the person who founded it.
LEXICAL Lexical brand names use wordplay and are
usually playful.
INVENTED This occurs when a company creates its own
word for its name.
DESCRIPTIVE This occurs when companies use a name
that describes the product they are producing
or the service they are serving.
Put a Price Tag
A price tag is a label to the price of an item being sold in a store. It is the amount of money a
buyer pays in order to own the item.
Advantages of Putting a Price Tag

 The price of an item is readily available to a buyer.
 It eliminates inconveniences on both the seller and the buyer as to the process of inquiry
regarding to the prices of goods being sold.
 A buyer can save time in choosing goods
 The government can easily monitor stores which are selling goods at a higher price than the
prices specified by the Price Control Council.
Price tags are commonly used by businesses to set the price of their products. By displaying the
price on your products, people would know what they should pay and encourage them to buy. It
gives you the value you deserve for your products and services offered and secures the profits
you need to invest in change and growth.
Promote products/services in various ways to increase sales
Why Is Product Promotion Important?

Product promotion contributes to brand awareness, recall, credibility, and sales. A product
without a promotion strategy is like a car without wheels – it’s not going to move.
Promoting your product also lets you collect important customer insights and analyze them to
craft better strategies in the future. Through these insights you can get information regarding
market trends, customer inclinations and their consumption patterns.
Promote products/services in various ways to increase sales
 Products or the services of the firm need to be advertised in order to generate sales. The
entrepreneur has to devise ways of making people know and want to buy the product. This
phase of the business falls under sales promotion. Sales promotion may be accomplished
through any of the following ways:
 Newspapers, radio and other forms of media. Putting up advertisements in the newspapers
and commercials on television and radio regarding a certain product.
 Window displays. Putting up attractive window displays in front of a department store or
supermarket.
 Fashion shows. The latest finds in men’s and women’s wear may be advertised by hiring
professional models to model the clothes.
 Exhibits. Goods may be put on display by exhibiting it in a lobby of a hotel or in a shopping
mall.
 Lecture and demonstration. Products may be advertised by inviting prospective customers
to attend a lecture about the product. Demonstration is the process of showing to others
how a certain product works or is used.
 Product sampling. New products such as cosmetics, food items or beverages may be
advertised by giving prospective costumers free samples to taste, drink or use.
 Quantity discounts. To attract buyers to buy a certain product, the store owner may
announce a big discount on such products.
 House-to-house selling. This method is bringing the product directly at the doorstep of
potential buyers.
 Telephone. Calling up people by telephone and telling them about a new product is one
way of directly reaching the consumer.
 E-mail. Sending flyers or brochures via email to costumer is a very convenient way to
promote your business.
 Website. Put up your business website where products or services are uploaded for
costumers to know about.
 Social network. Advertise your product or service in social networks like Facebook and
Instagram.
 Sales events. Stores announce the celebration of certain events, such as anniversaries,
year-end inventory, opening and closing sale, pre-post holiday sales and other events, to
attract buyers to go into the store and buy their goods.
 Poster. A poster is a listing of prices of various goods found in a shelf or a corner for the
information of the customers. It may also show some special information about new
products/services. It is a way of attracting customers to read about and consider buying a
new product.
Product Promotion Ways Used By Experts

 1. Buy One Save On Another Campaigns and Reward Points
 2. Run Dynamic Remarketing Ads
 3. Dedicated Facebook Group Community
 4. Holiday Seasons, Vlogger Connections and Video Channels
What is customer complaints?
Customer complaints can be defined as the gaps between what business promises in terms of
the product or services and what customers get. It is a mismatch between how customers
perceive the brand and where they fail to get the desired customer service experience.
Here are a few reasons why customer complaints are important for your business
growth.
1..Complaints are a reality check for your business

It is critical to pay maximum attention to customer complaints. Businesses that don’t define their
objectives get stuck without solid goals and customer complaints can help to identify ways to
take businesses to the next level.
2. Understand customers better
Knowing and understanding customer needs is the focal point of every successful
business.
3. Get first-hand feedback about your products & services

When customers have a bad experience with your brand, they might not tell you but
certainly share with their friends and colleagues.
4.Enhance customer communication

customers move to other brands because they are put off by an untrained or rude
support team. Effective communication plays a vital role in resolving customer
complaints.
Here are the key reasons why customer complaints or feedback are good for your
business:
 Points out important aspects that need improvement.
 Listening to customers makes them feel valued
Attending to the complaints of customers

