Pre-test:

1. is the process of designing, creating and marketing

new products or services to benefit customers. 

2. is a description of the qualities that are unique to a

particular product or service and that differentiate it
in a way which will make customers purchase it
rather than its rivals.
3-9 Seven stages of product development
10-15 Ways of USP
16-20 Causes of new product failure
21-24 Factors to consider in generating business ideas
 PRODUCT DEVELOPMENT

Product development is the

process of designing, creating
and marketing new products
or services to benefit
customers. 
Causes of New Product Failures

Overestimation of Market Size

Product Design Problems
Product Incorrectly Positioned,
Priced or Advertised
Costs of Product Development
Competitive Actions
To create successful new
products, the company must:
 understand it’s customers,
markets and competitors
 develop products that deliver
superior value to customers.
 Seven Stages of New Product Development:

Product Idea Brainstorming

Evaluate the ideas
Market Evaluation
Analysis
Prototype and Marketing
Market Testing
Prepare for launch
FOOD PRODUCT DEVELOPMENT PROCESS
 UNIQUE SELLING PROPOSITION

A unique selling proposition (USP) is

a description of the qualities that
are unique to a particular product
or service and that differentiate it
in a way which will make customers
purchase it rather than its rivals.
 Uniqueness can be sought in a number of ways

• By offering the lowest price.

• By offering the highest quality.
• By being exclusive.
• By offering the best customer service.
• By offering the widest choice.
• By giving the best guarantee.
 ACTIVITY

* Form a group of 5 (8 members each)

* Brainstorm and Identify
products/services available in the
market which applies various ways of
USP.
* Present it in class
 Ways on generating business idea:

Examine existing goods and services

Examine present and future needs
Examine how needs are satisfied
Account available resources around
you
Read journals, books and magazines;
attend seminars; interview people
Factors to consider in identifying business opportunities

Capital
Marketing
Technology
Legal Aspect
 Post test:

1. is the process of designing, creating and marketing

new products or services to benefit customers. 

2-4 Causes of new product failure

5-8 Factors to consider in generating business ideas
9. is a description of the qualities that are unique to a
particular product or service and that differentiate it
in a way which will make customers purchase it
rather than its rivals.
10-16 Seven stages of product development
17-20 Ways of USP
MODULE 2: ENVIRONMENT
AND MARKET
 PRE- TEST

1. is a name or symbol that is used to identify the products of a

manufacturer and to distinguish them from products of competitors.
2-4 IMPORTANCE OF BRANDING TO THE CONSUMER
5-7 CHARACTERISTICS OF A GOOD BRAND NAME
8-10 degrees of brand loyalty
11. part of the brand consisting of words or letters comparison a name
to identify and distinguish a company’s offering.

12. any brand or part of a brand that provides legal protection to the
seller.

13. carry the descriptive information about the product.

14-15 Importance of branding to consumer
 BRANDING

BRAND – is a name or symbol that is used to identify

the products of a manufacturer and to distinguish
them from products of competitors.

Ex.
Marlboro
Champion
 What is Brand Identity?
• A promise that gets kept consistently
• It creates a personality and a life for your
products/services
• A unique and consistent look, feel, tone and
voice for all communications
• Conveys-at a-glance the distinctive attributes of
your organization
• Over time, it builds awareness of and an
attitude towards your organization
 CHARACTERISTICS OF A GOOD BRAND NAME

1. It should be highly descriptive of

the products attributes-its use,
benefits, characteristics and
quality.
2. The name should be easily
vocalized, remembered and
recognized.
3. It should be distinctive
IMPORTANCE OF BRANDING TO THE CONSUMER

1. Easier identification
2. Assurance of consistent quality
3. Identify the firm behind the
product
4. A specific brand may be matched
to a need that must be fulfilled
MARKETING OBJECTIVES OF BRANDING

1. To aid advertising and display

program
2. To help increase control and share of
market
3. A branded product can be assured of
some control over the market.
4. To reduce price comparisons and help
stabilize prices.
 DEGREES OF BRAND LOYALTY

1. Brand Recognition
2.Brand Preference
3.Brand insistence
 Terminologies

Brand Name – part of the brand consisting of words or

letters comprising a name to identify and distinguish
a company’s offering.

Trademark – any brand or part of a brand that

provides legal protection to the seller.

Labels – carry the descriptive information about the

product.
 ACTIVITY

Develop a brand for

a certain
product/service
MODULE 2: ENVIRONMENT
AND MARKET

BUSINESS PLAN
 BUSINESS PLAN

Importance
1. Planning can prevent you from going into the
wrong business.
2. Planning allows you to prepare for possible cause of
failure in the business
3. Planning allows you to size up the magnitude of the
demands the business may impose on you.
4. Planning can minimize the cost of production.
5. You can use your business plan to convince others
to help you in the business.
 Characteristics of a good business plan

Objective
Local and simple
Clear
Flexible
Stable
Complete and integrated
 COMPONENTS OF A BUSINESS PLAN

1. INTRODUCTION
2. MARKETING PLAN
3. PRODUCTION PLAN
4. ORGANIZATIONAL PLAN
5. FINANCIAL PLAN
 INTRODUCTION

This contains the general information of the business.

COVER SHEET
 NAME OF BUSINESS
 PROPONENT
 ADDRESS
 PHONE NUMBER
 BRANDING
 NATURE OF BUSINESS
 OBJECTIVES
 SWOT ANALYSIS
 MARKETING PLAN

Indicated here are the methods of distributing your

product or service, your competitor, method of
selling, promotion and future demands.

Marketing-is the movement of your product/services

from one place and another.
Steps in Preparing a marketing plan:
1. Know your market
2. Target your market
3. Know your competitors
4. Cost and price your products or services
5. Promote and advertise your products
Kinds of Inexpensive Advertising:
1., direct mail – is usually used when your market is a brgy or
subdivision
2. Print ads – placing information advertisement in a local publication,
newspaper and tabloids.
3. Radio Advertising – this is a little less expensive and could possibly
reach rural areas.
4. Advertising Specialties – appear on t-shirts, pencils, notebooks,
calendars etc.
5. Outdoor advertising – most effective near stores where people o time
to time to get their needs.
6. Transit advertising also known as moving billboards the one printed
in the a cars, trucks etc.
GROUP ACTIVITY :

Present products to promote in class using one of the

advertising techniques.
 PRODUCTION PLAN

The process, sources of supplies, suppliers and the

equipment needed in producing goods or services
are taken into account.
1. Top management level
2. Operational Level
 Production plan

Name of Product:_______________
Raw Materials:
ITEM SUPPLIER
Production Operation:

Operations Machine & Number of

Equipment Workers
Production Flow Chart:

Storing Processing Assembling Finishing Inspection Packing

Production Cost:

description Cost

Total manufacturing Cost:________________

Production Quantity:
Number of pcs Name of Number of
produced Product days/month
 FAIR PRICING

>Customer or buyer
>cheaper

• Is one that is attractive to potential clienteles or

market with reasonable returns for entrepreneurs.
• Looking at competitor’s prices.
 BASIC PRICING PRINCIPLES

1. All prices must cover costs.

2. The best and most effective way to lower sales price is
lowering cost.
3. Prices must regularly upgraded to reflect market
developments.
4. Prices must be established to ensure sales.
5. Product utility, longevity, maintenance and end use must
be judge continually and target prices should be adjusted
accordingly.
6. Prices must be set to preserve order in the marketplace.
7. Prices must be fixed to support an overall corporate goal.
 PRICING METHODS

1. Demand-based pricing – influenced byb the optimum

combination of volume and profit as well as a number
of downside factor.
Ways:
2. Skimming – the entrepreneur sets the price high
initially, then lower it later.
3. Penetration – the entrepreneur sets the price low to
attract customer.
4. Penetrate the market – A low price may discourage
competitors and may allow to increase production level.
4. Prestige Pricing – This pricing scheme means
setting the price high for people who are willing to
pay for the status.

5. Price lining – this entails offering a line of goods

with special prices within the line.

6. Odd-even pricing – this scheme puts prices at odd

numbers.
7. Demand backward approach – You start with a final
price you want to charge, then work backward
through the margins you have to pay to the retailers
and wholesalers, the need to adjust cost will be able
to get the price you acquire.
8. Bundle pricing – strategy to get customers to buy a
group of related items in a single package.
2. Competition-based pricing
>considers the market forces as the benchmark in
pricing a product or service.
a. Customary prices – prices on the products is based
on those established by the traditional products or
those prices earlier used by competitors.
b. Above, at or below market – this refers to a method
based on looking at the competitor’s prices and
then pricing your product accordingly.
c. Loss leader – a product for which the price is
purposely set below cost, with the hope that it will
attract buyers to the store who will then purchase
other products.

d. Sealed bids - used by the government agencies to

provide a level playing field among competing
products or services suppliers and to promote
transparencies.
3. Mark Up Pricing – is usually done by
manufacturers, wholesalers, and retailers and done
by simply adding a set of amount to the cost of the
product to arrive at a price.
4. Cost-based Pricing – this mode of pricing should
consider production costs and other related cost.
a. Standard Mark Up Pricing – also known as
absorption costing. This is done by determining all
the costs involved and adding a fix or standard
percentage to the costs of all items in a product
class.
b. Cost plus percentage pricing – This is generally
used in business venture where a fixed percentage
to the production costs is used as a guide in pricing.
c. Cost plus fixed fee pricing – this pricing scheme is
done by adding a fixed fee to the pre-identified cost.

d. Experience curve pricing scheme – this scheme

means changing the pricing the firm’s experience
grow.
5. Profit-based – focuses on annual profit target.

a. Target return on sales – this scheme involves

setting prices such that the firm can expect a firm
profit that is a specified percentage.
b. Annual return on investment – this approach uses
a specific percentage of ROI as minimum expected.
 Pricing as a Service

3 Elements
1. Labor Cost – includes wages, salaries and benefits
paid to the employees.
2. Overhead Expenses – these items include indirect
expenses acquired to operationalize the business.
3. Profit – amount of income earned
 Activity

A. Make a tree map on Fair Pricing

B.
1. What is meant by the concept of fair pricing?
2. Describe the basic pricing principles
3. What are the parameters to be considered in pricing
a service?
PACKAGING
 ORGANIZATIONAL PLAN

IT REFERS TO THE TYPE OF BUSINESS

ORGANIZATION YOU PLAN TO HAVE.

