Studied by 13 peopleOPPORTUNITY SEEKING
discover new or different ideas; innovation part of the business; create value
Entrepreneurial Mind Frame
see things in a very positive and optimistic light in the midst of crisis
problems = opportunity = inspiration = challenge = not smth that will bring you down
Entrepreneurial Heart Flame
driven by passion (they feel fulfilled); emotional intelligence (relationship with suppliers, customers and employees)
Entrepreneurial Gut Game
sense without using the 5 senses (intuition); they know smth will work or not; courage
Macro Environment
how consumers will behave, how supply and demand will move
FACTORS (things you can take advantage of; can not be controlled = need to adapt)
Political Forces
government type and policy, funding, grants, and initiatives
government actions that influence the economy
EX. policies and laws on taxation, rules, and regulations in business practices, permits, approvals, licenses, trade, and labor
follow the requirements, they make change = be active
imports & exports,
Economic Forces
inflation and interest rates, labor and energy costs; supply and demand
determinants of an economy
market boom, a recession (a period of temporary economic decline) or a growing inflation
EX. inflation rate, interest rate, monetary policies, and foreign exchange rates,
Social Forces
aspects of culture and society, demographics, lifestyle, values, social trends, and other similar changes
DEMOGRAPHICS
age, race, ethnicity, gender, marital status, income, education, and employment
CULTURAL DIMENSION
beliefs, tastes, customs and traditions
FADS
trends that are short-lived (months)
TRENDS
particular behavior of a certain group of individuals which lasts for a certain period (years)
MEGATRENDS
trends that persist over a long period
Technology
advancements in technology
This prompts companies to analyze trends and developments in technology and determine how these can be used for their benefit
EX. emerging technologies, web; information & communication
Legal and Regulatory Forces
laws, regulations, and government policies; standards and employment law
include health and safety standards, advertising policies, equal opportunity regulations, copyright laws, consumer rights, and policies on product labeling.
similar to political
These forces regulate the activities of the business organization, and marketers need to be aware of rules and guidelines in order to undertake effective and proper strategies.
These forces also ensure healthy competition within the market and uphold consumer rights.
Environmental/ Ecological Forces
weather, green, & ethical issues; pollution, waste, recycle; ecology, climate, and climate change
Business devises plans and other means to address the threats it possesses.
Industry
product types/function of the product or service
(e.g. computer industry, beer industry, fast food industry, cola industry, etc.)
PRODUCT CHAIN
focuses on the volume produced and the use of the product to the consumers; all parts of the raw material can be used
VALUE-ADDED CHAIN
focuses on the value or cost added in each stage of making the product; chain of mark-ups
Market
actual and potential demand and supply of a product
Ex. value/combo meals or more-for-less strategy
Micromarket
specific target market segment
are those who are currently buying the goods or services.
Consumer Preferences
the tastes of particular groups of people; taste → culture, age)
Consumer Piques
things that irritate customers
Consumer Perceptions
customer's impression, awareness or consciousness about a company or its offerings
Other Sources of Opportunities
Entrepreneur's own set of skills, expertise or hobby
New knowledge on new technology
OPPORTUNITY SCREENING
Which one is the most effective opportunity?
Personal Screening
entrepreneurs have to consider his/her preferences and capabilities through these questions.
Do I have the drive to pursue this business opportunity to the end?
Am I willing to spend my time, effort and money to make the business opportunity work?
Am I willing to sacrifice my existing lifestyle, endure emotional hardship, and forego my usual comforts to succeed in this business opportunity?
WEIGHT
COMPONENT IN RISK/RETURN GRID
is how important is that r to the opportunity of the business
RATING
COMPONENT IN RISK/RETURN GRID
can you do it?
Relevance
The opportunity must be aligned with your business' vision, mission and objectives.
Resonance
The opportunity must match the values and desired virtues that you wish to impart.
Reinforcement
The entrepreneurs should reflect on their personal interests, talents and skills as well as their hobbies and previous experiences.
Revenue
Determine the sales potential of the products/services you want to offer.
Is there a big enough market to grab and nurture for growth?
Responsiveness
The entrepreneurs should try to research what his/her target customers are looking for.
Reach
Opportunities that have good chances of expanding through branches, distributorships, dealerships or franchise outlets in order to attain rapid growth are better opportunities.