Every business has to be customer centric to sustain in the competitive market. Investing in
customer support will help businesses to
understand their complaints and improve their services and experience.
5 ways to handle customer complaints

 Listen and understand
 Always listen to your customers. They have complained for a reason and it is important to
understand why they are complaining. customers care more about quality than a fast
response. Take time to listen and understand what their problem is.
 Apologize
 Don’t be afraid to apologize for a mistake. Many customers are simply looking for an
apology and acknowledgement of their complaint.But, don’t just stop at the apology, follow
through with a promise to resolve the complaint.
 Find a solution
 When your customer has a legitimate complaint, you need to find the root cause and solve
it.If the issue has been or can be repeated, make the necessary changes so you do not
receive another complaint.
 Follow up with the customer
 Follow up with your customers to make sure they are satisfied with the solution.Following
up shows you care. And this makes the customer feel important.
 Exceed expectations
 You have acknowledged the mistake, fixed the problem and followed up. Now, it’s your
chance to go one step further and exceed customer expectations, whether this is to send a
hand-written thank you note or to give the customer early access to your new product
features.
Here are the Practices being resorted to by business establishments:

 Super markets and department stores have a customer service counter which attend to the
needs and complaints of customer.
 Customers are given a certain number of days within which they can return a product for
replacement or refund.
 Return and Refund policy
 A Return & Refund Policy is a policy that dictates under what
 conditions customers can return products they've purchased from your business/store and
whether you'll reimburse them or not.
3. Goods being sold have an expiration date to prevent the sale of expired or stale product.
4.In restaurants, waiters repeat the orders of customers to insure that they have taken the right
order.
OFFICIAL RECEIPT
 Official receipt is an official document that records a purchase relating to a service as an
evidence that a transaction has taken place.
 It is to ensure that the transaction and the payment that has been made is valid and
supported with documents for accounting and tax purposes.
 Official receipts are used to keep track of sales and financial records and statements.
 All business establishments are required to issue official receipts. However, there are some
which do not issue receipts unless the customer wants to.
 Failure by a business establishment to issue a receipt means a financial loss to the
government in terms of payment of taxes
 The official receipts is one of the ways by which the government determines how much
sales have been made by a business establishment and how much taxes are need to be
paid.
 AUTHORITY TO PRINT
 Companies and business owners that has been registered with the BIR are required to get
an Authority to Print Certificate from the Bureau of Internal Revenue or BIR in order to
generate and issue official receipts or sales invoice to costumers.
 WHY OFFICIAL RECEIPTS SHOULD BE ISSUED TO THE COSTUMERS?
 Section 237 of the Philippine Tax Code.
 For documentation and validation of business transactions.
 Key component for tax compliance.
 Protect your company from unreasonable customers.
 To avoid legal troubles.
 To ensure all buyers are aware of their right to ask for receipt or invoice, and that the
tax on the said sale is properly declared and remitted to the BIR.
Rights of Consumers
J
Right to Basic Needs
 This refers to the right to have access to basic, essential goods and services such as
adequate food, clothing, shelter, health care, education, public utilities, water and
sanitation.
Right to Safety
 Food Safety Act 2013 (Republic Act No. 10611)
 - An Act to strengthen the Food Safety Regulatory System in the Country to Protect
Consumer Health and Facilitate Market Access of local foods and food products, and for
other purposes.
 This is the right to be protected against products, production processes and services that
are hazardous to health or life.
Right to Information
 This refers to the right to be given the facts needed to make an informed choice, and to be
protected against dishonest or misleading advertising and labelling.
RA 7394 Consumer Act of the Philippines

- “Article 140. False, Deceptive or Misleading Advertisement. - It shall be unlawful for any
person to disseminate or to cause the dissemination of any false, deceptive or misleading
advertisement for the purpose of including or which is likely to induce directly or indirectly the
purchase of consumer products or services.
Right to Choose
 This refers to the right to be able to select from a range of products and services, offered at
competitive prices with an assurance of satisfactory quality.
Right to be Heard
 RA 7394 Article 159
 - The concerned department may commerce an investigation upon petition or upon letter-
complaint from any consumer.
 The consumer has a right to file a complaint and to be heard in case of dissatisfaction with
a good or a service.
Right to Representation
 - The Departments shall establish procedures for meaningful participation by consumers or
consumer organizations in the development and review of department rules, policies and
programs.
 This is the right to have consumer interests represented in the making and execution of
government policy, and in the development of products and services.
Right to Redress
 - Any Filipino or foreign manufacturer, producer, and any importer, shall be liable for
redress, independently of fault, for damages caused to consumers
 This means that consumers have the right to receive a fair settlement of just claims,
including compensation for misrepresentation, shoddy goods or unsatisfactory services.
Right to Consumer Education