ALSO INCLUDES PEOPLE IN DIFFERENT

POSITIONS, HIRIN PROCEDURES &
DEVELOPMENT PROGRAM
 Four steps in making organizational plan

1. Choose the form of organization

2. Determine the jobs to be done in the business
3. Assign position to each job and number of persons
employed. Make organizational Chart
4. Assign salaries for each employee
The Different Types of
Business Ownership
 Sole Proprietor

A business owned and operated

by one person.

The owner is responsible for all

operations of the business and
assumes all the risk.
 Advantages of a sole proprietorship

Owner makes all decisions

Owner is her or her own boss
Owner keeps all the profits
All financial informatio can be kept secret
This type of business is easy to start or close
 Disadvantages of a sole proprietorship

Owner has responsibility for all debts

Costs and time commitment can be high
Funding can be difficult to obtain
Owner is responsible for all aspects of the
business
Owner doesn’t have fringe benefits
 Partnership

a form of business organization in

which two or more people own
and operate the business together
 Advantages of a partnership

Partners co-own the business

They share responsibilities
They may have greater financial resources
than sole proprietors
They share business losses
They share time commitment
 Disadvantages of a Partnership

Partners have unlimited personal liability for

all the other partners
They may have conflicts
Profits are shared
Partnerships are more difficult to close down
than sole proprietorships
 Corporation

A legal entity that exists

independently of its owners
Owners are called shareholders
 Advantages of a corporation

The owners are shareholders. They have

limited liability for the debts of the
corporation and share the profits
Usually shareholders do not operate the
company – they hire employees to do so
Corporations can usually raise funds more
easily than sole proprietors or partners
 Advantages of a corporation

Corporations usually have a lower tax rate

than private owners
A corporation can continue to exist after the
death of its owners
 Disadvantages of a corporation

Corporations have more complicated

structures than sole proprietorships or
partnerships
Employees who are not owners may not be
committed to the business
 Disadvantages of a corporation

Corporations must publish annual reports,

which could give away important secrets to
competitors
The value of company shares can change
depending on changes in the stock market
 Cooperative

Businesses owned and operated by a group of

people with a strong common interest
Start-up costs are shared among the members of
the co-operative
Members own and control the business and make
all business decisions
 Advantages of a cooperative

Members own and control the business

Members share the start-up costs and the
running of the business
They share the financial risk
Members may pay less for goods and services
and get more for those they sell
 Disadvantages of a cooperative

Because each member only has one vote,

members may not want to invest money for
expansion
Because of the number of members, making
decisions can be difficult
Members can have conflicts
 Example:

___________________ has been registered as a

_____________ as of ______________.
The officers of the business organizations are:
name position

This staff shall be staffed by the following:

Position Number
 FINANCIAL PLAN

INDICATES HOW MUCH YOU NEED IN THE

BUSINESS

Capital – money needed to start a business

Fixed Capital – cost of building, furnitures etc
Pre operating capital – cost before operation
Working capital – the amount of money permanently
in cash needed to keep the business going.
RETURN OF INVESTMENT = INCOME
CAPITAL
 POST TEST

1-5 IMPORTANCE OF BUSINESS PLANNING

6-10 CHARACTERISTICS OF GOOD BUSINESS PLAN
11 -15 COMPONENTS OF BUSINESS PLAN
16. INDICATES HOW MUCH YOU NEED IN THE BUSINESS
17.REFERS TO THE TYPE OF BUSINESS ORGANIZATION YOU
WANT
18. INDICATE THE METHODS OF DISTRIBUTING YOUR
PRODUCT
19. The process, sources of supplies, suppliers and the equipment
needed in producing goods or services are taken into account
20. REFERS TO SEED MONEY
20. is usually used when your market is a brgy or
subdivision
21.appear on t-shirts, pencils, notebooks, calendars etc.
22. most effective near stores where .people o time to time
to get their needs.
23. Transit advertising also known as moving billboards the
one printed in the a cars, trucks etc.
24. placing information advertisement in a local
publication, newspaper and tabloids.
25. this is a little less expensive and could possibly reach
rural areas
26. FORMULA OF ROI
27. cost before operation
28. the amount of money permanently in cash needed
to keep the business going
29. cost of building, furnitures etc
30. Owners of corporation
31-34 type of Business Ownership
35.ROI stands for?