Range
Does this business opportunity have the potential for creating a wide array/display of products/services?
Is it easy to increase the number of product/service offerings?
Revolutionary Impact
If you think the opportunity will be the next big thing or game changer, then there's a big potential for the chosen opportunity.
Returns
Does the business opportunity promise to generate good profits?
Products with low costs of production and operations but are sold at higher prices will definitely yield the highest returns on investments.
Relative Ease of Implementation
Will the opportunity be easy to implement by the entrepreneur or will there be a lot of problems to overcome?
Resources Required
Requiring fewer resources from the entrepreneur may be more favored than those requiring more resources.
Does the opportunity need a lot of capital?
Risk
Does the opportunity present a lot of market, technology, people and financial risks?
Pre-feasibility Study
ascertain the viability of the opportunity; is it possible?
focuses on the few ideas that could make or break your business concept
a preliminary study undertaken to determine, analyze, and select the best business scenarios.
Market Potential and Prospects
estimated possible customers who might avail your product or service
factors that customers consider in making final choice in buying
Market Segmentation
division of customers in different sets (e.g. demographics)
Assessment of Competition
determine how saturated the market is in a given area
more suppliers and competitors = greater level of saturation
this is about how heavy the market is in a given area.
Some entrepreneurs would like to keep out of a market where there's a tight competition but others prefer to enter the biggest and richest competitive markets for them to have growth potential.
Estimation of Market Shares and Sales
define the market coverage (active outlets)
determine the broad market segments within the area (demographics)
evaluate the relative strengths of suppliers and competitors
MARKET SHARES
stronger the business and longer = higher market share
Each company within an industry has sold to a percentage of the market.
MARKET COVERAGE
number of active retail and wholesale outlets
Technology Assessment and Operations Viability
determine whether the product/service will meet customer demand/not
Quantities Demand
one of the four target customer expectations affecting the scale and complexity of an enterprise's operations
It's about the needed capacity/volume of the operations.
Quality Specifications Demanded
one of the four target customer expectations affecting the scale and complexity of an enterprise's operations
Quality of input/raw materials, Quality assurance process in transforming input to output, Quality output that meets the operations, standards set, and Quality outcomes for the customers who will be looking for specific results.
Delivery Expectations
one of the four target customer expectations affecting the scale and complexity of an enterprise's operations
How much, how frequent, and when to deliver to customers.
Price expectations
one of the four target customer expectations affecting the scale and complexity of an enterprise's operations
Selling price would be evaluated by the customers according to the value that they would receive (in terms of quality, delivery, and quantity) and it should be matched against competitors
Investment Requirements
determine how much money is needed to start the business opportunity considering the technologies and operating levels
Pre-Operating Costs
one of the three investments that need to be funded
Costs related to the preparation for the launch of the business (pre-feasibility study, in-depth feasibility study, market research, product development, organizational development, and initial promotional costs)
Production/Service Facilities Investment
one of the three investments that need to be funded
The long-term investment for the actual business establishment (investment in land, buildings, machinery, equipment, computers, software, furniture, vehicles, etc.) If the business will rent, it would also be included.
Working Capital Investment
one of the three investments that need to be funded
The investment needed to operationalize the business (cash - to cover the inventories to be purchase; accounts receivable - to accommodate customers and operating expenses to be incurred such as employees’ salaries, wages and benefits, rent expense, utilities, transportation, fees and licenses, commissions, office supplies; inventories)
Financial Forecasts and Determination of Financial Feasibility
indicate the feasibility of the enterprise
complete projection of the financial statements
the monetary transactions that the business is expected to engage in
Income Statement
revenue/sales forecasts (marketing strategy and action program)
forecasts of cost of goods produced (operations strategy and production/service delivery program); raw materials
forecasts of operating and non-operating expenses (rest of the enterprise delivery system)
Balance Sheet
shows the investments in form of assets and their corresponding financing in form of liabilities (resources mobilized)
Cash and Funds Flow Statement
flow of resources
inflow - income; outcome - expenses
Net Income or Net Loss
earn? lose?
