Technopreneurship 101 Lessons 1-4 PDF

module 1: INTRODUCTION TO TECHNOPRENEURSHIP Presented by Group 1  WHAT IS TECHNOPRENEURSHIP ? Integration of TECHNOLOGY, INNOVATION and ENTREPRENEURSHIP. -> Act of turning something into a resource of high value by converting good ideas into business...

module 1: INTRODUCTION TO TECHNOPRENEURSHIP Presented by Group 1  WHAT IS TECHNOPRENEURSHIP ? Integration of TECHNOLOGY, INNOVATION and ENTREPRENEURSHIP. -> Act of turning something into a resource of high value by converting good ideas into business also known as ventures that relies heavily on the application of “cyberpreneurship” or human knowledge for practical purposes. “netpreneurship “  IMPORTANCE OF TECHNOPRENEURSHIP Innovation Progress Improves Quality of Life Economic Growth Global Competitiveness Problem Solving Fosters Entrepreneurship -> Technopreneurship helps the unemployed person to be employed, by creating or inventing a new product. Through technology, they can inventor create devices and they can easily sell it online. As we all know internet and technologies are available and highly recommend in today's generation.  WHAT IS TECHNOPRENEUR ? -> it can be defined as “an entrepreneur with the skills and mindsets to deal with a knowledge economy.” A technopreneur is the person who destroys the existing economic order by introducing, new products and services, by creating new forms of organizations and by exploiting new raw materials. It is someone who perceives an opportunity and creates an organization to pursue it.  difference between TECHNOPRENEUR E VS. NTREPRENEUR technopreneurship entrepreneurship focuses specifically on involves general business technology-driven creation ventures. often aims for rapid scaling through pursue steady growth across various disruptive technology markets require both business and technical skills may not need specialized tech usually in tech-related industries like expertise software, hardware, or biotech can operate in any sector often carries higher risks due to the can involve a broader range of risks uncertainty of new technologies CHARACTERISTICS OF TECHNOPRENEUR 1. LEADERSHIP 2. FLEXIBILITY 3. DISCIPLINE You need to structure your work so that This means that as a person, Technopreneurs know that you and everyone know their roles and you serve as the spark to a not everything produces great responsibilities. Great discipline within bright idea and transform results and adapt to such the business will help you find out and the dream into a reality. circumstances easily. tackle problems that arise with the venture. 4. STRATEGIST 5. FOCUS You need to be able to come up with You must know how to prioritize unique products every time and have your tasks and responsibilities. the magic to push your products to the You should learn to drop down market and let consumers see the real distractions and focus on success value it can bring into their lives. oriented things. 1. Entrepreneurs excel at identifying business opportunities and staying focused on opportunities, 4. They understand what it not problems. takes to succeed and often key characteristics of have a high physical stamina to SUCCESSFUL carry them through their lives and work. 2. They learn from their mistakes. ENTRE- PRENEURS 5. Successful entrepreneurs seek outside help to supplement their expertise and their enthusiasm attracts people to 3. They are action- their ideas, especially employees, oriented. They like to get creditors, investors and partners. things done and love to turn their ideas into reality. TEN D`S OF AN ENTREPRENEUR  TEN D`S OF AN ENTREPRENEUR DREAM DOERS 1 Entrepreneurs have a vision of what the future could be like for them and their businesses. And, more importantly, they 3 Once they decide on a course of action, they implement it as quicklyas possible. have the ability to implement their dreams. DECISIVENESS DETERMINATION 2 They don’t procrastinate. They make decisions swiftly. Their swiftness provides a 4 They implement their ventures with total commitment. They seldom give up, even when confronted by obstacles that seem key factor in their success. insurmountable.  TEN D`S OF AN ENTREPRENEUR DETAILS DOLLARS 5 It is said that the devil resides in the details. That is never truer than in starting and growing a business. The entrepreneur 7 Getting rich is not the prime motivator of entrepreneurs. Money is more a measure of their success. They assume that if they must stay on top of the critical details. succeed they will be rewarded. DESTINY DISTRIBUTE 6 They want to be in charge of their own destiny rather than depend on an employer. 8 Entrepreneurs distribute the ownership of their businesses with key employees who are critical to the success of the business.  TEN D`S OF AN ENTREPRENEUR DEDICATION DEVOTION 9 They are totally dedicated to their business, sometimes at considerable cost to 10 Entrepreneurs love what they do. It is their relationships with their friends and that love that sustains them when the going families. They work tirelessly. Twelve-hour gets tough. And it is love of their product or days and seven-day work weeks are not service that makes them so effective at uncommon when an entrepreneur is striving selling it. to get a business off the ground.  difference between TECHNOPRENEURSHIPC YBERPRENEURSHIP EN TREPRENEURSHIP VS. VS. focuses on technology- leverages the broadly involves driven businesses Internet for business creating and managing activities any type of business A process of forming new Involves individuals who dared to businesses centered around A business activity using advanced take steps to engage in particular technology. computer technology, particularly activities or to welcome new Technology is the foundation for the Internet. challenges. business operations and growth. Focuses on creating strategies and Businesses are promoted using Key elements of entrepreneurship: innovations using technology. electronic brochures, often > Creativity Aims to position technology as a displayed as homepages on the > Innovation key factor in the development of Internet. > Opportunity-creation the national economy. > Calculated Risk-taking ELEMENTS OF TECHNOPRENEURSHIP 1. HUMAN CAPITAL 1skill, capabilities, and knowledge of the firm's people. 2. ORGANIZATIONAL CAPITAL the patents, technologies, processes, databases and networks. 3. SOCIAL CAPITAL the quality of the relationships with customers, suppliers and partners.  DEFINING YOUR INCOME You create the relationship between your efforts and your income. LEARNING TO BE IN THE MOMENT advantages of You plan and schedule your day, set regular goals and work to FLEXIBILITY IN ENTREPRE- achieve them. YOUR SCHEDULE NEURSHIP An entrepreneur you can ditch the rigid schedule. LEARNING TO SEE POSSIBILITIES EVERYWHERE ENJOYING YOUR An entrepreneur has to develop the skill and train his or her mind WORK to stay open and receptive to You can create your own potential ideas and possibilities. schedule, it doesn’t necessarily mean there won’t be long hours. IMPORTANT ENTREPRENEURIAL TRAITS INTEGRITY SELF-AWARENESS COURAGE SELF-MOTIVATION CONFIDENCE PATIENCE RISK-TAKING DECISIVENESS HARD WORK EXPERIENCE VISION KNOWLEDGE OPTIMISM PERSEVERANCE CREATIVITY DRIVE RESOUCEFULNESS TOTAL COMMITMENT INNOVATION MATURITY EMOTIONAL BALANCE  ROLES OF AN ENTREPRENEUR ROLES OF AN ENTREPRENEUR PERCEIVES OPPORTUNITIES IN THE ENVIRONMENT TAKES RISKS INTRODUCES INNOVATION ORGANIZES LABOR AND PRODUCTION ROLES OF AN ENTREPRENEUR MAKES DECISION PLANS AHEAD SELLS HIS PRODUCTS AT A PROFIT  Categories of an Entrepreneur CATEGORIES OF AN ENTREPRENEUR INTRAPRENEUR DEALERS TO DEALERS 1 He is an entrepreneur within an existing organization, referred as the 3 Include highly knowledgeable businessmen engaged to various forms of trades frequently, directly or indirectly corporate entrepreneur. related to their line of work. SOLO SELF-EMPLOYED INDIVIDUAL TEAM BUILDERS 2 Includes all agents, repairman, brokers, accountants and physician who operate 4 Individuals who go on building larger companies using hiring and delegation. alone or with only few employees ad perform work personally. CATEGORIES OF AN ENTREPRENEUR INDEPENDENT INNOVATORS ECONOMY OF SCALE EXPLLOITERS 5 Include persons who hit upon ideas for better products or services and then create companies to develop, produce, 7 Entrepreneurs who locate their business in lower rent and tax areas. and sell these products. PARTNER MULTIPLIERS CAPITAL AGGREAGATORS 6 8 Entrepreneurs who spot an effective Smart entrepreneur who use their business patterns quite possibly experience and expertise in pooling a originated by someone else, and multiply group of financiers to engage in a it to realize profits. business. CATEGORIES OF AN ENTREPRENEUR ACQUIRERS BUY AND SELL ARTISTS 9 Entrepreneurs who acquire businesses. 11 They include wise guys referred to as corporate raiders and brokers who turn around, sell and liquidate. OTHER CATEGORIES OF INDEPENDENT INVENTORS ENTREPRENEUR 10 They include pure inventors who really develop their own product or invention and take care of marketing 12 Immigrant Entrepreneurs, Corporate Castoffs, Copreneurs, Cyber Entrepreneurs, Part Time entrepreneurs, them. Home-based Business Owners. PROS AND CONS of an Entrepreneur  PROS AND CONS of an Entrepreneur CONTROL YOUR YOU`RE RESPONSIBLE FOR YOUR OWN OWN DESTINY DESTINY You certainly may not have control You’ll be responsible for your over all the cards you are dealt, but you employees and their retirement. You’ll decide what you do with them. The be responsible for your impact on your worse the hand, the more amazing the customers. win.  PROS AND CONS of an Entrepreneur YOU GET TO DO LACK OF A ROAD WHAT YOU LOVE MAP You might not love every task and You’re figuring out much of it as hour of the journey, but overall you get you go along on a daily basis. Your to choose to work on something you flashlight lets you see just far enough love and care about. ahead to take the next few steps.  PROS AND CONS of an Entrepreneur MAXIMIZE YOUR IT`S NOT GOING CONTRIBUTION TO BE EASY Freeing yourself from working for Your start-up might be bought for someone else means you really get to hundreds of millions of dollars in the next maximize the impact you can have. When you make a huge contribution on a broad couple of years, but you need to buckle in scale, in turn, the rewards will show up in and expect it to take the next 7 to 10 years increasing your own income and wealth. to make an overnight success story.  PROS AND CONS of an Entrepreneur YOU HAVE TO CEATE LEADING OTHERS YOUR OWN 401K PLAN You can create a great legacy and You’re responsible for figuring out leave your mark on the world as an your own retirement plan. Making the entrepreneur. More notably, you get to money, setting enough aside, and lead and inspire others by your reinvesting it in other things for example. balance.  PROS AND CONS of an Entrepreneur THERE`S NOTHING ONE DAY YOU`LL YOU`LL WANT TO DO HAVE TO SAY MORE GOODBYE Whether you win or fail on your If things go well, one day you’ll first or next venture, the journey will be have to sell your company or free it to your own reward. You’ll be compelled the public market. It’s going to be to go at it again and again. harder than you think. SOCIO-ECONOMIC BENEFITS FROM ENTREPRENEURSHIP Promotes self-help and employment Mobilizes capital Provides taxes to economy Empowers individual Enhances competitive consciousness Improves equality of life Enhances equitable distribution of income and wealth Summary of Various Economies View of Entrepreneurship  Jean Baptiste Carl Menger Say (1871) (1800) “Austrian economist and “Liberal French Economist the founder of the Austrian and Businessman” school of economics” Contribution Contribution Entrepreneurship refers to the Entrepreneurship involves shifting of economic resources out obtaining information calculation, an of an area of lower and into high act of will and supervision. productivity and greater yield.  Joseph Harvey Schumpeter Leibenstein (1910) (1970) “Australian economist and “Ukrainian-born American Former Finance Minister of economist” German-Austria” Contribution Contribution Entrepreneurship is, in the Entrepreneurship is the essence, the finding and promoting reduction of organizational new combinations of productive Inefficiency. factors.  Israel Kirzner (1975) Albert Shapiro “British-born American economist, historian, rabbi, (1975) and Talmudist closely identified with the Austrian School ” Contribution Contribution Entrepreneurship involves a kind of Entrepreneurship is the behavior that includes initiative taking, identification of market arbitrage organizing and recognizing social opportunities. mechanism to turn resources and situations to practical account, and the acceptance of risks and failure.  Howard Karl Vesper (1980) Stevenson (1992) “Professor and pioneer in “Business Theorist and the field of Sarofim-Rock Baker entrepreneurship research Foundation Professor Emeritus and education” at Harvard University” Contribution Contribution Entrepreneurship is the pursuit of Entrepreneurship is the opportunity beyond the resources dynamic process of creating currently under one’s control. incremental wealth.  Jeffry Timmons Peter Drucker (1994) (1998) “American Professor of Entrepreneurship and “Austrian American pioneer of both management consultant, entrepreneurship research educator, and author” and education” Contribution Contribution Entrepreneurship is the process of starting Entrepreneurship is the ability to one’s own, new and small business. It is also the process of innovation and new venture creation create and build a vision from through four major dimensions- individual, practically nothing. organizational, environmental, process – aided by collaborative networks in government, education and institutions.  Robert Hisrisch (2001) “Garvin Professor of Global Entrepreneurship and Director of the Walker Center for Global Entrepreneurship at Thunderbird School of Global Management” Contribution Entrepreneurship involves the creation process, requires the devotion of the necessary time and effort, assumes the accompanying financial, psychic and social risks, and receive the resulting rewards of monetary and personal satisfaction and independence.  THANK YOU VERY MUCH!  Presented by: Group 1 (BSME 4) Members: CABUHAT, Jaydee C. COSINO, Aries A. MACALINDONG, Alexandra S. MERCADO, Nestle M. NEGRITE, Jairus Ronel B. CREATIVITY & INNOVATION CREATIVITY Creativity is the act of turning new and imaginative ideas into reality. Creativity is characterized by the ability to perceive the world in new ways, to find hidden patterns, to make connections between seemingly unrelated phenomena, and to generate solutions.  IMPORTANCE OF CREATIVITY IN BUSINESS Creativity in business is a way of thinking that inspires, challenges, and helps people to find innovative solutions and create opportunities out of problems.  SPECIFIC BENEFITS OF CREATIVITY IN THE WORKPLACE: Better teamwork and team bonding Increased workplace engagement Increased staff morale, fun and and interaction happiness Improved ability to attract and Increased workplace problem retain quality employees solving and productivity  ORIGINALITY The method or idea must be new and unique. It should not be the extension of something, which already exists. COMPONENTS OF CREATIVITY FUNCTIONALITY A creative idea must work and produce results, otherwise, the whole effort will be in vain.  FUNCTIONALITY A creative idea must work and produce results, otherwise, the whole effort will be in vain. Kinds of people called creative: People who are thought-provoking, curious and have a variety of uncommon thoughts People who had important self- discoveries, who view the world with a fresh perspective and have insightful ideas. People who make great achievements which are known to the world.  ENERGETIC QUALITIES OF CREATIVE INTELLIGENT PEOPLE DISCIPLINE CREATIVE DOMAIN DISCRETE PROCESSING MODES Emotional Cognitive Deliberate Spontaneous  4 TYPES OF CREATIVITY Deliberate and Spontaneous and Cognitive creativity Cognitive creativity Deliberate and Spontaneous and Emotional Creativity Emotional Creativity 1. DELIBERATE AND COGNITIVE CREATIVITY They have a great amount of knowledge about a particular subject and combine their skills and capabilities to prepare a course of action to achieve something. 2. DELIBERATE AND EMOTIONAL CREATIVITY These types of creative people are very emotional and sensitive in nature. These individuals prefer relatively quiet and personal time to reflect and they usually have a habit of diary writing. However, they are equally logical and rational in decision making. 3. SPONTANEOUS AND COGNITIVE CREATIVITY By indulging in different and unrelated activities, the unconscious mind gets a chance to connect information in new ways which provide solutions to the problems. Therefore, to let this type of creativity happen one should take a break from the problem and get away to let conscious mind overtake. 4. SPONTANEOUS AND EMOTIONAL CREATIVITY Spontaneous ideas and creativity happen when conscious and Prefrontal brain is resting. This type of creativity is mostly found in a great artist Spontaneous and emotional creativity is responsible for a scientific breakthrough, religious and also philosophical discoveries. Such as musicians, painters, and writers etc. This type of creativity is also related to “epiphanies”. Epiphany is a sudden realization of something. 5 IMPLEMENTATION EVALUATION STAGES OF ILLUMINATION CREATIVE INCUBATION PREPARATION PROCESS RECOGNIZING CREATIVE TECHNIQUES BRAINSTORMING The basis of brainstorming is a generating ideas in a group situation based on the principle of suspending judgment – a principle which scientific research has proved to be highly productive in individual effort as well as group effort. NEGATIVE BRAINSTORMING It uses brainstorming to generate bad solutions to the problem and then see how those could be transformed into good solutions. The method is a two- step process that consists of generating the worst ideas first and then transforming them into good solutions INSIGHTS GAME Actually, it is a personal method, but you can do it with your friends or team on different boards simultaneously supporting each other. MOOD BOARDS Mood board is a type of collage that may consist of images, text, videos and samples of objects in a composition of the choice of the mood board creator. RANDOM WORDS (RANDOM INPUT) encourages your imagination to create different perspectives and new angles on your idea or the problem you are facing. It is by far the simplest of all creative techniques and is widely used by people who need to create new ideas. STORYBOARDING Go back to the very beginnings of cinema and animation. Managing the thousands of drawings and the progress of a project was nearly impossible. METAPHORICAL THINKING A metaphor is a thinking method which connects two universes of meaning. A road map is a model or metaphor of reality and useful for explaining things.  MIND MAPPING Mind Maps has been developed by Tony Buzan are an effective technique of structuring information and note- taking. Start in the center of the board with the main idea, invite your team and work in all directions, producing a growing and organized structure using key words/phrases and key images/videos BRAIN SHIFTER one of creative techniques that is similar to mind mapping, but you should act as if you were someone else. The purpose is to create new ideas that you never thought about before. Get in to character by changing your mind set and try to think like another person.  CHARACTERISTICS OF CREATIVITY FLEXIBILITY STRONG MOTIVATION AND A SENSE OF INTENSE CURIOSITY DETERMINATION POSITIVE ATTITUDE FEARFULESSNESS INNOVATION INNOVATION The creation, development and implementation of a new product, process or service, with the aim of improving efficiency, effectiveness or competitive advantage.  TYPES OF INNOVATION  e s y o ur e x is t in g - It utiliz a s e s L c re A d in T a n N o g y INCREM E t e c hno l value t o t h e c u s t o m e r e s ig n c h a n g e s , (features, d INNOV AT IO N etc.) w it h in y o u r e x is t in g market.  o lv e s a p p ly in g n e w - inv y o r p r o c e s s e s t o technolog DISRU PT IV E your co m p a e n a y lt ’s h c y u in rr e n n a t t u re market. It is st INNO VA T ION since newer inferior to t e e x c h is t w in il g l o m f a t r e k n e b t e technology.  t a k in g t h e le s s o n s , simply e r a ll t e c h n o lo g y skills and ov ARCH IT EC TU and apply in g t h e m w it h in a d iffe r e n t m a rk e t. T h is RAL t io n is a m a z in g a t innova w c u s t o m e rs a s increasing ne INNOV AT IO N long a s t h e n receptive. e w m a rk e t is  - It giv e s b irt h t o n e w s t rie s ( o r s w a llo w s indu RA DIC AL existing on e s ) a n d in io v n o a l r v y e s cre a t in g re v o lu t INNO VA TION technology.  I T S O F B E N E F N I N V A T I O O INN ESS BU S I N 1. Solve Problems Easily 2. Increase Your Productivity 3. Market Your Business 4. Beat Your Competitors  economic growth Reduced sickness. powervty and the increase in the inflation-adjusted market value of the goods and services produced by an hunger economy over time important developing countries depend on innovation as new digital technologies and innovative solutions create huge opportunities to fight sickness, Innovation & the future poverty and hunger in the poorest regions of the role of world. jobs Technological advancement and increased innovation productivity means major changes for careers today as well. Environmental Sustainability Sustainability and environmental issues, such as climate change, are challenges that require a lot Increased well- of work and innovative solutions now and in the being future. Although new greener technology solutions, such as eco vehicles aren’t necessarily more competitive alternatives to petrol-powered - In general, innovation and economic growth vehicles just yet, they will definitely offer many increases well-being because living standards advantages for the future. rise. According to the Brookings Institution, average life satisfaction is higher in countries with greater GDP per capita  IMPORTANCE OF INNOVATION IN ENTREPRENEURSHIP EDUCATION, IDEAS EXECUTION, KNOWLEDGE AND MORE www.reallygreatsite.com  INNOVATION AND EDUCATION Since we live in an age of innovation, a practical education must prepare a man for work that does not yet exist and cannot yet be clearly defined. PETER DRUCKER  INNOVATION AND EDUCATION Innovation is fostered by information gathered from new connections; from insights gained by journeys into other disciplines or places; from active, collegial networks and fluid, open boundaries. Innovation arises from ongoing circles of exchange, where information is not just accumulated or stored, but created. MARGARET J. WHEATLEY Knowledge is generated anew from connections, that weren’t there before. MONEY AND INNOVATION Innovation has nothing to do with how many R&D dollars you have. When Apple came up with the Mac, IBM was spending at least 100 times more on R&D. It’s not about money. It’s about the people you have, how you’re led, and how much you get it. STEVE JOBS MONEY AND INNOVATION Just as energy is the basis of life itself, and ideas the source of innovation, so is innovation the vital spark of all human change, improvement and progress TED LEVITT  IDEA EXECUTION AND INNOVATION Innovation is the process of turning ideas into manufacturable and marketable form. WATTS HUMPREY PATIENCE, PERSISTENCE, AND INNOVATION Innovation by definition will not be accepted at first. It takes repeated attempts, endless demonstrations, and monotonous rehearsals before innovation can be accepted and internalized by an organization. This requires WARREN BENNIS “courageous patience.  Creativity improves the process of solving IMPORTANCE OF problems. It doesn't matter if we're CREATIVE AND talking about developing a new strategy INNOVATION IN or an innovative way to stay ahead of the competition. Creative problem solving ENTREPRENEURS gives that competitive edge that any HIP business is striving to achieve.  BE ACTION ORIENTED START SMALL - a cross-disciplinary learning-by-doing By appealing to a small, limited market, a approach to problem solving is necessaryIt product or service requires little money helps your team identify challenges you and few people to produce and sell it. As face and come up with multiple ideas to the market grows, the company has time solve problems. Actions speak louder than to fine-tune its processes and stay ahead PRINCIPLES OF words. of the emerging competition. INNOVATION AIM HIGH THE RULES OF TRY, Raise awareness and build a shared understanding of the possibilities and TEST AND REVISE - Innovation creates novel products, processes, or challenges of legislation in creating business models that generate economic value. Trying markets for innovation and innovative anything new inevitably entails experimentation and business ecosystems. failure. Simple rules, however, add discipline to the process to boost efficiency and increase the odds that the resulting innovations will create value.  LEARN FROM FAILURES FOLLOW A MILESTONE admitting to mistakes and taking the time to learn from them will reward companies SCHEDULE provides an estimated timeline for the life of the with deeper insights into their businesses project. The schedule should include milestones and markets. for the planning, development, construction, PRINCIPLES OF evaluation and reporting of the project's implementation. INNOVATION REWARD HEORIC WORK, WORK, WORK ACTIVITY Working is living, and exceptional living standards attract exceptional people. Creating a workplace that Provide financial / tangible incentives is conducive to a happy lifestyle will attract top talent and keep your employees motivated. More than this, through bonus, cash, shares, additional though, a truly great and innovative workplace can holiday, and the like. Importantly though actively work to inspire employees, helping them to remember that not all are of equal value explore new ideas and blend old ones together for innovative solutions. in the eyes of your employees. IMPORTANCE OF TECHNOPRENEUR CREATIVITY AND ITS ABILITY TO DEVELOP NEW IDEAS AND TO DISCOVER NEW INNOVATION TO: WAYS OF LOOKING THE PROBLEMS AND OPPORTUNITIES. TECHNO IT IS DEFINED AS THE TENDENCY TO GENERATE OR RECOGNIZE NEW IDEAS, ALTERNATIVES, POSSIBILITIES THAT MAY BE USEFUL IN SOLVING PROBLEMS, COMMUNICATING WITH OTHERS, AND PRENEUR ENTERTAINING OURSELVES AND OTHERS. IT IS ALSO ANY ACT, IDEA OR PRODUCT THAT CHANGES AN EXISTING DOMAIN OR THAT TRANSFORM AN EXISTING DOMAINS INTO A NEW ONE. IMPORTANCE OF BUSINESS ORGANIZATION CREATIVITY AND INNOVATION TO: INNOVATION IS THE PROCESS OF CREATING AND IMPLEMENTING A NEW IDEA. IT IS THE PROCESS OF TAKING USEFUL IDEAS AND CONVERTING THEM INTO USEFUL PRODUCTS; SERVICES OR BUSINESS PROCESSES OR METHODS OF OPERATION. THESE USEFUL IDEAS ARE THE RESULT OF CREATIVITY, WHICH IS THE PREREQUISITE FOR ORGANIZA INNOVATION. CREATIVITY IN THE ABILITY TO COMBINE IDEAS IN A UNIQUE WAY OR TION TO MAKE USEFUL ASSOCIATION AMONG IDEAS. CREATIVITY PROVIDES NEW IDEAS FOR QUALITY IMPROVEMENT IN ORGANIZATIONS AND INNOVATION PUTS THESE IDEAS INTO ACTION.  FACTORS SUPPOR T CREATIVITY AND INNOVATION 1 MANAGEMENT PRACTICES THAT SUPPORT CREATING A CULTURE OF INNOVATION  FREEDOM CHALLENGING MANEGERIAL SUPPORT WORK ENCOURANGE FOR Challenging assignments MENT TEAMWORK People need the autonomy give employees an A boss should set and to determine the optimal opportunity to work hard communicate clear innovation Because innovation is a team way to carry out their and feel challenged — and goals that are ambitious, yet effort, people need to work achievable. He or she should on a team where diverse tasks. This gives them a to feel that their work is serve as a good work model, skillsets are represented. sense of control over their important and valuable. support the work group, value Team members should work and a feeling of Employees need to communicate well and remain individual contributions, and responsibility for the final understand why their work open to new ideas, exude confidence in the team. product (or process). contributes to the Support employees when they constructively challenge each organization’s competitive speak up, take risks, and try other’s work, trust and help advantage and long-term new things. each other, and feel sustainability. committed to the work they’re doing.  FACTORS SUPPOR T CREATIVITY AND INNOVATION 2 ORGANIZATIONAL MOTIVATION AND ENCOURAGEMENT OF INNOVATION  ORGANIZATIONAL ENCOURAGEMENT This is a culture that encourages creativity through the fair, constructive judgment of ideas; reward and recognition for creative work; mechanisms for developing new ideas; and an active flow of ideas and a shared vision. LACK OF ORGANIZATIONAL IMPEDIMENTS A culture of innovation doesn’t impede creativity through internal political problems, harsh criticism of new ideas, destructive internal competition, avoidance of risk, or an overemphasis on the status quo.  FACTORS SUPPOR T CREATIVITY AND INNOVATION 2 RESOURCES TO SUPPORT AN INNOVATIVE CULTURE  I C I E N T Innovation doesn’t F SUF URCES E S O happen in a silo, so R employees need access to appropriate resources, including funds, materials, facilities, and information.  L I S T I C Extreme time pressures, REA LOAD O R W URCESK unrealistic expectations R E S O for productivity, and distractions from creative work are counterproductive when creating a culture of innovation. THANK YOU!  PLANNING AN ORGANIZING A BUSINESS ORGANIZATION TEC H N O PRENEURSHIP GROUP 3  O U P 3 M E M B E R S G R Baradillo, Angelo Paul S. - Reporter Bellote, Jersey Mae M. - Presentation Policar, Earl Daniel M. - Reporter Quiniquini, Regielyn G. - Reactor  TABLE OF CON T E N T Business Forms of Business Organization Define 3 Types of Business Organization Advantages and 5 Important Importance in Organizing Disadvantages Characteristics a Business How to Register your Main Purpose Business  OV E R V I E W Business entities differ in flexibility of Two broad categories of business management and control. entities. Some provide significant liability Unlimited liability entities: no protection protection; some do not. from personal liability. Regulation levels vary among business Examples: sole proprietorships, general entities. partnerships. Tax code provides different treatments for Limited liability entities: limit owner's various business entities. liability to investment. Entrepreneurs should consider these Examples: corporations, limited liability factors when choosing a business entity. companies, limited partnerships.  3 T Y P E S OF BUSINESS 1. Service Business Provide intangible products (no physical form). They offer skills, expertise, advice, etc. Examples: salons, repair shops, schools, banks, accounting firms, law firms.  3 T Y P E S OF BUSINESS 2. Merchandising Business Merchandising businesses buy at wholesale and sell at retail. Known as "buy and sell" businesses. Profit by selling at higher prices than purchase cost. Sell products without altering them. Examples: grocery stores, convenience stores, distributors, resellers.  3 T Y P E S OF BUSINESS 3. Manufacturing Business Manufacturing businesses buy materials to create new products. They transform purchased products. Combine raw materials, labor, and overhead in production. Manufactured goods are sold to customers. 25 20 H Y B R I D BUSINESS 15 10 5 0 Research 1 Research 2 Research 3 Research 4 Research 5 Hybrid businesses fall under more than one category. Example: a restaurant Combines ingredients (manufacturing) Sells wine (merchandising). Fills orders (service)  O F B U S I N E S S FO RMS ORGANIZATION These are the basic forms of business ownership:  A sole proprietorship is owned by one person. Easy and least costly to set up. Owner has unlimited liability (personal assets at risk). Common for small businesses. S O L E PROPRIETORSHIP  A partnership is owned by two or more people who contribute resources. Partners share profits. General partnership: all partners have unlimited liability. Limited partnership: limited partners' personal assets are protected. PARTNERSHIP  A corporation is a separate legal entity from its owners. Ownership is represented by shares of stock. Stockholders have limited liability and limited involvement. A board of directors, elected from stockholders, manages the corporation's activities. CORPORATION  B A S I C F O R M S O F O N T O T H O S E E IN ADDITI N E R S H I P , T H E S E A R E S O M W BUSINESS O OF ORGANIZATIONS THAT OTHER TYPES TODAY: ARE COMMON Limited Liability Company Cooperative Are hybrid businesses with Is owned and operated by a traits of both corporations and group for their mutual benefit. partnerships. Members are the individuals in Not incorporated, so not a the group. corporation. Can be incorporated or Owners have limited liability unincorporated. like in a corporation. Examples: utility cooperatives, Can choose to be taxed as a cooperative banking, credit sole proprietorship, unions, housing cooperatives. partnership, or corporation.  BUS I N E S S A N I Z A T I O N ORG ADVANTAGES & DISADVANTAGES  Sole proprietorship is a common business structure. Ideal if personal liability isn't a concern. Legally, the owner and business are the same entity. S O L E PROPRIETORSHIP  ADVANTAGES It's the easiest to set up because it doesn't require the filing of any papers. States do not require the registration of proprietorships. Profits are only taxed once on the owner's personal tax returns. The owner has complete control of the business and makes all the decisions. Tax forms are not complicated. PROPRIETORSHIP Assets are easy to liquidate upon the death of owner.  DISADVANTAGES The owner is exposed to unlimited legal liabilities. If you lose a lawsuit, you could lose your home, car and other personal assets. Proprietorships cannot accept capital from outside investors. Borrowing money is more difficult. Banks are reluctant to make business loans to sole proprietorships. You will have to rely on savings, home equity loans or loans from family members. PROPRIETORSHIP Business will be liquidated when owner passes away.  A partnership is a sole proprietorship that allows the business to have more than one owner. ADVANTAGES They're easy to form. A partnership can bring together a group of individuals with different talents to share in the responsibilities of running a business. PARTNERSHIP If the partnership agreement permits, a partnership could continue to exist if one of the partners dies.  DISADVANTAGES Partners are exposed to unlimited liabilities. Owners will not always agree on decisions. This could lead to management conflicts. Partners share in the profits of the business, but will not always feel they are being adequately compensated for PARTNERSHIP their contributions and services.  ADVANTAGES The owners have limited liability. The owner's personal assets are protected from judgments and defaults on company debts. Owners can choose how the business pay taxes. It could be a proprietorship, a partnership or a corporation. Most states don't require LLCs to have annual meetings. LIMITED LIABILITY An LLC is not required to have a board of directors. COMPANIES The number of shareholders is unlimited.  DISADVANTAGES Legal and accounting costs are higher than proprietorships. LLCs must file articles of incorporation with the state of domicile. Owners must create an operating agreement that defines management authority and limits to making decisions. LIMITED LIABILITY In some cases, an LLC will cease to exist upon the death COMPANIES of a member, unless otherwise specified in the operating agreement.  O R A T I O N CORP A corporation is a legal entity separate from its shareholders. It can enter into contracts and buy/sell property. A corporation can sue others and be sued.  O R A T I O N CORP ADVANTAGES Owners do not have personal liability for debts of the corporation. A shareholder only risks the amount of the investment in the company. Has more access to financial resources. A corporation can sell stock to raise capital, obtain bank loans or issue bonds for long-term financing. Corporations are better able to attract more talented and skilled employees than proprietorships. The corporation continues to exist separately from the lives of its stockholders.  O R A T I O N CORP DISADVANTAGES A C Corp is the most complex business structure and requires a lawyer to set up. Earnings could be subject to double taxation.  P O R A T I O N S S COR S Corporations combine the tax benefits of proprietorships and LLCs with the liability protection of C Corps. ADVANTAGES Avoids double taxation by passing income through to the owners. The structure of an S Corp protects the personal assets of the shareholders. Lenders are more willing to make loans to S Corps.  P O R A T I O N S S COR DISADVANTAGES Articles of incorporation must be filed with the state. An S Corp is limited to 100 shareholders. It can only have one class of stock. Fringe benefits provided by the company to shareholder-employees are taxable as compensation. 5 IMPORTANT CHARACTERISTICS OF ORGANIZATION 1. Division of Work Division of labor involves breaking down tasks into components. Components are distributed among individuals, groups, or machines. Aims to increase efficiency and productivity. 2. Coordination Coordination is the process of organizing people or groups. Ensures they work together effectively and efficiently. 3. Plurality of Persons Plurality is the excess of votes received by the leading candidate over the next candidate. Applies in elections with three or more candidates. Distinct from a majority.  4. Common Objectives A goal is a specific result that a person or system aims to achieve within a time frame and using available resources. 5. Organization is a Machine of Management This describes an organization as a well-structured system. Emphasizes routine operations and defined job roles. Highlights efficiency within and between functional areas.  IMPORTANCE IN ORGANIZING A BUSINESS 1. Benefits of Specialisation Competent individuals are appointed for specific tasks. They become experts through repetition. Maximizes work accomplished in minimal time. The organization benefits from specialization. 2. Clarity in Working Relationship Organizing clarifies working relationships among employees. Specifies reporting structures (who reports to whom). Enhances effective communication. Helps establish accountability. 3. Optimum Utilisation of Resources - There is optimum utilisation of all the available resources (e.g., material, machine, financial, human resource, etc.) in the organisation.  4. Adaptation to Change The organizing process enables the organization to adapt to changes related to employee positions. This adaptability is due to a clear scalar chain of authority from top management to lower levels. 5. Effective Administration The organizing process clearly defines each manager's activities and authority. Specifies to whom a manager can delegate tasks. Ensures everyone knows their accountability. Eliminates confusion regarding authority. Facilitates effective administration. 6. Development of Personnel Organizing involves delegation of authority. Not just due to individual limitations, but to discover new work techniques. Empowers subordinates to make decisions. Encourages exploration of new techniques and implementation. Aids in the growth and development of employees. 7. Expansion and Growth Organizing grants employees the freedom to make decisions, fostering their growth. Prepares them to face new challenges. Contributes to the development of the enterprise. Increases the enterprise's earning capacity, supporting further growth. MAIN PURPOSE OF THE BUSINESS ORGANIZATION The primary purpose of a business is to maximize profits for its owners or stakeholders while maintaining corporate social responsibility. It is the motivating force moving, guiding, and delivering the organisation to a perceived goal. It is the driving force, the fuel, the bond, the intangible link that pulls the organisation together to achieve success. HOW TO REGISTER YOUR BUSINESS SOLE Register your business name with the Bureau of Domestic Trade, Department of Trade and PROPRIETORSHIP Industry (BDT-DTI). Obtain a business clearance from the barangay captain of your place of business. Obtain a permit to do business from the local government (your city or municipal government’s business licensing office) Get a Tax Identification Number (TIN) from the Bureau of Internal Revenue (the branch nearest to you). Register your business and employees with the Social Security System for social benefits. Register with the Department of Labor and Employment (DOLE) office nearest to you, if you have five or more employees.  Register with the Cooperative COOPERATIVE Development Authority (CDA) office nearest you. Register the name of your cooperative with the Department of Trade and Industry (DTI) office nearest you. Obtain a permit to operate the cooperative from the local government unit. Get a Tax Identification Number (TIN) from the Bureau of Internal Revenue. You may also register the employees of your cooperative with the Social Security System and the Department of Labor and Employment REGISTERING WITH THE DTI FOR SOLE FOR PARTNERSHIPS FOR COOPERATIVES PROPRIETORSHIP AND CORPORATION Applicant must be 18 years old or more. Two recent passport- Certified true of photocopies sized photos of applicant. of articles of incorporation or Proof of Filipino partnership, by-laws and Certifies true or photo citizenship, if applicant registration certificate copies of articles of acquired this by approved by the SEC. cooperation, by-laws naturalization, election or If foreigners own 40% or and CDA registration other means provided by more of the capital, the SEC certification. law. certificate must specify that this is in accordance with the Certification issued by Proof of Filipino citizenship Foreign Investments Act of CDA, in case of (e.g. birth certificate, 1991. increase of voter’s ID) if applicant’s In case there is an increase capitalization. name is suggestive of in capital, a certificate issued foreign nationality. by the SEC. REGISTERING WITH THE MAYOR’S OFFICE (THE LOCAL GOVERNMENT UNIT) FOR SOLE FOR PARTNERSHIPS FOR COOPERATIVES PROPRIETORSHIP AND CORPORATION Location map of business Location map of business DTI registration certificate of establishment business name establishment Barangay clearance Location map of business Barangay clearance SEC registration certificate establishment Articles of partnership or CDA registration certificate Barangay clearance incorporation Certification issued by CDA, Community Tax Certificate of Current Class “C” certificate in case of increase of proprietor Community Tax Certificate of capitalization. Plus, depending on type of the partners Plus, depending on type of business, any of the following: Plus, depending on type of business, any of the following: Building occupancy permit business, any of the following: Building occupancy permit Mechanical permit Building/occupancy permit Mechanical permit Electrical inspection Mechanical permit Electrical inspection Pollution clearance Electrical inspection Pollution clearance Location clearance Pollution clearance Location clearance Sanitary/health certificate Location clearance Sanitary/health certificate Police clearance Sanitary/health certificate Police clearance Police clearance REGISTERING WITH THE BIR FOR SOLE FOR PARTNERSHIPS FOR COOPERATIVES PROPRIETORSHIP AND CORPORATION Photocopy of DTI Photocopy of Photocopy of SEC registration CDA registration registration Photocopy of or business Mayor’s permit mayor’s permit permit REGISTERING WITH THE SSS FOR SOLE FOR PARTNERSHIPS FOR COOPERATIVES PROPRIETORSHIP AND CORPORATION Photocopy of articles of partnership or incorporation Employer’s data Photocopy of mayor’s record Cooperatives, as a permit Initial or subsequent rule, do not have to Employer’s data list of employees (The register with the SSS, record last two requirements but their employees Initial or subsequent should be signed by do.) list of employees the managing partner of a partnership or the highest ranking officer of a corporation,) READ READ: Azarcon, Areola, Arguelles, Pablo-Barlis et al. Entrepreneurship Principles and Practices. First Edition. 2005, Valencia Educational Supply. Carson, David. Marketing and Entrepreneurship in SME’s: An innovative Approach First Edition. 2002. Pearson Education. Lambing, Peggy A.: Entrepreneurship. Third Edition, 2002. Prentice Hall. Medina, Roberto G. Entrepreneurship in Small Business Management. First Edition. 1996. Rex Printing Company. Inc. Vaughn, Donald E. Financial Planning for the Entrepreneur. First Edition. 1997. Prentice Hill. THANK YOU GROUP 3 Baradillo, Angelo Paul S. Bellote, Jersey Mae M. Policar, Earl Daniel M. Quiniquini, Regielyn G. LESSON 4: MARKETING TECHNOPRENEURSHIP WHAT IS MARKETING? Marketing is a complex process that entails the planning and implementation of strategies related to the creation, pricing, promotion, and distribution of products, services, or ideas. Its goal is to establish exchanges that meet the goals of both individuals and organizations. Central to marketing is understanding customer needs and delivering value, which strengthens relationships and drives profitability through effective communication and strategic coordination. This definition highlights marketing's critical role in fostering business success and customer satisfaction.  01 UNDERSTANDING THE MARKETPLACE AND CUSTOMER NEEDS FIVE CORE MARKETING CONCEPTS Customer Market Value and Needs, Wants, Offerings Satisfaction and Demands FIVE CORE MARKETING CONCEPTS EXCHANGES MARKET  02 DESIGNING A CUSTOMER-DRIVEN MARKETING STRATEGY MARKETING MANAGEMENT Marketing management is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational goals. VALUE PROPOSITION the set of benefits or values that a company promises to deliver.  FIVE ALTERNATIVE CONCEPTS OF MARKETING STRATEGY PRODUCT Consumers prefer quality and performance, so companies should focus on product improvement. PRODUCTION SELLING Consumers prefer Consumers won't buy affordable, available enough of a product products, so companies unless the company should prioritize invests heavily in sales efficiency. and promotion efforts. FIVE ALTERNATIVE CONCEPTS OF MARKETING STRATEGY SOCIETAL MARKETING MARKETING Achieving organizational goals A company's marketing requires understanding target decisions should balance market needs and delivering better consumer wants, business satisfaction than competitors, an needs, and societal interests "outside-in" approach. for long-term value. CONSTRUCTING AN INTEGRATED MARKETING PLAN A marketing strategy defines the target customers and the value the company will provide to them. The marketer creates a cohesive marketing plan to deliver this value, utilizing the marketing mix comprising the four Ps: product, price, place, and promotion—as the tools for implementation. BUILDING CUSTOMER RELATIONSHIPS Customer relationship The process of building and maintaining profitable customer relationships by management (CRM) delivering exceptional value and satisfaction. The customer's assessment of the benefits versus the costs of a marketing Customer-perceived-value offer compared to competing offers. The degree to which a product meets buyer expectations, with customer Customer satisfaction delight occurring when it exceeds them. Customer-managed Marketing relationships where customers use new digital technologies to relationships interact with companies and each other, shaping their brand relationship. Consumer-generated Brand exchanges created by consumers, allowing them to shape their own and marketing others' brand experiences. Partner relationship Collaborating with internal and external partners to provide greater value to management customers. A channel from raw materials to final products, where companies collaborate Supply chain as partners through supply chain management  CAPTURING CUSTOMER VALUE Customer Share of Customer Equity Lifetime Value Customer the total combined the total value of all the share of the customer lifetime purchases a customer's values of all the customer is purchases within company’s expected to make a company's customers, throughout their product representing the lifetime of loyalty. categories future value of its customer base. INHALT DIESER VORLAGE PROFITABILIT CATEGORY LOYALTY STRATEGY Y High profit potential; Butterflies Profitable Not Loyal engage selectively Invest in continuous True Friends Profitable Loyal relationship Improve profitability Barnacles Unprofitable Loyal or consider letting go Strangers Unprofitable Not Loyal Avoid investment  STRATEGIC MARKETIN 03 G PARTNERS  STRATEGIC PLANNING The process of aligning the organization’s goals and capabilities with evolving marketing opportunities, serving as the foundation for long-term planning. At the corporate level, this begins with defining the company's mission. Business Portfolio Portfolio Analysis The collection of the The process through businesses and products which management that make the company. assesses the company’s products and businesses begins with identifying the strategic business units (SBUs) that are essential to the organization.  Product/Market Expansion Grid A portfolio-planning tool for identifying company growth opportunities through: Company growth achieved by boosting sales of existing products within current Market Penetration market segments without modifying the product. Company growth through the identification and development of new market Market Development segments for existing products. Company growth by introducing modified or new products to existing market Product Development segments. Company growth by launching or acquiring businesses beyond its existing Diversification products and markets.  MARKETIN 04 G STRATEGY WHAT IS MARKETING STRATEGY? It is the marketing approach a company uses to provide value to customers and develop profitable relationships. It involves deciding which customers to focus on and how to serve them effectively. This strategy helps the company allocate its limited resources to the most promising opportunities for growth. FOUR STEPS OF MARKETING STRATEGY 01 02 Market Segmentation Market Targeting Dividing a market into distinct Evaluating market segments and buyer groups with different needs selecting one or more to target. and behaviors. 03 04 Positioning Differentiation Positioning a product to hold a Differentiating the market offering clear and desirable place in to deliver superior customer consumers' minds relative to value. competitors. MARKETING MIX PRODUCT PRICE PROMOTION refers to the the amount the relates to the activities combination of goods customer pays to that communicate the and service the firm obtain the product. benefits of the product offers. Place refers to the availability of the product. FOUR MARKETING MANAGEMENT FUNCTIONS Marketing Analysis Marketing Planning SWOT analysis is used to It invloves choosing the evalute the ovarall company right marketing strengths, weaknesses, strategies. opportunities, and threats Marketing Implementation Marketing Control Turning marketing strategies and Assessing marketing strategy results and plans into marketing actions to making adjustments to achieve accomplish strategic marketing objectives. objectives. - OPERATING CONTROL - STRATEGIC CONTROL  05 MARKETING ENVIRONMENT  WHAT IS MARKETING ENVIRONMENT? The marketing environment includes the external actors and forces that influence marketing management's capacity to establish and sustain successful relationships with target customers, encompassing both the micro and macro environments. MICROENVIRONME MARKETING MT INTERMEDIARIES Includes the people and Firms that help the company organizations close to the to promote, sell, and company that influence how well it distribute goods to final can serve its customers, such as the buyers company itself, its different departments, and the suppliers that - Resellers provide the materials needed to make - Physical distribution firms its products. - Marketing Service Agencis - Financial Intermediaries MARKETING ENVIRONMENT: OVERVIEW Public Customers Groups that have an interest in Key actors in the marketing or impact on the organization environment. - Financial - Local - Consumers market - Media - General - Business market - Government - Internal - Reseller market - Government market - - - International market - - MARKETING ENVIRONMENT: OVERVIEW Economic Natural Environmental Environment Environment Sustainability Economic factors Natural resources Strategies for long- influencing consumer involved in marketing. term ecological behavior. support. Technological Political Cultural Environment Environment Environment Technological Government Societal forces advancements regulations and influencing consumer impacting markets. agencies affecting values and behaviors. businesses.  CUSTOM. ER INSIGHTS WHAT IS CUSTOMER INSIGHTS? Fresh understanding of customers and the marketplace derived from marketing information that become the basis for creating customer value and relationships. To gain this information, companies must design.  Marketing information systems (MIS) A marketing information system (MIS) is a continuing and interacting system of people, equipment and procedures to gather, sort, analyze, evaluate, and distribute pertinent, timely, and accurate information for use by marketing decision-makers to improve their marketing planning, implementation, and control. INTERNAL DATABASE Electronic collections of consumer and market information obtained from data sources within the company network. Internal data can be a strong base for a competitive advantage, because of the potential of this information  Competitive Marketing Intelligence The systematic collection and analysis of publicly available information about consumers, competitors and developments in the marketing environment. Good marketing intelligence helps gain insights in how consumers think of and connect with the brand. MARKETING RESEARCH WHAT IS MARKETING RESEARCH? The systematic design, collection, analysis and reporting of data relevant to a specific marketing situation facing an organization. Four Steps of Marketing Research 1. Defining the problem and research objectives Defining the problem involves evaluating how your product or service fits into the current market, often through test marketing to assess audience response. It includes the following types of research: - to gather preliminary information that will help Exploratory Research define problems and suggest hypotheses Descriptive research - to better describe marketing problems, situations or markets Casual Research - to test hypotheses about cause-and-effect relationships. 2. Developing the Research Plan on how the information will be gathered The research plan helps outline the necessary information for making informed marketing decisions. It begins with identifying the specific data needed, as irrelevant data can compromise the final report. The data can be collected using: - Internet Search Engines - Survey Research - Observational Research - Experimental Research - Ethnographic Research - Commercial Online Database - Online Marketing Research 3. Collect Information Once you've established the concepts and methods for data collection, you can begin gathering the necessary information. It's essential to focus solely on data relevant to your marketing decisions. Data can be categorized into two sources: Primary Data Secondary Data - Information collected for the - information that already specific purpose at hand which exists somewhere, having been can be collected via collected for another purpos. “Observational Research” and Can be accessed using “Survey Research”. “Commercial Online Databases” and “Internet Search Engines 4. The Final Report After gathering and analyzing all relevant data for your product or service, you can prepare the final report, which presents your research findings and offers recommendations based on those insights. This report will help you determine whether to proceed with marketing your product or service or to conclude that it may not be viable  08 CONSUMER BUYER BEHAVIOUR CONSUMER BUYER BEHAVIOUR Final consumers, including individuals and households, purchase goods and services for personal use, forming the consumer market. While consumers make daily buying decisions, understanding the reasons behind these choices can be complex, as various characteristics influence their purchasing behavior. DIFFERENT FACTORS OF CONSUMER BEHAVIOUR CULTURAL FACTORS Culture - the set of basic values, perceptions, wants and behaviours learned by a member of society from family and other important institutions Subculture - A group of people with shared value systems based on common life experiences and situations. They are distinct, but not necessarily mutually Social classes - Relatively permanent and ordered divisions in a society whose members share similar values, interests and behaviours. SOCIAL FACTORS Groups - consist of two or more people interacting to achieve goals. There are two types of groups: Membership Groups Reference Groups Opinion Leaders - Individuals within reference groups who influence others Buzz Marketing - Involves creating opinion leaders to act as brand ambassadors. Online Social Networks - Communities like blogs and social networking sites where people exchange information and opinions. PERSONAL FACTORS Personal Characteristics – The characteristics that can influence the consumer‘s nbuyer behavious are: Age and Life Cycle Stage Lifestyle Occupation and Economic Situation Personality Personal Characteristics – The mix of human traits that may be used to describe the brand. There are Five General Brand Personality Traits: Excitement Sincerity Sophistication Competence Ruggedness  PSYCHOLOGICAL FACTORS Motivation - A pressing need that drives a person to seek satisfaction. Which can be uncovered by “Motivation Research” (Qualitative research designed to find consumer’s hidden motivations). Perception - The process of selecting, organizing, and interpreting information. There are Three Selective Attention Perceptual Selective Processes: Distortion Selective Retention Learning - Refers to changes in behavior resulting from experience. A Drive is a strong stimulus prompting action, while Cues are minor stimuli that influence a person's response. Belief - Descriptive thoughts held about something. Attitude is consistent evaluations and feelings towards an object or idea. MARLOW’S HIERARCHY OF NEEDS FOUR TYPES OF BUYING DECISION BEHAVIOUR 01 02 Complex Buying Dissonance-Reducing Behaviour Behaviour 03 04 Habitual Buying Variety-Seeking Buying Behaviour Behaviour Adoption Process - the mental process through which an individual passes from first hearing about an innovation to final adoption. Five Stages in the Adoption Process: BUSINES. S MARKET S BUSINESS BUYING BEHAVIOUR - Refers to how organizations purchase goods and services for producing other products and services. BUSINESS BUYING PROCESS - involves identifying needs, evaluating, and selecting suppliers. BUSINESS DEMAND- ultimately comes from the demand for consumer goods BUSINESS MARKET’S DEMAND- tends to be more inelastic, meaning it is less sensitive to short-term price changes, but it can also fluctuate more rapidly. SUPPLIER DEVELOPMENT - involves systematically creating networks of supplier-partners to ensure a reliable and adequate supply of products and materials for manufacturing or resale. THREE TYPES OF BUSINESS BUYING SITUATIONS Straight Rebuy Modified Rebuy New Task A situation where When the buyer A situation where the the buyer routinely seeks to change buyer is purchasing reorders a product product a product or service without changes specifications, prices, for the first time. terms, or suppliers. PARTICIPANTS IN THE BUSINESS BUYING PROCESS Users Influencers Buyers Deciders Gatekeepers 8 BUSINESS BUYING PROCESS Problem General Need Product Supplier Recognition Description Specification Search Proposal Problem Supplier Order-Routine Performance Recognition Solicitation Selection Specification Review TYPES OF TARGET MARKETS BASED ON SEGMENTATION AGE GENDER RACE INCOME RELIGION OCCUPATION FAMILY SIZE GEOGRAPHIC LOCATION ZIP CODE COMMON TYPES OF TARGET MARKETING CUSTOMER CUSTOMERS NEED VALUES PREFERENCES DEMOGRAPHICS LOCATION BEHAVIOR COMPETITIVE LIFESTYLES PRICE SENSITIVITY TARGETING  P‘S OF MARKETING MIX Product Place Price Promotion People Processes Physical Evidence  MARKETING GOALS Building brand awareness. Generating a high volume of qualified leads. Establishing thought leadership. Attributing marketing activities to revenue generation. Increasing brand engagement.  MARKETING FEATURES CUSTOMER OBJECTIVE- CUSTOMER FOCUS SATISFACTION ORIENTED MARKETING IS CONTINUOUS AND EXCHANGE MARKETING BOTH ART REGULAR ACTIVITY PROCESS ENVIRONMENT AND SCIENCE COMMERCIAL AND PRECEDES AND MARKETING INTEGRATED NON-COMMERCIAL FOLLOWS MIX APPROACH ORGANIZATIONS PRODUCTION THANK YOU! GOD BLESS!