Entrepreneurship Lesson 4 - Market Research PDF

**CIT COLLEGES OF PANIQUI FOUNDATION, INC.** Burgos St. Pob. Norte, Paniqui, Tarlac -- Philippines Senior High School Department School Year 2023-2024 **Entrepreneurship** **Lesson 4 -- Market Research** **Market Research or Marketing Research Process can be defined as the process of gathering...

**CIT COLLEGES OF PANIQUI FOUNDATION, INC.** Burgos St. Pob. Norte, Paniqui, Tarlac -- Philippines Senior High School Department School Year 2023-2024 **Entrepreneurship** **Lesson 4 -- Market Research** **Market Research or Marketing Research Process can be defined as the process of gathering, analyzing and interpreting the information about the products or the services to be offered for sale to the potential consumers in the market (De Guzman, 2018, p. 25)** **DATA COLLECTION is the most valuable tool in any type of research study. Inaccurate data collection may cause mistakes and ultimately lead to invalid results. (Edralin, 2016, p. 80)** **TIPS in COLLECTING DATA** ** Organize collected data as soon as it is available** ** Know what message you want to get across and then collect data that is relevant to the message** ** Collect more data** ** Create more data** ** Take note of interesting or significant data** **SURVEYS are the most common way to gather primary research with the use of questionnaires or interview schedule. These can be done via direct mail, over the phone, internet (e.g. Google) or email, face-to-face or on the Web** **(e.g. Skype or Viber).** **When designing or constructing your own research questionnaire, remember the following guidelines. (Edralin, 2016)** ** Keep it as simple as possible** ** Make sure it is clearly appealing and easy to read** ** Cluster or block related questions** ** Move from complex questions to more specific questions** ** Make sure questions are concise and easily understood** ** Avoid questions that are difficult to answer** ** Make sure response scales used are consistent with categories that are mutually exclusive** **INTERVIEW is one of the most reliable and credible ways of getting relevant information from target customers. It is typically done in person between the researcher/entrepreneur and a respondent where the researcher asks pertinent questions that will give significant pieces of information about the problem that he will solve. The interview is also helpful even when the business has already started because the customers' feedback provides the entrepreneur a glimpse of what the customers think about the business.** **Interviews normally last from 15 to 40 minutes, but they can last longer, depending on the participants' interest in the topic.** **In a structured interview, the researcher asks a standard set of questions and nothing more. (Leedy & Ormrod, 2001, pp.38-39)** **Personal interviews are the traditional method of conducting an interview. It allows the researcher to establish relationship with potential participants and therefore gain their cooperation. It generates highest response rates in survey research. They also allow the researcher to clarify indefinite answers and when necessary, seek follow-up information. (Leedy & Ormrod,** **2001, pp.39)** **Telephone interviews are less expensive and less time-consuming, but the disadvantages are that the response rate is not as high as the face-to-face interview, but considerably higher than the mailed questionnaire.** **FOCUS GROUP DISCUSSION (FGD) - is an excellent method for generating and screening ideas and concepts. It can be** **moderated group interviews and brainstorming sessions that provide information on user's needs and behaviors.** **The following are considerations in the use of focus group discussions in market research:** ** The length of the session is between 90 and 120 minutes.** ** Conduct focus groups discussion with 8 to 10 participants per group.** ** Assign an expert moderator / facilitator who can manage group dynamics.** ** Use a semi-structured or open-format discussion** ** Strive for consistency in the group's composition (for example, it may not be advisable to have business customers and retail customers in the same focus group, their needs are very different) (Leedy & Ormrod, 2001, pp.40-41)** **LESSON 5** **7 P'S OF MARKETING AND BRANDING** Learning Objectives: At the end of the lesson, the learners should be able to: **MARKETING MIX** or **"P'S" IN MARKETING** - is a business mechanism used for effective marketing of the products - is a set of controllable and connected variables that a company gathers to satisfy a customer better than its competitor **THE 7 P'S OF MARKETING MIX** **(product, place, price, promotion, people, packaging, and positioning)** 1. **PRODUCT** refers to any goods or services that is produced to meet the consumers' wants, tastes and preferences. **Types of Goods** a. **business goods -** are various goods not for final consumption but for producing other goods or providing services made up of machinery, plants, and raw materials. b. **consumer goods, also called retail goods -** are the end result of production and manufacturing, or the products bought ready for consumption and satisfaction of human wants. **Types of Services** a. **professional services -** are provided to organizations or businesses. b. **consumer services -** are provided to individuals. 2. **PLACE, also known as the distribution channel,** represents the location where the buyer and seller exchange goods or services. The main function of a distribution channel is to provide a link between production and consumption.  3. **PRICE** is the value of money in exchange for a product or service. a. **Penetration Pricing -** The price charged for products and services is set artificially low in order to gain market share. Once this is achieved, the price is increased. b. **Competition Pricing -** A pricing method in which a seller uses prices of competing products as a benchmark instead of considering own costs or the customer demand. In reality a firm has three options and these are to price lower, price the same or price higher than competitors. c. **Bundle Pricing -** The act of placing several products or services together in a single package and selling for a lower price than would be charged if the items were sold separately. d. **Premium Pricing -** Setting the price of a product higher than similar products. The goal is to create the perception that the products must have a higher value than competing products because the prices are higher. e. **Psychological Pricing -** Psychological pricing is the practice of setting prices slightly lower than rounded numbers, in the belief that customers do not round up these prices, and so will treat them as lower prices than they really are. This practice is based on the belief that customers tend to process a price from the left-most digit to the right, and so will tend to ignore the last few digits of a price. f. **Value Based Pricing -** A price-setting strategy where prices are set primarily on consumers\' perceived value of the product or service. 4. **PROMOTION** refers to the complete set of activities, which communicate the product, brand or service to the user. The idea is to create an awareness, attract and induce the consumers to buy the product, in preference over others. a. **ADVERTISING** - - **Radio** - **Television** - **Print** - **Electronic** - b. **PUBLIC RELATIONS OR PR** - In public relations, the article that features your company is not paid for. The reporter, whether broadcast or print, writes about or films your company as a result of information he or she received and researched. - PR involves sharing information with the public using platforms that do not require a payment, such as social media or through press releases shared with magazines and newspapers. c. **PERSONAL SELLING** - occurs when an individual salesperson sells a product, service or solution to a client. d. **SALES PROMOTIONS** - Sales promotion is any initiative undertaken by an organization to promote an increase in sales, usage or trial of a product or service - - **Free Gifts** - **Free Samples** - **Free Trial** - **Customer Contests** - **Special Pricing** e. f. **DIRECT MARKETING** - Direct marketing is a promotional method that involves presenting information about your company, product, or service to your target customer without the use of an advertising middleman. **Forms of Direct Marketing** - - Brochure - Catalogs - Fliers - Newsletters - Post cards - Coupons - Email - Phone calls - Text messages 5. **PEOPLE** - are the ultimate marketing strategy and the most important elements of the marketing mix today. - This consist of each person who is involved in the product or service whether directly or indirectly. - The marketing efforts of people are to create customer awareness, to arouse customer interest, to educate customers, to close the sale and to deliver the product. - Therefore, the right people are essential in marketing mix in the current marketing scenario. 6. **PACKAGING** - Packaging is a silent hero in the marketing world. - Packaging refers to the outside appearance of a product and how it is presented to the customers. **Five Basic Functions of Packaging** a. **Protection:** One of the major functions of packaging is to provide for the effects of time and environment for the natural and manufactured products. b. **Containment:** This involves merging of unit loads for shipping. c. **Information:** The packaging conveys necessary information to the consumers. The common information that packaging provides include general features of the product, ingredients, net weight of the contents, name and address of the manufacturers, maximum retail price (MRP). Packaging of medicine and some food products is required to provide information on methods of preparations, recipes and serving ideas, nutritional benefits, and date of manufacturing, date of expiry, warning messages and cautionary information. d. **Utility of use:** The convenience packaging e. **Promotion:** Companies use attractive colors, logos, symbols and captions to promote the product that can influence customer purchase decision. 7. **POSITIONING** refers to a process used by marketers to create an image in the minds of a target market. **DEVELOPING A BRAND NAME** - **BRAND NAME** is a name, symbol, or other feature that distinguishes a seller\'s goods or services in the marketplace. - Your **BRAND** is one of your greatest assets because your brand is your customers\' over-all experience of your business. - **BRAND STRATEGY** is a long-term design for the development of a popular brand in order to achieve the goals and objectives. - **BRANDING** is a powerful and sustainable high-level marketing strategy used to create or influence a brand. Branding is a strategy to distinguish products and companies and to build economic value to both customers and to brand owners **LESSON 6** **BUSINESS PLAN** **The following are the components found in a Business Plan:** ** Introduction -** this part discusses what is the business plan all about. ** Executive Summary -** is part of the business plan which is the first to be presented but the last to be made. An executive summary of a business plan is an overview. Its purpose is to summarize the key points of a document for its readers, saving them time and preparing them for the upcoming content. This is why the executive summary is often called the most important part of the business plan. ** Management Section -** shows how you will manage your business and the people you need to help you in your operations. ** Marketing Section -** shows the design of your product/service; pricing, where you will sell and how you will introduce your product/service to your market. ** Financial Section -** shows the money needed for the business, how much you will take in and how much you will pay out. ** Production Section -** shows the area, equipment and materials needed for the business. ** Competitive Analysis -** is the strategy where you identify major competitors and research their products, sales and marketing strategies. ** Market --** refers to the persons who will buy the product or services ** Organizational chart -** is the diagram showing graphically the relation of one official to another, or others of a company.