01 Overview of Entrepreneurship

Why do we need to study and learn ENTREPRENEURSHIP?

1. It nurtures personal growth and development.

2. It taps into unrealized talents.
3. Risk is something to live with.
4. It makes us critical thinkers.
5. It benefits society.
6. It allows us to make a difference.
7. It prepares us for real life.

Entrepreneurship comes from the French word “entreprendre,” which means to undertake, pursue
opportunities, and fulfill needs and wants through innovation.

Entrepreneurship is a continuous process of developing a business and making profit a priority.

Because of this goal, it involves processes like finding opportunities, studying your target market, establishing
and operating the business itself and weighing both risks and rewards of the business through a close
monitoring of operations.

Societal and Economic Benefits of Entrepreneurship

1. Entrepreneurship produces additional jobs that equate to an increase in national income.

2. Entrepreneurship amplifies the economic activities of different sectors of society.
3. Entrepreneurship introduces new and innovative products and services.
4. Entrepreneurship improves people’s living standards.
5. Entrepreneurship disperses the economic power and creates equality.
6. Entrepreneurship controls the local wealth and balances regional development.
7. Entrepreneurship reduces social conflicts and political unrest. Sample Illustration

Sample Illustration
 HENRY SY 1924-2019
Philippines’ richest businessman
Founder, SM Supermalls

SM Supermalls is one of Southeast Asia's largest developers and operates 72 malls in the Philippines and
malls in China. With average foot traffic of 4.2 million daily in the Philippines, 300,000 in China, and ov
20,000 tenant partners, SM Supermalls provides fun experiences for families as it partners with best-loved
brands and events. SM Supermalls, which is owned by SM Prime Holdings Inc., is a publicly listed comp
and one of the largest integrated property developers in Southeast Asia.

Common and Core Competencies in Entrepreneurship

Entrepreneurship is a career that requires an overabundance of common and core competencies.
Therefore, to be considered a successful entrepreneur, one must possess common entrepreneurial
competencies throughout their entrepreneurship career. At the same time, one should also have core
competencies that are important for business sustainability and management.

Common traits that entrepreneurs should always have:

1. Proactive. Entrepreneurs are active and not passive. They forecast and address issues, problems, and
challenges before they happen.
2. Agents of change. Innovations are common in society. Entrepreneurs always strive to improve and
develop new products and services and introduce them to the market.
3. Risk-takers. Entrepreneurs calculate risks; if they think that something has a high chance of
succeeding, they push through with the venture and do not let the opportunity pass.
4. Opportunity-seekers. Entrepreneurs go out of their way to recognize opportunities and decide
intelligently if a venture should be considered or not.
5. People person. Becoming an entrepreneur takes more than just hard, analytical skills. It also requires
soft skills like the ability to relate to different types of people and establish a solid relationship with
employees, customers and partners.
6. Networkers. Good entrepreneurs immediately keep an eye on the best people to connect or partner
with.
7. Decisive. Not only are entrepreneurs able to make big and small decisions, but they are also critical in
thinking of long-term effects of every decision that they are making for the business.
8. Balanced. An entrepreneur must have a balanced thinking through the right mix of creative and
practical.
9. Innovative. The minds of entrepreneurs are rich with large ideas that can add value to their existing
business or be a game-changer in the industry or business they belong to.

Core traits that entrepreneurs should develop in managing and running the business: (Entrepreneurship-finals-
pointers-to-review.docx, n.d.)

1. Leaders. Successful entrepreneurs always have the heart of a leader. To be successful leaders, they
must be a source of inspiration for their employees. They must be humble, approachable, friendly, and
know-how to listen to people’s concerns.
2. Communicators. To engage in negotiations and proposals, an entrepreneur must be an excellent
communicator. They must be proficient in all communication forms and platforms to address the needs
of customers or employees effectively.
 3. Specialists. Entrepreneurs are experts in their chosen business. They are tactical and keen on details.
4. Problem solvers. Entrepreneurs possess critical thinking skills and look at problems as challenges or
puzzles that they need to solve.

Sample Illustration

Socorro Ramos, who was not from a well-off family, lived by selling different items to support their basic
needs. She used to be a working student to support her needs at school. She worked as a sales clerk in
Goodwill Bookstore, which her brother owned. Socorro used to read business management books.
Through her learning, she built a business empire that we now call the National Book Store.

02 Career in Entrepreneurship
Careers in Entrepreneurship

Ever wondered the types of opportunities you can get from the entrepreneurial industry? Like any other
industry, there are several advantages and risks of taking up a career in entrepreneurship that can align to
your talents or interests. Entrepreneurship graduates have a variety of career options, including commercial
banking, franchising, research and development, and consulting (Careers in Entrepreneurship,
Entrepreneurship Careers., n.d.). However, most entrepreneurs remain self-employed, preferring to be their
own bosses. Over recent years, opportunities have also been growing in IT and engineering, presenting
various growth prospects to entrepreneurship majors.

To give you an idea on these opportunities, here’s a list of the most common business Ideas in the
Philippines as stated by FilipiKnow.net’s entrepreneurs and researchers.

A. FOOD BUSINESS IDEAS

1. Rice Business (Bigasan). Filipino meals are not complete without rice. Since this product is an example
of an economically inelastic essential, buyers continue to buy and consume rice despite price
movement. Thus, this can be a source of good profit in high-traffic locations such as public markets and
“talipapa”, especially when the products have good storage areas.
2. Kakanin Business. Selling native delicacies such as suman, biko, and puto is an affordable home-
based food business idea with high-profit potential.
3. Street Food Business. Street food is cheap, which is why queue stalls are always long. Selling street
food returns excellent profits as well. Fish-ball vendors, for instance, make a net profit of PHP500 to
PHP1000 daily.
4. Water Refilling Station. There is a high and steady demand for clean, safe drinking water in residential
and commercial areas. Water stations often generate steady incomes when located strategically, even
with a handful of competitors present in the area.
5. Bakery (Panaderya). Many bakeries are present in almost all neighborhoods in the Philippines because
bread is the second staple food of Filipinos. Pandesal is the most common bread being offered by this
business.
6. Food Catering Business. As people who loves celebrations and all kinds of feasts, Filipinos are willing
to invest in a covenient party and event preparation or tasks. This is why caterers, especially in busy
cities, are among the most wanted business to takeover for office parties, debuts and many others.
 7. Food Cart. Food Cart business owners may be recognized as strategic and forward-looking
entrepreneurs especially with the amount of work they have to put into setting up their own food cart.
Nonetheless, you can make good money out of it with the right location, concept, and product.
8. Tapsilogan. Tapsilog is one of the Filipino breakfast staples. With its affordable price, this meal is easily
a crowd favorite, anywhere and anytime. A tapsilog business offers excellent growth potential similar to
the case of the famous local tapa, “Tapsi ni Vivian.”

B. CONSULTING BUSINESS IDEAS.

1. Digital Marketing/Social Media Consultant. There is an opportunity to profit in lucrative niches and
attract high-value clients, such as law firms and dental clinics, that need digital marketing and social
media marketing services to meet their business goals.

C. PERSONAL SERVICES.

1. Dance Instructor/Choreographer. Professional dance instructors are generally booked for events such
as birthdays, weddings, and private parties. Mainly, Zumba instructors are in demand in the Philippines.
2. Tutorial Business. A tutorial business is composed of experts in a particular field who transfer their
knowledge to another for a fee. This business caters to students who cannot catch up with their lessons
or those who want to be ahead in class.
3. Car Wash Business.With the growing number of vehicle owners and users in the Philippines, the
demand for car wash services also increases.
4. Laundry and dry-cleaning business. This type of business is generally located in places where
residents do not have enough time to wash and dry their clothes – central places with several
condominiums, near schools, dormitories, and apartments.
5. Delivery/Courier Services. Parcel and food deliveries are among the top services especially at the time
of the Pandemic where movements have been restricted due to protocols. Thus, the demand for
motorcycle and bicycle couriers are at its peak, commonly used for delivering food, parcels or business
goods.

D. PET BUSINESS

1. Pet Grooming Services. There will always be customers willing to shell out money to keep their pets
clean and well-groomed.
2. Pet Care Services. Pet owners often find it necessary to find pet sitting and boarding services in case
they need to travel or be away from home for a while. This is why your neighbors will find it helpful
because they are assured their pets are well cared for while they are away. Pet care businesses
generally require clients to leave food for their pets. You will only need to buy cages and have enough
space where your clients’ pets will stay.

E. RETAIL BUSINESS

1. Cellphone Load Retail Business/E-Loading Station. A total of 72.7% of the share population of the
Philippines are users of prepaid mobile phones.* This is the reason why there are so many cellphone
loading stations in the country. According to Statistica.com, some entrepreneurs link the cellphone
loading business to their existing businesses, such as the sari-sari store, food cart, and online
business.
2. Ukay-Ukay Store/Thrift Clothing Shop. Another classic Filipino attitude is our innate cheapness
especially when it comes to buying clothing pieces. Pinoys on a tight budget flock to ukay-ukay stores
to shop for second-hand clothes at bargain prices. Even if you sell discounted garments, you can still
earn a high profit, approximately twice up to four times the item’s original price.
3. Sari-sari store. One of the less labor-inducive businesses to set up with minimal capital required is the
Sari-sari store. It is convenient and can be managed even at home, where the business owner lives.

F. HOME-BASED ONLINE BUSINESS

 1. Web site development and design/blogging. The popularity of the internet brought many opportunities
to Internet-savvy budding entrepreneurs.

G. RENTAL BUSINESS ([2021] Best Small Business Ideas in the Philippines, n.d.)

1. Videoke Machine Rental. There is a large market for videoke rental in the Philippines, even in remote
barangays where singing is a favorite activity in birthday and fiesta celebrations.
2. PisoNet Business. With more than half of the Filipino population residing in far-flung and remote areas,
PisoNet businesses are on the rise when it comes to affordable internet connection. With this business
venture, you can offer sulit internet (one peso per 4–5 minutes) that students and low-income earners
can afford.
3. Costume Rental. This is a good business idea since costumes and props are often needed by
cosplayers, students, and/or employees for different events and occasions. Renting is often their go-to
option since it is relatively cheaper and more practical for one-time use.

H. EVENTS BUSINESS

1. Photo Booth Rental. If you have a talent in basic photography or have access to photo equipments, you
may want to check out the photo booth business. It is perfect for a variety of occassions in the
Philippines. After some time, you can even expand the photo booth into a full photography coverage
package for weddings, birthdays and events!

I. AGRIBUSINESS

1. Indoor Plant Business. Did you know that you can earn profit by taking care of seedlings and
succulents? With little investment needed in setting up a home garden, you can earn up to 400% profit
for your plant business.

J. HEALTH AND BEAUTY BUSINESS IDEAS

1. Spa, gym, and nail care business. One of the ways Filipinos cope with stress is by going to a spa. This
business offers a range of massage treatments that can relax the stressed areas of the body and other
treatments such as facials and body scrubs.

No successful business started huge right away. A business starts with an idea. Once the business is
established, the business owner, the entrepreneur, can choose to expand and explore franchising,
intrapreneurship (managing a startup business in an established business), and acquisition (buying another
similar business or a new business).

you are not yet ready for a big investment, franchising is always an option. This type of business
arrangement involves a business owner or franchisor and entrepreneurs or franchisees. Through distribution
centers, the franchisees are able to profit from the franchisor’s original products and/or services by
representing their brand.

below are Entrepreneur Philippines’ franchise business options in the Philippines, which a potential
entrepreneur can pursue after college or after finishing the K to 12 program.

FRANCHISE OR STARTUP BUSINESS  Fast food establishments and

restaurant
 Bakeries, bakeshops, and bread  Food and snacks carts
products  Gas stations/petroleum products
 Bars, cafes, and coffee shops  General merchandise and retail
 Beverage and confectionery  Health and wellness (i.e., salon,
 Car care massage, spa, gym)
 Clothing and accessories  Schools
  Convenience stores  Services (personal and business)
 Drug stores and pharmacies  Water stations

Other Additional Business Opportunities

 Dealerships
 Direct selling
 Distributorship

Since its founding year in 2007, MC Master Siomai Hut, Inc. has become the country’s leading
manufacturer and distributor of siomai products. Contributing to its phenomenal success is its
innovative state-of-the-art equipment, which allows for an efficient production process of the
well-loved dimsum-gulaman combination. At present, this business has 800+ outlets all over
the Philippines, proving that Master Siomai has amplified its reach to different types of
markets. (Siogo, n.d.)

3 Things to consider when opening your own business:

1. Motivation: Do you want to start a business because you need to earn money? Or do you want to
open it as a small passion project? Whatever your drive is, you must remember that it takes time to
earn, especially when you are still setting up or assessing the success of your startup. Many starting
business owners often do not take salary from the profit as a way to compensate for the investments
made upon their shop’s opening months.
2. Strategy: How do you plan to make this product standout against your competitors? Do you solely
want to make it affordable? Trendy? Customizable? Despite the common notion that the cheaper the
product is, the more succesful the business is going to be, many economists recognize that this is a
risky move for entrepreneurs especially when larger capitalists are able to produce enormous number
of products at an even lower cost.
3. Realistic Vision: Is the business’ success a life and death situation? Are you investing everything that
you have for your shop? If yes, then perhaps you should take a step back and re-assess your vision
into a more realistic plan. Many failed businesses started off good, but failed to sustain their project in
the long run due to lack of operational funds. Others overestimate their projected sales and end up in
bankrupcy. This is why you must take time in planning and implementing your ideas. You can also ask
help for business experts or friends that have started their own shops as well.

DEVELOPING A BUSINESS PLAN (Holden, 2008)

Having said all these, you now need a comprehensive business plan. This will become your blueprint
as you start to gradually launch your startup business and can help you define your vision for the shop in the
long run.

A business plan can help an entrepreneur allocate resources appropriately, handle unexpected
problems, and make sound business decisions.

Why do you need a business plan?

  To prove and establish the roots of the business before making a significant financial or personal
commitment.
 To assist management in goal-setting and long-range planning.
 To attract investors and get financing from possible sponsors.
 To explain the business to other companies with which it would be helpful to create an alliance or
contract.
 To attract employees.

A standard business plan is generally approximately 40 pages with consistently solid branding. This
includes a clean format for the paragraphs and bullet points, professional but easily understandable language
and enthusiastic tone all throughout. Additionally, business plans often include supporting research papers or
literature that can help your future investors be more convinced in alloting their time and money to your shop.

Basic elements of a standard business plan include:

 Title Page
 Table of Contents
 Executive Summary – It is the cornerstone of a good plan. This is the section that people read to decide
whether to read the rest. It should concisely summarize the technical, marketing, financial, and
managerial details. More importantly, it needs to convince the reader that the new venture is a worthy
investment.
 Company Description – It highlights the entrepreneur’s dream, strategy, and goals.
 Product/Service – It also includes the label and the packaging and the product's price.
 Market and Competition
 Marketing and Selling Strategy
 Operating Plan
 Management/Organization
 Financing
 Supporting Documents

Vision and Mission

It is essential to have a long-term vision of what you want your business to become. Some
businesses use their vision and mission statement to highlight their business strategies and philosophies or
show their importance in developing good relationships with customers and employees.

Vision Statement (Strategic planning, n.d.)

A vision statement describes in graphic terms where the goal-setters want to position themselves in
the future. It may describe how they see events unfolding over 10 or 20 years if everything goes exactly as
hoped.

Mission Statement
A mission statement resembles a vision statement but has an immediate focus. It details what one
will do today to attain one’s goal, purpose, or mission.

Objectives (Cai, n.d.)

Objectives list the short- to medium-term (1 to 5 years) goals of the business. What do you want the
business to accomplish? Your objectives should be simple, measurable, and realistic. A business plan loses
credibility if the objectives are not believable to the reader. Use the S.M.A.R.T. approach

S – Specific – Your goal should be clear and specific; otherwise, you would not be able to focus your efforts or
feel truly motivated to achieve it. When drafting your goal, try to answer the five “W” questions:
What do I want to accomplish?
Why is this goal important?
Who is involved?
Where is it located?
Which resources or limits are involved?
M – Measurable – You should have measurable goals to track your progress and stay motivated. Assessing
progress helps you stay focused, meet your deadlines, and feel the excitement of getting closer to achieving
your goal. A measurable goal should address the following questions:
How much?
How many?
How will I know when it is accomplished?

A – Achievable/Attainable – Your goal needs to be realistic and attainable to be successful. In other words, it
should stretch your abilities but remain possible. When you set an achievable goal, you may identify previously
overlooked opportunities or resources that can bring you closer to it. An achievable goal will usually answer the
following questions:
How can I accomplish this goal?
How realistic is the goal, based on other constraints, such as financial factors?

R – Relevant – This step is about ensuring that your goal matters to you and aligns with other relevant goals.
We all need support and assistance in achieving our goals, but it is essential to retain control over them. Thus,
make sure that your plans drive everyone forward and are still responsible for achieving your own goal. A
relevant goal can answer “yes” to the following questions:
Does this seem worthwhile?
Is this the right time?
Does this match our other efforts/needs?
Am I the right person to reach this goal?
Is it applicable in the current socio-economic environment?

T – Time-bound – Every goal needs a target date to have a deadline to focus on and something to work
toward. This part of the SMART goal criteria helps prevent everyday tasks from prioritizing your longer-term
goals. A time-bound goal will generally answer the following questions:
When?
What can I do six months from now?
What can I do six weeks from now?
What can I do today?
03 The Potential Market
What is a potential market?

Potential market refers to the percentage of a specific population that has shown interest or
consumption behavior towards a product or service. It is also known as the Total addressable market, or TAM
(MBA Skool Team, 2018). On the other hand, market potential refers to the total demand of a product in a
particular business space (Bhasin, H., 2018).

Identifying your potential market group

In identifying the potential market for your product, you must study and closely analyze the
demographics of your current target market then compare it with the demographics of groups you have not
targeted yet. Once you find their commonality, you may create new goals in expanding your product's reach
and re-strategize on how to sell it to the potential market by making them your new target group.

To help you figure these things out, here are some assessment guide questions for your product or
service. By answering these questions, you may start with a new product or a rebranded version of your
current products.

 What kind of products do my consumers need right now?

 Based on their present consumption pattern, what products can they possibly need in the long run?
  Who else could be possibly interested in the products I am marketing now?
 What are the similarities of my current customers to the non-customer groups?

Illustration

For instance, during the pandemic, there is a rise in demand for fashionable pieces that are still COVID-19
appropriate. Businesses like accessories and clothing shops are just some of the industries affected by this
shift in behavior. This is why colored PPEs, beaded mask lanyards, mask holders, and linen masks are the
new trend. With this, these shops may consider the following markets:

 Gen Z (College students who want to play dress up and accessorize at home)
 Frontliners currently working in Hospitals
 Other essential workers that often visit office/sites

Reaching Your Potential Market

According to Lake (2019), the next step to identifying your potential market is creating new marketing
strategies to communicate and connect better with the new target group. Here are some of the key
observations you must consider for your preparations:

 The demographic information that people in a group have in common.

 The best forms of media to reach them.
 Shop and purchasing preferences
 The concerns, struggles, or problems that you can help them overcome.
 What values matter to them, both in everyday life and when shopping.
 The language that resonates with them.

After understanding what potential market is all about, let us know look at it with respect to the total
population. Similarly, knowing how to penetrate a new group properly is as important as doing a research
about their purchasing behavior. There are several terms that will help you better understand this matter:

Available Market: Refers to possible buyers in terms of sufficient resources, access to the product and
willingness to buy.
Target Market: This group, on the other hand, refers to peoeple that are yet to be reached by your products
and services. As the focus group, they are the people you will be marketing your services to.

Penetrated Market: Refers to existing clients and already loyal customers of your product/s.

Aside from these terms, you must also consider the size of your potential market. This is crucial in
the decision-making process you will be making in your investments and costs. If there is a limited number of
the potential market for your products, it means that there is only a small portion of the total population that
potentially shows interest in your products and goods. Thus, it would be safer to invest less or not invest at all
in the expansion of the product or the product's category since people will not buy it.

On the other hand, a larger potential market means that there is a great number from the total
population that could potentially buy your products. Thus, further investment is encouraged in the improvement
or expansion of the product and the product's category. This can be done through product modification,
development, or marketing.

Truly, the size of the potential market matters. It gives you a hint of where and when to invest your
finances and can also help you formulate better strategies against your competitors (MBA Skool Team, 2018).

The Market Need

1. Need
The market need refers to actions on a product that will result to customer satisfaction. It can range
from basic survival needs up to socio-cultural necessities.

2. Market
The market, in entrepreneurial terms, is when two parties facilitate an exchange of products or services
that can benefit both buyers and sellers. The market can be a physical or virtual, depending on the
market's environment (Kenton, 2023).

There are 3 main compositions of your market (Stull, C., Myers, P.& Scott D.M. (2008):

 Existing customers: Users and consumers of your products at present

  Prospects: Possible customers, people who are considering to buy your goods and services

 Target market users: People who are not yet involved or have no idea yet about your product.

Define the Market Need for Your New Business

The market at present usually demands that your business aligns with their needs. To do this, you
must improve the content of your marketing efforts. This will result to a relieved pressure to your product
against growing competitors and align strategies for market patterns and interests present in the buying
process of your products and services.

You need to consider whether the business offers a new solution to an old problem or complements
an emerging trend.

 Have a clear picture of your target market.

 Determine the benefits that your product or service offers.
 Examine industry data that can confirm whether there is a sustained, growing demand for your product
or service.
 Identify the percentage of market share that it is realistic for you to capture. The more competition you
have, the lower the margins will be.
 Consider how realistic your pricing is. How can you present your product or service to potential
customers so that it appears to be a good value, while still affording you a healthy profit?

04 Product: Its Nature and Sustainability

Concepts about Product and Service (Entrepreneurship, n.d.)

From the previous module, you have learned all about finding a potential market, which includes re-
assessing your products. But what do we consider a product anyway? A product refers to anything that can be
offered in the market. It can either be advertised to draw attention to a specific category or collection or to
simply advocate for what your business believes in. Thus, a product can either be a physical/material good or
an intangible services like idea.

In a market, services are products that involves procedure or activities that benefits the buyer even
without a tangible purchase from you. Some examples of services include banking, telecomm assistance,
event set-up and so on (Claessens, M., 2015). Thus, services are examples of intangible products from an
output of another person or a specialized team.

Identifying and Meeting Customer Needs (Entrepreneurship, n.d.)

As an entrepreneur, you must have a keen understanding of your customer needs. Both visible and
invisible needs are relevant in coming up with the best solutions through the products or services you will be
offering them. Providing superior service gives you an advantage in the market, as customers tend to have
specific requirements before reaching total satisfaction. This is why entrepreneurs must be innovative and
creative- to continue creating solutions to consumer problems, now and in the future.
Why is it important to assess customer needs?

1. It ensures customer satisfaction and loyalty

2. It addresses customer’s unique and complicated needs
3. It helps your customers figure out what they want or be more specific in what they really need.
4. It avoids legal complaints and lessen brand risks.

Key Points (Entrepreneurship, n.d.)

1. To ensure customer satisfaction, entrepreneurs must correctly identify customers’ needs.

2. To identify needs, entrepreneurs must both listen and ask the right questions.
3. After identifying needs, always check for additional or related needs.
4. As an entrepreneur, use your knowledge and experience to identify and present the right products,
services, and solutions to meet your customers’ needs.

What is the Entrepreneurial Process?

The entrepreneurial process is necessary to any kind of business present in any type of industry. It
typically includes 4 main processes:

1. Opportunity spotting and assessment - Entrepreneurs are able to recognize opportunities and sprouting
ideas in their environment by simply studying the behavior of their consumers.
2. Developing a business plan - A business plan is a comprehensive paper that details the business's
marketing, operational, human resource, financial, strategic direction, and tactics.
3. Determining the Capital Need- it is essential to the entrepreneurial process to estimate the resources
required to launch the business and contrast them with the entrepreneurs' current resources.
4. Running the Business- The entrepreneur should utilize the resources set aside for the new venture .
The business plan from step 2 should already have been observed and implemented from operations,
to marketing, to monitoring and checking.

06 The Screening of Potential Market (Part 1)

Scanning the Market

Scanning the market is the starting point of any venture that involves understanding and knowing the
intricacies of the macro-environment, micro-environment, and internal environment. With this, an entrepreneur
can recognize various opportunities and, at the same time, understand thoroughly the competition where the
future business will cooperate.

There are several processes that are necessary to adapt products and services towards opportunity,
such as seeking, screening and seizing. Generally, opportunities must first be recognized from the product or
service. Then, this opportunity can later be transformed into a potentially new product in the future. As a
reward, the entrepreneur earns profits when the customers are satisfied.

