Entrep Reviewer

(Week 4)

◦ Market - is a place where two parties can gather to facilitate the exchange of goods and services.

◦ A Potential Market part of the market you can capture in the future.

◦ Entrepreneurs make an economic wealth by providing products and services must have a rate in order
to create wealth. One principle is, “not to sell waste to consumers but only valuable products and
services” anything of no value to anybody is definitely a waste

◦ Product - It is a tangible or intangible item that is built or produced to satisfy the needs of a certain
group of people.
◦ Service – It is a special form of product which consists of activities, benefits or satisfactions offered for
sale that are intangible and do not result in the ownership of anything.

Differences between Products and Services

◦ Customer needs are the named and unnamed needs of customers when they come in contact with the
different business establishments or when they search for the solutions which businesses provide.

How to Meet the Needs of Customers?

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

Week 5
Recognize a Potential Market

◦ Potential Market - a part of the total population that has shown some level of interest in buying a
particular product or service, a part of the total population that has shown some level of interest in
buying a particular product or service.

Importance of Potential Market

1. Identifying new customers to ensure the future of your business.

2. Think proactively about ways for your business to grow and change.
3. Show the potential of your business to investors or collaborators.
4. Increase your profit.
5. Create a strategic plan when there will be changes in the economy or market.

MARKET IDENTIFICATION

• Market identification is a strategic marketing method that is proposed to define the detailed customer of
the product.

MARKET SEGMENTATION

• It is the act of dividing the market into these segments helped the entrepreneurs address the more
specific market needs, media, pricing patterns and decision criteria

METHODS OF MARKET SEGMENTATION

• Demographic Segmentation- is a method of dividing the whole market based on age, gender, ethnicity,
income, level of education, religion and profession/role in the company. The purpose is to limit the
market into their similarities and finding the best strategy to satisfy their needs and wants.

• Geographic Segmentation- is often the easiest to identify and groupings the customers by their physical
location. It can be defined by country, region, city and postal code.

• Psychological Segmentation- is that the market is divided in terms of what the customers think and
believe like the personality traits, hobbies, life goals, values, belief and lifestyle.

• Behavioral Segmentation- is that the market is divided based on the variables such as perceptions,
knowledge, reactions, benefits, loyalty and responses.

Market segmentation is a strategy that can assist the entrepreneur in identifying the particular similar segment to
serve.

The following are the important factors must be considered in segmenting the market.

1. Accessibility of the market segment. The market segment must be accessible to the business.
2. Size of the market segment. The market segment must be large enough to provide wealth to the
entrepreneurial venture.
3. Distinction of the market segment. The market segment must be easily differentiated.
Relevance of Entrepreneurship to an Organization

1. Development of Managerial Capabilities – Entrepreneur gets is to develop his managerial skills.

2. Creation of Organization – Because of entrepreneurship many organizations will exist.
3. Improving Standard of Living – Entrepreneurship can lift up the economic status of an individual.
4. Means of Economic Development – Not only the life of the entrepreneur is improved but also the society
where the business is located.

The word “entrepreneur” was derived from the French verb entreprendre, which means “to undertake.” This is
pinpointing to those who “undertake” the risk of enterprise. The enterprise is created by an entrepreneur and the
process is called “Entrepreneurship.”

Entrepreneurs are innovators. They are willing to take the risks and generate unique ideas that can provide
profitable solutions to the needs of the market and the society.

Factors Affecting Entrepreneurship (1.Personality Factors)

a. Initiative – doing things before told

b. Proactive – he can classify opportunities and seize it
c. Problem Solver – he can retain good relations with others
d. Perseverance – pursue things to get done regardless of the challenges
e. Persuasion – can entice people to buy even if they don’t want to
f. A Planner – makes plans before he do things and do not fail to monitor it
g. Risk-Taker – willing to gamble but will calculate it first.

2. Environmental Factors – Include political, climate, legal system, economic and social conditions and market
situations.

Common Competencies in Entrepreneurship

1. Decisive - an entrepreneur must be firm in making decisions.

2. Communicator - an entrepreneur must have a convincing power.
3. Leader - an entrepreneur must have the charisma to be obeyed by his employees.
4. Opportunity seeker - an entrepreneur must have the ability to be the first to see business chances.
5. Proactive – an entrepreneur can control a situation by making things happen or by preparing for possible
future problems.
6. Risk Taker – an entrepreneur has the courage to pursue business ideas.
7. Innovative - the entrepreneur has big business ideas and he does not stop improving and thinking of new
worthwhile ideas for his business.

Core Competencies in Entrepreneurship

1. Economic and Dynamic Activity - Entrepreneurship is an economic activity because it involves the
creation and operation of an enterprise with a view to creating value or wealth by ensuring optimum
utilization of limited resources.
2. Innovative – The entrepreneur constantly looks for new ideas, thus he needs to be creative.
3. Profit Potential - The entrepreneur can be compensated by his profit coming from the operation.
4. Risk bearing – The entrepreneur needs to gamble but wise enough to offset the risk.
Types of Entrepreneurs

1. Innovative Entrepreneurs - They are those who always make new things by thinking of new ideas. They
have the ability to think newer, better and more economical ideas.
2. Imitating Entrepreneurs - They are those who don’t create new things but only follow the ideas of other
entrepreneurs.
3. Fabian Entrepreneurs - They are skeptical about changes to be made in the organization. They don’t
initiate but follow only after they are satisfied.
4. Drone Entrepreneurs - They are those who live on the labor of others. They are die-hard conservatives
even ready to suffer the loss of business.
5. Social Entrepreneurs - They are those who initiate changes and drive social innovation and
transformation in the various fields such as education, health, human rights, environment and enterprise
development.

Career Opportunities of Entrepreneurship

1. Business Consultant - with the expertise of in the field of entrepreneurship, he can be a very good source
of advices to other entrepreneurs and would be business men.
2. Teacher - a graduate of an entrepreneurship can use his knowledge in teaching.
3. Researcher - the entrepreneur can be employed as a researcher by an enterprise.
4. Sales - the entrepreneurship graduate can apply as a salesman.
5. Business Reporter - the entrepreneur being expert in the field, can be employed as a business reporter.