INFORMATION SHEET 9.

1-1
Basic concepts of Entrepreneurship

Learning Objectives: After reading this information sheet, you must be able to:
Determine the Basic Concepts of Entrepreneurship
Identify the Characteristics of a Successful Entrepreneur
Understand the meaning and Importance of Entrepreneur

Introduction:
An entrepreneur is an individual who creates a new business, bearing most of the risks and
enjoying most of the rewards. The process of setting up a business is known as entrepreneurship.
Entrepreneurs play a key role in any economy, using the skills and initiative necessary to
anticipate needs and bring new ideas to market. Entrepreneurship that proves to be successful in
taking on the risks of creating a startup is rewarded with profits and growth opportunities.
What is Entrepreneur:
A person who undertakes the risk of starting a new business venture is called an
entrepreneur. An entrepreneur creates a firm to realize their idea, known as entrepreneurship,
which aggregates capital and labor in order to produce goods or services for profit.
What is Entrepreneurship:
Entrepreneurship is highly risky but also can be highly rewarding, as it serves to generate
economic wealth, growth, and innovation. Ensuring funding is key for entrepreneurs: Financing
resources include Small Business Administration loans and crowdfunding.
What Are Different Types of Entrepreneurs?
Not every entrepreneur is the same and not all have the same goals. Here are a few types of
entrepreneurs:
Builder
Builders seek to create scalable businesses within a short time frame. Builders typically pass
$5 million in revenue in the first two to four years and continue to build up until $100 million or
beyond. These individuals seek to build out a strong infrastructure by hiring the best talent and
seeking the best investors. Sometimes, they have temperamental personalities that are suited to
the fast growth they desire but may make personal and business relationships difficult.
Opportunist
 Opportunistic entrepreneurs are optimistic individuals with the ability to pick out financial
opportunities, get in at the right time, stay on board during the time of growth, and exit when a
business hits its peak.
These types of entrepreneurs are concerned with profits and the wealth they will build, so they
are attracted to ideas where they can create residual or renewal income. Because they are looking
to find well-timed opportunities, opportunistic entrepreneurs can be impulsive.
Specialist
These individuals are analytical and risk-averse. They have a strong skill set in a specific area
obtained through education or apprenticeship. A specialist entrepreneur will build out their
business through networking and referrals, sometimes resulting in slower growth than a builder
entrepreneur.
Innovator
Innovators are those rare individuals that come up with a great idea or product that no one has
thought of before. Think of Thomas Edison, Steve Jobs, and Mark Zuckerberg. These individuals
worked on what they loved and found business opportunities through their vision and ideas.
Why Are Entrepreneurs Important?
Entrepreneurship is one of the resources economists categorize as integral to production, the
other three being land/natural resources, labor, and capital. An entrepreneur combines the first
three of these to manufacture goods or provide services. They typically create a business plan,
hire labor, acquire resources and financing, and provide leadership and management for the
business.
Economists have never had a consistent definition of “entrepreneur” or “entrepreneurship”
(the word “entrepreneur” comes from the French verb entreprendre, meaning “to undertake”).
Though the concept of an entrepreneur existed and was known for centuries, the classical and
neoclassical economists left entrepreneurs out of their formal models. They assumed that perfect
information would be known to fully rational actors, leaving no room for risk-taking or
discovery. It wasn’t until the middle of the 20th century that economists seriously attempted to
incorporate entrepreneurship into their models.
Three thinkers were central to the inclusion of entrepreneurs: Joseph Schumpeter, Frank
Knight, and Israel Kirzner.
Schumpeter suggested that entrepreneurs—not just companies—were responsible for the
creation of new things in the search for profit. Knight focused on entrepreneurs as the bearers of
uncertainty and believed they were responsible for risk premiums in financial markets. Kirzner
thought of entrepreneurship as a process that led to the discovery of opportunities.
Fast-forward to today, entrepreneurs commonly face many obstacles when building their
companies. The three that many of them cite as the most challenging include overcoming
bureaucracy, hiring talent, and obtaining financing.
 SELF CHECK 9.1-1
Multiple Choice
Direction: Carefully read each item. Use separate sheet for your answers. Write. Only the letter
of the best answer for each item.

1. These individuals seek to build out a strong infrastructure by hiring the best talent and
seeking the best investors?
a. Innovator c. Entrepreneur
b. Builder d. Specialist
2. Are those rare individuals that come up with a great idea or product that no one has
thought of before?
a. Builder c. Specialist
b. Innovator d. Maker
3. These types of entrepreneurs are concerned with profits and the wealth they will build, so
they are attracted to ideas where they can create residual or renewal income. Because
they are looking to find well-timed opportunities, opportunistic entrepreneurs can be
impulsive.?
a. Builder c. Maker
b. Opportunist d. Specialist
4. These individuals are analytical and risk-averse. They have a strong skill set in a specific
area obtained through education or apprenticeship?
a. Builder c. Maker
b. Opportunist d. Specialist
5. These individuals worked on what they loved and found business opportunities through
their vision and ideas?
a. Specialist. c. Builder
b. Opportunist d. Innovator
6. A person who undertakes the risk of starting a new business venture is called an ?
a. Entrepreneur. c. Maker
b. Specialist d. Innovator
7. A ……….. entrepreneur will build out their business through networking and referrals,
sometimes resulting in slower growth than a builder entrepreneur?
a. Maker c. Specialist
b. Innovator d. Opportunist
8. The word “entrepreneur” comes from the French verb entreprendre, meaning?
a. To provide. c. To sell
b. To give d. To undertake
9. The process of setting up a business is known as?
a. Entrepreneurship c. Entrepreneurial
b. Entrepreneur. d. Entrep
10. Creates a firm to realize their idea, known as entrepreneurship, which aggregates capital
and labor in order to produce goods or services for profit?
a. Entrepreneur. c. Entrepreneurial
b. Entrepreneurship d. Entrep
c.
 ANSWER KEY 9.1-1
1. B
2. B
3. B
4. D
5. D
6. A
7. C
8. D
9. A
10. A

INFORMATION SHEET 9.1-2

 Quality Procedures and Practices in Entrepreneurial in the work place
Learning Objectives: After reading this information sheet, you must be able to:
Illustrate the Entrepreneurial skills
Discuss the factors of choosing location
Apply Entrepreneurial Best Practices
Introduction:
If you are considering becoming an entrepreneur, there are several essential skill sets that
you can develop to increase your entrepreneurial success. Hard skills—like technical and
financial skills—can be extremely important to managing a business. Additionally, soft skills–
like communication and leadership skills–can also ensure you develop as an entrepreneur. In this
article, we will explore what entrepreneurial skills are, how to develop them and how to
highlight your entrepreneurial skills on your resume, in a cover letter and during an interview.
Entrepreneurial skills :
Entrepreneurial skills can encompass a broad range of various skill sets like technical skills,
leadership and business management skills and creative thinking. Because entrepreneurial skills
can be applied to many different job roles and industries, developing your entrepreneurial skills
can mean developing several types of skill sets. For instance, to be a successful business owner,
you may need to develop your business management skills. To build and maintain successful
project teams you might need to improve your leadership and communication skills.
Examples of entrepreneurial skills:
Career Guide
Career development
A Guide to Entrepreneurial Skills: Definition and Examples
A Guide to Entrepreneurial Skills: Definition and Examples

