Entrepreneurship Reviewer PDF

**ENTREPRENUERSHIP REVIEWER** **Recognize a Potential Market** - Value Proposition (VP) is a business or marketing statement that summarizes why a consumer should buy a company\'s product or use its service. - In creating Value Proposition, entrepreneurs will consider the basic el...

**ENTREPRENUERSHIP REVIEWER** **Recognize a Potential Market** - Value Proposition (VP) is a business or marketing statement that summarizes why a consumer should buy a company\'s product or use its service. - In creating Value Proposition, entrepreneurs will consider the basic elements: - Target Customer - Needs/opportunity - Name of the product - Name of the enterprise/company - Unique selling proposition (USP) refers to how you sell your product or services to your customer. You will address the wants and desires of your customers. - unique selling proposition to the target customers: - Identify and rank the uniqueness of the product or services character - Very Specific - Keep it short and simple (KISS) **A. Target Market** Market Targeting is a sage in market identification process that aims to determine the buyers with common needs and characteristics. 1\. Geographic segmentation - the total market is divided according to geographical location. ** Variable to consider** \* Climate \* Dominant ethnic group \* Culture \* Density (either rural or urban) **2. Demographic Segmentation - divided based consumers.** ** Variable to consider** \* Gender \* Age \* Income \* Occupation \* Education \* Religion \* Ethnic group \* Family size **3. Psychological Segmentation- divided in terms for customers think and believe.** ** Variable to consider** \* Needs and wants \* Attitudes \* Social class \* Personality traits \* Knowledge and awareness \* Brand concept \* Lifestyle **4. Behavioral Segmentation-divided according to customers behavior pattern as they interact with a company.** ** Variable to consider** \* Perceptions \* Knowledge \* Reaction \* Benefits \* Loyalty \* Responses **B. Customer Requirements** - Customer requirements are the specific characteristics that the customers need from a product or a service. - There can be two types of customer requirements: 1\. Service Requirement 2\. Output Requirement - **Service Requirement:** Intangible thing or product that is not able to be touched but customer can feel the fulfillment. - **Output Requirements:** Tangible things or things that can be seen. Characteristic specifications that a consumer expects to be fulfilled in the product. **C. Market Size** Entrepreneur\'s most critical task is to calculate the market size, and the potential value that market has for their startup business. Market size is like a size of arena where the entrepreneurs will play their business. **Market Research** - The 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. **DATA COLLECTION** - is the most valuable tool of any type of research study. Inaccurate data collection may cause mistakes and ultimately lead to invalid results. **TIPS in GATHERING 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 - Create more data - Regularly run experiments or collect data - Challenge your assumptions - Set reasonable expectations - 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 Web (e.g. Skype or Viber). **When designing or constructing your own research questionnaire, remember the following guidelines. (Edralin, 2016)** - Keep it 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 any 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 personal 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. - 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. - 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 a moderated group interviews and brainstorming sessions that provide information on user\'s needs and behaviors. **7 Ps of Marketing Mix** **1. PRODUCT** Marketing strategy typically starts with the product. Marketers can\'t plan a distribution system or set a price if they don\'t know exactly what the product will be offered to the market. **2. PLACE** Place represents the location where the buyer and seller exchange goods or services. It is also called as the distribution channel. It can include any physical store as well as virtual stores or online shops on the Internet. - Channel 1 contains two stages between producer and consumer - a wholesaler and a retailer. - Channel 2 contains one intermediary. In consumer markets, this is typically a retailer. A retailer is a company that buys products from a manufacturer or wholesaler and sells them to end users or customers. - Channel 3 is called a \"direct-marketing\" channel, since it has no intermediary levels. In this case the manufacturer sells directly to customers. **3. PRICE** The price is a serious component of the marketing mix. the price is the amount or value that a customer gives up to enjoy the benefits of having or using a product or service. **4. PROMOTION** Promotion refers to the complete set of activities, which communicate the product, brand or service to the user. The idea is to attract people to buy your product over others. Advertising, Personal Selling, Sales Promotion, Direct Marketing, and Social Media are examples of promotion. **5. PEOPLE** Your team, a staff that makes it happen for you, your audience, and your advertisers are the people in marketing. This consists of each person who is involved in the product or service whether directly or indirectly. People are the ultimate marketing strategy. They sell and push the product. - People are one of the most important elements of the marketing mix today. **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. The best packaging should be attractive enough and cost efficient for the customers. Packaging is highly functional. It is for protection, containment, information, utility of use and promotion. **7. POSITIONING** When a company presents a product or service in a way that is different from the competitors, they are said to be \"positioning\" it. Positioning refers to a process used by marketers to create an image in the minds of a target market. - **BRANDING** 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. **Commonly Used Branding Strategy** - Purpose (a. Functional, b.Intentional) - Consistency - Emotion - Flexibility - Employee Involvement - Loyalty - Competitive Awareness **Developing a Brand Name** **BRAND ELEMENTS** - Brand Logo - A brand logo contains stylized letters representing the literal name of the product. - Brand Symbol - A brand symbol contains a sign, mark, or picture representing the brand. - Brand character - It is a special type of brand element that uses human or real-life characteristics. - Brand slogan - A slogan is a short phrase that is used to communicate descriptive or persuasive information about the brand. **Types of Brand Name** - Descriptive - Evocative - Invented - Lexical - Acronym - Geographical - Founder **4Ms in Marketing** **Manpower** \- Talks about human labor force involved in the manufacture of products. \- It is measured as the most serious and main factor of production. The entrepreneur must determine, attain and match the most competent and skilled employees with the jobs at the most appropriate time period. **Material** \- Talks about raw materials necessary in the production of a product. Materials mainly form part of the finished product. **Machine** \- Discusses about manufacturing equipment used in the production of goods or delivery of services. **Method** \- Production method discusses the process or way of transforming raw materials to finished products. **Product Description** \- Is the promotion that explains what a product is and why it\'s worth buying? The purpose of a product description is to provide customers with details around the features and benefits of the product so they\'re obliged to buy. **Prototyping** \- A duplication of a product as it will be produced, which may contain such details as color, graphics, packaging and directions. **Supplier** \- An entity that offers goods and services to another business. This entity is among of supply chain of a business, which may offer the main part of the value contained within its products. **Value chain** \- is a method or activities by which a company adds value to an item, with production, marketing, and the provision of after-sales service. **A supply chain** \- is a structure of organizations, people, activities, data, and resources involved in moving a product or service from supplier to customer. **Business model** \- describes the reasons of how an organization creates, delivers, and captures value in economic, social, cultural or other contexts. **The following are the components found in a Business Plan.** - Introduction- this part discusses what is the business pan all about. - Executie Summary- is part of the business plan whichis the first to be presented but the last to be made. - 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 - Competitive Analysis- is the strategy where you identify major competitors and research their products, sales and marketing strategies. - Market- 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.