 RA 7394 Article 2C
 - Provision of information and education to facilitate sound choice and the proper exercise
of rights by the consumer
 The right to acquire knowledge and skills needed to make informed, confident choices
about goods and services, while being aware of basic consumer rights and responsibilities
and how to act on them..
Right to Healthy Environment

 RA 7394 Article 2A
 - Protection against hazards to health and safety
 The right to live and work in an environment which is neither threatening nor dangerous,
and which permits a life of dignity and well-being.
Pack the Goods Bought by the Customers
The Importance of Product Packaging

First impressions are very important, and your packaging is often a consumer’s first introduction
to the product. As such, product packaging is a factor that manufacturers should never overlook.
The importance of product packaging is multi-faceted and can go a long way in securing a good
first impression and lasting brand loyalty
Slide 69
Protects the product

At its most base level, product packaging serves to protect the product inside. Packaging must
keep the product safe during shipment between the manufacturing facility and the retailer and
must prevent damage while the product sits on the shelf. Therefore, product packaging must be
sturdy and reliable.
Displays and promotes the product

Another functional aspect of product packaging is how it promotes and displays the product
within. Many products, particularly food products, include a description of ingredients and
nutritional information on the packaging. Other product packaging may display instructions
explaining how to set up and use the product. Displaying important information regarding the
product helps manage consumer expectations and promotes customer satisfaction.
Attracts buyers
When considering the importance of product packaging, it’s crucial to consider the wants and
needs of the consumer. The main goal of creating any product, after all, is to attract customers
and encourage them to buy your product.
Differentiates the product from competitors

When walking through the aisles of a store, it quickly becomes clear that there is no shortage of
new and interesting products on the market. Many retailers often group similar products on
shelves, so the need to separate your products from the competition is highly important. Well-
made, eye-catching product packaging is a great way to do just that.
Price the Product /

Service Reasonably
The Difference between Cost, Price, and Value:

 Cost- of your product or service is the amount you spend to produce it.
 Price- is your financial reward for providing the product or service.
 Value- is what your costumer believes the product or service is worth to them.
Maximize your Profitability:

 Benefits- your customer gain from using your product or service.
 Criteria- your customer use for buying decisions.
 Value- your customer place on receiving the benefits you provide.
Covering fixed and variable costs:

 Costs under two headings:
 Fixed Cost- are those that are always there, regardless of how much or how little you sell.
 Variable Cost- are those rise as your sales increases.
Cost-plus Versus Value-Based Pricing:

 Cost-Plus Pricing: This takes the cost of producing your product or service and adds an
amount that you need to make a profit. This is usually expressed as a percentage of the
cost.
 Value-Based Pricing: This focuses on the price you believe customers are willing to pay,
based on the benefits your business offers them.
Different Pricing Tactics:

 Discounting- a range of strategies where the price of a product or service is decreased in
the interest of generating interest, unloading excess inventory, or boosting sales.
 Odd Value Pricing- a pricing strategy aimed maximizing profit by making micro-adjustment
in pricing structure.
 Loss Leader- a pricing strategy that involves selecting one or more strategy that involves
selecting one or more retail products to be sold below cost.
 Skimming- a pricing strategy that sets new product prices high and subsequently lower
them as competitors enter the market.
 Penetration- a pricing strategy used to attract customers to a new product or service by
offering a lower price during its initial offering.
Branding
Branding is the process of giving a meaning to specific organization, company, products or
services by creating and shaping a brand in consumers’ minds. It is a strategy designed by
organizations to help people to quickly identify and experience their brand, and give them a
reason to choose their products over the competition’s, by clarifying what this particular brand is
and is not. Effective branding helps companies differentiate themselves from their competitors
and build a loyal customer base.
Who does it affect?