Examples of entrepreneurial skills

 Business management skills

 Teamwork and leadership skills
 Communication and listening
 Customer service skills
 Financial skills
 Analytical and problem-solving skills
 Critical thinking skills
 Strategic thinking and planning skills
  Technical skills
 Time management and organizational skills
 Branding, marketing and networking skills

How to Choose a Business Location:

Starting a business takes a ton of work. You will likely spend months on tasks like writing a
business plan, securing financing, and getting your legal documents in order. However, if your
business location isn’t well-chosen, all of that work could be for nothing. Where you start your
business affects your earning potential, market impact, operating expenses, and much more.
Similarly, your location can restrict how you trade and even jeopardize your business altogether
if it prevents you from generating enough revenue.
What is a Business Location Strategy?
A business location strategy is a plan that takes into account the factors that will affect
where you start and grow your business. This can be as simple as knowing which city or country
you want to do business in, or it could be a detailed analysis of the specific street, neighborhood,
or building that would be most advantageous for your company.
Benefits of Picking The Right Business Location:
Increased Earning Potential
A well-chosen business location can directly impact your bottom line by increasing foot
traffic, making it easier to attract customers, and improve your visibility.
Reduced Operating Expenses
A strategic business location can also help you reduce your operating expenses, such as by being
in a cheaper rent district or having access to more affordable labor.
Improved Market Impact
The right business location can also help you make a bigger impact in your target market. For
example, if you’re trying to reach a local market, it’s important to choose a location that’s
convenient for your target demographic.
Greater Efficiency
A strategic business location can also make your business operations more efficient. For
example, if you’re located near suppliers or customers, you’ll be able to cut down on
transportation costs and time.
Essentially, finding the right business location means being in the right place at the right time to
maximize your chances for success.
8 business location factors to consider:
 1. Geographic location
Firstly, your business location needs to be in an area that positions you in close proximity to your
target market. According to Access Development, 93% of consumers travel 20 minutes or less
for everyday purchases. This trend remains true for urban and rural consumers, although rural
shoppers will travel longer distances for specific goods.

2. Operational needs
Next, you will want to look for an office or building that matches your business model. While
you can still run a convenience store in an old restaurant, it’s best to find a space with a design
based on a retailer’s needs.

3. Rent cost
Once you narrow down your selection of business locations, you will want to compare costs. If
buildings are located near one another, your lease will likely be near the same price.

4. State and Local Taxes

When looking at business locations, don’t forget to factor in state and local taxes. Depending on
the area, these taxes can have a significant impact on your bottom line.

5. Security
Some businesses need more protection than others. A jewellery store might need a large, safe,
and high-tech alarm system, while a small restaurant may simply need a sturdy lock.

6. Competition
Should you open your store near a competitor? Common sense might say no, but you actually
can benefit from selling near similar businesses.

7. Growth potential
Look at your one-year and five-year goals. Do you plan to grow your business or even open
more business locations?
You want to choose a business location that allows you to expand your service as needed. A
restaurant may eventually want to offer outdoor dining or build a bustling takeaway service.
Similarly, a store may want to offer a more diverse inventory.

8. Accessibility
How easily can customers visit your business? The more accessible it is, the more appealing it
can be to shoppers. Customers hate to struggle to reach the business, which can extend the travel
time unnecessarily and make the experience stressful.
Some common accessibility concerns include:
  Car park and street parking availability
 Distance to major highways
 Distance to public transportation
 Convenient parking for delivery trucks

SELF CHECK 9.1-2

Identification
Direction: Carefully read the statement and Provide your answer in the Blank.

1. ___________ Can encompass a broad range of various skill sets like technical skills,
leadership and business management skills and creative thinking?
2. ___________ A business location strategy is a plan that takes into account the factors
that will affect where you start and grow your?
3. ___________ A well-chosen business _________can directly impact your bottom line
by increasing foot traffic, making it easier to attract customers, and improve your
visibility.
4. ___________business location can also help you reduce your operating expenses, such as
by being in a cheaper rent district or having access to more affordable labor.
5. ___________A strategic business location can also make your business operations more
6. ___________Firstly, your business location needs to be in an area that positions you in
close proximity to your target market
7. ___________Once you narrow down your selection of business locations, you will want
to compare costs. If buildings are located near one another, your lease will likely be near
the same price.
8. ___________Next, you will want to look for an office or building that matches your
business model. While you can still run a convenience store in an old restaurant, it’s best
to find a space with a design based on a retailer’s needs.
9. ___________How easily can customers visit your business? The more accessible it is, the
more appealing it can be to shoppers
10. ___________Some businesses need more protection than others. A jewelry store might
need a large, safe, and high-tech alarm system, while a small restaurant may simply need
a sturdy lock.

ANSWER KEY 9.1-2

1. Entrepreneurial skills
2. Business
3. Location
4. Strategic
5. Efficient
6. Geographic location
7. Rent cost
8. Operational needs
9. Accessibility
10. Security

Information Sheet 9.2-1

Workplace Best Practices, Policies and Criteria
Learning Objectives: After reading this Information sheet, the student/trainee should be able to:

● Observed good practices relating to workplace operations are communicated to

appropriate person.

What is a workplace policy?

A policy is a statement which underpins how human resource management issues will be dealt
with in an organization. It communicates an organization’s values and the organization’s
expectations of employee behaviors and performance.
Workplace policies often reinforce and clarify standard operating procedure in a workplace. Well
written policies help employers manage staff more effectively by clearly defining acceptable and
unacceptable behavior in the workplace, and set out the implications of not complying with those
policies.
A workplace policy consists of a statement of purpose and one or more broad guidelines on
action to be taken to achieve that purpose. The statement of purpose should be written in simple
terms, free of jargon. The length of the policy may vary depending on the issue it addresses.
A policy may allow discretion in its implementation and the basis of that discretion should be
stated as part of the policy. A policy may also be required where there is a diversity of interests
and preferences, which could result in vague and conflicting objectives among those who are
directly involved.
Not all workplace issues require a policy. Many routine matters can be dealt with through simple
workplace procedures and processes being put in place.

