Entrepreneurship 2nd Quarter Reviewer PDF

ENTREPRENEURSHIP - 2ND QUARTER REVIEWER Lesson 3.1 : Marketing Mix Product Strategy is often called the Marketing Mix - defined as the set of roadmap of a product and outlines the marketing tools that the firm uses to pursue end-to-e...

ENTREPRENEURSHIP - 2ND QUARTER REVIEWER Lesson 3.1 : Marketing Mix Product Strategy is often called the Marketing Mix - defined as the set of roadmap of a product and outlines the marketing tools that the firm uses to pursue end-to-end vision of the product and what its marketing objectives in the target market. the product will become. Product - refers to what the business offers Marketers engage in market segmentation for sale and may include products or when they divide the total market into services. smaller, relatively homogenous groups or segments that share similar needs, wants or Price - refers to the total cost for a customer characteristics. to acquire the product, and may involve both monetary and psychological costs such Lesson 3.1.2 : Place as the time and effort extended in acquisition. - is making the products available in the right quantities and locations where Place - the direct or indirect channels to customers want them. market, geographical distribution, territorial coverage, retail outlet, market location, Distribution Strategy refers to the process catalogues, inventory, logistics and order of moving goods and services from the fulfillment. company to the customer. Promotion - the marketing communication Channel of Distribution is made up of used to make the offer known to potential people or organizations involved in the customers and persuade them to distribution process. investigate it further. Basic Types of Channel Distribution People - essential in the marketing of any - Direct Channel Distribution is the transfer product or service. or movement of goods and services from manufacturer to final user of customer Process - the set of activities that results in without the intervention of independent delivery of the product benefits. middleman. Physical Evidence - the lasting proof that - Indirect Channel Distribution is the transfer the service has happened, in terms of or movement of goods or tangible products buying a physical product, the physical and services or intangible goods from evidence is the product itself. manufacturer or producer to independent intermediates to customer. Lesson 3.1.1 : Product Intensity of Channel Coverage - is anything that can be offered for - Exclusive Distribution is the limited number satisfaction. It may be an idea, a physical of middleman used in a geographic area. entity (a good), a service, or any - Selective Distribution is organizing a combination of the three. moderate number of wholesalers or retailers  ENTREPRENEURSHIP - 2ND QUARTER REVIEWER - Intensive Distribution is organizing a large community by creating projects programs number of middlemen that are used to that protects its welfare and goodwill. obtain widespread market coverage and channel acceptance. 2. Broad Price Policy provides procedures, rules, and methods to act in one situation. It Physical Distribution covers a broad range links prices with the target market, image, of activities in connection with the efficient and other marketing elements. It makes delivery of raw materials, parts, sure that pricing decisions are coordinated semi-finished items, and finished products from other sellers. to designated places and time and in proper conditions. These are the following: a. Penetration pricing uses low prices to Lesson 3.1.3 : Price capture/attract the larger/ mass market for a - determines the value of a good or service product or service. to the buyers even to the sellers. It is the b. Skimming pricing uses high prices to amount of money needed in order to attract the market segment more concerned acquire a product or service and its with product quality, uniqueness or status accompanying service. than price. Five Steps in Developing Pricing 3. Price Strategies are ways or some Strategy actions to accomplish the goals and objectives of the company in gaining profit. 1. Objective - Sales Based : The firm is interested in a. Cost-based price strategy is when the sales growth and/or maximizing market firm sets prices by computing merchandise, share. The concern of the company is to services and overhead costs then adding increase sales by offering new product the desired profit to those figures. design, product lines, and promotional b. Demand-based price strategy is when items. the firm sets prices after researching - Profit-Based : The firm is interested in consumer desires and makes sure the maximizing profit, earning a satisfactory range of prices is acceptable to the target profit, optimizing the return on investment or market. securing an early recovery of cash. Its thrust c. Competition-based price strategy is is to satisfy the investors/ stockholders by when the firm sets prices in relation to the providing them immediate return of competitors. investment. - Status Quo Based : The firm seeks to 4. Implementing Price Strategy is the firm avoid reasonable government actions, readiness to sell the product which would be minimize the effects of competitor actions, effective if given an attractive price strategy maintain good channel relations, listed below: discourage the entry of competitors, reduce demands from suppliers and a. Customary pricing is when one price is stabilize prices. The goal of the company maintained over an extended period of time. is to maintain good image to the  ENTREPRENEURSHIP - 2ND QUARTER REVIEWER b. Variable pricing is when the price 5. Price Adjustments responds to costs