Market

►It is a place where 2 or more people can gather to facilitate the trade of goods or services.
►It is the total of all the buyers and sellers in the area under consideration.

Entrepreneurial Ideas
-The creation of an entrepreneurial idea leads to the identification of entrepreneurial
opportunities, which in turn results in the opening of an entrepreneurial venture.

The entrepreneurial process of creating new ventures

● Creation of entrepreneurial Ideas
● Identification of entrepreneurial Opportunities
● Opening of entrepreneurial Venture

Essentials in Entrepreneur's Opportunity - Seeking

1. Entrepreneurial mind frame.

- This allows the entrepreneur to see things optimistically amid difficult situations.
Being a risk- taker, an entrepreneur can find solutions when problems arise.
2. Entrepreneurial heart flame
- Entrepreneurs are driven by passion; they are attracted to discover satisfaction in the
act and process of discovery. Passion is the great desire of an entrepreneur to
achieve his/her goals.
3. Entrepreneurial gut game
- This refers to the ability of the entrepreneur to be intuitive. The gut game also means
confidence in one's self and the firm belief that everything you aspire can be
reached.

Sources of Opportunities

1. Changes in the environment

- Entrepreneurial ideas arise when changes happen in the external environment. A
person with an entrepreneurial drive views these changes positively. External
environment refers to the physical environment, societal environment, and industry
environment where the business operates.

1.1 The Physical environment includes

● a. Climate - the weather conditions.
● b. Natural resources - such as minerals, forests, water, and fertile land that occur in
nature and can be used for economic gain.
● c. Wildlife - includes all mammals, birds, reptiles, fish, etc., that live in the wild

1.2 The Societal environment includes the various forces like

● a. Political forces - includes all the laws, rules, and regulations that govern business
practices as well as the permits, approvals, and licenses necessary to operate the
business.
● b. Economic forces - such as income level and employment rate.
● c. Sociocultural forces - customs, lifestyles and values that characterize a society.
● d. Technological environment - new inventions and technology innovations.
1.3 The Industry environment of the business includes:

● a. Competitors. d. Employees
● b. Customers. e. Government
● c. Creditors. f. Suppliers

2. Technological discovery and advancement

- A person with entrepreneurial interest sees possibility of business opportunities in
any new discovery or because of the use of latest technology.

3. Government's thrust, programs, and policies

►The priorities, projects, programs, and policies of the government are also good
sources of ideas.

For example, the use of firecrackers to celebrate New Year's Eve is strictly prohibited.
People without entrepreneurial interest will view the ordinance as a plain restriction.
However, for an entrepreneur, it is a business opportunity to come up with a new product
that will serve as a substitute for firecrackers.

4. People's interest
►The interest, hobbies, and preferences of people are rich sources of entrepreneurial
ideas, like the increasing number of Internet Cafés at present could lead to the strong
attachment of young people to computers.

5. Past experiences
► The expertise and skills developed by a person who has worked in a particular field
may lead to the opening of a related business enterprise

Forces of Competition Model

Competition - it is the act or process of trying to get or win something

● Buyers
● Potential new entrants
● Rivalry among existing firms
● Substitute products
● Supplier

1. Buyers
- The buyers are the ones who pay cash in exchange for your goods and services. The
threat of its bargaining power will be less if the following factors are noticed:

● a. There are several suppliers available in the market.

● b. The cost of switching the supplier cost is minimal.
● c. The product represents a high percentage of the buyer's cost.
● d. The buyer purchases large portions of the seller's product or services
2. Potential New Entrants
- A new entrant is defined as companies or businesses that can penetrate or enter into
a particular industry. This can be noticed if there is the presence of the following
factors:

● a. Substantial capital requirement

● b. Strict government policy
● c. Difficulty in accessing distribution channels
● d. Economies of scale
● e. High cost of product differentiation
● f. High switching cost
3. Rivalry among Existing Firms
- Rivalry is a state or situation wherein business organizations are competing with
each other in a particular market.

● a. Diversity of rivals
● b. The number of competing firms
● c. Characteristics of the products or services
● d. Increased capacity
● e. Amount of fixed costs
● f. Rate of industry growth
4. Substitute Products
- Substitute is one that serves the same purpose as another product in the market. A
substitute product can give a big threat in the industry environment if the following
factors are noticed:

● a. Switching cost is low

● b. Preferences and tastes of the customers easily change
● c. Product differentiation is highly noticeable
● d. The quality of substitute products dramatically improves
● e. The price of substitute product is substantially lower
5. Suppliers
- The Suppliers are the one that provide something that is needed in business
operations such as office supplies and equipment. This can be noticed if there is the
presence of the following factors:

● a. The supplier has the ability for forward integration

● b. Suppliers in the industry are few, but the sales volume is high c. Substitute
products are not readily available in the market
● d. The switching cost is very high
● e. The product or service is unique

MARKETING

WHAT IS MARKETING?