Benefits of having workplace policies

Well-written workplace policies:
● are consistent with the values of the organisation
● comply with employment and other associated legislation
● demonstrate that the organisation is being operated in an efficient and businesslike
manner
● ensure uniformity and consistency in decision-making and operational procedures
● add strength to the position of staff when possible legal actions arise
● save time when a new problem can be handled quickly and effectively through an
existing policy
● foster stability and continuity
● maintain the direction of the organisation even during periods of change
● provide the framework for business planning
 ● assist in assessing performance and establishing accountability
● clarify functions and responsibilities.

Step 1 – Management Support

It is crucial to have senior management support for the implementation or modification of a
policy, especially where policies relate to employee behaviour. The endorsement and modelling
of the behaviour by senior managers and supervisors will encourage staff to take the policies
seriously. While management support for a policy is an important first step before actively
seeking employee feedback on a proposed policy, the idea for the policy and some of its details
may in fact come from staff.
Step 2 - Consult with staff
Involve staff in developing and implementing workplace policies to promote stronger awareness,
understanding and ownership of the outcome. Staff involvement also helps to determine how and
when the policies might apply, and can assist in identifying possible unintentional outcomes of
the policy.
Step 3 - Define the terms of the policy
Be explicit. Define key terms used in the policy at the beginning so that employees understand
what is meant. The policy should explain what is acceptable and unacceptable behaviour in the
workplace. You may wish to include specific examples to illustrate problem areas or
unacceptable types of behaviours. For example
An individual shall be deemed to be under the influence of alcohol if he/she exceeds a blood
alcohol level of 0.05% (0.02% for heavy vehicle drivers).
Be clear about who the policy applies to. For example, does it only apply to employees of the
company or to contractors and sub-contractors engaged to perform work on business premises?
This is particularly important, for example, with occupational health and safety which covers
everyone in the workplace.
The policy may also need to contain information about what to do if it is not possible to follow
the policy. For example, if you have a policy relating to punctuality, you may need to include a
procedure outlining what to do if the employee is going to be late.
The policy should also contain procedures to support the policy in its operation, such as the
implications for not complying with the policy.
Example 1: Occupational health and safety

No employee is to commence work, or return to work while under the influence of alcohol or
drugs. A breach of this policy is grounds for disciplinary action, up to and including termination
of employment.
Example 2: Email policy
Using the organization's computer resources to seek out, access or send any material of an
offensive, obscene or defamatory nature is prohibited and may result in disciplinary action.
Step 4 - Put the policies in writing and publicize them
To be effective, policies need to be publicized and provided to all existing and new employees.
This includes casual, part-time and full-time employees and those on maternity leave or career
breaks.
Policies should be written in plain English and easily understood by all employees. Consider
translating the policies into the appropriate languages for employees whose first language is not
English.
Ensure all staff understand what the policies mean. Explain how to comply with the policies and
the implications of not complying.
Step 5 - Training and regular referral
The policies may be explained to staff through information and/or training sessions, at staff
meetings and during induction sessions for new staff. They should also be reiterated and
discussed with staff regularly at staff meetings to ensure they remain relevant.
Copies of policies should be easily accessible. Copies may be kept in folders in a central location
or staff areas, in staff manuals and available on the organization's intranet system.
Step 6 – Implementation
It is important that policies are applied consistently throughout the organization. A breach of a
policy should be dealt with promptly and according to the procedures set out in the policy. The
consequence of the breach should also suit the severity of the breach – whether it be a warning,
disciplinary action or dismissal.
Step 7 - Evaluate and review
Review policies regularly to ensure they are current and in line with any changes within the
organization. Where policies are significantly changed they should be re-issued to all staff and
the changes explained to them to ensure they understand the organization's new directions. These
changes should also be widely publicized.

● set out the aim of the policy

● explain why the policy was developed
● list who the policy applies to
● set out what is acceptable or unacceptable behaviour
 ● set out the consequences of not complying with the policy
● provide a date when the policy was developed or updated.

Policies also need to be reviewed on a regular basis and updated where necessary. For example,
if there is a change in equipment or workplace procedures you may need to amend your current
policy or develop a new one.
Employment law changes, changes to your award or agreement may also require a review of
your policies and procedures. Stay up to date with relevant changes by regularly checking Fair
Work Ombudsman.
Types of workplace policies:
Here are some examples of common workplace policies that could assist your workplace.
● code of conduct
● recruitment policy
● internet and email policy
● mobile phone policy
● non-smoking policy
● drug and alcohol policy
● health and safety policy
● anti-discrimination and harassment policy
● grievance handling policy
● discipline and termination policy
● using social media.

SELF-CHECK NO. 9.-2-2

Instruction: Write the correct answer on the space provided.

_______________1. Is a statement which underpins how human resource management issues

will be dealt with in an organisation.
_______________2. Often reinforce and clarify standard operating procedure in a workplace.
_______________3. Regularly to ensure they are current and in line with any changes within the
organisation.
_______________4. An organization which dismissed an employee for sexual harassment was
subsequently ordered to re-employ the sacked staff member as they had failed to follow their
own policy.
_______________5. The policies may be explained to staff through information and/or training
sessions, at staff meetings and during induction sessions for new staff.

Answer Key:

1. Policy
2. Workplace Policy
3. Review Policy
4. Case study
5. Training and regular referral

INFORMATION SHEET NO. 9. 2-2

Resource utilization
Learning Objectives: After reading this Information sheet, the student/trainee should be able to:

● Observe quality procedures and practices are communicated to appropriate person.

What is resource utilization?

Resource utilization is the measure of how much of your available resources you are currently
using. It can help you to plan how to utilize your resources more effectively to ensure that your
organization is being as productive as possible.
Effective utilization of resources can be helpful for both employees and employers. Not only
does it ensure that employees have enough work to make their role viable and profitable, on the
other side of the spectrum it can also prevent overworking and burnout – providing a more
balanced work life overall.
Resource allocation vs. Resource utilization
These processes might sound similar, but they have some slight and important differences:

● Resource allocation sees a project manager choosing suitable staff for a project and then
managing them as the project is completed, reassigning them, or altering their workload
if necessary.
● Resource utilization, however, is the process of strategically measuring how effective
resources are. A resource utilization example is checking if a certain employee is being
maximized in between projects. While allocation organizes your project, it’s utilization
that makes your project successful.
● Both processes are key to achieving project success, however resource utilization is often
undervalued. Creating a robust framework for assessing the conditions of existing
resources might seem complicated, but with the right tools it can be easy. Once you’ve
decided on the budget and resources available, and the metrics you want to use to
measure efficiency, you can implement resource management into your projects.
● Calculating a resource utilization formula. When it comes to calculating a resource
utilization formula, the most common formula for project managers is full-time
equivalent (FTE). This is used to calculate how optimally a resource is being used in
terms of available workable hours.