fluctuations or differences Changes in cost, competitive conditions and in demand. consumer demand require changes in price. c. One-price policy is when the price is Prices can be adjusted in the list prices, charged to all customers buying the product escalator clauses, surcharges, mark-ups, or service under similar conditions. markdowns, and rebates. d. Flexible pricing is based on customer's ability to negotiate or buy power of the Pricing Strategy customer. How the firm prices its product or service is e. Odd pricing are prices set at levels a very important component of the business below even values. plan. If the firm wants to achieve its f. Price-quality association is when the objectives, the right price for its product or consumers believed that high price service must be maintained. represents high quality and low prices represent low quality. The price set by the firm may be established g. Prestige pricing is when customers set through any of the following: price floors and will not buy at prices below 1. Cost-plus pricing - this method covers those floors. all costs, variable and fixed, plus an extra h. Leader pricing is selling key items at low increment to deliver profit. prices to gain consumer loyalty within its 2. Demand pricing - this is a method of product line. pricing where the firm sets prices based on i. Multiple-unit pricing is when the buyer desires. The range acceptable to the entrepreneur offers discounts to consumers target market is determined. for buying in large quantities. 3. Competitive pricing - this method of j. Price lining is when instead of setting pricing calls for price-setting on the basis of one price for a single model of a good or prices charged by competitors. service, the firm sells two models of 4. Market pricing - this is a form of different quality and features at different cost-oriented pricing in which the firm prices. desired profit. k. Price bundling is when the firm offers a basic product, options and customer service for one total price. Lesson 3.1.4 : Promotion l. Unbundled pricing is when the firm sells by individual components and allows - is any form of communication which is customer to decide what to buy. used to inform, persuade and remind people m. Geographic pricing is when the prices about an organization or individual's goods, are set depending on the distance of the services, image, ideas, community buyer to the seller. involvement or impact on the society. Terms of Payments are price agreements, Promotional Mix is a combination of the including discounts, timing of payments and strategies to accomplish the promotion credits agreements. objectives of an organization.  ENTREPRENEURSHIP - 2ND QUARTER REVIEWER Promotional Mix Tools refer to the entire 3. Relations with Middleman - The dealer set of activities, which communicate the such as retailer or wholesaler can give products, brand or service to the user. impact about company effectiveness and efficiency. These are the following: 1. Advertising is a paid, non-personal Lesson 3.1.5 : People communication regarding goods, services, -can be considered as product by providing organizations, people, places and ideas that satisfaction to the consumer. These are the is transmitted through various media by celebrity, model, artist, dancer, singer and business firms, government and other the like. non-profit organization and individuals who are in some way identified in the advertising Businesses can improve their ability to message as the sponsor. Advertising is also attract, retain and improve productivity a paid form of communication. by applying the following five-step PRIDE 2. Publicity is a non-personal process: communication regarding goods, services, P - Provide a Pleasant Working organizations, people, places and ideas that Environment is transmitted through various media but not R - Recognize, Reward and Reinforce the paid for by an identified sponsor. Good Behaviour Example: Coca cola will be the sponsor for I - Involve and Participate in the activities the family show aired in channel 7. and programs prospective D - Develop Skills and Attitude 3. Personal Selling involves oral E - Evaluate and Measure Performance communication with one or more buyers by paid representatives for the purpose of Networking making sales. Normally, this is done through - it involves socioeconomic business activity door to door selling. by which entrepreneurs and business 4. Sales Promotion involves paid people meet to form business relationships marketing communication activities that to recognize, create, or act upon business stimulate consumer purchases and dealer opportunities, share information and seek effective. potential partners for business ventures. Example: Buy one take one, bodega sale, discount coupons. The following tips can help someone to become successful in networking career: The Selection of a Promotion Mix 1. Be humble and confident when dealing Depends on Several Variables: with others. 1. Product Life Cycle - An organization 2. Remember, both of you are important in must be aware of the different stages of the meeting. PLC and the company status to fully design 3. Make the first meeting successful, a strategy. Remember first impression last. 2. Company Characteristics - The more 4. Share information to create products line the company gains the better understanding. tools to serve the organization. 5. Praise other people, avoid being arrogant.  ENTREPRENEURSHIP - 2ND QUARTER REVIEWER 6. Let other people share, do not quantity? What about average purchase monopolize a conversation. size? 7. Thank someone. 