Entrepreneurship-Reviewer.pdf

KEY CONCEPTS AND COMMON COMPETENCIES Objective: Explain the key concepts of common competencies on entrepreneurship “Opportunity comes from one person’s idea that influences others to take actions” Entrepreneurship is a science of converting processed ideas into a remarkable...

KEY CONCEPTS AND COMMON COMPETENCIES Objective: Explain the key concepts of common competencies on entrepreneurship “Opportunity comes from one person’s idea that influences others to take actions” Entrepreneurship is a science of converting processed ideas into a remarkable business venture. It is also a capacity for innovation, investment and expansion in new market, products and techniques. In starting a business, learner should seek entrepreneurial competencies such as: 1. Locus of Control. Entrepreneur must know how to determine the state to which a person agreed that their actions can directly affect a situation, or that they can control a result. 2. Specific Goal Setting. Entrepreneurs should be motivated to set goals, particularly business growth objectives, have been found to increase firm growth resulted in the firm performance and innovation. 3. Self-Efficacy. Entrepreneurs must believe in their own ability or self-confidence. 4. Need for Achievement. Entrepreneurs must have a high need for achievement take responsibility for outcomes. 5. Ambition. Entrepreneurs must be motivated, persistent, and persevere even in the face of situational challenges. 6. Willingness to Learn. Entrepreneurs should have a strong willingness to learn often pursue opportunities to acquire new skills and competencies. 7. Strong Initiative. Entrepreneurs must have a high initiative are often drive to work hard. 8. Adaptability and Flexibility. Entrepreneurs must learn how to be a highly flexible and adaptable often deal very well with a unique ability to choose actions even without all necessary information. 9. Willingness to take risk. Not only are successful learners willing to take consequences, they can also identify and calculate risk. 10. Interpersonal skills. Learner with strong interpersonal skills has skills of working well with people from different backgrounds. THE FACTORS THAT DEVELOP ENTREPRENEURIAL ACTIVITY 1. The entrepreneur takes the initiative Convert ideas into actions. Taking proactive steps to create new business Ability to plan and manage projects with creativity, innovation, and risk-taking in order to achieve goals. 2. Organization of capital resources Focuses on efficiently managing financial resources and investments for business growth. 3. The development of administrative machinery Develop a structure based on the need for operations. Duties and responsibilities are assigned to individuals with skills that will fit their position and qualifications based on their capacity to do the job and not on personal connections. Establishing effective systems and processes within a business for smooth operation. 4. The development of entrepreneurial autonomy Develops autonomy as he leads all the activities in the business organization. He knows the best direction because he also knows how to calculate the risk involved. Fostering self-reliance and the ability to make independent decisions in entrepreneurial endeavor. 5. The development of SWOT analysis A strategic tool used by entrepreneurs to identify Strengths, Weaknesses, Opportunities and Threats relate to business. BUSINESS PLAN THREE FACTORS OF A GOOD BUSINESS PLAN It’s realistic. Essential for effective goal setting, ensuring that the goal can be achieved within a practical framework. It’s specific. The aspect of goal setting emphasizes the need for clear, precise, and unambiguous objectives to provide a clear direction for action. It’s followed through. MARKET RESEARCH Design, collection, and analysis of relevant data, arranged in a systematic way, aimed at providing a solution to a specific marketing problem Types of Market Research 1. Advertising Research - predict or trace the effectiveness of an existing or related product or service advertisement. 2. Commercial Eye Tracking - analyzing visual behavior and trends among its target consumers. 3. Customer Satisfaction Research - feedback of customers who already purchased the product, or a related one, to gauge his satisfaction. 4. Distribution Channel Audit - assessing the distributor or retailers’ purchase ordering pattern and levels of a product. 5. Internet Strategic Intelligence - using the Internet in the form of chats, forums, blogs, etc, the product under review is given an honest experience review. 6. Test Marketing - a small, controlled quantity of the product is being released to gauge the level of acceptance of the buying public or target market.  Market Research Methodologies Research methods are used to get the type of information about the consumers, the market, and even the competitors, which will greatly influence the decisions of the entrepreneur. Market research methodologies are advantageous for any business because these tools are effective at tapping into the actual needs and wants of the target market. I. Qualitative Research Methods □ This type of data-gathering research method is performed through observation techniques and unstructured questioning. It gives answers to the whys and how's of the decision-making processes of various consumers. □ Qualitative research is a type of data-gathering research method performed through observation techniques and unstructured questioning. □ Interview, focus group, online focus groups and observation. A. Interview Interviews are conducted in order to give entrepreneurs or businessmen the chance to deeply evaluate the areas of interest of the individuals they want to target. In conducting interviews, questions to be asked must be those that are relevant to the implementation of the proposed business. B. Focus Group Focus groups are usually conducted personally by entrepreneurs or market researchers. This type of methodology is meant to bring about a comfortable environment while discussing with the consumers their feelings towards a specific product or service. C. Online focus groups Similar to in-person focus groups, online focus groups are likewise performed to understand the thoughts and feelings of consumers towards a specific product or service, except that they are more convenient and cost-efficient to perform. D. Observations The observational approach of conducting market research comes in different types. The most common examples of observational research are usability testing, in-store observation, and mystery shopping. II. Quantitative Research Methods □ Quantitative research obtains the information that can be easily and quickly counted and statistically analyzed. □ Survey research and experimental or field trials  A. Survey research Surveys are a very popular method in gathering primary data. This type of market research methodology enables the entrepreneur to formulate questions that cover a variety of topics. B. Experiments or Field Trials This market research approach involves a scientific approach that includes the testing of specific variables. Tests can be performed in controlled environments or under natural settings. What is Branding? Branding is the process of shaping the public perception of a company and its products. It represents a business’s unique identity and acts as the foundation of marketing strategies. Every company projects its values, beliefs, and priorities through branding. These factors appeal to a specific audience, enabling companies to stand out from the competition and build a loyal customer base. BRAND NAME What is a Brand Name? A business or organization gives its company, product, or service a specific brand name, which is typically a word or phrase. A brand name, in its most basic form, is a type of signature that acknowledges the creator of a certain service or product and distinguishes it from those produced by others. The following are two of the brand names’ primary goals: To identify a specific good or service from others of a similar or related brand. Connect with the user and be recognized by the target audience. Types of Brand Name 1. Descriptive Brand Names Describes a word or phrase that provides specific details, facts, or attributes about particular subject or topic. Descriptive brand names are one of the simpler types of names, but can sometimes be the best fit for your business. A niche business in a new market might be able to benefit from this type of brand name because it explains what you do and can educate the user. These names are simple, usually include a word or two about what you offer, and leave no question as to what you do. Burger King, for instance, makes its services absolutely obvious to customers and leaves no room for confusion. This name reveals what they will be offering you (burgers) and indicates their competence in it (king). This name makes it clear what you’ll get (burgers) and shows how skilled they are at it (king). Just by reading the name, you can determine what you will receive, which is a significant advantage. 2. Evocative Brand Name A word designed to elicit a particular emotion, feeling, or response from the reader or listener, often by conveying vivid imagery or experiences. These are considered a cornerstone of brand naming and brand positioning. The usually singular very creative and act as powerful differentiators in the industry. There are exactly on the opposite side of the creative spectrum and their names employee suggestion or a metaphor to bring to the mind the powerful experience or the positioning of the brand. Examples include Virgin, Nike, and Amazon. Owing to their originality and innovative brand names they are much easier to remember. It is essential that they maintain their dignity in the market by offering the products that suit their brand name since within an evocative brand name comes to a great responsibility. 3. Invented Brand Name A type of word created or coined to represent a new concept, often by combining existing words or parts or parts of words. The products which are entirely innovative or new and first in the market, naming such products is a big challenge. That is when invented brand names come into the picture as they help in naming a product which is introduced for the first time. They are not only distinctive but they are articulate and offer creative name with attitude for a brand. They are not at all easy to make but very easy to remember if it clicks with the brand. Most of the times the Latin or Greek are used as a root word to create the brand name. For example, Exxon, Verizon, Kodak etc. They have no inherent definition assigned to them which is the most challenging part of these Type of brand names. To ensure that they are very easy to remember marketers, tend to spend a lot of money to establish their meaning in the minds of the customer. 4. Lexical Brand Name Describes a word found in a dictionary or a vocabulary list, representing a standard usage and meaning in a language. Lexical brand names rely on wordplay to make the name memorable and engaging. Puns, phrases, compound words, alliteration, misspellings, and foreign words are used to create these names. They are usually cleaver and get their impact from pairing words for linguistic effect. These kinds of names run the danger of sounding a little too cutesy. It’s arguable that having a name that seems like a children’s book hurts corporate branding. Just remember that there’s nothing worse than a pun that makes your eyes roll, both in branding and in everyday life. Examples: Krispy Kreme, Dunkin’ Donuts, and Krazy Glue 5. Acronym Brand Name It refers to a word created from the initial letters of a phrase, organization, or concept, with each letter representing a distinct word. Most of the times acronym brand names are acronyms of the entire name of the company which might be difficult to pronounce. Acronyms have always been used as a brand name for a long time. IBM, KFC, UPS, NASA, UNICEF, are few of the renowned Brand names. 6. Founder Brand Name Traditionally brand names have also been associated with the name of their founders and the stretch is back early in time as old as Fords which is named after Henry Ford or Disney which is named after Walt Disney, Carl Zeiss, Ben & Jerry’s Ice Cream etc. The principles of founders are easily trademarked with the brand name and they can be distinctive position correctly. It is also found that some companies have used certain names of celebrities to promote their brands as a signature edition. For example, Angelina Jolie signature edition of handbags from H&M. These are not classified as a founder brand name but it is close to having a brand name on similar lines. BRAND ELEMENTS Brand Elements, sometimes called brand identities are those trademark devices that serve to identify and differentiate the brand. Their main function is to inherently enhance brand awareness or facilitate the formation of strong, favorable, and unique brand associations or elicit positive brand judgment or feelings. 1. Brand Name A distinctive word, phrase or symbol that represents a company or product and distinguishes it from competitors. A brand name is the words you use to identify your company and what you offer to the public, distinguishing you from your competitors. Coming up with a brand name may seem easy, but it can have huge connotations. For example, if you need to cover a scrape on your arm, you may say, “I need a Band-Aid.” The word Band-Aid is actually the name of a brand, while the actual product is an adhesive bandage. Yet, the general public usually says Band-Aid, using the name as a proper noun. 2. Brand Logo A graphical representation designed to visually represent a brand, often incorporating unique fonts, colors, and imagery to create a recognizable image. A logo is the visual trademark that can arguably be considered the second most important element. A logo should be just as (or more) recognizable as the brand name, since images are often remembered easier than words.  This can even mean creating a wordmark. A wordmark is the brand name skillfully designed with branded fonts and colors to be used in place of a designed logo, thus making the brand name the actual logo. Brands like Google and FedEx are great examples of creative wordmarks. 3. Brand Symbol A graphical or visual representation that embodies the essence of the brand without using the brand name. Brand symbols are visual characteristics of a brand. They represent the brand's personality and contribute to its recognition rate. The personality of a brand is determined by its content (brand core values) and its style (brand style), which must express these brand core values. 4. Brand Slogan A catchy and memorable phrase or sentence used to convey the key attributes or benefits of a brand. A branding slogan is a small set of words that a business uses to make its company and product stick in consumers memories. An effective branding slogan not only sticks in a customers’ mind, but also invokes a mood and creates bonds with the consumer. Example: Disneyland: “The happiest place on Earth.”; Nike: “Just do it.”; Burger King: “Have it your way.”; Walmart: “Save money, Live better.”; Gatorade: “Is it in you?” 5. Brand Character It represents a fictional or real personality created to embody the brand’s values and connect with consumers on a personal level. Brand personality is the way a brand speaks and behaves. It means assigning human personality traits to a brand so as to achieve differentiation.