To calculate this, divide the allocated hours a resource will work during a project by the total
number of workable hours available in the project. Multiply the result by 100 to create a
percentage, and the product will indicate the effectiveness of the resource. For example, if a
worker has been allocated to a project for 45 work hours, and that project has a total of 60
workable hours, then that resource has a utilization of 75% as per the FTE resource utilization
formula.
It’s best to aim for a rate of around 80% – anything above this risks employee burn out, and
anything less will not utilize resourcefully. Creating a resource utilization analysis report can
show you all the resources you have available and how they’re currently performing. There’s no
perfect formula to guarantee success since every project is different – this is something which
can be difficult to manage in a DIY project management tool like Microsoft Excel.
In the past PMs relied on Excel to calculate resource utilization rate, but Excel doesn’t have the
capacity for data projections and scenario analysis that more advanced tools do. Resource
utilization requires high-quality tools to give project managers the agility and insights they need.

What are the benefits of resource utilization?

Resource utilization, ultimately, helps you make the most of your available resources.
Proper utilization of resources is important for maintaining productivity, because it prevents staff
from underperforming or being overburdened by workloads and burning out
Projects can be managed with better visibility, reducing the risk of oversights
Maximum utilization of resources gives you a better ROI
It ensures that specific resources aren’t being over- or under-utilized
It allows PMs to be agile and reschedule resources as quickly as possible to avoid problems
surfacing or becoming worse

Resource utilization tips - With an intelligent resource management platform, project managers
have dedicated tools to approach and master resource utilization.
Leverage visibility – projects may be run separately, but they affect each other. Instead of
viewing projects as separate entities, create a resource utilization plan that allows you to view all
resources. This way, you’ll be able to assess capacity and performance more effectively.
Beware of scope creep – projects will inevitably demand extra time and resources, and it’s a
project manager’s job to keep them from going over time or budget. Resource management
software can put all active projects front and center, utilizing resources equally amongst them to
put things in perspective.
Compare booked hours with actual hours – it’s rare that a project ever runs according to plan,
so make sure to examine the hours booked in preparation for the project and actual hours worked
in real time. This will give you a chance to see if the project plan needs adjusting before anything
goes wrong.
Always be prepared – visualize and run scenarios that will help you prepare for a change of
circumstances. If your budget changes or if you lose a resource, you’ll be able to adapt more
quickly.
Effective utilization with Tempus Resource - To deliver successful projects on time and on a
budget, project managers need intelligent resource management software. Tempus Resource
gives project managers the ability to see individual resource availability and reallocate resources
quickly if needed.
What-if scenarios allow risk-free project visualizations – it’s possible to see what will happen
to a project if its budget or timescale changes. These visualizations enable risk-free decisions.
Heat maps and cool maps offer easy visibility of resource performance, so project managers can
quickly see if resources are being over or under-utilized.
Project managers need a tool that works as hard as they do. Tempus Resource can give you the
resource insights you need to guarantee project success.

SELF-CHECK NO. 9.-2-2

Instruction: Write the correct answer on the space provided.

_______________1. Is the measure of how much of your available resources you are currently
using.
_______________2. Visualize and run scenarios that will help you prepare for a change of
circumstances.
_______________3. It’s possible to see what will happen to a project if its budget or timescale
_______________4. Projects may be run separately, but they affect each other
_______________5. It’s rare that a project ever runs according to plan, so make sure to examine
the hours booked in preparation for the project and actual hours worked in real time.

Answer Key:
1. Resource Utilization
2. Always prepared
3. What-if scenarios allow risk-free project visualization
4. Leverage visibility
5. Compare booked hours with actual hours

Information Sheet 9. 2-3

Ways in fostering entrepreneurial attitudes
Learning Objectives: After reading this information sheet, the student/ trainee should be able to:

1. Identify ways in fostering entrepreneurial altitudes.

2. Be familiar with the duties and responsibilities in the workplace.
3. Be familiar with the do's and don'ts when working
A big part of being an entrepreneur is working in an environment with like minded,
interesting people. But un environment like that doesn't just materialize overnight happen. like
anything else, you need to work hard to make it.

1. Hire Aspiring Entrepreneurs

coincidence that aspiring entrepreneurs to the startup environment. These types are cager to gain
experience and tend to opportunities in markets or the industry where others don't. Bring them in.
and empower them to flex their entrepreneurial muscles within your organization.
2. Make Employees Feel Like Partners
Give everyone in your company equity and motivate them to view your company as their
company. You really need to believe that everyone at your company is your partner and treat
them that way.
3. Empower and Encourage Employees
Empower your employees with more responsibilities, and encourage them to make decisions on
their own. Encourage creativity, reward your employees: when they make good business
decisions and use their mistakes as learning opportunities. Andrew Schrage, Money Crashers
Personal.
4. Be Open to Micro-failures
I try to create an environment in which employees know that I am open to micro-failures in the
macro-pursuit of success. If people are afraid to take risks, then we aren't going to grow as
quickly or smartly as possible. But people don't always believe that making mistakes is OK. I
strive to give them proof that it is, so they can let go of any fears and try job donc, Bobby
Grajewski, Edison Nation Medical ways of getting the
5. Give Incentives to Employees

What's in it for them? If they're proactive, go the extra mile und nally impact your company
positively what do they get out of it? Incentives can include raises bonuses (lume of f. a paid
holiday, etc.), stock options, promotions and even public recognition of one's efforts. Nicolas
Gremion.

Cultivating Patience and Self Discipline

Training and employment require that you cultivate patience and self discipline with other
people and while working in a cream task. In calculation of these virtues is however caster said
done. Certain guidelines may then be important in the task of building up patience and self
discipline
● Patience. Condition your mind that are diffcult situation needs In be studied thoroughly
and therefore may need more time to produce results
● Learn how to wait. Positive results effort you put im mensurate to the amount of
● Try to soften the pain and troubles you encounter. Great difficulties should teach you to
redouble your efforts.

If you expect to be attended to at once h others get it misdead, consider the situation that others
may badly need attention more than you do Priority has to prevail
When angered by as troublesome situation, count ten and if still angry count as in any as you can
until your anger subsides. By then you shall have fully controlled your anger and may be capable
of deriding wisely.
When things wrong and it doesn't seem to be your day, don't despair. Tomorrow is another day
● Self-Discipline - Always have control of one's thinking well thought actions control your
other actions.