8. Ask for referrals. Packaging Strategies 9. Bring the best ideas, avoid talking 1. Family packaging involves making the nonsense or junk ideas. package identical for all products using 10. Be conscious in time, some people are common feature on all products using busy. common feature on all packages. 2. Reuse packaging is designing and Network Marketing promoting package which can serve other For most Filipinos it is a new business purposes when contests are consumed. format that boggles their minds. As a 3. Multiple packaging is placing several concept, network marketing has been units of a product in a single container. founded the fastest way to accumulate Example: 3-in-1 package for tennis and wealth nowadays. The concept is used to balls. penetrate the market as fast as possible without entailing expensive marketing costs Lesson 3.1.7 : Positioning such as advertising and promotions. - refers to how the firm differentiates their Lesson 3.1.6 : Packaging product or service from those of the competitors and serving a niche. It is one Packaging the Product where the firm identifies a target segment It should be properly designed to attract the and develops a strategy mix to address the customers. A package is the container or desires of that segment. the wrapper of the product. Packaging is a business function that must not be taken for Product Positioning is placing a brand in granted. Package gives significant and that part of the market where it will have an different advantages over other products in approving acceptance compared with the market. competing brands. Criteria for Choosing Packaging Product repositioning means reviewing Materials the current position of the product and its 1. Protection - Can the package give ample marketing mix and seeking a new position protection to the product? for it that seems more appropriate. 2. Display Value - Can it attract consumers? An example is a comparison of Market Positioning is developing a product four-color print and brand image in the minds of versus a black and white package. consumers. It can also include improving a 3. Cost - Will it be cost-efficient? customer's perception about the experience 4. Convenience - Is it easy to carry? Will they will have if they choose to purchase a the package be too heavy? company's product or service. 5. Size - What is industry practice? Any weight limit? What is minimum order  ENTREPRENEURSHIP - 2ND QUARTER REVIEWER Product Positioning The Different Strategies Used to Sell The entrepreneur must create an image to More Products the public presenting how they want to 1. Branding Within a Product Mix position the product. The customers/ target a. Separate Name for Each Product - This market must be well informed about a new is often termed as family branding. It is product - what it is, what it can do, what simple and less expensive to introduce new makes it better that other products, and who and related products to a line. should buy it. The prestige of the brand can be spread more easily as it appears on several 1. Innovator/Leader vs. Follower - the products. idea that the company can be considered as b. The Company Name Combined with an innovator or leader means being an the Product Name - The company name is initiator in selling a new product to the best suited for marketing products that are market. The product is new and stranger to related in quality and use. the market; still, the firm creates strategies c. The Company Name Alone - Branding to sell it. with the company name alone places a 2. Domestic vs. International/Global great burden on the producers' reputation A domestic firm produces only for local for quality. consumption. There is no vision for larger market and focuses only on the 2. Branding for Market Saturation minority of markets in the country. a. Introduction of Line Extension - This is 3. Quality vs. Price the strategy where brand names are The idea that Quality must be the priority in extended into new forms and sizes of an selling the product not considering how existing product category. much it will cost, it describes how the firm b. Introduction of Brand Extension - This prioritizes the materials being used and how strategy calls for the extension of the brand it will create satisfaction to the market. name to new or modified product categories. Branding Strategies c. Introduction of New Brand Name - It is 1. Producer's Strategy the strategy where a new brand name is - The manufacturers have to establish a attached to a new product category. wide distribution system and rely heavily on their capability to penetrate the market with the amount of resources in promoting the Reasons for the Existence of Brands brand to its target market. 1. Identification - Brands enable - This strategy is employed by product consumers to easily distinguish one product manufacturers' that dominate the greater from another. market due to the superiority of their 2. Protection - It enables the owner of the product. brand name to enjoy the goodwill 2. Middleman's Strategy associated with the name so as not to be This is also called as co-branding where the taken advantage by others. producer and sole distributor carry the 3. Positioning - It enables the owner to brand name of the manufacturer and that of communicate the benefits of his product the middlemen vis-à-vis competition.  ENTREPRENEURSHIP - 2ND QUARTER REVIEWER Criteria For Choosing A Brand Name 1. Distinctive - is the brand closely associated with another product? 2. Word Association - does it have a pleasant meaning? 3. Legal Requirements - can it be registered? 4. Memorability - can your name be remembered easily? 5. Pronounceability - can it be pronounced easily? 6. Limitations - is the brand name too limiting to be used for expansion?