Entrepreneurship Q3 Reviewer PDF

ENTREPRENEURSHIP Module 1 Introduction to Entrepreneurship RELEVANCE OF ENTREPRENEURSHIP TO AN ORGANIZATION 1. Development of Managerial Capabilities - this means that one of the benefits an entrepreneur gets is to develop his managerial skills. 2. Creation of Organizations - which means that beca...

ENTREPRENEURSHIP Module 1 Introduction to Entrepreneurship RELEVANCE OF ENTREPRENEURSHIP TO AN ORGANIZATION 1. Development of Managerial Capabilities - this means that one of the benefits an entrepreneur gets is to develop his managerial skills. 2. Creation of Organizations - which means that because of entrepreneurship many organizations will exist. 3. Improving Standard of Living - this means that entrepreneurship can lift up the economic status of an individual. 4. Means of Economic Development - this means that not only the life of the entrepreneur is improved but also the society where the business is located. Concept of Entrepreneurship The word “entrepreneur” was derived from the French verb enterprendre, which means “to undertake.” This is pinpointing to those who “undertake” the risk of enterprise. The enterprise is created by an entrepreneur and the process is called “Entrepreneurship”. Entrepreneurs are innovators. They are willing to take the risks and generate unique ideas that can provide profitable solutions to the needs of the market and the society. Factors Affecting Entrepreneurship 1. Personality Factors which include: a. Initiative - doing things even before being told. b. Proactive - which means he can classify opportunities and seize it. c. Problem Solver - which means he can retain good relations with other people. d. Perseverance - meaning he will pursue things to get done regardless of challenges. e. Persuasion - means that he can entice people to buy even if they don’t want to. f. A Planner - he makes plans before doing things and does not fail to monitor it. g. Risk-taker - which means that he is willing to gamble but he will calculate it first. 2. Environmental Factors which include political, climate, legal system, economic and social conditions and market situations. Common Competencies in Entrepreneurship 1. Decisive - an entrepreneur must be firm in making decisions. 2. Communicator - an entrepreneur must have a convincing power. 3. Leader - an entrepreneur must have the charisma to be obeyed by his employees. 4. Opportunity seeker - an entrepreneur must have the ability to be the first to see business chances. 5. Proactive – an entrepreneur can control a situation by making things happen or by preparing for possible future problems. 6. Risk Taker – an entrepreneur has the courage to pursue business ideas. 7. Innovative - the entrepreneur has big business ideas and he does not stop improving and thinking of new worthwhile ideas for his business. Core Competencies in Entrepreneurship 1. Economic and Dynamic Activity - Entrepreneurship is an economic activity because it involves the creation and operation of an enterprise with a view to creating value or wealth by ensuring optimum utilization of limited resources. 2. Innovative – The entrepreneur constantly looks for new ideas, thus he needs to be creative. 3. Profit Potential - The entrepreneur can be compensated by his profit coming from the operation. 4. Risk bearing – The entrepreneur needs to gamble but wise enough to offset the risk. Types of Entrepreneurs 1. Innovative Entrepreneurs - They are those who always make new things by thinking of new ideas. They have the ability to think newer, better and more economical ideas. 2. Imitating Entrepreneurs - They are those who don’t create new things but only follow the ideas of other entrepreneurs. 3. Fabian Entrepreneurs - They are skeptical about changes to be made in the organization. They don’t initiate but follow only after they are satisfied. 4. Drone Entrepreneurs - They are those who live on the labor of others. They are die-hard conservatives even ready to suffer the loss of business. 5. Social Entrepreneurs - They are those who initiate changes and drive social innovation and transformation in the various fields such as education, health, human rights, environment and enterprise development. Career Opportunities of Entrepreneurship 1. Business Consultant - with the expertise of in the field of entrepreneurship, he can be a very good source of advices to other entrepreneurs and would be business men. 2. Teacher - a graduate of an entrepreneurship can use his knowledge in teaching. 3. Researcher - the entrepreneur can be employed as a researcher by an enterprise. 4. Sales - the entrepreneurship graduate can apply as a salesman. 5. Business Reporter - the entrepreneur being expert in the field, can be employed as a business reporter. Module 2 Recognize a Potential Market Entrepreneurial Ideas The creation of an entrepreneurial idea leads to the identification of entrepreneurial opportunities, which in turn results in the opening of an entrepreneurial venture. The entrepreneurial process of creating a new venture is presented in the diagram below. Essentials in Entrepreneur’s Opportunity – Seeking These are the basic foundation that the entrepreneur must have in seeking opportunities: Entrepreneurial mind frame. This allows the entrepreneur to see things in a very positive and optimistic way in the midst of difficult situation. Being a risk - taker, an entrepreneur can find solutions when problems arise. Entrepreneurial heart flame. Entrepreneurs are driven by passion; they are attracted to discover satisfaction in the act and process of discovery. Passion is the great desire of an entrepreneur to achieve his/her goals. Entrepreneurial gut game. This refers to the ability of the entrepreneur of being intuitive. This also known as intuition. The gut game also means confidence in one’s self and the firm belief that everything you aspire can be reached. Sources of Opportunities There are many ways to discover opportunities. Looking at the big picture,some have noticed the emerging trends and patterns for business opportunities. While others are trying to find out their target market. The following are some sources of opportunities: 1. Changes in the environment Entrepreneurial ideas arise when changes happen in the external environment. A person with an entrepreneurial drive views these changes positively. External environment refers to the physical environment, societal environment, and industry environment where the business operates. 1.1 The Physical environment includes a. Climate – the weather conditions. b. Natural resources – such as minerals, forests, water, and fertile land that occur in nature and can be used for economic gain. c. Wildlife – includes all mammals, birds, reptiles, fish, etc., that live in the wild. 1.2 The Societal environment includes the various forces like a. Political forces – includes all the laws, rules, and regulations that govern business practices as well as the permits, approvals, and licenses necessary to operate the business. b. Economic forces – such as income level and employment rate. c. Sociocultural forces – customs, lifestyles and values that characterize a society. d. Technological environment – new inventions and technology innovations. 1.3 The Industry environment of the business includes: a. Competitors b. Customers c. Creditors d. Employees e. Government f. Suppliers 2. Technological discovery and advancement A person with entrepreneurial interest sees possibility of business opportunities in any new discovery or because of the use of latest technology. For example, an individual with knowledge in repair and installation of a machine engine discovers additional engine parts that considerably reduce fuel consumption. 3. Government’s thrust, programs, and policies The priorities, projects, programs, and policies of the government are also good sources of ideas. For example, the use of firecrackers to celebrate New Year’s Eve is strictly prohibited. People without entrepreneurial interest will view the ordinance as a plain restriction. However, for an entrepreneur, it is a business opportunity to come up with a new product that will serve as a substitute for firecrackers. 4. People’s interest The interest, hobbies, and preferences of people are rich sources of entrepreneurial ideas, like the increasing number of Internet Cafés at present could lead to the strong attachment of young people to computers. 5. Past experiences The expertise and skills developed by a person who has worked in a particular field may lead to the opening of a related business enterprise. For example, an accountant who has learned the appropriate accounting and management skills and techniques in a prominent accounting firm can start his/her business venture by opening his/her own accounting firm. Forces of Competition Model It is also known as the “five forces of competition”. An industry environment is a competitive environment. Regardless of what product or services you have, competition is always present. Competition – it is the act or process of trying to get or win something. For example, the prices are lower when there is a competition among the stores. These are the five forces competing within the industry: Buyers Potential new entrants Rivalry among existing firms Substitute products Supplier 1. Buyers The buyers are the ones that pay cash in exchange for your goods and services. One example is the influence of the price or in the bargaining strategy. The buyer has a strong and magnified bargaining power. The threat of its bargaining power will be less if the following factors are noticed: a. There are several suppliers available in the market. b. The buyer has the potential for backward integration. c. The cost of switching the supplier cost is minimal. d. The product represents a high percentage of the buyer’s cost. e. The buyer purchases large portions of the seller’s product or services. 2. Potential New Entrants A new entrant is defined as companies or businesses that have the ability to penetrate or enter into a particular industry. For example, in the level of capital requirements, if the business requires huge capital, new entrants should decline to join the business. This gives a threat to the business. This can be noticed if there is the presence of the following factors: a. Substantial capital requirement b. Strict government policy c. Difficulty in accessing distribution channels d. Economies of scale e. High cost of product differentiation f. High switching cost 3. Rivalry among Existing Firms Rivalry is a state or situation wherein business organizations are competing with each other in a particular market. For example, it depends on the marketing strategy of your competitor, like giving freebies and special offers. The intensity of rivalry among existing firms is characterized to the following factors: a. Diversity of rivals b. Number of competing firms c. Characteristics of the products or services d. Increased capacity e. Amount of fixed costs f. Rate of industry growth 4. Substitute Products Substitute is one that serves the same purpose as another product in the market. For example, the consumers decide to use margarine as a substitute for butter. In case the price of butter increases, preferably the consumer will gradually switch to margarine. A substitute product can give a big threat in the industry environment if the following factors are noticed: a. Switching cost is low b. Preferences and tastes of the customers easily change c. Product differentiation is highly noticeable d. The quality of substitute products dramatically improves e. The price of substitute product is substantially lower 5. Suppliers The Suppliers are the one that provide something that is needed in business operations such as office supplies and equipment. In an example where supplies and services being offered is unstable the intensity of the threat is strong in this kind of the competitive force in the industry. This can be noticed if there is the presence of the following factors: a. The supplier has the ability for forward integration b. Suppliers in the industry are few, but the sales volume is high c. Substitute products are not readily available in the market d. The switching cost is very high e. The product or service is unique Module 3 Recognize and Understand the Market What is Unique Selling Proposition (USP) and Value Proposition (VP)? This part allows the entrepreneur to prepare himself on how to advertise and sell his product even if it is similar to others. Value Proposition (VP) - is a business or marketing statement that summarizes why a consumer should buy a company's product or use its service.This statement is often used to convince a customer to purchase a particular product or service to add a form of value to their lives. In creating Value Proposition, entrepreneurs will consider the basic elements: Target Customer Needs/opportunity Name of the product Name of the enterprise/company There are many competitors in the market who establish superiority over other entrepreneurs. Entrepreneurs should think of other alternatives to make their products better. An important aspect in Value Proposition is that it must be truthful and that it should establish credibility to the consumers. Unique Selling Proposition (USP) – refers to how you sell your product or services to your customer. You will address the wants and desires of your customers. As an entrepreneur, you should think of marketing concepts that persuade your target customers. You may ask the following questions in doing this: What do the customers want? What brand does well? What does your competitor sell well? Some tips for the entrepreneur on how to create an effective unique selling proposition to the target customers are: Identify and rank the uniqueness of the product or services character Be very Specific Keep it Short and Simple (KISS) As an entrepreneur, present the best feature of your product or service that is different from other competitors. Identifying the unique selling proposition requires marketing research that you will learn from the other modules. In promoting your products or services, make sure that it is very specific and put details that emphasize the differentiator against the competitors. Keep it short and simple and think of a tagline that is easy to remember. Right now, the proposed unique selling proposition is: “Charing sari-sari store, open 24/7” three factors that will determine your customers. A. Target Market Market Targeting is a sage in market identification process that aims to determine the buyers with common needs and characteristics. Prospect customers are a market segment that an entrepreneurial venture intends to serve.In targeting a specific market, it will exclude people if it will not fit your criteria. Rather, target marketing allows you to focus your marketing money and brand message on a specific market that is more likely to buy from you than other markets. Choose a product that is more affordable, efficient, and effective to reach potential clients and generate business. Commonly used methods for segmenting the markets are follows.: 1. Geographic segmentation – the total market is divided according to geographical location. Variables to consider a. Climate b. Dominant ethnic group c. Culture d. Density (either rural or urban) 2. Demographic Segmentation – divided based on consumers Variables to consider a. Gender b. Age c. Income d. Occupation e. Education f. Religion g. Ethnic group h. Family size 3. Psychological Segmentation – divided in terms of how customers think and believe Variables to consider a. Needs and wants b. Attitudes c. Social class d. Personality traits e. Knowledge and awareness f. Brand concept g. Lifestyle 4. Behavioral Segmentation – divided according to customers’ behavior pattern as they interact with a company. Variables to consider a. Perceptions b. Knowledge c. Reaction d. Benefits e. Loyalty f. Responses B. Customer Requirements Customer requirements are the specific characteristics that the customers need from a product or a service. There can be two types of customer requirements: 1. Service Requirement 2. Output Requirement Service Requirement: An intangible thing or product that cannot be touched but the customer can feel the fulfillment. There are elements in service requirement like on-time delivery, service with a smile, easy-payment etc. It includes all aspects of how a customer expects to be treated while purchasing a product and how easy the buying process goes. Output Requirements: Tangible thing or things that can be seen. Characteristic specifications that a consumer expects to be fulfilled in the product. Costumers will avail services as a product, then various service requirements can take the form of output requirements. For example, if the consumer hires a multi cab, then on-time arrival becomes an output requirement. Customer buys gadgets (phone speaker) the specification like the loudness and clarity are the output requirements. C. Market Size The entrepreneur’s most critical task is to calculate the market size, and the potential value that market has for their start-up business. Market research will determine the entrepreneurs’ possible customers in one locality. What is Market Size? Market size is like a size of the arena where the entrepreneurs will play their business. It is the approximate number of sellers and buyers in a particular market. Companies are interested in knowing the market size before launching a new product or service in the area. In determining the market size, the entrepreneur will conduct a strategic marketing research from reliable sources using the following method. The first step is to estimate the potential market – approximate number of customers that will buy the product or avail your services. The second step is to estimate the customers who probably dislike to buy your product or avail the services. The third step is for the entrepreneur to estimate the market share, that means plotting and calculating of the competitor’s market share to determine the portion of the new venture. Market size becomes the most important factor if you ever need to raise funding for your business. Module 4 Market Research Market Research or Marketing Research Process can be defined as the process of gathering, analyzing and interpreting the information about the products or the services to be offered for sale to the potential consumers in the market (De Guzman, 2018, p. 25) DATA COLLECTION is the most valuable tool in any type of research study. Inaccurate data collection may cause mistakes and ultimately lead to invalid results. (Edralin, 2016, p. 80) TIPS in COLLECTING DATA Organize collected data as soon as it is available Know what message you want to get across and then collect data that is relevant to the message Collect more data  Create more data Take note of interesting or significant data Three different data collection technique SURVEYS are the most common way to gather primary research with the use of questionnaires or interview schedule. These can be done via direct mail, over the phone, internet (e.g. Google) or email, face- -face or on the Web to(e.g. Skype or Viber). When designing or constructing your own research questionnaire, remember the following guidelines. Keep it as simple as possible Make sure it is clearly appealing and easy to read Cluster or block related questions Move from complex questions to more specific questions Make sure questions are concise and easily understood Avoid questions that are difficult to answer Make sure response scales used are consistent with categories that are mutually exclusive INTERVIEW is one of the most reliable and credible ways of getting relevant information from target customers. It is typically done in person between the researcher/entrepreneur and a respondent where the researcher asks pertinent questions that will give significant pieces of information about the problem that he will solve. The interview is also helpful even when the business has already started because the customers’ feedback provides the entrepreneur a glimpse of what the customers think about the business. Interviews normally last from 15 to 40 minutes, but they can last longer, depending on the participants’ interest in the topic. In a structured interview, the researcher asks a standard set of questions and nothing more. Personal interviews are the traditional method of conducting an interview. It allows the researcher to establish relationship with potential participants and therefore gain their cooperation. It generates highest response rates in survey research. They also allow the researcher to clarify indefinite answers and when necessary, seek follow-up information. Telephone interviews are less expensive and less time-consuming, but the disadvantages are that the response rate is not as high as the face- -face to interview, but considerably higher than the mailed questionnaire. FOCUS GROUP DISCUSSION (FGD) - is an excellent method for generating and screening ideas and concepts. It can be moderated group interviews and brainstorming sessions that provide information on user’s needs and behaviors. The following are considerations in the use of focus group discussions in market research: The length of the session is between 90 and 120 minutes. Conduct focus groups discussion with 8 to 10 participants per group. Assign an expert moderator / facilitator who can manage group dynamics. Use a semi-structured or open-format discussion Strive for consistency in the group’s composition (for example, it may not be advisable to have business customers and retail customers in the same focus group, their needs are very different) Module 5 7 P’s of Marketing and Branding Marketing Mix is a set of controllable and connected variables that a company gathers to satisfy a customer better than its competitor. It is also known as the “Ps” in marketing. The 7 P’s of Marketing Mix There are several important frameworks which you can utilize for the purpose of marketing your product and services. A very crucial structure among these is the “7 P’s of Marketing. The framework of “7 Ps of marketing” includes product, place, price, promotion people, packaging and positioning. Realizing these P’s in the most ideal manner can turn out to be very profitable, however, you should totally see each description of the 7 P’s first. 1. PRODUCT The first P in the Marketing Mix is the Product. Marketing strategy typically starts with the product. Marketers can’t plan a distribution system or set a price if they don’t know exactly what the product will be offered to the market. Product refers to any goods or services that is produced to meet the consumers’ wants, tastes and preferences. GOODS - Consumer - Business SERVICE  - Consumer - Professional PLACE Place is the second P in the Marketing Mix. Place represents the location where the buyer and seller exchange goods or services. It is also called as the distribution channel. It can include any physical store as well as virtual stores or online shops on the Internet. It is one thing having a great product, sold at an attractive price. Place matters for a business of any size. It is a crucial part of the marketing mix. The main function of a distribution channel is to provide a link between production and consumption. Channel 1 contains two stages between producer and consumer - a wholesaler and a retailer. A wholesaler typically buys and stores large quantities of several producers' goods and then breaks into bulk deliveries to supply retailers with smaller quantities. For small retailers with limited order quantities, the use of wholesalers makes economic sense. Channel 2 contains one intermediary. In consumer markets, this is typically a retailer. A retailer is a company that buys products from a manufacturer or wholesaler and sells them to end users or customers. In a sense, a retailer is an intermediary or middleman that customers use to get products from the manufacturers. Channel 3 is called a "direct-marketing" channel, since it has no intermediary levels. In this case the manufacturer sells directly to customers. 3. PRICE The third P in the Marketing Mix is price. The price is a serious component of the marketing mix. Price is the value of money in exchange for a product or service. Generally speaking, the price is the amount or value that a customer gives up to enjoy the benefits of having or using a product or service. Thus, customers exchange a certain value for having or using the product – a value we call price. In commerce, price is determined by what (1) a buyer is willing to pay, (2) a seller is willing to accept, and (3) the competition is allowing to be charged. With product, promotion, and place of marketing mix, it is one of the business variables over which organizations can exercise some degree of control. The Different Pricing Strategies and Its Definition 4. PROMOTION Promotion is the fourth P in the Marketing Mix. Promotion refers to the complete set of activities, which communicate the product, brand or service to the user. The idea is to create an awareness, attract and induce the consumers to buy the product, in preference over others. The following are the most common medium in promoting a product and this is called promotional mix. PROMOTIONAL MIX 1. ADVERTISING Radio Advertising by means of radio gives the advantage of selecting the territory and audience to which the message is to be directed. It is also cheaper than TV advertising. Television This is the latest and the fast-developing medium of advertising and is getting increased popularity these days. It is more effective as compared to radio as it has the advantages of sound and sight. On account of pictorial presentation, it is more effective and impressive and leaves a lasting impression on the mind of the viewer. Print The print media carry their messages entirely through the visual mode. These media consist of newspapers, magazines and direct mail. Electronic You can also advertise electronically through your company website and provide important and pertinent information to clients and customers. You can protect some parts of your website through passwords and give access to member customers. You can also send advertisements via direct e-mail as part of your promotional strategy. Word of Mouth Word-of-mouth advertising is important for every business, as each happy customer can steer dozens of new ones your way. And it's one of the most credible forms of advertising because a person puts their reputation on the line every time they make a recommendation and that person has nothing to gain but the appreciation of those who are listening. Generic The promotion of a particular commodity is without reference to a specific producer, brand name or manufacturer. Producers join together to expand total demand for the commodity, thereby helping their own sales. These activities are often self-funded through assessments on marketing called check-off programs. 2. PUBLIC RELATIONS OR PR In public relations, the article that features your company is not paid for. The reporter, whether broadcast or print, writes about or films your company as a result of information he or she received and researched. Many people use the term PR and advertising interchangeably, PR involves sharing information with the public using platforms that do not require a payment, such as social media or through press releases shared with magazines and newspapers. PR professionals package information and disseminate it in the hopes that it will be organically shared. The goal of public relations is to shape public perception of a business, presenting a positive image through various strategies to its various constituents. 3. PERSONAL SELLING Personal selling occurs when an individual salesperson sells a product, service or solution to a client. Salespeople match the benefits of their offering to the specific needs of a client. Today, personal selling involves the development of long standing client relationships. Personal selling involves a selling process that is summarized in the following Five Stage Personal Selling Process. The five stages are: Prospecting Making first contact The sales call Objection handling Closing the sale 4. SALES PROMOTIONS Sales promotion is any initiative undertaken by an organization to promote an increase in sales, usage or trial of a product or service (i.e., initiatives that are not covered by the other elements of the marketing communications or promotions mix). Sales Promotion Technique Free Gifts There are many ways to utilize this particular sales promotion technique. A newly opened store, for example, may offer the first 10 customers free items worth 100 pesos. Free Samples Providing free samples is a technique used to introduce new products to the marketplace. Samples give the consumer a chance to see how well they like a product or try something they otherwise would not normally buy. Free Trial A free trial is a way for a consumer to try a new product while eliminating risk. It may be used when a product is unique to the marketplace. Customer Contests Contests offer the customer a chance to win prizes like cash or store merchandise. Special Pricing Special pricing is used to offer consumers a lower price for a period of time or to purchase in multiple quantities. For example, a retailer may offer a product that normally costs 35 pesos at a price of 3-for-100-pesos during the promotional period. 5. DIRECT MARKETING Direct marketing is a promotional method that involves presenting information about your company, product, or service to your target customer without the use of an advertising middleman. It is a targeted form of marketing that presents information of potential interest to a consumer that has been determined to be a likely buyer. Forms of Direct Marketing Brochure Catalogs Fliers Newsletters Post cards Coupons Email Phone calls Text messages 5. PEOPLE The fifth P in the Marketing mix is People. Your team, the staff that makes it happen for you, your audience, and your advertisers are the people in marketing. This consist of each person who is involved in the product or service whether directly or indirectly. People are the ultimate marketing strategy. They sell and push the product. People are one of the most important elements of the marketing mix today. This is because of the remarkable rise of the services industry. Products are being sold through retail channels today. If the retail channels are not handled with the right people, the product will not be sold. Services must be first class nowadays. The people rendering the service must be competent and skilled enough so that that the clients will patronize your service. The marketing efforts of people are to create customer awareness, to arouse customer interest, to educate customers, to close the sale and to deliver the product.Therefore, the right people are essential in marketing mix in the current marketing scenario. 6. PACKAGING Packaging is the sixth P in the Marketing Mix. Packaging is a silent hero in the marketing world. Packaging refers to the outside appearance of a product and how it is presented to the customers. The best packaging should be attractive enough and cost efficient for the customers. Packaging is highly functional. It is for protection, containment, information, utility of use and promotion. Five Basic Functions of Packaging 1) Protection: One of the major functions of packaging is to provide for the effects of time and environment for the natural and manufactured products. The protection function can be divided into some classes. A. Natural deterioration: It is caused by the interaction of products with water, gases and fumes, microbiologic organisms like bacteria, yeasts and molds, heat, cold, dryness, contaminants and insects and rodents. B. Physical protection: The packaging is also used for physical protection, which include improving shock protection, internal product protection and reducing shock damage caused from vibration, snagging, friction and impact. C. Safety: A special kind of protective packaging is required for products that are deemed harmful to those who transport them or use them. These products include extremely inflammable gas and liquid, radioactive elements, toxic materials etc. The packaging should also be done so that children could not easily use or dispose them. D. Waste reduction: Packaging also serves to reduce the amount of waste especially in case of food distribution. 2) Containment: This involves merging of unit loads for shipping. It starts with spots of adhesives on the individual shippers that stick them together, straps of steel and plastic, entire coverings of shrinkable or stretchable plastic films and paper or corrugated wraps that surround an entire pallet of product. 3) Information: The packaging conveys necessary information to the consumers. The common information that packaging provides include general features of the product, ingredients, net weight of the contents, name and address of the manufacturers, maximum retail price (MRP). 4) Utility of use: The convenience packaging has been devised for foods, household chemicals, drugs, adhesives, paints, cosmetics, paper goods and a host of other products. This type of packaging includes dispensing devices, prepackaged hot metals, and disposable medical packaging. 5) Promotion: Companies use attractive colors, logos, symbols and captions to promote the product that can influence customer purchase decision. Packaging Decisions: i. Packaging concept: This defines what the package should be or do for the particular product in terms of size, shape, materials, color, text, and brand mark and tamperproof ability ii. Engineering tests: This will ensure that the package stands up under normal conditions iii. Visual tests: This is to ensure that the script is legible and colors are harmonious iv. Dealer tests: This is to ensure that the dealers find the packages attractive and easy to handle v. Consumer tests: This is to ensure favorable consumer response 7. POSITIONING Finally, the seventh P in the Marketing Mix is Positioning. When a company presents a product or service in a way that is different from the competitors, they are said to be “positioning” it. Positioning refers to a process used by marketers to create an image in the minds of a target market. Solid positioning will allow a single product to attract different customers for not the same reasons. For example, two people are interested in buying a phone; one wants a phone that is cheaper in price and fashionable while the other buyer is looking for a phone that is durable and has longer battery life and yet they buy the same exact phone. There are three basic concepts for positioning. These are Functional Positions, Symbolic Positions and Experiential Positions. Functional Positions deal with solving a problem, providing benefits and getting a favorable perception from investors, stockholders and consumers. Symbolic Positions deal with self-image enhancement, ego identification, belongingness, social meaningfulness and affective fulfilment and Experiential Positions deal with providing sensory or cognitive stimulation Brand Name is a name, symbol, or other feature that distinguishes a seller's goods or services in the marketplace. Your brand is one of your greatest assetsbecause your brand is your customers' over-all experience of your business. Brand strategy is a long-term design for the development of a popular brand in order to achieve the goals and objectives. A well-defined brand strategy shakes all parts of a business and is directly linked to customer needs, wants, emotions, and competitive surroundings. Experts believe that a good brand can result in better loyalty for its customers, a better corporate image and a more relevant identity. As more customers continue to differentiate between emotional and experienced companies, a brand may be the first step forward in your competition instead of price points and product features. The question is, can you build a brand which truly talks to your audience? Branding is a powerful and sustainable high-level marketing strategy used to create or influence a brand. Branding as a strategy to distinguish products and companies and to build economic value to both customers and to brand owners, is described by Pickton and Broderick in 2001. Commonly Used Branding Strategies 1) Purpose "Every brand makes a promise. But in a market in which customer confidence is little and budgetary observance is great, it’s not just making a promise that separates one brand from another, but having a significant purpose," (Allen Adamson). How can you define your business purpose? According to Business Strategy Insider, purpose can be viewed in two ways: a. Functional. This way focuses on the assessments of success in terms of fast and profitable reasons. For example, the purpose of the business is to make money. b. Intentional. This way focuses on fulfillment as it relates to the capability to generate money and do well in the world. 2) Consistency The significance of consistency is to avoid things that don’t relate to or improve your brand. Consistency aids to brand recognition, which fuels customer loyalty. 3) Emotion There should be an emotional voice, whispering "Buy me". This means you allow the customers to have the chance to feel that they are part of your brand. You should find ways to connect more deeply and emotionally with your customers. Make them feel part of the family and use emotion to build relationships and promote brand loyalty. 4) Flexibility Marketers should remain flexible too in this rapidly changing world. Consistency targets at setting the standard for your brand, flexibility allows you to adjust and differentiate your approach from your competition. According to Kevin Budelmann, "Effective identity programs require sufficient consistency to be identifiable, but sufficient variation to keep things fresh and human,"so if your old tactics don't work anymore, don't be afraid to change. It doesn’t mean it worked in the past it may still work now. 5) Employee Involvement It is equally important for your employees to be well versed in how they communicate with customers and represent the brand of your product. 6) Loyalty Loyalty is an important part of brand strategy. At the end of the day, the emphasis on a positive relationship between you and your existing customers sets the tone for what potential customers can expect from doing business with you. 7) Competitive Awareness Do not be frightened of competition. Take it as a challenge to improve your branding strategy and craft a better value in your brand.