ENTREPRENEURSHIP LESSON 2: OPPORTUNITY Demographics Opportunities in anticipating and

IDENTIFICATION AND DEVELOPING A BUSINESS PLAN meeting the needs of the population
can be found in the changes of
demographics/target market/market
segmentation.
OPPORTUNITY Entrepreneurs are innovative Change in Changes in opinions such as trends
SEEKING opportunity seekers. Create value by Perception can create market opportunities.
introducing new products or services
or finding better ways in making
them. New Knowledge New technologies and new
Entrepreneurial Mind Essential to an entrepreneur’s discoveries can be a source of
Frame ; Heart Flame opportunity seeking opportunities.
; Gut game
Entrepreneurial Mind Allows the entrepreneur to see things OPPORTUNITY Because there are so many
Frame in a very positive and optimistic light SCREENING opportunities possible for the
in the midst of crisis or difficult entrepreneur, it is important to come
situations. up with a short list of a few very
Heart Flame Great desire to achieve or fulfill a promising opportunities which could
mission. be examined in detail.
Gut Game Ability of the entrepreneur to sense • Do I have the drive to pursue this bsiness opportunity to
without using the five senses. Also the end?
known as intuition. • Will I spend all my time, effort, and money to make the
Macro Environment Refers to the big or macro forces that business opportunity work?
affect the area, the industry and the • Will I sacrifice my existing lifestyle, endure emotional
market which the enterprise belongs hardship, and forego my sual comforts to succeed in this
to. business opportunity?
SPEET (SOCIAL, Macro-environment forces are (1) Relevance ; 12 R’s Of Opportunity Screening
POLITICAL, divided into 5 categories. (2) Resonance ; (3)
ECONOMIC, Reinforcement of
ECOLOGICAL, entrepreneurial
TECHNOLOGICAL intrests
dimensions) (4) Revenues;
Socio-Cultural Includes the demographics and (5) Responsiveness;
Environment cultural dimensions (takes into (6) Reach;
consideration the trends and (7) Range;
dynamics of the bigger consmer (8) Revolutionary
population, their beliefs, tastes, etc.) Impact;
Political Defines the governance system of (9) Returns;
Environment the country or the local area of (10) Relative Ease of
business. (Includes the laws, rules Implementation (11)
and regulations) Resources Required;
Economic Supply and demand forces mainly (12) Risks
Environment drive the macro economic OPPORTUITY In this stage, the entrepreneur must
environment. (Income levels, SEIZING be able to determine the critical
purchasing power, competitivenes of success factors that enable other
its industries etc.) players in the same industry to
Ecological All natural resources and the succeed.
Environment ecosystem, habitat of men, animals, • Will I be able to manage, to my advatange, the critical
plants, and minerals. success factors and avoid the critical failure factors?

