Entrepreneurship Reviewer 3rd Edition PDF

ENTREPRENEURSHIP REVIEWER 3RD ENTREPRENEURSHIP is encouraged by the 5. Proactive an entrepreneur can control a situation economy because it can provide a lot of opportunities by making things happen or by preparing for possible for the unemployed people....

ENTREPRENEURSHIP REVIEWER 3RD ENTREPRENEURSHIP is encouraged by the 5. Proactive an entrepreneur can control a situation economy because it can provide a lot of opportunities by making things happen or by preparing for possible for the unemployed people. future problems. *RELEVANCE OF ENTREPRENEURSHIP TO 6. Risk Taker business ideas. an entrepreneur has the AN ORGANIZATION courage to pursue 1. Development of Managerial Capabilities 7. Innovative - the entrepreneur has big business -this means that one of the benefits an entrepreneur ideas, and he does not stop improving and thinking of gets is to develop his managerial skills. new worthwhile ideas for his business. 2. Creation of Organizations -Which means that Core Competencies in Entrepreneurship because of entrepreneurship many organizations will 1. Economic and Dynamic Activity - exist. Entrepreneurship is an economic activity because it 3. Improving Standard of Living- this means that involves the creation and operation of an enterprise entrepreneurship can lift up the economic status of an 2. Innovative-The entrepreneur constantly looks for individual. new ideas, thus he needs to be creative 4. Means of Economic Development -this means 3. Profit Potential -The entrepreneur can be that not only the life of the entrepreneur is improved compensated by his profit coming from the operation. but also the society where the business is located. 4. Risk bearing The entrepreneur needs to gamble "Concept of Entrepreneurship" but wise enough to offset the risk. The word "entrepreneur" was derived from the “Types of Entrepreneurs” French verb entreprendre, which means "to 1. Innovative Entrepreneurs -They are those who undertake." always make new things by thinking of new ideas. The enterprise is created by an entrepreneur and the 2. Imitating Entrepreneurs - They are those who process is called "Entrepreneurship." don't create new things but only follow the ideas of Entrepreneurs are innovators. They are willing to other entrepreneurs. take the risks and generate unique ideas that can 3. Fabian Entrepreneurs - They are skeptical about provide profitable solution changes to be made in the organization Factors Affecting Entrepreneurship Module 2 1. Personality Factors which include: Essentials in Entrepreneur's Opportunity Seeking These are the basic foundation that the entrepreneur a. Initiative-doing things even before being told. must have in seeking opportunities: b. Proactive-which means he can classify 1. Entrepreneurial mind frame. opportunities and seize it. 2. Entrepreneurial heart flame. c. Problem Solver -which means he can retain good 3. Entrepreneurial gut game. relations with other people. Entrepreneurial Mind Frame d. Perseverance -meaning he will pursue things to get This allows the entrepreneur to see things in a very done regardless of challenges. positive and optimistic way in the midst of difficult e. Persuasion -means that he can entice people to buy situation. even if they don't want to. Entrepreneurial Heart Flame. f. A Planner - he makes plans before doing things and Entrepreneurs are driven by passion; they are attracted does not fail to monitor it. to discover satisfaction in the act and process of g. Risk-taker which means that he is willing to gamble discovery. but he will calculate it first. Entrepreneurial Gut Game. 2. Environmental Factors which include political, This refers to the ability of the entrepreneur of being climate, legal system, economic and social conditions intuitive. This also known as intuition. and market situations. “Common Competencies in. Sources of Opportunities Entrepreneurship” 1. Changes in the environment 1. Decisive - an entrepreneur must be firm in making 2Technological discovery and advancement decisions. 3.Government's thrust, programs, and policies 2. Communicator - an entrepreneur must have a 4.People's interest convincing power. 5.Past experiences 3. Leader - an entrepreneur must have the charisma to 1.Changes in the environment be obeyed by his employees. Entrepreneurial ideas arise when changes happen in 4. Opportunity seeker an entrepreneur must have the external environment. the ability to be the first to see business chances.  ENTREPRENEURSHIP REVIEWER 3RD External environment refers to the physical 2. Potential New Entrants -A new entrant is defined environment, societal environment, and industry as companies or businesses that have the ability to environment where the business operates. penetrate or enter into a particular industry. 1. Changes in the environment 3. Rivalry among Existing Firms - Rivalry is a state 1.1 The Physical Environment or situation wherein business organizations are 1.2 The Societal Environment competing with each other in a particular market. 1.3 The Industry Environment 4. Substitute Products - Substitute is one that serves Physical Environment the same purpose as another product in the market. a.Climate the weather conditions. 