Entrep

Factors to Consider of a New Entrepreneur:

Know your Product or ServqwaiceAnalyze the Market PotentialsDetermine the Marketing Strategy

Key Points

Analyze customers’ profile---- as to their buying habits,
their income, and social status.

Customers are the kings and queens of the

entrepreneurs.

Marketing Strategy process

• Understanding customers -— Know their needs

• Analyze market -----— Analyze customers wants

• Analyze competition --— Know the weakness and strength of competitors

• Research Distribution ---— Information/ Research????

• Define marketing Mix ----—  influence consumers to purchase its products.(4 p’s of marketing)

• Financial Analysis --— Accountant/ The one who take care of your financial

• Review and Revise ----— Evaluate your business

Competitor Pie

• Direct --Same/ Company that has the same products as you or within the same market

• Indirect —  Basically, their product and service offerings may be different, but are intended to solve the same consumer need as yours. 

• Everyone/ Everything Else(  phantom competitors, or replacement competitors,)⁠- whatever your potential customer might spend their money on instead of buying what you offer.

Proactive analysis for expansion, growth and overcome possible competitions. 

Develop advertising and promotion strategy to penetrate the wider market. 

(Vertical -— is an expansion strategy where a company takes control over one or more stages in the production or distribution of its products/ Similar Set of Line of Products)

(Horizontal —  is an expansion strategy that involves the acquisition of another company in the same business line/ Another set of business)

Environmental Scanning

 Investment in money and effort should generate financial gain for the entrepreneur.  

Entrepreneurs need long working hours and advanced thinking to overcome the possible threats. 

Planning and environmental analysis is needed to keep opportunities moving to his side of profitability.

Product Strength in the Market must have the following:

• Available Technology in Product Processing

• The source of Raw Materials must be Abundant and at Lower Prices

• Skilled Workers must be available 

• Capital Investment in Machinery and Operating Expenditures

• Expertise and Technical skills of the Management Team

KEY POINTS

Constant supply of raw materials is an important factor in the production of the product. 

Workers efficiency and productivity  are the lifeblood of the company

Small capital should generate profitable operation.

A good product is the making of a well-conceived idea of the management team. Also they seek opportunities and ideas

Characteristics of Weak Products and Weak Management

• Poor Quality and High Price

• Product Design and Appeal

• Production Cost

• Supply and Demand 

• Weak Product Management

Key Points

Product design should appeal to customers demand. 
Product appeal are important ingredients for customer patronage.

Production cost may be attributed to high labor cost and the availability of cheap raw materials.

Supply chain management make the products available to valued customers.

Weak management is created when people at the top of the organization fail to sustain a vigorous effort for expansion and growth.

Sustainable Product Opportunities in the Market

• Product Demand

• Presence of Poor Quality in the Market

• Government Policies and Support

• Liberal Credi⁠⁠t Terms and Interest Rates

Key Points

Product demand is the greatest opportunity of the entrepreneur.  
Demand is an essence of profit)

 Patronize our own products

 Credit terms given by the suppliers are opportunities for the growth of the business.