Technological Pertains to the emerging of new

Environment technologies, which often lead to (1) Focus and Factors to consider before starting a
launch and commercialization of new Direction business
products. (2) Sources of
Wilhite (2020) Discussed the Potential Sources of Capital
Opportunity in her article entitles the (3) Good network
Peter Drucker’s 7 Sources of (4) Legal
Opportunity for Businesses. Requirements
(1) The unexpected ; The 7 Sources of Opportunity for (5) Defree of Risk
(2) The Businesses (6) Research and
Incongruuous (3) Development
The process needs; (7) Prsonal
(4) Industry and Competencies
market structures ; (8) Availability of
(5) Demographics; Resources
(6) Change in BSMED Business Medium Enterprise
Perception Development (BSMED)
The Unexpected Opportunities can be found when
sitations and eveents are
unanticipated. Micro Enterprise, TYPES OF BUSINESS ACCORDING
Cottage Enterprise, TO SIZE
The Incongruous Opportunities to improve can be Small enterprise,
found when there are situations when Medium Enterprise,
there are inconsistencies in the way Large Enterprise
they appear or when there is a gap Micro Enterprise - Asset not exceeding 50, 000.
between what is and what should be - Home based enterprise, operating
in terms of performance. in make-shift or temporary quarters.
The process needs Opportunities can be found - Only have 10 or less employees
throughout the process of discovery. - Store-vendors
Cottage Enterprise - Asset of 250,000 but not exceeding
500, 000
Industry and Market Opportunities to innovate their - Home-based business operated by
Structures product or services through the the members of the family
changes in technology, social value, - Manufacturers of pastillas
and the customer’s tastes
Small Enterprise - Asset of 500, 000 but not (16) Other Service
exxceeding 2.5 million Activities
- Owned by an individual or group
and has enough resources to keep
operating * For agencies, refer to module page 23-26
- 10 to 20 employees
- Tour agencies; beauty salons; BUSINESS PLAN
groceries
Medium Enterprise - Asset of 5 Million but not exceeding Executive Summary a. Description of the proposed
20 Million business and business model
- 100 or more workers b. Description of the market
- Owned by a single individual, opportunity to capture, or market
business partners, or a corporation problem the business solves
- 20 to 100 employees c. Reasons for why this is an
- garment manufacturers attractive business opportunity
Large Enterprise - has an asset of 20 million or more d. Key distinctions or differentiators
- often managed by a corporation of the business versus competitors
- employes 100 or more workers e. Overview of the sales, marketing,
- Board of Directors + Chief and operations strategy and plan
Operating Officer f. Description of the execution plan
- Big fast food chains, large and timeline
department stores g. Overview of projected financials
Single TYPES OF BUSINESSES containing revenues, costs, profits,
Proprietorship, ACCORDING TO FORMS OF and assumptions
Partnership, OWNERSHIP Management and a. Company Name, logo, and
Corporation, Organizations address
Cooperative b. Vision and mission statements
Single Managed by own person (DTI)- c. Key personnel
Proprietorship Department of Trade and Industry d. Workforce and support personnel
e. Organizational chart
f. Ownership, capitalization,
Partnership Association of two or more persons compensation, and incentives
who act as co-owners of a business g. External management support
(SEC)-Securities And Exchange Product/Service Plan a. Purpose of the product/service
Commission b. Product’s unique features
Corporation Artifical being created by operation of c. Material requirements and sources
law, having the right of succession, and supply
and the powers, attributs, and d. Process an equipment that will be
properties expressly authorized by or used to manufacture the
incident to its existence. (SEC) product/render the service
Cooperative Duly registered associated of e. Production/service process and
persons, with a common bone of controls
interest, who have voluntarily jointed f. Distribution logistics
together to achieve a lawful common g. Regulatory and other compliance
social or economic end (CDA)- issues
Cooperative Development Authority Market Plan a. Market analysis which includes
Philippine Standard PSIC meaning demand and supply vis-a-vis
Industrial competitors
Classification b. Marketing and sales strategies
c. Product/service characteristics and
(1) Agriculture, features
Forestry, and d. Pricing policy
Fishing e. Sales projections
(2) Mining and Financial Plan a. Start-up Costs requirements
Quarrying b. Financial projections
(3) Manufacturing c. Breakeven analysis
(4) Construction d. Budget
(5) Wholesale and
Retail Trade
(6) Transportation
and Storage
(7)Accomodation
and food service
activities
(8) information and
communication
(9) real estate
activities
(10) Professional,
Scientific, and
Technical Activities
(11) Administrative
and Support Service
Activities
(12) Arts,
Entertainment, and
Recreation
(13) Public
Administration and
Defense
(14) Education
(15) Human Health
and Social Work
Activities
ENTREPRENEURSHIP LESSON 4: MARKETING seeking to increase the
acceptability of a social
idea, cause, or practice
among a target group.
American Marketing Defines marketing as Unique Selling Proposition It is the factor or
Association “an organizational (USP) consideration presented
function and a set of by a seller as the
process for creating, reason that one product
communicating, and or service is different
delivering value to from and better than