5. Suppliers - The Suppliers are the ones that provide b. Natural resources such as minerals, forests, water, something that is needed in business operations such and fertile land that occur in nature and can be used as office supplies and equipment. for economic gain. Moduel 3 c. Wildlife includes all mammals, birds, reptiles, fish, Business Plan-is written document describing the etc., that live in the wild. nature of the business, the sales and marketing Societal Environment strategy, and the financial background. a Political forces includes all the laws, rules, and Business Concept regulations that govern business practices as well as the -is an idea for a business that includes basic permits, approvals, and licenses necessary to operate information such as the service or product, the target the business. demographic, and a unique selling proposition. b. Economic forces such as income level and -A business concept may involve a new product or employment rate. simply a novel approach to marketing or delivering an c. Sociocultural forces characterize a society. existing product. customs, lifestyles and values that Product Opportunity d. Technological environment new inventions and exist when there is a gap between what is currently on technology innovations. the market and the possibility for new or significantly Industry environment improved products that result to emerging trends. a. Competitors Systematic innovation involves "monitoring seven b. Customers sources for innovative opportunity" (Drucker, c. Creditors 1985, p. 35). d. Employees The first four are internally focused within the e. Govemment business or industry, f. Suppliers The last three involve changes outside the business or 2. Technological discovery and advancement industry. -A person with entrepreneurial interest sees possibility *Intermally Focused of business opportunities in any new discovery or The unexpected (unexpected success, failure, or because of the use of latest technology. outside events). An entrepreneur may be able to 3. Government's thrust, programs, and policies discover opportunity such as in failures. -The priorities, projects, programs, and policies of the *Externally Focused govemment are also good sources of ideas. -Demographics (population changes). Like age, status, 4. People's interest race, sex The interest, hobbies, and preferences of people are - Changes in perception, mood, and meaning. rich sources of entrepreneurial ideas. -New knowledge, both scientific and non-scientific. 5. Past experiences -Entrepreneurs discover opportunities when they The expertise and skills developed by a person search for them in existing markets. These are the five forces competing within the Design thinking industry: is a human-centered approach to innovation that Buyers draws from the designer's toolkit to integrate the needs Potential new entrants of people. Rivalry among existing firms The design thinking process is best thought of as a Substitute products system of overlapping spaces rather than a sequence of Supplier orderly steps. 1. Buyers -The buyers are the ones that pay cash in *Inspiration -is the problem or opportunity that exchange for your goods and services. motivates the search for solutions.  ENTREPRENEURSHIP REVIEWER 3RD *Ideation-is the process of generating, developing, and Market research testing ideas. in a critical component when you're launching a *Implementation product, try to improve your existing service, or when is the path that leads from the project stage into you're just looking to be a step ahead of your people's lives. competitors. To deliver products that solve your target customers' There are 5 things that market research can do problems, you must first identify market problems. for you in the Stated needs are explicit statements from your market √ 1. It is crucial for a better understanding of your that declare, "I want a product to do X." customers Existing customers: People who have already √ 2. Knowledge about your competitors, and how they purchased your product: approach the market. Prospects: People who have not yet purchased your √3. Testing your product before launch product but are considering it √4. You won't go out of business Target market users: People in your target market √5. Business growth who are not currently looking for a solution. How to Make Sure There's a Market for Your Key factors in order to make solutions to the Business Idea problems: 1. Accept the market as a harsh, but fair judge. Don't focusing only on innovation and the 2. Pick proven categories, then find your niche competition. 3. Focus on wallet share, not market share. Don't focus only on customers.. 4. Put your ideas to the test. Don't Focus only on revenue. MODULE 5 Spotting Business Opportunities The Marketing Mix (7P's) in Relation to the -Observation skills and keeping an ear to the ground Business Opportunity are traits of successful entrepreneurs. -Spotting an 1.RODUCT opportunity is the only first step but to convert the -The first P in the Marketing Mix is the Product idea to a business requires good execution skills. -Product refers to any goods or services that is -The opportunity should also have sufficient market. produced to meet the consumers wants, tastes and MODULE 4 preferences. Market Needs The two (2) types of products -Businesses should start by knowing the consumer's *√GOODS interests, desires, and needs A. CONSUMER GOODS - inform organizations about what products develop, -The demand for consumer goods is a dret demand for what customers, at what cost, -The number of buyers is great. Size of Market -This is the group of people who are -The buyers are found scattered in different parts of likely to buy your product or service. the country/wold, Each purchase will generaly be of Understand Your Customer Profile small value -In order to determine the size, you need to -Buying is much influenced by emotions understand who your ideal customer is. B.BUSINESS GOODS Personal Similarities in Market -The demand for business goods is a derived demand it -Often, the group you're targeting has similarities is derived from the demand for consumer goods when you look at the personal lives of those in that -The buyers are found to be concentrating in certain group. This includes marital status, education levels, regions only type of career, as well as family size and income levels. -Each purchase involves a very high amount (in money Consider Cultural Components terms) A marketing plan should consider the geographic and -Buying cannot be influenced by emotions. cultural elements of your target group. √SERVICES Special Interests. or Needs A. CONSUMER SERVICES Marketing plans have become more dynamic with the LAWN CARE expansion of social media and digital marketing. HAIR STYLING Ascampaigns that target specific buyers. B. PROFESSIONAL SERVICES ENGINEERING ACCOUNTING  ENTREPRENEURSHIP REVIEWER 3RD