Consumers: A brand provides consumers with a decision-making-shortcut when feeling
indecisive about the same product from different companies.
Employees/shareholders/third-parties: Successful branding strategies are also adding to a
company’s reputation. This asset can affect a range of people, from consumers to employees,
investors, shareholders, providers, and distributors. As an example, if you don’t like or don’t feel
connected to a brand, you would probably not want to work for it. However, if you feel like the
brand understands you and offers products that inspire you, you would probably desire to work
for it and be part of its world.
Trademarks
A trademark is a word, a group of words, sign, symbol, logo or a combination thereof that
identifies and differentiates the source of the goods or services of one entity from those of
others.
Trademark Protection
A trademark protects a business' brand identity in the marketplace. Registration of it gives the
owner the exclusive rights to prevent others from using or exploiting the mark in any way.
Service mark
It is exactly the same as trademark but it talks about the service rather than a product.
Characteristics of a good branding

 Short and simple
 Easy to spell, read and pronounce
 Does not contain undesirable/inappropriate images
 Timely
 Legally registered
Why is branding important?

Through the use of branding, entrepreneurs will be able to gain recognition, increase business
values, attract more customers and to build trust within a certain marketplace. A unique brand
can have a huge impact on your bottom line by giving you a competitive advantage over your
rivals and helping you acquire and retain customers at a much lower cost. In eCommerce,
where new companies are springing up every day, an established brand can be an invaluable
asset in bringing customers and generating profit.
The Business Plan
Business Plan
 The business plan is a blueprint of the business that the entrepreneur would like to
start.
 It aims to establish if a business idea will bring a fair return to one's investment, will
be beneficial to the society, and will bring no harm to the environment when it is
operated.
The Goals of a Business Plan:

 To assess the feasibility of the business idea.
 Develop business strategies to make the business idea doable.
 To use it for obtaining resources, especially loans from financial institutions like
banks.
REASONS WHY AN ENTREPRENEUR STILL NEEDS TO MAKE A BUSINESS PLAN:

 Reduce/Remove the risk of losing money invested in a poorly researched or
unstudied business idea.
 Avoid costly mistakes.
 Anticipate the financial requirements.
REASONS WHY AN ENTREPRENEUR STILL NEEDS TO MAKE A BUSINESS PLAN:

 Organize the activities beforehand.
 Assess actual performance against set goals.
 Apply for financing from leading institutions.
BUSINESS PLAN OUTLINE

Executive Summary
 Description of the proposed business and business model
 Description of the market opportunity to capture, or market problem the business
solves
 Reasons for why this is an attractive business opportunity
 Key distinctions or differentiators of the business versus competitors
Executive Summary
 Overview of the sales, marketing, and operations strategy and plan
 Description of the execution plan and timeline
 Overview of projected financials containing revenues, cost, profits and
assumptions
Management and Organization

 Company Name, Logo and Address
 Vision and Mission Statements
 Key personal
 Workforce and Support personnel
 Organizational chart
 Ownership, Capitalization, Compensation and incentives
 External Management Support
Product/Service Plan
 Purpose of the product or service
 Product's unique features
 Material requirements and sources of supply
 Process an equipment that will be used to manufacture the product or to render
the service
Product/Service Plan
 Production/Service Process and Controls
 Distribution logistics
 Regulatory and other compliance issues
Market Plan
 Market Analysis
 Marketing Strategies
 Product or Service Characteristics
 Pricing Policy
 Sales Projections
Financial Plan
 Start-up Costs requirements
 Financial Projections
 Breakeven analysis
 Budget
Factors to Consider of a New Entrepreneur in Developing a Business Plan

 FACTORS TO CONSIDER OF A NEW ENTREPRENEUR:
1.Know your Product or Service
As an entrepreneur, you must have faith in the product or service that you will provide to your
customers. If it is a new idea or concept, you must be able to persuade clients that you have a
one-of-a-kind product that will meet their needs and wants. Customers want to test new items,
but it must be better to those already on the market.
2. Analyze the Market Potentials

The success of your business will be determined by your consumer base. The greater the
market potential, the greater the likelihood of development and success. The entrepreneur must
understand his or her own needs and desires and figure out how to meet them. Analyze client
profiles in terms of purchasing behaviour, income, and social status.
3. Determine the Marketing Strategy

In order to run a successful business, entrepreneurs must have a distinct and solid marketing
strategy. Entrepreneurs must understand how to properly implement a distribution strategy in
order to attract customers into the basket of demand potential.
4. Know the Competitors

When releasing a product alongside established rivals, it is critical to understand their strengths
and weaknesses. you should create a new product and use their flaws to create a new
opportunity for your goods. Consider how you can get a significant advantage on them.
5. Do not set on your Laurels