GAINING SELF-CONFIDENCE IN DOING A CERTAIN TASK

● Start with a sirote and persistent drive to gain self confidence,

● Have a strong and firm luth and respect in yourself
● Assess your capabilities and limitations. Know thoroughly what you are going to do
● Set your mind on what you want to accomplish:
● Act and work confidently
● Discipline
● Never be discouraged by defeat or failure
● Dependability
You must be relied upon to perform other tasks. Make your supervisors feel you are there when
you are needed producing the right outputs.
Personality
Personal qualities and characteristics are important. At all times make sure you conduct yourself
properly to gain respect. Do away with had behaviours that will offend others. Pay attention to
youг appearance. Be neat and clean every time you report to work

THE DON'TS WHEN WORKING

● Don't create false impressions

● Be yourself Don't try to impress your supervisors nor your co-workers by pretending to
be what you are not. Exert effort rather than impress
● Don't steal credit
● If most of the work is done by your co-workers give his/her credit for it. Don't steal the
credit or acknowledge the work as yours because of the to advance in position.
● Don't slander others
● Making up stories to put down others is foolish. This will never pay-of f. Never gossip
about the misdeeds or misfortune others
● Don't be a blind follower
● The company/ industry has set policies and guidelines of employees workers to follow. If
your supervisor gives you orders. that you very well know are against company/ Industry
rules don't
● Don't be a blind follower

The company/ industry has set policies and guidelines of employees/ workers to follow. If your
supervisor gives you orders that you very well know accept the order against company/ industry
rules don't:

● Don't openly criticize company/ Industry policies/ directives

● If you feel the need to challenge certain industry policies, be tactful Choose the right
place and the right time
● Don't carry your problems to work

SELF-CHECK NO. 9.-2-3

Instruction: Write the correct answer on the space provided.
_______________1.Always have control of one's thinking well thought actions control your
other actions.
_______________2. Condition your mind that are difficult situation needs In be studied
thoroughly and therefore may need more time to produce results
_______________3. Give everyone in your company equity and motivate them to view your
company as their company.
_______________4. At all times make sure you conduct yourself properly to gain respect
_______________5. Training and employment require that you cultivate patience and self
discipline with other people and while working in a cream task

Answer Key:

1. Self- discipline
2. Patience
3. Make Employees Feel Like Partners
4. Personal qualities
5. Cultivating Patience and Self Discipline

INFORMATION SHEET NO. 9.3-1

THE 4M's OF OPERATIONS IN ENTREPRENEURSHIP
Learning objectives: After reading this information sheet, you must be able to:
Determine the 4M's of Operations.
Illustrate and explain the 4M's especially with examples.
Show or prove the value or efficiency of each M's in a business operation.

Introduction:
4M's of Operations mainly represent factors that influence on results of any concern
process. Operations Management is about delivering products and services to customers to meet
or surpass the expectations. It is designing, developing, and executing the Enterprise Delivery
System, from sourcing of the necessary input to the transformation of these input into the final
output, which come in the form of goods or services or both, must carry all the features and
attributes that customers are looking for. All operations managers must, therefore, begin with the
customer's wants and desires in mind. These wants and desires can be classified into customer
outcome expectations that are crucial to the operations function.
Models combine of 4M and IPO in a specific environment or situation.
The 4M's of Operations mainly represent factors that influence the results. of any concern
process. This was used to make product design and quality defect prevention and to identify
potential factors on cause and overall effect. In manufacturing industries this method was used to
apply on production control, improvement, overall efficiency measurement, processes, and
design.
The 4M's of operation in relations to business opportunity means that the four critical domains,
usually attributed to manufacturing, those are: man, machine, material and method work
together. These four critical domains are also applicable to business opportunities since business
is in essence tied to manufacturing as well. When putting up a business, manpower is critical as
well as the other elements. The businessman must take all of those into account.
The 4M's of operation is an important part of the business plan because it simply states the
details in operating the business.
It can be defined as a plan prepared by a component of an organization that clearly defines
actions it will take to support the strategic objectives and plans of upper management. However,
to fully understand operational plans, we should first look at the overall planning process within
a business.
Let us now describe the 4 major domains of 4M's of Operations in relation. to business
opportunity.
1.) Method is a detailed procedure for accomplishing something. It is a systematic way of doing
a particular job. Method was used in business when developing or innovating a new products or
services, expanding your business enterprise, searching for skilled workers to include in the
workforce, and for improving the efficiency of its process. refers to the system and step by step
process in the business. Without a scalable process, it would be difficult to expand the business.
This means that the methods used in the main branch must be documented and must be
replicated as well in other branches.
In analyzing this method, an entrepreneur must do these steps:
1. Identify the operation to analyze.
2. Gather all relevant information about the operation, including tools, materials, and procedures.
3. Talk to employees who use the operation or have used similar operations. They may have
suggestion for improving it.
4. Chart the operation, whether you are analyzing an existing operation or a new operation.
5. Evaluate each step in the existing operation or proposed new operation.
Does the step add value? Does it only add cost?
6. Revise the existing or new operation as needed..
2.) A wise selection of Manpower to join in your workforce provides strategic solutions in
promoting a sustainable competitive advantage that quickly adapts changing demands in
business and its operations.
Manpower these are employees that processes and give insights on how to reduce. cost, increase
productivity to achieve a better business result.
Manpower this is the worker. When setting up a business, finding honest and capable people is
always a challenge. In my experience, people can be honest but may not be capable or competent
and some are capable but not honest. It is a rare find to find someone with all the ideal qualities.
So for a businessman, they must be able to treasure their employees who are both capable and
honest as they are integral to the growth of the business. To look for the right employee for the
business operation, the following are the kind of staff one should have:
1. Skilled
2. Well qualified and well verse in business
3. Responsible
4. Dedicated and committed to work
5. Honest and with integrity
6. Able to attain targets and set goals
7. Not indulge in wasteful expenditure
8. Loyal
9. Team player
How to maximize the staff contribution to work?

 Motivate the staff.

 Make sure they are comfortable in their workplace.

 Staff should be provided with necessary benefits.

 Self-respect is very essential.

 The staff should also share in the profits if possible.

 Appreciation

 Leisure time should be provided for extra-curricular activities.

 One must listen to the woes of the employees.