The Feasibility Study
required for bigger projects that entail millions of pesos worth of investment
more comprehensive and detailed; more rigorous/meticulous approach
prepared to convince bankers and investors to put money into the business
OPPORTUNITY SEIZING
determine the critical success factor and be vigilant about the factors the lead to failure
CRITICAL SUCCESS FACTOR
ay change depending on what market segment the enterprise is addressing.
If the market segment wants high quality and can tolerate high prices, it's different from those who are very price conscious but at the same time not too demanding on the quality.
Will I be able to manage these factors?
POSITIONING STATEMENT
an expression of how a given product, service or brand fills a particular consumer need in a way that its competitors don't.
branding of the product
For you to craft a positioning statement, know your competitors' major buyers and features of their products should give you an idea.
Then, customer profiling should be done.
VALUE PROPOSITION
a statement that answers the 'why' someone should do business with you.
It should convince a potential customer why your service or product will be of more value to them than similar offerings from your competition.
MARKET NICHE
small segments of the market where discriminating customers are searching for special product/service features and attributes to satisfy the specific market needs.
Designing, Prototyping, and Testing the Product
render the concept and translate it into reality
assess how much resources are available and what kind of setup is needed
provide the concept and translate it into its very physical and very real dimensions.
Then, assess how much resources are available in order to seize the opportunity and what kind of organizational setup will work best for this kind of opportunity.
END RESULT: highly satisfied customers, huge sales realized, large profits generated, etc.
WHY
ONE OF THE QUESTIONS THAT SHOULD BE ASK IN MARKET RESEARCH
Purpose and objective for conducting the market research
WHAT
ONE OF THE QUESTIONS THAT SHOULD BE ASK IN MARKET RESEARCH
Determine the scope and limitation of the market research to be conducted
WHICH
ONE OF THE QUESTIONS THAT SHOULD BE ASK IN MARKET RESEARCH
Determine the market segment to be studied
WHO
ONE OF THE QUESTIONS THAT SHOULD BE ASK IN MARKET RESEARCH
Identify the members of the selected segment who will participate for the research
WHEN
ONE OF THE QUESTIONS THAT SHOULD BE ASK IN MARKET RESEARCH
Determine the time and timing of the research
WHERE
ONE OF THE QUESTIONS THAT SHOULD BE ASK IN MARKET RESEARCH
Pinpoint the relevant location of the market research
HOW
ONE OF THE QUESTIONS THAT SHOULD BE ASK IN MARKET RESEARCH
Determine the methodology to be used.
Sales Data Mining
observing and recording
includes all numbers for the data; frequencies
Focus Group Discussion
is one of the most common qualitative research tools.
It is effective in extracting consumer and non-consumer experiences regarding products, places, or programs.
This method can also be used for generating initial insights.
extracting consumer and non-customer experience about the product, place or program
timer, transcriber; 1. 5 to 3 hours only
qualitative, interview
Observation Technique
one of the best ways of gathering data about customers in their natural setting without having to interact or talk to them.
One has to simply observe people as they go about their usual activity such as buying and using products and services and assess how they behave.
However, the researcher must be discreet so as not to attract the attention of the one being observed.
HUMAN OBSERVATION
humans observe the events as they happen
MECHANICAL OBSERVATION
mechanical devices are used to record events for later analysis
Survey Research
most preferred instrument for in-depth quantitative research
The respondents are asked a variety of questions which are often about their personal information, motivations, and behavior.
not only paper and pen, also be conducted via telephone, personal, and mail interview
Usage, Attitude, and Image Survey
the most popular type of survey
is intended to derive market awareness, market size and share, product usage and preference, customer interest, and customer image.
Probability sampling
randomly selected
Non Probability sampling
done when it's difficult to estimate population because they move from one place to another or not permanent in a given location; respondents are not constant
Data variability of a proportion
how spread out a set of data is from a central point
Confidence level
tells you how sure you can be (90%, 95%, 99%)
Error in the result
remaining of the confidence level
Legal Visibility
the ability to accurately and completely view the processes, transactions and other activities operating within an enterprise
People and Physical Resources
these are the sales volume targeted (determine the quantities of materials, supplies, power, space, people, operating expenses, and other requirements), technology to be utilized, and the capabilities needed by the employees (calibrate the salaries and wages, benefits and allowance, travel and transportation, and other people-related expenses).
Peso/Money Resources
other financial requirements in establishing and nurturing the business.
Note 
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