The business landscape is always evolving. Your early success in business requires more
proactive study for development and growth, as well as to overcome potential competitors.
Create an advertising and marketing strategy to expand your market reach. Every day, you
should strive to improve and enhance the quality of your product.
ENVIRONMENTAL SCANNING
Environmental scanning is the collecting and use of information on events, relationships, and
trends in an organization's industry, as well as the use of that knowledge in developing the
organization's future plans and objectives. Environmental scanning encourages individuals in an
organization to look outside of their organization for opportunities, important lessons, trends,
and vulnerabilities or dangers that might impact the company's performance. Identifying these
variables allows the business to build strategies to exploit or mitigate the consequences of these
external industrial pressures.
FOLLOWING FACTORS ARE CONTRIBUTORY TO THE DEVELOPMENT OF CUSTOMER
SATISFACTION:
1. Business Location for Small Entrepreneur
When starting a business, choose an ideal place. Your location should be convenient and
accessible for customers to easily visit so that they will prefer to go to your place and return
again and again.
 Factors to consider in choosing the location:

A. Rent and Space- The site should have a rent that you can pay in accordance to your
potential revenue. The space should be of sufficient size to shelter your product and the
customer.
B. Terms of Lease Agreement- Entrepreneurs should carefully review the lease terms to
prevent being taken advantage of by the space owner.
C. Type of Goods or Merchandise- Your location should be accessible so that customers can
easily visit the business and do not have to spend a long time purchasing their items.
D. Income Level of prospective Customer- The site should be in a community with a higher
income class. You should be aware of the sort of pedestrians and the customer's financial level.
E. Prospective Sales Volume- High density sales volume must be placed in shopping areas
where people converse to purchase necessary commodities. Lower sales volume may be seen
in the community or secondary locations such as subdivisions or barangays.
F. Municipal or City Ordinance including taxes and fees
The location must not violate local or municipal rules, and the taxes and fees must not be too
expensive for the business owners. Excessive taxes will not foster economic growth in the area.
G. Location of the Areas- The area must free or safe from calamities that will endanger the
business and the customers.
2. Location for Small Industrial Plant or Manufacturing Facilities

Environmental factors in establishing a manufacturing plant or industrial facilities must be
carefully analyzed since plant site is a big factor in the investment of funds and its long-term
profitability. The industrial facility should be appropriate for the type of business. It must adhere
to government zoning requirements concerning pollution and environmental legislation.
 The following are important factors to consider:

 A. Land Area- The land's contour, size, and form must be appropriate for the
plant location.
 B. Facilities for Expansion- The property area must have enough room for
facility growth.
 C. Power and Utilities- The availability of power and the cost of energy used in
the operation are significant factors in the production of commodities.
 D. Building and other Utilities- The structure must adhere to the municipality's
or city's construction codes.
 E. Plant Site Accessibility- For its employees and valued customers, the
manufacturing location should be easily accessible by public and service
transportation.
Traditional Business Plan vs Lean-Start Up
Traditional Business Plan

 It covers the business concepts such as marketing and finances, and utilized as a tool to
effectively operate the business.
 The components are designed to communicate to investors, banks and business partners.
 The plan can manage the company’s progress and plan for unforeseen events and
circumstance.
Traditional Business Plan [Components]

 Executive Summary
 Organization and Management
 Service or Product Plan
 Market Analysis
 Financial Projections
 Appendix
Compared to LEAN-START UP:
 Value Proposition
 Key Partners
 Key Activities
 Key Resources
 Customer Segments
 Customer Relationships
 Channels
 Cost Structure
 Revenue Streams
Variables a Business Might Encounter

 The Presence of Double Taxation
 Double taxation is a tax principle referring to income taxes paid twice on the same
source of income. It can occur when income is taxed at both the corporate level and
personal level.
 Peace and Order in the Area of Business Operation
 facilitates the growth of investments, generates more employment opportunities and
attracts more tourists
 The Cost of Power Supply
 The cost of production increases with the cost of utilities like current and water.
Strategic Planning Tools in Creating a Business Plan
 SWOT Analysis
 Stand for Strengths, Weaknesses, Opportunities, And Threats
 it is a strategic planning and strategic management techniques used to help a person or
organization identify the Strengths, Weaknesses, Opportunities, and Threats related to
business competition or project planning.
 Sometimes called situational assessment or situational analysis.
 SWOT Analysis will force you to look at your business in new ways and from new
directions. You’ll look at your strengths and weaknesses, and how you can leverage those
to take advantage of the opportunities and threats that exists in your market.
Who should do a SWOT Analysis?