CONSULTANCY Psychological pricing is the practice of setting prices 2. PLACE slightly lower than rounded numbers… -Place is the second in the Marketing Mic Optional Pricing -Place Represents the location where the buyer and The company eams more through cross-selling sailler exchange goods or services, it's also called as the products along with a basic core product. The main distribution channel product does not have many features (and is priced STAGES OF DISTRIBUTION CHANNEL low) 1 PRODUCER Cost Pricing WHOLESALER Cost plus pricing involves adding a markup to the cost RELAILER of goods and services to arrive at a selling price. CONSUMER Cost Based Pricing 2 PRODOCED A pricing method in which a fixed sum or a percentage RETARER of the total cost is added (as income or profit) CONSUMER Value Based Pricing 3 PRODUCER A price-setting strategy where prices are set primarily CONSUMER on consumers… Channel 1 contains two stages between producer and 4. PROMOTION consumer a wholesaler and a retailer. Channel 2 contains one intermediary. In consumer markets, this is typically a retailer. A retailer is a The following are the most common medium in company that buys products from a r or customers. promoting a product and this is communal mix. Channel 3 is called a "direct-marketing channel, √ PROMOTIONAL MIX since it has no intermediary levels 1. ADVERTISING 3. PRICE ✓Radio -The third P in the Marketing Mix is price. The price - gives the advantage of selecting the territory and is the serious component of the marketing mix. audience to which the message is to be directed. -price is the value of money in exchange for a - It is also cheaper than TV advertising product or service.. The Different Pricing Strategies and its ✓Television This is the latest and the fast developing Definition medium of advertising and is getting increased Penetration Pricing popularity these days. The price charged for products and services is set ✓Print The print media carry their messages entirely artificially low in order to gain market share. through the visual mode.(newspapers, magazines and Skimming Pricing direct mail) -A company charges a higher price then slowly lowers 2. PUBLIC RELATIONS OR PR the price to make the product available 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 Competition Pricing as a result of information… A pricing method in which a seller uses prices of 3. PERSONAL SELLING competing products as a benchmark instead of -Personal selling occurs when an individual considering own costs or the customer demand. salesperson sells a product service or solution to a Product Line Pricing dient. The practice of reviewing and setting prices for Five Stage Personal Selling Process. multiple products that a company offers in Prospecting coordination with one another. Making first contact Bundle Pricing The sales call The act of placing several products or services together Objection handing in a single package and selling for a lower price……. Closing the sale Premium Pricing 4. SALES PROMOTIONS Setting the price of a product higher than similar Sales promotion is any initiative undertaken by an products. organization to promote an increase in sales, usage or Psychological Pricing trial of a product or service.  ENTREPRENEURSHIP REVIEWER 3RD Sales Promotion Technique Companies use attractive colors, logos, symbols and -Free Gifts captions to promote the product. There are many ways to utlize this particular sales 7. POSITIONING promotion technique. A newly opened store. Positioning refers to a process used by marketers -Free Samples to create an image in the minds of a target market Providing free samples is a technique used to Three basic concepts for positioning introduce new products to the marketplace. Samples Functional Positions deal with solving a give the consumer a chance to see how well they like a problem product or try something. Symbolic Positions deal with self-image -Free Trial enhancement A free trial is a way for a consumer to ty a new product Experiential Positions deal with providing while eliminating risk. sensory or cognitive stimulation. Customer Contests Steps of the Positioning Process Contests offer the customer a chance to win prizes like Step 1: Confirm Your Understanding of Market cash or store merchandise. Dynamics Special Pricing Step 2: Identify Your Competitive Advantages Special pricing is used to offer consumers a lower price How to Create an Effective Market Positioning for a period of time or to purchase in multiple Strategy? quantities. 1. Determine company uniqueness by comparing to 5. DIRECT MARKETING competitorsidentify opportunities. is a promotional method that involves presenting 2. Identify current market position information about your company, product, or service 3. Competitor positioning analysis to your target customer without the use of an 4. Develop a positioning strategy advertising middleman. Brand Name is a name, symbol, or other feature that -Brochure distinguishes a seller's goods or services in the -Catalogs marketplace. -Fliers Branding is a powerful and sustainable high level -Newslette rs marketing strategy used to create or influence a brand. -Post cards Commonly Used Branding Strategies -Coupons 1) Purpose -Email A.Functional -Phone calls B.Intentional. -Text messages 2) Consistency 5. PEOPLE 3) Emotion The fifth P in the Marketing mix is People. Your 4) Flexibility team, the staff that makes it happen for you, your 5) Employee Involvement audience, and your advertisers are the people in 6) Loyalty marketing. 7) Competitive Awareness 6. PACKAGING According to Kevin Budelmann, "Effective identity Packaging is the sixth P in the Marketing Mix. programs require sufficient consistency to be Packaging is a silent hero in the marketing world identifiable, but sufficient variation to keep things Five Basic Functions of Packaging fresh and human 1) Protection A. Natural deterioration: B. Physical protection C. Safety: D. Waste reduction: 2) Containment: This involves merging of unit loads for shipping 3) Information 4) Utility of use: 5) Promotion: