EPP-TLE 6

ICT-ENTREPRENEURSHIP
THE IDEAL ENTREPRENUER

A. Identifying Sellers and Buyers

 The Sellers and Buyers
 The Seller as Buyer
 Guide to Sound Buying

B. Producing Simple Products

 Planning Simple Products to Sell
 Producing Simple Products to Sell

C. Buying and Selling the Products

 Buying the product
 Selling the Product
 Duties of the Salesperson
 Computing the Price of the Product

D. Marketing the Product

 Selling the Product
 Forms of Promotion
 Promotional Strategies

Lesson 1: Identifying Sellers and Buyers

Objectives:
1. Identify the seller
2. Identify the buyer
3. Cite the seller and the buyer
4. Explain the guides to sound buying

Identify the Sellers and the Buyers

Two persons or parties involved in marketing transaction such as selling and buying, the
seller and the buyer.

1. The Seller
- the owner of the store or business establishment
- offers goods, products, or services to those who need it
- sells products, goods, or services at a specified amount called his selling price.
- as a seller must learn the art of selling
- the art of selling needs persuasion, good relations with people, patience, and courtesy
toward the prospective buyers

2. The Buyer
- The person who buys goods or services from the seller
- The consumer who makes use of the goods to meet his/her needs or wants and
those of his family

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 - Also called the end user because they use the goods or products or services that
meets the needs and wants and derive satisfaction from its use

The Seller as Buyer

 A seller is also a buyer because he needs to buy goods or products he/she will sell.
 He buys from either manufacturer or the producer of the goods or from wholesale
middlemen
 Manufacturers are those who convert raw materials into finished products such as
canned foods
 Producers are those who plant and harvest products as in the case of fruits and
vegetables
 The wholesalers are those who buy from manufacturers or producers in big bulk then
sell these in retail to owners or sari-sari stores, groceries, or mobile stores.
 Wholesalers act as middlemen or traders who buy from the primary source
(manufacturers/producers) and sell these to retailers (owners of sari-sari store, groceries
and similar stores)
 The seller must have a good and sound buying program so he can get the most profit
and give the best service to his customers by offering good quality goods or products.
 His buying program should be based on the principle: to buy goods that will meet the
need and satisfaction of his customers.
 He should always keep in mind the question: What does my customer need?

Guide to sound buying for both seller and buyer (consumer)

 Sellers and buyers should have a sound buying guide to get the best buy for their
money.
 The guide is: to buy goods from the right source at the right quality and quantity, at the
right price.
 Both sellers and buyers should ask themselves:
-Would this good or product meet my need/demand? -Or those who will use them?
-Am I buying goods at the right quality and quantity, that is, will it be enough to meet my
need/demand?
-Do I need the good at the time that I will use it?
-Am I getting my money’s worth?
-If the answer to all the above questions is yes, then the buyer is making a sound buy.

Lesson 2: Producing Simple Products

Objectives:
1. Plan simple product to sell
2. Produce simple product to sell
3. Cite examples of goods and services in different production areas

Planning Simple Products to Sell

 Use your creativity and resourcefulness as well as skill to create simple products to sell
 To ensure products will be sold, make a simple survey to identify what potential
customers need

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  A survey can be an interview in the school or neighborhood.

Producing Simple Products to Sell

After identifying the needs of the people and identified the products you want to produce,
plan your budget, the materials and the tools needed and the schedule of operation.
If you do not have the skill to produce, you can either buy the products from its primary
source where it is cheaper, or to buy the product in bulk or in wholesale, then repack it in
smaller quantities for retailing.
Simple products like roasted peanuts, varieties of cookies, pumpkin seeds, corn chips;
accessories like bracelets, headbands and the like which are popular among students. School
items like writing tools pencils, writing pads and erasers are needed by pupils.
One of the slogan in marketing today is that “if you do not have a market, create one!”
This means create a demand for your product through good salesmanship and good quality
products at a reasonable price.

Remember:
1. Potential entrepreneurs are creative, inventive and resourceful
2. To determine needs/demands of potential customers, make a survey in the
school or neighborhood. Interview these potential customers and scan the
neighborhood and school with products already available on sale.
3. Once you have decided what product to produce prepare your budget, tools and
materials and schedule of operation.

Lesson 3: Buying and Selling the Products

Objectives:
1. Describe how a seller buys his/her products
2. Describe what is required in effective selling
3. Enumerate the duties of a salesperson
4. Explain how to compute the selling price of a product based on cost, mark-up
and profit

Buying the Product

The seller or retailer must develop a sound buying and selling program for his/her
retail store to ensure profit and good service. The buying program of the retailer should
be based on the principle: Buy goods that will meet the needs and satisfaction of the
consumers or buyers. When the seller buys his/her products for his/her store, the first
question in his/her mind should be: What does my customer need?

With this in mind, the seller or retailer can now make a careful study of the
product he/she thinks is in demand. The list can be made from the stock of information
he/she has taken from different sources, such as:

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 1. Inquiries made by his/her sales clerk to customers
2. Stock record which shows the items that are easily sold out
3. The sales of the different items and the merchandise with the highest sales

Duties of the Salesperson

A salesperson must be well-oriented on his/her duties and should carry them out
well. His/her goal is to make a sale always.
1. To sell goods of the best quality possible.
2. To sell goods at the most reasonable price.
3. To be honest, courteous, and straightforward in his/her dealings.
4. To give the most satisfactory service to the customer.
5. To follow “The customer is always right” and “First come, first serve” policy to
customers as they should be treated fairly.

The dictum “The customers is always right” must always be observed. Every
customer, young or old, rich or poor must be treated fairly with respect and attention
until such is voided because if misbehavior and scandalous words and actions.

As a routine, any customer who comes in the store is greeted by the salesperson
with “Good ________ (morning, afternoon, or evening)! Followed with “What can I
do for you,, Ma’am/Sir?” Then the salesperson presents/takes the items asked for.
He/She answers queries about the item. When the transaction is completed, the
salesperson says “Thank you, Ma’am/Sir, please come again!” and “Have a nice
day.”

Computing the Price of the Product

The profitability of the store is greatly affected by the pricing of the product.
There are several components of a price. These are:

1. Cost – this refers to the part of the price that covers the product. It is the amount
paid for the merchandise.
2. Mark-up – this refers to the additional expenses involved in selling the goods
and transportation, taxes, and others.
3. Profit – this refers to the amount added to the item cost.

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Below is an illustration of a sample price component.

Selling Price – ₱150.00

Cost = ₱100.00 Mark up – ₱50.00

Selling Expense Profit Tax

₱15.00 ₱30.00 ₱5.00

Computing for the Selling Price

Markup based on Cost

a. Determine the markup percentage, then multiply this with the cost of the product.

Markup percentage = 50%

Cost of Product = 100.00
Mark up x Cost = 50% x 100
= 50

b. Add the markup with cost of the product.

₱100 + ₱50 = ₱150

c. Check the percentage

Selling Prince = 150%

Cost of Product = 100%
Markup percentage = 50%

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Lesson 4: Marketing the Product

Objectives:
1. Explain how a salesperson sells the product
2. Cite the different forms of promoting a product; and
3. Discuss the different promotional strategies

Selling the Product

Success in selling depends largely on the salesperson. If the salesperson is not
adept in selling, the store manager should train him/her to become a good one. His/Her
role is important because he/she carries the goodwill and name of the store.

Forms of Promotion
1. Personal Selling – a face-to-face contact where seller and buyer have to be
together

2. Advertising – a paid form of communication in the form of TV and radio

commercials, billboards, magazine ads, newspaper paid ads, etc.

3. Sales Promotion – uses reinforcing techniques in the form of “buy one, take one”
offers, discounts, product demonstration, trade contest, freebies, and the like.

4. Product Display – this makes the people aware of the availability of the product.
This enables the buyers to smell, feel, and see the product’s good quality and
features.

5. Publicity – known as “free publicity” in the form of news releases, public

appearances of company officials, and participation in industry-wide publicity
efforts.

Promotional Strategies
A promotional strategy aims to create awareness towards a particular product
with the end view of making potential buyers become interested in the product and be
persuaded to buy it.

1. Giving out free samples of the product. A free sample soap or toothpaste, or
food products to taste are common in supermarkets and shopping malls.

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2. Giving discount or price off like a “buy one, take one” offer, or a 50% discount on
selected items. Items like toothpaste, shoes, bags, and food products and even
tools and equipment are some examples of items for discounts.
3. Exchanging an old item with a new one and paying additional cash on top of the
new one. This is common practice in cars and other vehicles, kitchenware,
tools and equipment, and others.
4. Bonus offers like “buy one and get another product free.”
5. Collecting coupons with equivalent points and exchanging them with a product
corresponding to the value of the coupons. This is popular in some gasoline
stations which give away soap, cleaning materials and gas.
6. Participating in fairs and exhibits where a product can be displayed in a booth
and the person-in-charge talks about the product.