 For SWOT Analysis to be effective, company founders and leaders need to be deeply
involved. This is not a task that can be delegated to others.
 But company leaders should not do the work on their own. For best results, you’ll
want to gather a group of people who have a different perspective on the
company.
How to do a SWOT Analysis the Right Way

 Determine Your Objective
 Gather Resources
 Compile Ideas
 Refine Findings
 Develop the Strategy
SWOT Table
 A SWOT Analysis as a square segmented into four quadrants, each dedicated to an
element of SWOT.
 The SWOT table is often laid out with the internal factors on the top row and the external
factor on the bottom row. In addition, the items on the left are the positive or favorable
while the items on the right are more concerning or the negative elements.
Strengths
 These are the internal, positive attributes of your company. These are the things within
your control.
 Product strength in the market must have the following:

 Available technology in product processing
 The source of new materials must be abundant and at lower price
 Skilled worker must be available
 Capital investments in machinery and operating expenditures
 Expertise and technical skills of the management team
Weaknesses
 These are the negative factors that detract from your strengths. These are things a
company might need to improve on to be competitive.
 Characteristics of weak product and weak management:

 Poor quality and high price
 Product design and appeal
 Production cost
 Supply and demand
 Weak product management
Opportunities
 These are the external factors in your business environment that are likely to contribute to
your success.
 Sustainable product opportunities in the market:

 Product demand
 Presence of poor quality in the market
 Government policies and support
 Liberal credit terms and interest rates
Threats
 Threats are external factors that you have no control over. You may want to consider
putting in place contingency plans for dealing with them if they occur.
 Threats to product profitability and market expansion

 Entrance competition
 The supply of raw materials
 The emergence of leftwing labor unions
Benefits of SWOT Analysis
 A SWOT analysis makes complex problems more manageable
 A SWOT analysis requires external consider
 It can be applied to almost every business question
 It leverages different data sources
 It may not be overly costly to prepare

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RECOGNIZE AND UNDERSTAND THE MARKET

Recognize and Understand the Market

Unique Selling Proposition (USP)

Tips for creating an effective USP

Value Proposition and Unique Selling Proposition

Commonly used methods for segmenting the markets are follows:

 2. Demographic Segmentation – divided based on consumers

 3. Psychological Segmentation – divided in terms of how customers think and

 - There can be two types of customer requirements:

Purpose of Market Research

Benefits of Market Research

STEPS IN CONDUCTING MARKET RESEARCH

MARKET RESEARCH TIPS

WHAT CAN BE REVEALED THROUGH MARKET RESEARCH

Primary market research tends to fall into one of two buckets:

The main buckets your secondary market research will into:

10 Methods in Conducting Market Research

4 Common Types of Market Research Survey

4. SOCIAL MEDIA LISTENING

9. SALES DATA ANALYSIS

9 Types of Sales Analysis Methods:

1. Sales Trend Analysis

l9. Market Research

10. COMPETITIVE ANALYSIS

TYPES OF COMPETITIVE ANALYSIS FRAMEWORK:

2. Porter’s Five Forces

3. Strategic Group Analysis

 The 7Ps includes:

 But what if:

Different Stages of Distribution Channel

Factors to consider while deciding on market mix place:

7 P’s: Price- Different pricing strategies

 Penetration Pricing- used by companies to attract customers to a product or service by

 Kinds of Psychological Pricing

Formula for computing the cost-plus pricing:

Selling Price= cost (1+markup percentage)

 10. Cost- based Pricing

 15. Loss Leader Pricing

7 P’s: Promotion: Promotional Mix

Five stages of personal selling process:

 Forms of Direct Marketing:

 People in the marketing mix might be:

 Five Basic Functions of Packaging

2. Containment- this involves merging of unit loads for shipping.

 THREE BASIC CONCEPT FOR POSITIONING

Steps of the positioning process:

 Step 1: Confirm Your Understanding of Market Dynamics

Step 4: Define Your Positioning Strategy

Step 5: Communicate and Deliver on the Positioning Strategy

Your positioning strategy builds on a competitive advantage and so it is important to deliver on

Lesson 2: Developing a Brand Name

 What is Branding Strategy?

 7 STEPS TO CREATE YOUR BRANDING STRATEGY TO ATTRACT MORE

 MASTER YOUR BRAND MESSAGE

THE BRAND MESSAGING FORMULA

3. IMPLEMENT LOCAL SEO

Your local SEO strategy should include: