Entrepreneurship Reviewer PDF

g. RISK-TAKER - which means that he is ENTREPRENEURSHIP REVIEWER willing to gamble but he will calculate it first. ENTREPRENEURSHIP- encouraged by the ENVIRONMENTAL FACTORS...

g. RISK-TAKER - which means that he is ENTREPRENEURSHIP REVIEWER willing to gamble but he will calculate it first. ENTREPRENEURSHIP- encouraged by the ENVIRONMENTAL FACTORS economy because it can provide a lot of a. POLITICAL opportunities for the unemployed people. b. CLIMATE c. LEGAL SYSTEM ENTREPRENEUR- french verb d. ECONOMIC CONDITIONS “entreprendre” which mean “to undertake” e. MARKET SITUATIONS ENTREPRENEURSHIP -process of setting up a business COMMON COMPETENCIES IN -creation of job opportunities, innovation, ENTREPRENEURSHIP and improve the economy. 1. DECISIVE - an entrepreneur must be firm CONCEPT OF ENTREPRENEURSHIP in making decisions. The word “entrepreneur” was derived from 2. COMMUNICATOR - an entrepreneur the French verb entreprendre, must have a convincing power. which means “to undertake.” This is 3. LEADER - an entrepreneur must have pinpointing to those who “undertake” the the charisma to be obeyed by his risk of employees. enterprise. The enterprise is created by an 4. OPPORTUNITY SEEKER - an entrepreneur and the process is called entrepreneur must have the ability to be the “Entrepreneurship.” first to Entrepreneurs are innovators. They are see business chances. willing to take the risks and generate 5. PROACTIVE – an entrepreneur can unique ideas that can provide profitable control a situation by making things happen solutions to the needs of the market and the or by preparing for possible future problems. society 6. RISK TAKER – an entrepreneur has the courage to pursue business ideas. FACTORS AFFECTING 7. INNOVATIVE - the entrepreneur has big ENTREPRENEURSHIP business ideas and he does not stop improving and thinking of new worthwhile PERSONALITY FACTORS ideas for his business. a. INITIATIVE - doing things even before being told. CORE COMPETENCIES IN b. PROACTIVE - which means he can ENTREPRENEURSHIP classify opportunities and seize it. c. PROBLEM SOLVER - which means he 1. ECONOMIC AND DYNAMIC ACTIVITY - can retain good relations with other Entrepreneurship is an economic activity people. because it involves the creation and d. PERSEVERANCE - meaning he will operation of an enterprise with a view to pursue things to get done regardless of creating value or wealth by ensuring challenges. optimum utilization of limited resources. e. PERSUASION - means that he can 2. INNOVATIVE – The entrepreneur entice people to buy even if they don’t want constantly looks for new ideas, thus he to. needs f. A PLANNER - he makes plans before to be creative. doing things and does not fail to 3. PROFIT POTENTIAL - The entrepreneur monitor it. can be compensated by his profit coming from the operation. 4. RISK BEARING – The entrepreneur RELEVANCE OF ENTREPRENEURSHIP needs to gamble but wise enough to offset TO AN ORGANIZATION the risk. 1. DEVELOPMENT OF of MANAGERIAL CAPABILITIES - this means that one of the TYPES OF ENTREPRENEURS benefits An entrepreneur gets to develop his 1. INNOVATIVE ENTREPRENEURS - They managerial skills. are those who always make new things by 2. CREATION OF ORGANIZATIONS - thinking of new ideas. They have the ability which means that because of to think newer, better and more entrepreneurship economical ideas. many organizations will exist. 2. IMITATING ENTREPRENEURS - They 3. IMPROVING STANDARD OF LIVING - are those who don’t create new things but this means that entrepreneurship can lift up only the follow the ideas of other entrepreneurs. economic status of an individual. 3. FABIAN ENTREPRENEURS - They are 4. MEANS OF ECONOMIC skeptical about changes to be made in the DEVELOPMENT - this means that not only organization. They don’t initiate but follow the life of the only after they are satisfied. entrepreneur is improved but also the 4. DRONE ENTREPRENEURS - They are society where the business is located. those who live on the labor of others. They are die-hard conservatives even ready to VALUE PROPOSITION (VP) - is a business suffer the loss of business. or marketing statement that 5. SOCIAL ENTREPRENEURS - They are summarizes why a consumer should buy a those who initiate changes and drive social company's product or use its service innovation and transformation in the various fields such as education, health, In creating Value human rights, environment and enterprise Proposition, entrepreneurs will consider development. the basic elements: CAREER OPPORTUNITIES OF Target Customer ENTREPRENEURSHIP Needs/opportunity Name of the product 1. BUSINESS CONSULTANT - with the Name of the enterprise/company expertise of in the field of entrepreneurship, he can be a very good source of advices to UNIQUE SELLING PROPOSITION (USP) – other entrepreneurs and would be refers to how you sell your product business men. or services to your customer. You will 2. TEACHER - a graduate of an address the wants and desires of your entrepreneurship can use his knowledge in customers. teaching. 3. RESEARCHER - the entrepreneur can Some tips for the entrepreneur on how to be employed as a researcher by an create an effective unique selling enterprise. proposition to the target customers are: 4. SALES - the entrepreneurship graduate can apply as a salesman. Identify and rank the uniqueness of the 5. BUSINESS REPORTER - the product or services character entrepreneur being expert in the field, can Be very Specific be Keep it Short and Simple (KISS) employed as a business reporter. TARGET MARKET Market Targeting is a sage in market b. Knowledge identification process that aims to c. Reaction determine the buyers with common needs d. Benefits and characteristics. Prospect e. Loyalty customers are a market segment that an f. Responses entrepreneurial venture intends to serve B. Customer Requirements Commonly used methods for segmenting Customer requirements are the specific the markets. characteristics that the customers need from a product or a service. 1. GEOGRAPHIC SEGMENTATION – the total market is divided according to There can be two types of customer geographical requirements: location. 1.Service Requirement Variables to consider 2.Output Requirement a. Climate b. Dominant ethnic group SERVICE REQUIREMENT: c. Culture An intangible thing or product that cannot be d. Density (either rural or urban) touched but the customer can feel the fulfillment. There are elements in 2. DEMOGRAPHIC SEGMENTATION – service requirement like on-time delivery, divided based on consumers service with a smile, easy-payment etc. It Variables to consider includes all aspects of how a customer a. Gender expects to be treated while purchasing a b. Age product and how easy the buying process c. Income goes. d. Occupation e. Education MARKET SIZE f. Religion The entrepreneur’s most critical task is to g. Ethnic group calculate the market size, and h. Family size the potential value that market has for their start-up business. Market research will 3. PSYCHOLOGICAL SEGMENTATION – determine the entrepreneurs’ possible divided in terms of how customers think and customers in one locality. believe Variables to consider UNIQUE SELLING PROPOSITION (USP) a. Needs and wants which refers to how you sell your b. Attitudes product or services to your customers and c. Social class how you will address the wants and d. Personality traits desires of your customers. e. Knowledge and awareness f. Brand concept tips for the entrepreneur on how to g. Lifestyle create an effective unique selling proposition to the target 4. BEHAVIORAL SEGMENTATION – customers are: divided according to customers’ behavior Identify and rank the uniqueness of the pattern as product or services character they interact with a company. Be Very Specific Keep it short and simple (KISS) Variables to consider a. Perceptions Market Research or Marketing Research interview, but considerably higher than the Process can be defined as mailed questionnaire. the process of gathering, analyzing and interpreting the information about the FOCUS GROUP DISCUSSION (FGD) - products or the services to be offered for is an excellent method for generating and sale to the potential consumers in the screening ideas and concepts. It can be market moderated group interviews and brainstorming sessions that provide DATA COLLECTION is the most valuable information on user’s needs and tool in any type of research behaviors study. Inaccurate data collection may cause mistakes and ultimately lead to Customers are overwhelmed with options, invalid results. and they want to quickly understand what makes one product or brand different than TIPS in COLLECTING DATA another. Organize collected data as soon as it is available That's why it's crucial for all entrepreneurs Know what message you want to get to understand how to identify a unique across and then collect data that is selling proposition (USP) to help guide relevant to the message your branding and marketing decisions. Collect more data Create more data UNIQUE SELLING PROPOSITION Take note of interesting or significant data It is what makes you different from your SURVEYS are the most common way to competitors. gather primary research with the use of questionnaires or interview It refers to how you sell your product or schedule. These can be done via direct services to your customer. You will address mail, over the phone, internet the wants and desires of your customers. INTERVIEW is one of the most reliable and A unique selling proposition is a statement credible ways of getting you choose to embody that differentiates relevant information from target customers. your products and your brand from your It is typically done in person competitors. between the researcher/entrepreneur and a respondent where the researcher UNIQUE SELLING PROPOSITION & asks pertinent questions that will give TAGLINE significant pieces of information about the problem that he will solve Each advertisement must say to the reader: "Buy this product and you will get PERSONAL INTERVIEWS are the this specific benefit. traditional method of conducting an interview. It allows the researcher to The proposition must be one that the establish relationship with potential competition participants and therefore gain their cooperation. either cannot, or does not, offer. Proposition must be unique and strong. TELEPHONE INTERVIEWS are less expensive and less time-consuming, but the There's no requirement for a USP to be disadvantages are that the response rate is pithy (brief or condensed) or memorable. not as high as the face-to-face USP speaks to the buyer in the language of is a business or marketing statement that the buyer about what matters to the buyer. summarizes why a consumer should buy a company's product or use its service. This Taglines are used in advertisements to statement is often used to convince a catch the attention of the customer to purchase a particular product or service to add a form of value to their lives. viewers. Taglines are summary of the USP. In creating value proposition, entrepreneurs will consider the basic elements: target Great taglines should incorporate or touch customer, needs/opportunity, name of the upon the USP but there are many taglines product, name of the enterprise/company. that don't. EXPERIENCE Taglines could (and probably should) be a short, catchy summary of the USP. PRODUCT UNIQUE SELLING PROPOSITION VALUE PROPOSITION BENEFITS WHY IS THERE A NEED FOR THE Creates Brand Identity ENTREPRENEUR TO CLEARLY IDENTIFY AND DEFINE THE Sets You Apart from Competitors CUSTOMERS OF HIS/HER BUSINESS VENTURE? Helps Overcome Customer Objections Market Segmentation Establishes Firm Customer Expectations Market Targeting Fit Small Business Market Positioning HOW TO DEVELOP A UNIQUE SELLING PROPOSITION? Who is the market? STEP 1: Use your biggest benefits MARKET SEGMENTATION STEP 2: Be unique involves dividing a market into parts that reflect different customer needs and wants STEP 3: Solve an industry "pain point" or "performance gap" TYPES OF MARKET SEGMENTATION STEP 4: Be specific and offer proof 1. GEOGRAPHIC SEGMENTATION STEP 5: Condense int one clear and 2. DEMOGRAPHIC SEGMENTATION concise sentence 3. PSYCHOLOGICAL SEGMENTATION STEP 6: Integrate your USP into all marketing materials 4. BEHAVIORAL SEGMENTATION STEP 7: Deliver on your USP's promise GEOGRAPHIC SEGMENTATION VALUE PROPOSITION Climate Dominant ethnic group  Helps make the marketing mix more Culture effective. Density (either rural or urban) MARKET TARGETING Classification of the geographic unit (first set of customers sharing common needs class, second class, etc.) and wants that a business decides to target DEMOGRAPHIC SEGMENTATION In the market targeting phase, the entrepreneur has already divided the total Gender, Age, Income, Occupation market and is now in the process of Education, Religion, Ethnic group Family size 1. evaluating each market segment and PSYCHOLOGICAL SEGMENTATION 2. selecting the target market segment or segments to serve. Needs and wants, Attitude, Social class Personality traits, Knowledge and MARKET SEGMENT EVALUATION awareness, Brand concept, Lifestyle 1. Size of the segment and its expected BEHAVIORAL SEGMENTATION growth. Perception, Knowledge, Reactions, Benefits 2. Existing and probable structure of the Loyalty Responses segment. POINTS TO CONSIDER IN 3. Capability of the business. SEGMENTATION MARKET POSITIONING 1. Accessibility of the market segment. The market segment must be accessible to the the place a product occupies in customer business. minds relative to competing products 2. Size of the market segment. The market segment must be large enough to provide MARKET (OR POSITINING) MAP wealth to the entrepreneurial venture. illustrates the range of "positions" that a 3. Distinction of the market segment. The product can take in a market based on two market segment must be easily dimensions that are important to differentiated from the total market. customers BENEFITS OF MARKET SEGMENTATION The three steps in determining the market position of the product in the minds of the Focuses resources on parts of a market consumer are the following: where the business can succeed. The entrepreneur determines whether the Allows a business to grow share in markets market position is distinct from others. or to "ride the wave" of fast-growing segments. The entrepreneur evaluates the advantages or benefits of every possible position. Helps with new product development. The entrepreneur decides on the market 2. OUTPUT REQUIREMENT position. Tangible thing or things that can be seen. BENEFITS OF MARKET POSITIONING Characteristic specifications that a consumer expects to be fulfilled in the IDENTIFIABLE product. The benefits or attribute is easily associated Customers will avail services as a product, with the product then various service requirements can take the form of output requirements. BENEFICIAL MARKET SIZE The attribute provides valuable benefits to the target customers It is like a size of the arena where the entrepreneurs will play their business. DISTINCTIVE ADVANTAGE It is the approximate number of sellers and The attribute is distinct to the product buyers in a particular market. EFFICIENT AND REWARDING STEPS IN DETERMINING THE MARKET SIZE The cost in attaching the attribute or value to the products is not higher than the The first step is to estimate the potential expected benefits market approximate number of customers that will buy the product or avail your CUSTOMER REQUIREMENT services. Customer requirements are the specific The second step is to estimate the characteristics that the customers need customers who probably dislike to buy your from a product or a service. product or avail the services. There can be two types of customer The third step is for the entrepreneur to requirements: estimate the market share, that means plotting and calculating of the competitor's 1. SERVICE REQUIREMENT market share to determine the portion of the new venture. 2. OUTPUT REQUIREMENT ENTREPRENEURIAL IDEA- A feasible, 1. SERVICE REQUIREMENT financial sound and technically possible and socially acceptable. An intangible thing or product that cannot be touched but the customer can feel the THE 2 PRODUCTS fulfillment. There are elements in service requirement like on- time delivery, service GOODS- called “tangible” such as gadgets, with a smile, easy- payment etc. food, snacks, clothes. It includes all aspects of how a customer SERVICES- called “entangible” such as expects to be treated while purchasing a manicure, hotels, rebonds, hair cuts. product and how easy the buying process goes. MARKER TRENDS- refers to the personal experiences.  MARKET MIX- it includes multiple areas to OPPORTUNITY SEEKING- consider focus as part of a comprehensive marketing evaluating and pursuing market based. plan. ENTREPRENEUR OPPORTUNITY Created by JEROME MCCARTHY in 1960 the 4PS focus on Product, Place, Price, Promotion. ENTREPRENEURIAL MIND FLAME- Allows entrepreneurs to see things in a very 1. PRODUCT- the tangible good or positive light in the midst of crisis or difficult intangible services by the business to the situation. targeted consumers. ENTREPRENEURIAL HEART FLAME- 2. PLACE- the placr where the target About emotional manifested in the consumer are expected and willing to buy entrepreneurs efforts to nurture relationship the product. with costumers. 3. PRICE- the value we pay in exchange for ENTREPRENEURIAL GUT GAME- the product and services. ability of the entrepreneur to sense without using five senses. 4. PROMOTION- the mode of convexing information about the product to the target consumers. PHYSICAL ENVIRONMENT 5. PEOPLE- individuals employees or A. CLIMATE workers who are directly involved in the B. PHYSICAL RESOURCES product. C. WILDLIFE 6. PACKAGING- The process of putting the SOCIETAL ENVIRONMENT product in a package of containers. A. SOCIO CULTURAL FORCES B. POLITICAL FORCES 7. POSITIONING- the place occupied by C. ECONOMICS FORCES the product in the minds of the consumer. D. ECOLOGICAL FORCES E. TECHNOLOGICAL FORCES INDUSTRY ENVIRONMENT A. GOVERNMENT B. SUPPLIES C. CUSTOMERS D. COMPETITION E. EMPLOYEES F. CREDITORS BUSINESS ENVIRONMENT- refers to the conditions and elements that define its operations and determine its success. 7PS OF MARKETING MIX