Entrep

ENTREPRENUERSHIP

v  It is a proactive process of developing a business venture to make a profit.

v  It is a process of designing, launching, and running a new business.

v  It involves seeking opportunities for a market, establishing and operating a business out of the opportunity, and assessing its risks and rewards through.

Who is an entrepreneur?

v  A unique individual who has the innate ability and extraordinary dedication to establish and manage a business, acknowledging all the risks and reaping its rewards .

TECHNOPRENEUR- an entrepreneur who puts technology at the core of his or her business model.

SOCIAL ENTREPRENEUR- one who takes advantage of the country’s social problems and turn them to profitable institutions with the intention of helping the disadvantaged community rather than making a profit.

INTRAPRENEUR- in an entrepreneur in a large company or corporation who is tasked to think, establish, and run a new big idea or project.(product manager)

EXTRAPRENEUR- is an entrepreneur who hops from one company to another to act as the innovation champion, providing creative and efficient solution.

CHARACTERISTICS OF AN ENTREPRENUER

v  SELF MOTIVATION–you need to be able to push yourself,  and you need to be dedicated to your plan and keep moving forward–even if you are not receiving an immediate paycheck.

v  UNDERSTAND YOUR OFFERING – know what you offer and how it fits to the market. Knowing your product whether high-end, middle of the road or bargain. And being able to position yourself and then adjust if needed.

v  RISKS TAKER- Playing it safe almost never leads to success as a business owner.  You need to be willing to take a few risks to succeed.

v  BASIC MONEY MANAGEMENT SKILLS– entrepreneur needs management skills and knowledge and understand how money works so that you know where you stand, and so that you run your business on sound principles.

v  KNOW HOW TO NETWORK–Being able to connect with others and recognize partnership opportunities can take you a long way as a business owner.  Know your networking opportunities and make it a point to learn how to be effective.

v  FLEXIBILITY– Be willing to change as needed.  Stay on top of your industry and be ready to adapt changes in processes and product as they are needed.  Flexibility in thinking is essential in problem-solving and finding unique and effective solution to issues.

v  PASSION–Passion is what will help you find motivation when you are discouraged and will drive you forward.  Passion is fuel for successful entrepreneurship.

Market Research

The process of determining the viability of a new service or product through research conducted directly with the potential customers.

The process of collecting, analyzing and interpreting date about your target market, consumers, competitors and industry as a whole.

SALES DATA MINING

v  Turning raw data into useful information

v  The process of discovering interesting pattern and knowledge form large amount of sales data from existing industry.

FOCUS GROUP DISCCUSSION

v  Gathers people from similar backgrounds or experiences together to discuss a specific topic of interest

v  The number of respondents per group should range from six to eight, depending on the skill of the facilitator and the topic discussed.

OBSERVATION TECHNIQUE

v  Gathers data about customers in their natural setting without having to interact or talk to them.

TWO TYPES OF OBSERVATION TECHNIQUE

v  HUMAN OBSERVATION-human observe the events as they happen

v  MECAHNICAL OBSERVATION- mechanical devices are used to record events for later analysis.

SURVEY RESEARCH

v  The most preferred instrument for in-depth quantitative research. The respondents are asked a variety of questions which are often about persona; information, their motivations, and behavior

Customer profiling - The process of identifying and describing integrated profiles of your ideal customers

DEMOGRAPHIC - Shows who buys your product based on age, gender, family size, religion, nationality. income and education level, etc.

PSYCHOGRAPHIC- Who your customers are based on lifestyle. personality. Interests, opinions, social class. habits and activities.

BEHAVIORAL - Shows how consumers interact with your product, or how much they know about it.

GEOGRAPHIC - Groups customers by country region, city or area. Can include population, climate and language.

MARKET SIZE- The size the arena where the entrepreneur’s business will play.

MARKET SHARE- The plotting and calculation of the competitors market share to determine the remaining portion for the new venture.

Secondary target market- customers who don’t have enough purchasing power or have fewer demands.

Primary target market- the segment or subset of the total market for the product or service.

MARKETING MIX- A SET OF CONTROLLABLE VARIABLES AND THEIR LEVELS THAT THE FIRM USES TO INFLUENCE THE TARGET MARKET” PHILIP KOTLER

PRODUCT- Is a good, service, or experience that satisfy the needs and wants of the target market

FEATURES AND CHARACTERISTICS- Parts or components of the product, and the qualities that distinguish it from other brands and deliver the intended benefits.

PRODUCT LINE- It refers to the related products sold by a company. Product development begins with a single product item.

BRANDING- Name, symbol(logo), design, or a combination of these- the branding elements are used to create recognition and induce recall of the product.

PACKAGING- refers to the container or wrapper that holds a product, and may include an outer box or other container to protect it from damage or deformity.

LABEL- provides descriptions or information about the product and can serve several functions (contents, size, ingredients, nutritional values, manufactures details, and usage instructions)

SUPPORT SERVICES- contact information such as hotlines or e-mail addresses where customers can get in touch with a representative of the company for assistance.

CORE/GENERIC- THE PURPOSE FOR WHICH THE PRODUCT WAS CREATED. THE ORIGINAL PURPOSE OF THE PRODUCT

FORMAL PRODUCT-INCORPORATING UNIQUE STYLE SUCH AS FEATURES, COLOR, PRICE, ETC. THE OBJECTIVE IS TO DIFFENTIATE THE PRODUCT FROM OTHER MANUFACTURER/FIRM.

AUGMENTED PRODUCT- ANYTHING THAT A PRODUCT OFFERS THAT IS NOT REFERRED TO ITS ORIGINAL PURPOSE.

PRICE

Ø  Refers to the value placed by the customer on a product as well as the value that a company gets in return

Ø  Price is the only p that produces revenue and has direct impact on profitability.

Selling price- the amount your  customer pays in exchange for the product you sell them.

Revenue- to total amount you collect as a result of selling your product.

               Revenue=price  x  no. of goods sold

Fixed cost-(overhead)- these costs that remain constant regardless of the number of goods produced or sold in a given period.

Variable cost- these are costs that go directly into the manufacture of a good, therefore,change depending on the number of goods produced.

Total cost- these are your combined fixed costs and variable costs incurred in the production of goods or the creation of services.

Unit cost- this is the cost of producing one unit of the product. To determine this, you will need to estimate your expected volume sales and expenses for a certain period.

Profit- this is the amount you earn as a result of your selling activities.  It is the amount left after deducting total costs from revenue.

Breakeven point- it is the quantity of products sold where revenue and total cost are equal.

PRICING STRATEGIES

  • Standard markup pricing- a specific percentage is added to the unit cost of the product.

  • TARGET PROFIT PRICING- this method determines price based on the profit you want to earn from the selling activity

  • Competition-based pricing- this method uses competitors’ prices as the basis for determining your own price, benchmarking prices with the competitors.

  • Bundling pricing- refers to two or more products or services in one reduced price.

  • Penetration pricing- refers to setting low prices to increase market share, but the entrepreneur will eventually increase the price once the desired market share is achieved.

  • Product line pricing- refers to pricing different products or services within a parallel product array using varying price points. (led tv, qled tv,)

  • Psychological pricing- this considers the psychology and positioning of price in the market (e.g., price of haircut service is at P199 because consumers tend to think that odd prices are considerably lower that. What they are; in this example, they tend to round off the price to P100 instead of P200)

  • Premium pricing- refers to setting a very high price to reflect elitism and superiority

  • Skimming- prices are initially high and then they are lowered to offer the product or service to a wider market.

  • Optional pricing- refers to adding an extra product or service on top of the original to generate more revenue.

PLACE

Ø  Relates to how you make your product accessible to your target market. 

Direct distribution- a marketer or manufacturer sells their products directly to their target market. No middleman, higher profit margins and a better quality control.

Indirect distribution- the marketer or manufacturer sells their products through other sellers, also known as intermediaries.

RETAILERS-They purchase products for the purposes of reselling them with little or no alteration. Sari-sari, bookstores, hardware, and etc.

WHOLESALERS-intermediaries who sell to other intermediaries such as retailers or restaurants, and institutions that purchase products in larger quantities.

DISTRIBUTORS- perform distribution functions for marketer. They differ from wholesalers in aspects such as organizational and operational setup, contractual obligations with the marketers.

ONLINE SELLERS-provide a platform for manufacturers to sell their products to customers via internet.

HYBRID DISTRIBUTION- the marketer choose both direct and indirect distribution.

PROMOTION

Ø  The purpose of promotion is to inform, persuade, and remind customers of a brand’s value.

Ø  It creates awareness, generating interest and influence the consumer behavior.

AWARENESS- The realization that your product exists

KNOWLEDGE- Comprehension about your product’s features and benefits

LIKING-GAINING Positive feelings towards your product.

PREFERENCE-Deciding that your product is better than others

CONVICTION- The belief that your product is worth buying

PURCHASE- Actually buying your product.

ADVERISEMENT - Advertising is any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor.” Philip Kotler

PUBLIC RELATION - This form of promotions seeks to build good relations with the target audience through avenues such as special events, feature articles, and press conferences.

PERSONAL SELLING - This is two-way communication between seller and buyer intended to build relationships and influence purchasing decisions through personal presentation.

SALES PROMOTION - This is a short-term incentive offered to customers to stimulate purchase of a product.

PROCESS - The set of activities that facilitate the delivery of the product to the customers.

PEOPLE - It refers to individuals and groups directly related to the business such as those who produce the goods, those who provide services, and those who manage daily operations.

PHYSICAL EVIDENCE - It refers to the physical elements that are part of or result from providing product.