customers and for that of the competition.
managing customer
relationships in ways “What do you have that
that benefit the competitors don’t?”
organization ad its
Product Attributes Are the benefits that the
stakeholders.”
product will offer, its
Marketing The performance of quality, features, style,
activities that seek to and design
accomplish an
• Product Quality Product Attributes
organization’s
objectives by • Product Features
anticipating customer • Style
needs and directing a • Design
flow of need-satisfying Product Quality Product should be free
goods and services from any defects
from producer to Product Features The competitive tool for
customer (Canon, differentiating the
Perrault, McCarthy, company’s product from
2008) the product of its
Jerome McCarthy, 1960 Developed the 7Ps competitors
Bernard H. Booms and Mary Extended the marketing Product Features Competitive tool for
J. Bitner, 1981 mix by 3 new Ps differentiating the
(people, physical company’s product from
evidence, and process) the products of its
• Product The 7Ps of Marketing competitors
• Price Style Its describe the
• Place appearance of a product
Design It goes to the very heart
• Promotion
of the product. It will
• People
offer one of the most
• Process and
potent tools for
• Physical Evidence differentiating and
PRODUCT positioning products of
Product Anything that can be all kinds
offered to a market for Branding or Brand Name, term, sign,
attention, acquisition, symbol or design, or a
use or consumption that combination of these,
might satisfy a wat or intended to identify the
need. goods or services of
• Physical objects Included in Product one seller or group
• service • Branding leads to higher and more consistent product
• persons quality
• places organizations All products carrying the Responsibilities that
• ideas brand must have quality Accompany branding
• Organization Marketing Other marketable consistency
• Person Marketing entities
• Place Marketing The brand must be
• Ideas (social ideas, social advertised and promoted
marketing)
Organization Marketing Consists of activities
undertaken to create,
maintain or change the
attitudes and behavior
of target consumers
towards an organization Packaging Serves to contain and
Person Marketing Cosists of activities protect and sometimes
undertaken to create, identify and promote the
maintain or change product.
attitudes or behavior
towards particular The activities of
people. designing and
Place Marketing Involves activities producing container or
undertaken to create, wrapper for a specific
maintain or change product.
attitudes or behavior • Protects the product Purposes of packaging
towards places. • Makes products storage
Social Ideas Public health campaigns and display more practical
to reduce smoking, and effective
alcoholism etc. other • Preserves the product for
campaigns such as further customer use
education, reforms, • Plastic Types of packaging
organ donations etc. • Brick Carton
Social Marketing Includes the design, • Carboard Boxes
implementation and • Metal
control of programs
• Bubble Wrap • Consumer Products Classification of
• Shrink Wrap • Industrial Products Products according to
Plastic Packaging Most common use
packaging material • Undifferentiated Products Classification of
Brick Carton Light, strong-air tight • Differentiated Products Products according to
packaging material. differentiation
Ideal for transporting • Consumable Products Classification of
storage. Becoming the • Semi-durable Products Products according to
main packaging material • Durable Products Durability
used for basic foodstuffs • Convenience Products Classification of
Carboard boxes Type of packaging that • Shopping Products Products according to
is easy to recycle and • Specialty Products Type
reuse. May be in the • Unsought Products
form of boxes, sheets, PLACE
or corrugated cardboard Place Is the element of
Metal Type of packaging marketing mix that
appropriate for ensures that the product
packaging foods is distributed and made
(canned foods) conveniently available
Aluminum is often used for the customer.
for drinks
Bubble Wrap A packaging material Refers to the distribution
that can also be a or methods and location
source of entertainment you use for your
long after the items are products or services to
unpacked be easily accessible to
Shrink Wrap Commonly used as a the target customers
overwrap on many
types of packaging, Your product or service
including cartons, dictates how it should
boxes, beverage cans be distributed
and pallet loads. Distribution Channels The activities and
Labelling Display of information processes required to
about a product on its move a product from the
container, packaging, or producer to consumer
o the product itself • Exclusive Distribution Product Distribution
Silent Salesman Another term for • Intensive Distribution Types
labelling because it
• Selective Distribution
advertises the product
Exclusive Distribution Distribution is limited to
• Brand Label Types of Labelling a selected number of
• Descriptive Label dealers usually one or a
• Grade Label few
Brand Label Gives information about Intensive Distribution product is available in
the brand. It can be as may retail outlets as
removable or non- possible
removable Selective Distribution Positioned between
Descriptive Label Specifies product usage intensive ad exclusive
Grade Label Describes aspect and distribution, not limited
features of the product and not too many
dealers
PRICE
Price The relation to the value
of benefit that the
customer expects to
derive from the product
or service