3.) Machines machinery is also important. Without the proper equipment, you will not be able to
perform the needed tasks efficiently. You may be able to use the manpower to do it but it is
usually more efficient if machines are able to automate the work.
Machine plays a vital part in operating a business. Aside from manpower the use of machinery
is important nowadays to make the process of production more effective and efficient. A
machine is a mechanical structure that uses power to apply forces. and control movement to
perform an intended action. It is controlled by people or a machine itself to produce the
necessary or required number of productions needed. You may be able to use the manpower to
do a particular job but it is usually more efficient if machines are able to automate the work. The
right machine equipment can improve your processes, productivity, and capacity to innovate.
Not only will you save time and resources, but you'll also avoid costly quick fixes.
The following are the right equipment to purchase in starting a business:
1. Assess your business reality. It is important to understand your objectives why you need to
purchase machinery
2. Get an external point of view. Depending on the scale of your investment, it may be worth
working with an external consultant who can ensure you make the most of your purchase by
helping you assess your needs
3. Invest in digital technologies. This technological advantage may monitor a real- time
production and quality control to reduce waste and rework.
4. Create a technology roadmap. A technology roadmap is a planning tool that aligns your
business objectives to long and short-term technology solutions.
5. Shop around for suppliers. You may browse the internet to access different website that offers
specialized machinery equipment.
6. Keep training in mind. All too often, entrepreneurs don't consider the time, money and
resources required to train employees on new equipment
7. Think safety first. A healthy and safe work environment means your employees and your
company can be more productive, and this rule applies to your equipment and technology
purchases as well.
8. Keep it green. When purchasing equipment, be sure that it's energy efficient. Not only to save
money, but also by contributing to the health of the planet.
4. MATERIALS in manufacturing industry, companies are involved in turning raw materials
into physical products, which are then sold to consumers. One of the things that a manufacturing
company can do to achieve efficiency is to source quality raw materials from credible suppliers.
For perishable and edible products, the business should investigate how raw materials are stored,
processed, and shipped to consumers.
Materials sourcing raw materials is critical in any business endeavor as the businessman would
want to have the cheapest possible at the highest quality.
Once the production process is in place, an entrepreneur shifts to the daily activities of materials
management, which encompass the following activities:
A. Purchasing
B. Inventory control
C. Work scheduling

SELF-CHECK NO. 9.3-1

Multiple Choice
Direction: Carefully read each item. Use separate sheet for your answers. Write. only the letter
of the best answer for each item.
1. Which of the choices refers to critical in any business endeavor as the businessman would
want to have the cheapest possible at the highest quality?
A. Materials. C. Manpower
B. Machine. D. Method
2. Which of the following is a systematic way of doing a particular job?
A. Methods. C. Manpower
B. Machine. D. Materials
3. What do you call the delivering of products and services to customers to meet or surpass the
expectations?
A. Operation Management. C. Delivery expectations
B. Quality expectations. D. Price Expectations.
4. Which of the 4M's of operations are called the worker?
A. Materials. C. Manpower
B. Machine. D. Method
5. What do you call the cost or the amount at which something is valued and also defined as to
put a cost on something, or find out a cost?
A. Price. C. Quality
B. Delivery. D. Method
6. Which is called the transformation process where input is converted into output?
A. Input. C. Output
B. Process. D. Quality
7. Which of the following choices refers to the system and step by step process in the business?
A. Machine. C. Method
B. Manpower. D. Materials
8. Which of the 4m's of operations is controlled by people or a machine itself to produce the
necessary or required number of productions needed?
A. Materials. B. Machine
C. Manpower. D. Method
9. Which is a key responsibility of operations management?
A. Services Required. C. Products Selection
B. Supplier Selection. D. Services
10. Which of the selection below refers to the expectations are captured in the discussions with
the customer and then refined for inclusion in the project product description.?
A. Quality expectations. C. Delivery expectation
B. Price Expectation. D. Product Selection

II. True or False

Direction: On your answer sheet, write T if the statement is true, and F if otherwise.
11. All operations managers must, therefore, begin with the customer's wants and desires in mind
12. Manpower was used in business when developing or innovating a new products or services,
expanding your business enterprise, searching for skilled workers to include in the workforce,
and for improving the efficiency of its process.
13. Manpower is controlled by people or a machine itself to produce the necessary or required
number of productions needed.
14. Material Requirements Planning is the manufacturer arranges for materials to arrive at
production facilities just in time to enter the manufacturing process.
15. The methods used in the main branch must be documented and must be replicated as well in
other branches. If it is difficult to implement at another site, find what needs to be improved.

ANSWER KEY NO.9.3-1

1.B
2. A
3. C
4. A
5. B
6. B
7. A
8. B
9. B
10. A
Test II
1. F
2. T
3. F
4. F
5. F

INFORMATION SHEET NO.9.3-2

MARKETING MIX: PLACE AND PROMOTION
Learning objectives: After reading this information sheet, you must be able to:

-describe the Marketing Mix particularly Place and Promotion in relation to the business
opportunity.
-give the importance of Marketing Mix specifically Place and Promotion.

Introduction:
What is the most crucial part in your life in which you need to decide? Maybe in
choosing your course before you enroll in college or the school where to enroll? Just like in
business, one of the most important decisions the business operator has to make is choosing the
right location for his business. The location decision. must be made before actual operations
begin. The wrong location will make it very difficult for the small business operator to achieve
his business objectives.
PLACE/LOCATION
In the marketing mix, the process of moving products from the producer to the intended user is
called place. In other words, it is how your product is bought and where it is bought. This
movement could be through a combination of intermediaries such as distributors, wholesalers
and retailers.
What is the right location?
The right location refers to that one which will bring the highest possible. benefits to the firm.
The wrong location is one which will bring the most disadvantages to the small business.
Although finding a good location proves to be challenging, even more challenging is maximizing
the potentials of that location.
1. Image and location conditions. This refers to the physical look of a location, sanitary
condition safety levels. The reputation of a location is also important.
2. Clustering of competitor establishments. This oftentimes results in drawing bigger market
to the location.
3. Future area development. A certain location might not have the most customers or the best
economics in the short term, but it might become central business hub within the next five years.
Watch out for signs of development like a construction boom or a new shopping mall nearby.
4. Fiscal and regulatory requirements. An entrepreneur would want to set up shop in a town or
city within low tax rates, good governance, excellent infrastructures, and great public services.
Marketing is communicating the value of a product, service or brand to customers, for the
purpose of promoting or selling that product, service or brand.
Benefits of a very Good/Strategic Location
1. Attract lots of customers
Customers prefer to buy their needs in a very strategic location. Gaisano for example is quite
nearer compared to Robinsons so most people living near that place prefer to buy in Gaisano
rather than in Robinson due to proximity or distance, but of course there are other factors that
they considered like the price or convenience.
2. Helps improve sales
Good location helps to remove barriers to sales. Once a customer is physically close to your
store, you have a far better chance of persuading them to purchase from you.
3. Attract new customers
Good location attracts new customers, KCC or SM malls for example, it is located within the
city, and the transportation is very accessible so plenty of new customers are coming every day.
4. Maintain loyal customers
Satisfied and happy customers are maintained if the location is very comfortable and convenient
to stay.
5. Get to know your customers better
While good location are designed to attract new customers, good services, justifiable price
are also a way to maintain and know your existing customers better.
Generally, a bad location decision may result to low sales and production, When the
management or firm is far from its projected target market, it will be difficult to meet the
market's demands.
Not only will this affect the sales but it will also affect the costs and expenses of the management
for it needs more resources in meeting the market's demands.
Thus, the profit may decrease or the firm may have a net loss.
Promotion is an umbrella term, covering all the media by which a business informs customers
about its product including advertising, public relations and sales promotion.