● It is considered simply as the process of buying and selling of a product or a service.

 ● Marketing used to be centered around traditional marketing techniques including
television, radio, mail, and word-of-mouth strategies.
● Marketing seeks to take a product or service, identify its ideal customers, and draw
the customers' attention to the product or service available.

3 GENERAL TYPES OF FUNCTIONS

1. EXCHANGE FUNCTION
● This involves finding a buyer or buying, selling and pricing.
● The physical meeting point of buyers and sellers.

2. PHYSICAL FUNCTION
● It is focused on assembling, transport and handling, processing and packaging,
grading and Storage.

3. FACILITIES FUNCTION
● This concentrates on financing and risk- bearing, market information, demand and
supply creation and market research

LESSON 2: POTENTIAL MARKET

What is Potential Market?

● It is the part of the total population that has shown some level of interest in buying a
particular product or service.
● A part of the market that you can capture in the future, and it includes the
demographic groups that are not yet your customers.
● TAM (Total Addressable Market)
PENETRATED MARKET
● It refers to the set of customers who is already using a particular product or service.

TARGET MARKET
● It is a group of people that have been identified as the most likely customers for a
product or service because of their shared characteristics or behavior

AVAILABLE MARKET
● It is the number of people who are both willing and capable of buying a particular
product or service in a particular market.

POTENTIAL MARKET
● is the total population that has shown some lovel of interest in buying a particular
product or service. This includes individuals, firms and organizations.

Potential Market Example

-For example, you want to identify the market of a skin care you sell in a particular area.
(Near MCS)

Why is it important to know your potential market?

IMPORTANCE OF POTENTIAL MARKET

● The size of a potential market helps a company understand the level of investment it
should make further in the market, while taking into consideration other factors.
● The size of the potential market gives an estimate of what all a company should do
and how much it should invest.
● Serves as your initial guide in risking business.

7 P's of Marketing mix

Marketing Mix
● Marketing Mix IS a set of controllable and connected variables that a company
gathers to satisfy a customer better than its competitor It is also known as the "Ps" in
marketing.

1. PRODUCTS
● Product refers to any goods or services that is produced to meet the consumers
wants, tastes and preferences.
- Goods can be categorized into business goods or consumer goods.
- Services can be categorized into Consumer Services or Professional Services.
2. PLACE
● Place represents the location where the buyer and seller exchange goods or
services. It can include any physical store as well as virtual stores or online shops on
the Internet.
● Place matters for a business of any size. It is a crucial part of the marketing mix. The
main function of a distribution channel is to provide a link between production and
consumption.

3. PRICE

● Price is the value of money in exchange for a product or service. Generally speaking,
the price is the amount or value that a customer gives up to enjoy the benefits of
having or using a product or service. With product, promotion, and place of the
marketing mix, it is one of the business variables over which organizations can
exercise some degree of control.

4.PROMOTION

● 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. The following are the
most common medium in promoting a product and this is called promotional mix.

PROMOTIONAL MIX

1. ADVERTISING
•Radio
•Television
•Print
•Electronic
•Word-of-mouth
2. PUBLIC RELATIONS OR PR
● In public relations, the article that features your company is not paid for. The goal of
public relations is to shape public perception of a business, presenting a positive
image through various strategies to its various constituents.

3.SALES PROMOTIONS
● 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 Technique

• Free Gifts
• Free samples
• Free trial
•Customer contest
•Special pricing

5. PEOPLE

● People are the ultimate marketing strategy. Products are being sold through retail
channels today. If the retail channels are not handled with the right people, the
product will not be sold. Services must be first class nowadays. The people rendering
the service must be competent and skilled enough so that the clients will patronize
your service.

6. Packaging
● It refers to the outside appearance of the product and how it is presented to the
customers.

Five Basic Functions of Packaging

1. Protection-(natural deterioration, Physical protection, and safety)

2. Containment
3. Information
4. Utility of Use
5. Promotion

7. Positioning

● Positioning refers to a process used by marketers to create an image in the minds of

a target market.
● It refers to a product's status in relation to the wider market.
● Solid positioning will allow a single product to attract different customers for not the
same reasons.