Product Cost Estimation Approximates the

probable cost of a
• Core or generic Three product levels product, program, or
• Formal project computed based
• Augmented products on available information.
Core or Generic Product Purpose for which the • Unit Variable Cost Types of cost for a
product was created • Fixed Costs Physical Product
Formal Product Includes factors that Unit Variable Cost The amount or cost of
could effectively manufacturing one unit
different products of the product. (includes
manufactured by one direct material, direct
company over those labor, and direct
manufactured by others overhead)
with the same core Fixed Cost Expenses incurred by
Augmented Product The non-physical part of the organization that are
the product, and usually not related to the
consists of lots of added manufacture of the
value. (warranty, credit product
terms, installment • Mark-up Pricing Pricing Strategies
terms, repair) • Target Return Pricing
• Odd Pricing or
Psychological Pricing
• Loss Leader Pricing
• Price Lining
• Prestige Pricing
• Marginal Pricing
• Predatory Pricing
• Going Rate Pricing
• Promotional Pricing
• Price Skimming
• Penetration Pricing
Mark-up Pricing
Target Return Pricing
Odd Pricing or Psychological
Pricing
Loss Leader Pricing
Price Lining
Prestige Pricing
Marginal Pricing
Predatory Pricing
Going Rate Pricing
Promotional Pricing
consumer goods or
FMCGs implement
promotional pricing at
one time or another)
Price Skimming Strategy used for newer
products
Pricing strategy where
the product’s price is
way above its unit cost
The pricing strategy that
to recover the
allows the seller a fixed
development costs
mark-up every time the
Penetration pricing Strategy used for newer
product is sold.
products
Pricing method that
allows a product
Pricing strategy where
manufacturer to recover
the new product is
a certain portion of
priced only marginally
his/her investment every
above its unit cost. The
year.
objective is to capture a
Premised on the theory
large part of the market
that consumers will an early stage by
perceive products with making the product
odd price endings as affordable to the
lower in price than they greatest number of
are (99.95 cheaper than
people.
100)
Frequently used by
supermarkets
Some selected essential
products are priced
lower to appear more
affordable than others
while other products are
priced higher to make
up from the loss.
Involves reducing the
number of price points PROMOTION
on merchandise to as Promotion Includes all the ways
little as possible. (66 you tell your customers
php or 88 php) about your products or
Disregards the unit cost services and how you
of the product but then market to sell to
instead capitalizes on them.
the high value
perception or positive Includes advertising,
brand reputation of a promotions, personal
product (high end selling, publicity and
products) public relations.
A business organization • Trade Promotions Types of Promotions
prices its product at a • Consumer Promotions
range below its unit cost Trade Promotions Intended for marketing
but higher than its unit intermediaries. Its
variable cost. Main purpose is to encourage
objective is to the intermediaries to
outmaneuver increase purchase, to
competition, expand stock a product, etc.
customer base, and Consumer Promotions Type of promotion
increase market share. intended for consumers.
Pricing strategy where Its purpose is to induce
the firm prices its product trial, to
product lower than the encourage brand
unit variable cost, and switching, or to reward
when the competitor is consumer patronage.
finally out of the market, Advertising Any paid and public
the product returns to its presentation of
original selling price. products, services, or
ideas by an identified
This is illegal in sponsor through a
Philippines (Republic medium is called
Act 8479) advertising.
A pricing strategy where • To build awareness Objectives of
a company prices its • To inform Advertising
product at the same • To persuade
level or very close to the • To Remind
competitor’s prices Brand Awareness Extent to which
Pricing strategy consumers are familiar
involving a temporary with the distinctive
reduction in the selling qualities or image of a
price of a brand of goods or
product/service to services. Achieving a
induce trial or to high level of awareness
encourage repeat provides the brand
purchase. (Fast-moving disadvantages
• Learning advantages Advantages of Brand MARKETING MANAGEMENT PRACTICES
• Consideration advantages awareness
• Choice Advantages 1. Estimate potential market demand.
• Functional Three types of 2. Analyze the competitors
• Symbolic advertising campaigns 3. Price the product/service reasonably
• Experimental 4. Adopt a good product name for branding
5. Put price tags
• Radio Types of media and
6. Promote the products/services in various ways to
• Print (Newspaper, Techniques used in
advertising increase sales
Magazine) 7. Attend to the complaints of customers
• Television 8. Issue official receipts to customers (Failure by a
Radio System or process that business establishment to issue a receipt means a
is used for sending and financial loss to the government in terms of
receiving signals payment of taxes)
through air without 9. Practice courtesy and efficiency in serving
using wires customers
10. Observe the rights of consumers
One of the most • Right to basic needs Rights of Consumers
accessible media
• Right to Safety
available
• Right to information
Print Form of magazines and
newspaper. Many • Right to choose
advertisers still favor • Right to representation
newspapers as their • Right to redress
national circulation, • Right to consumer
population penetration, education
and pass-on readership • Right to a healthy
Television System for transmitting environment
visual images and
sound that are
reproduced on screens.
PEOPLE
People The reputation of the
brand rests in your
people’s hand.

Essential to ensure that

all employees who have
contact with customers
are not only properly
trained but also the right
kind of people for the
job
PROCESS
Process Process and processes
that deliver a product to
a customer. All
processes are
concerned with the
consistent creation and
delivery of customer
value.
PHYSICAL EVIDENCE
Physical Evidence Elements of the physical
environment that the
customer experiences.
It should be consistent
trough the entire
customer experience. A
service cannot be
experience before it is
delivered.