PROMOTION
Promotion refers to communicating information between the company and potential buyers to
influence buying attitudes and behavior. Promotion takes the form of any or all of the following:
1. Advertising this consists of any form of paid, non-personal presentation of ideas, goods, or
services by an identified sponsor.
ELEMENTS OF ADVERTISING
1. Advertising is a form of communication
2. It pays for the use of the communication media. 3. It is non-personal, unlike personal selling.
4. It communicates facts and information, not the actual goods, services, ideas or institutions.
5. It is openly persuasive and convincing in order to sell or secure favorable consideration.
6. It is a marketing function.

TYPES OF ADVERTISING
A. Product and institutional advertising.
Product advertising aimed at informing and stimulating market demand for an advertised product
brand or service.
a. Pioneering advertising attempts primary demand for a type or class of product like milk,
coffee and books.
b. Competitive advertising stimulates selective demand for a specific product like General
Electric or LG Refrigerators.
B. Primary and selective demand advertising
a. Primary advertising to stimulate demand for a product
b. Selective demand advertising is a competitive advertising to persuade the potential customers
through emphasizing particular benefits.
C. Cooperative Advertising
a. Vertical cooperative advertising. This involves companies on different levels of distribution
like manufacturers and retailers.
b. Horizontal cooperative advertising. This involves companies on the same level of distribution
such as group of retailers.
CLASSIFICATION IN ADVERTISING
According to media used
a. Print Media - this are advertisements in newspapers, magazines, and journals. Payment is
based on per column centimeter.
b. Broadcast media these are advertisements in television and radio. Payment is based on time
measured per 30 seconds.
c. Outdoor Advertising - Neon signs, streamers, billboards, Poster panels, aerial signs.
Measured on the basis of space occupied and duration of occupancy.
d. Transit Advertising billboard/neon advertisements on public utility vehicles.
e. Field Advertising uses a vehicle that roams around subdivisions or places announcing a new
product through a loud speaker.
f. Movie Advertising advertisements on theaters. Important consideration for advertising fee is
seating capacity of the movie house an audience class. g. Direct Advertising handouts, leaflets,
catalogues, brochures, advertising a product or service.
Sales Promotion this is a promotion activity that stimulates interest, trial, or purchase by final
customers. Example of sales promotion are the use of coupons, point-of-purchase display
materials, samples, signs, catalogs, novelties, and circulars.
Public Relations refer to the activities of an organization, person or institution directed toward
one or more groups of people, such as employees, consumers, dealers and stockholders, for the
purpose of creating goodwill and an understanding of its policies.
Publicity is the dissemination of news and information about a person, product, service, idea or
institution through mass media in order to create impressions to the public. It uses mass media
without openly paying for them.
Personal Selling this involves direct contact/ communication made by representatives of
business firms to induce the purchase of merchandise or services by oral persuasion.

SELF-CHECK NO. 9.3-2

Directions: Read the sentences/statements carefully. Choose the letter of the correct answer and
encircle the correct letter of your choice.
1. This refers to the physical look of a location, sanitary conditions, crime and safety levels. The
reputation of a location is also important.
a. exact fit to target customers
b. image and location conditions
c. fiscal and regulatory requirements
d. clustering of competitor establishments.
2. This will answer if the location traffic generally composed of your target customers.
a. exact fit to target customers
b. image and location conditions
c. fiscal and regulatory requirements
d. clustering of competitor establishments.
3. This oftentimes results in drawing bigger market to the location.
a. exact fit to target customers
b. image and location conditions.
c. fiscal and regulatory requirements
d. clustering of competitor establishments.
4. An entrepreneur would want to set up shop in a town or city within low tax rates, good
governance, excellent infrastructures, and great public services.
a. exact fit to target customers.
b. image and location conditions.
c. fiscal and regulatory requirements
d. clustering of competitor establishments.
5. This consists of any form of paid, nonperson presentation of ideas, goods, or services by an
identified sponsor.
a. promotion b. advertising
c. primary advertising. d. indirect advertising
6. Aimed at informing and stimulating market demand for an advertised product brand or
service.
a. primary advertising. b. product advertising
c. indirect advertising. d. secondary advertising
10. This involves companies on different levels of distribution like manufacturers and retailers.
a. direct advertising. b. indirect advertising
c. vertical cooperative advertising. d. horizontal cooperative advertising
7. Political campaign of a candidate for national election is an example of.
a. advertisements by individuals
b. advertisement by governmental units.
c. advertisements by service businesses
d. advertisements by organizations or institutions
8. Colgate Toothpaste with calcium where advertiser is Colgate Palmolive, Philippines, Inc. is an
example of?
a. advertisements by individuals
b. advertisement by manufacturer
c. advertisements by service businesses
d. advertisements by organizations or institutions
9. This are advertisements in newspapers, magazines, journals. Payment is based on per column
centimeter.
a. print media. b. broadcast media
c. movie advertising. d. transit advertising
10. These are advertisements in television and radio. Payment is based on time measured per 30
seconds.
a. print media. b. broadcast media
c. transit advertising. d. price movie advertising

ANSWER KEY NO.9.3-2

1. B
2. A
3. D
4. C
5. C
6. A
7. B
8. A
9. B
10. D

INFORMATION SHEET NO. 9.3-3

CUSTOMER PROFILING AND LOCATION ANALYSIS
Learning objectives : After reading this information sheet, you must be able to:
1. To identify the customer profiling
2. To determine the Location Analysis
3. To distinguish the seven P's of Marketing
Introduction
In earlier times, brands would shoot their communication messages out to the world and
hope that if enough people who fall under their target group hear the message, they will respond.
For many companies, this ‘spray and pray’ approach worked brilliantly back then.
But now, with immense growth in technology and competition, customers have become
more aware, they know what they want, how to get it and they will buy from the brand that best
suits their needs. Amongst the clutter, there are high chances your brand may get ignored. Hence,
aimless communication will not work efficiently anymore.

CUSTOMER PROFILING
For entrepreneurs, getting to know the customer very well cannot be overemphasized. Customer
knowledge starts with good customer profiling.
METHODS OF CUSTOMER PROFILING
1. Demographics
2. Psychographics
3. Technographics
IN DEMOGRAPHIC CLASSIFICATION, WE CATEGORIZE CUSTOMERS INTO
THE FOLLOWING:
1. Age
2. Income classes
3. Social classes/Reference groups
4. Ethnic backgrounds.
5. Religious beliefs.
6. Occupations
7. Domiciles
PSYCHOGRAPHICS DEFINES THE CUSTOMER'S:
1. Motivations
2. Perceptions
3. Preferences
4. Lifestyle
TECHNOGRAPHICS CLASSIFIES PEOPLE ACCORDING TO THEIR LEVEL OF
EXPERTISE IN USING A PRODUCT OR A SERVICE. FOR EXAMPLE:
1. Sports beginners might just want basic equipment.
2. Sports regulars may be looking for more sophisticated equipment.
3. Finally, sports professionals would want the best of the best for competitive purposes.
APPLICATION OF CUSTOMER PROFILING
the entrepreneur can use or apply customer profiling in two ways.
1. The first way is to develop a product or service to test out in the marketplace. The customers
most attracted to the product or service can then be profiled. After profiling, the next step is to
find out how huge this market is for exploitation purposes.
2. The second way is to profile the different types of customers in a given industry or area as to
their needs and wants. From these types, the entrepreneur could then choose the customer group
with the best potentials. Products or services can be developed by the entrepreneur to match this
chosen customer group.
MARKET MAPPING
Market mapping refers to grouping customers and products according to certain market
variables.

➤ The purpose of market mapping is to provide the market analyst a better understanding of the
market as a whole and to paint a clearer picture of where the different competitors are relative to
the different market segments.

➤ Market mapping would also allow entrepreneurs to discover market segments that are
relatively unserved or underserved. They could then develop products and services that fulfill the
gaps in the marketplace.

LOCATION ANALYSIS
Location. Location. Location. This is the often-recited mantra of sales people who want to have
the best access to their customers. But finding a good location is one thing. Maximizing the
potentials of such a location is another.
LET THE MARKET KNOW YOU BETTER
In its broadest Sense, marketing is about creating and accumulating customers. Marketing plans
are designed to capture market share and defeat competitors. The marketing function and the
marketing mix serve the overall business strategy. It is summarized in 7 Ps by which the
enterprise will engage competitors and gain customers.
SEVEN P'S OF MARKETING
1. Positioning
2. Product
3. Packaging
4. Place
5. People
6. Promotion
7. Price
POSITIONING
Positioning, in the context of a marketing battle plan, has three overlapping objectives.

 Positioning has an enterprise perspective.

 Positioning has a competitive perspective.
 Positioning takes the customer's perspective.
Enterprises can establish their positioning either by starting with their own product creations or
with their customers' outcome expectations. The competitors will always be part of the
positioning equation, whether the enterprise starts with the product or the customer perspective.
In determining its positioning, the enterprise should be mindful of the main value. proposition
(MVP) to its customers relative to its competitors. In determining the MVP, the enterprise must
assess its products from the customers' viewpoint. It must evaluate the other six Ps of marketing
to find out if they complement and reinforce one another.
PRODUCT

➤A product is the tangible good or the intangible service that the enterprise offers to its
customers in order to satisfy their needs and to produce their expected results.

➤ Products are often identified with their brand names to distinguish them from other products
in the market.

➤ General Types of Products

Breakthrough products -Offer completely new performance benefits

Differentiated products Try to claim a new space in the mind of the customer different from the
spaces occupied by existing product
Niche products -Are products with lower reach, lower visibility, lower prices, and lower top of
mind.
PACKAGING
IMPORTANT PURPOSES OF PACKAGING
Packaging identifies the product, describes its features and benefits, and complies with
government rules on specifying its contents, weight, chemical composition, and potency.
Packaging differentiates the product from its competitors and even from its other brand offerings.
Packaging lengthens the lifespan, physically protects, and extends the usefulness of the product.
PLACE
In finding a good location, one needs to consider the following:

 The number of customers residing or working in the area, and the number of customers
who frequently pass through the area.
 The density or number of customers per unit area.
 The access routes to alternative locations and their traffic count in those routes.
 The buying habits of customers or where they buy, at what time and how frequent.
 Locational features such as parking spaces, foot access, creature comforts, and the like.
The final choice of location must be based on the following:

 Image and location conditions

 Exact fit to target customers
 Clustering of competitor establishments
 Future area development
 Fiscal and regulatory requirements
PEOPLE

➤ People are the ultimate marketing strategy. People sell and push the product. People search
hard to find the right market. People distribute, promote, price, and sell theproducts in the most
attractive market places. People aim to please the customers through continuing service and
product enhancements long after the customers have bought the product. People are the regular
contact points between the enterprise and its market.

➤ The marketing efforts of people are organized at four levels: (1) to create customer
awareness; (2) to arouse customer interest; (3) to educate customers as they evaluate their buying
choices; and (4) to close the sale and deliver the products.
PROMOTION
Promotion is the explicit communication strategy adopted by an enterprise to elicit the
patronage, loyalty, and support not only from its customers but also from its other significant
stakeholders.
➤ Promotion encompasses all the direct communication efforts of the enterprise, such as
advertising, public relation campaigns, promotional tours, product offerings. point-of-sale
displays, websites, flyers, emails, letters, telemarketing, and others.
PRICE

➤ Pricing depends on the business objectives set by the enterprise.

➤ Different Pricing Strategies

 Profit maximization
 Revenue maximization
 Market share maximization
 Attainment of the desired prestige or quality leadership
 Penetration, survival, or liquidation
 Scarcity pricing or market skimming
 Cost recovery
 Subsidy pricing
Other Pricing Strategies Marginal pricing

 Introductory or promotional pricing to launch a new product.

 Charge different prices in different geographical areas to take care of additional logistics
costs in farther locations or to accommodate the lower purchasing power in poorer
geographic areas.
 Discount pricing given to loyal and regular customers to maintain their patronage.

SELF-CHECK NO. 9.3-3

Test I: True or False
Direction: On your answer sheet, write T if the statement is true, and F if otherwise.
_____1. Promotion encompasses all the direct communication efforts of the enterprise, such as
advertising, public relation campaigns, promotional tours, product offerings.
_____2. Differentiated products try to claim a new space in the mind of the customer different
from the spaces occupied by existing product
_____3. marketing is about displaying and not accumulating customers.
_____4. product is the tangible good or the intangible service that the enterprise offers to its
customers in order to satisfy their needs and to produce their expected results.
_____5. Market mapping would also allow entrepreneurs to discover market segments that are
relatively unserved or underserved.
Test II: Enumeration
1. What are the seven P's of Marketing
2. What are the Psychographics of customers
3. Methods of Customer Profiling
4. Different pricing strategies

ANSWER KEY NO. 9.3-3

Test I
1. T
2. T
3. F
4. T
5. T