S1- Seeking the opportunity

Seeking is the first step and the most challenging in the entrepreneurial process. It involves the
development of new ideas from various sources as follows:

1. Macro-environmental Sources
  STEEPLED – a mnemonic for Sociocultural, Technological, Economic, Environmental, Political, Legal,
Ethical, and Demographic Factors. It represents the general environment where the entrepreneur can
identify business opportunities and where the future business is about to operate.
 Industry – This refers to the current events, trends and market behavior on which future businesses
depend. For instance, if an entrepreneur wants to invest soon in the technology industry, they must be
acquainted with the technology industry now.
 New discovery/New Knowledge- Fresh ideas and trends that can possibly be the core of a new
business pitch.
 Futuristic Opportunities– These are projected new opportunities that can affect the new business while
running.

2. Micromarket Sources

 Consumer preferences– These are the current needs and wants of potential customers that should be
discovered right away by a building entrepreneur. This way, they will be able to take a chance on the
opportunity. Need – is recognized when a customer believes that there is a difference between their
current situation versus their desired condition. Want – is recognized when a customer believes a
specific product or service can perfectly suit the need.
 Competitors – Recognizing and understanding potential competitors will aid the entrepreneur in
developing a product or service that is unique and will surely stand out from the competition. The 4Ps of
marketing (product, place, price, and promotion) will be competitively positioned if the entrepreneur is
familiar with their competitors.
 Unexpected Opportunities from customers – It may happen in unlikely situations, unlikely places, and
with unlikely people. Entrepreneurs usually are on top of the situation and change the market’s
perception of a product or service or build a new market.
 Talents, hobbies, skills, and expertise – Business opportunities come from the outside and within the
entrepreneur. The entrepreneur’s talents, hobbies, skills, and expertise can be used as an opportunity.
For example, if the entrepreneur is a painter, why not sell their paintings? If they are a musician, why
not make music?
 Irritants in the marketplace, such as deterrents, problems, complaints, and delays – Entrepreneurs see
opportunities where there is a recurring problem or sometimes when there is no more hope in solving
the problem.
 Location – Often, entrepreneurs just have to look at their ecosystem, and they will spot a business
opportunity right away. For example, if the entrepreneur’s location has many schools, then a restaurant,
eatery, or probably a computer shop might be a good business to establish.

S2- Screening the opportunity

The next process is to cautiously select the best opportunity among its long list of offers depending
on the entrepreneur's intentions about their business. The business's main objective will be accomplished in
the entrepreneur's life, as well as the external needs of the target market, in consideration of risk appetite. Risk
appetite is the entrepreneur's tolerance of business risks.

S3-Seizing the opportunity

The last step in opportunity spotting is the “pushing through” stage with the chosen opportunity.
Entrepreneurs should make the best out of this opportunity, and they should exert effort and complete
dedication for the success of the new venture. The entrepreneur’s idea can be any type of innovation listed
here.
Innovation is a crucial and inevitable driver of economic growth. Therefore, products and services must also
adapt to these changes.

Ways to generate ideas

As the market grows and changes, opportunities become more and more overwhelming to recognize.
Thus, here are methods you can employ to generate new ideas.
 1. Focused Group Discussion (FGD) – Free-flowing but in-depth discussion handled by a moderator and
closed to a group of people that willingly provides impactful ideas regarding a product or service
regarding market needs.
2. Brainstorming – Generalized discussion of raw ideas and suggestions; The more ideas, the better.
3. Brainwriting or Internet Brainstorming – A virtual way of brainstorming, although results may be harder
to gain due to slower replies and passive interaction via chat.
4. Problem Inventory Analysis – Participants are given a product or service's problem, and they discuss
which of these problems they would like to address and can be used in improving or creating a product
or service for their needs.

How to Evaluate Market Viability for a Product or Service

Choosing the right product and making use of its opportunities are the cornerstones of a highly
profitable business. To do this, you must begin by assessing the market viability of the product itself. There are
several steps in assessing whether a product is viable and profitable before you proceed with the actual
processing of your product ideas.

1. Check out the most prominent/well-accepted businesses in the geographical area you want to target.
This will help you determine your possible competitors, the marketing efforts needed, and unique
selling points that you can use to your advantage compared to the rest of the market selling the same
product.
2. List down customer demographics for your target market based on your competitors' experiences,
sales or industry reviews. You can also seek assistance from a market researcher, if your budget
allows, to help you gather local and international data that might come in handy for your business
venture.
3. Narrow your target market through small group feedback. You can do this by sending a prototype to
around 15-20 customers with similar demographics to your target market. Ask for feedback from this
test group and adjust your products and/or services accordingly until you have reached the prototype
version most accepted by the sample customer group.
4. Make a list of factors aside from customer opinion that may affect your business. This includes natural
occurrences like disasters and pandemic outbreaks or socio-economic changes like technological
development. Then, think of alternative ways to maintain or boost sales even with these occurrences.
5. Estimate the initial and long-term costs. As an entrepreneur, knowing your financial liabilities is crucial
in all the business processes like product development, release and promotion.
6. Combine all the information you have gathered from Steps 1 to 5 and assess if your product idea is
worth pushing through or not.

07 The Screening of Potential Market (Part 2)

Selecting the right product for your business

As a beginner, entrepreneurs would often be overwhelmed and stressed with the idea of what their
product should be. Not only should it be profitable, but it should also be aligned with the needs of your target
consumers. Similarly, you must also act proactively towards your competitors. With all these factors and
considerations, how do you select the best product to sell? Check out the guide questions that can help you
head start your product launch.

 What considerations do you want to prioritize?

o Make a list of your selection criteria and what you think is essential to identifying what business
to engage in. This may include financial profitability, fitness to current strategies and production
feasibilities.
 Can you meet the needs of the customer and solve a specific problem?
 o In order to assist your customers properly, you must analyze what they really need and make an
opportunity from it. It must cover both their wants and their needs. Similarly, you must also
consider its benefits to your customers, like additional efficiency or cheaper alternatives to
stereotypical products.
 How capable are you of producing the product or service you have in mind?
o The product that you'll choose must be timely, practical and feasible with the limited number of
resources. Many businesses fail to look into long-term operations and move forward with ideas
that are not sustainable or efficient in the future. Thus, this results in slippage in release dates or
making the mistake of launching half-finished websites. You must also evaluate how you can
scale up the production if there is a strong demand for the product.
 Is your potential market small or large? Have you projected the potential market's true
interest?
o You need at least to get an idea of the size of your market. Know who is likely to use or benefit
from your products. Many small and home business entrepreneurs view market research as
unnecessary and expensive, but understanding who and how big your market can pay off in the
long run.
 Would you need to comply with government rules and regulations?
o New laws or government rules and regulations can impact your product. Some products can be
sold immediately without the need for government approval. Others, however, require permits,
licenses, and approval from the government.

 If a similar product exists, what can you do to make it stand out among the others?
o Identify your Unique Selling Proposition. It refers to the one thing that makes your product
different from any other. It may be that the product has a lower price or more convenient
packaging, or it may taste or smell better or last longer. It's the one reason they think
consumers will buy the product even though it may seem no different from many others just like
it.
 What barriers must be overcome for a potential new product entry?
o Barriers to entry into the market include high research and development expenditure, high start-
up or sunk costs, and international trade restrictions such as tariffs and quotas. Other barriers
include predatory pricing of competitors that will force you to operate at a loss or even lead to
your total bankruptcy.
 What are the potential sales, growth, profits, and time for payback?
o Get a clear idea of your cost structure, how much sales you need to have to break even and
post a profit, and what your return on investment will be.

Customer-Driven Marketing Strategy

There are four processes of marketing strategy:

1. MARKET SEGMENTATION – Dividing a market into distinct groups of buyers with different needs,
characteristics, or behaviors and who might require separate products or marketing programs. (Chapter 2.,

n.d.)

2. MARKET TARGETING - The process of evaluating each market segment’s attractiveness and selecting one
or more segments to enter. (Chapter 2., n.d.)

3. POSITIONING – Identify where you want to be placed relative to competing products in the minds of target
consumers. (Chapter 2., n.d.)
4. DIFFERENTIATION - Differentiating the market offering to create superior customer value. It is the most
critical means to deliver actual customer value and achieve a completely superior advantage. The challenge is
not to customize products and services in itself – but to do it profitably. Ex. Product customization, bundling,
and attractive pricing. (Chapter 2., n.d.)

08 Marketing Mix (7Ps) Part 1

SEVEN Ps FORMULA

1. POSITIONING: The first step is market positioning, as it provides a clear view of your product's target
impact on your consumers. Some ways to do this include market scanning, analyzing both current and future
market positions, and distinguishing the product from its competitors.

2. PRODUCT: As what you have learned in Module 1, products are anything that can be offered in the market.
It is the item being produced or the service being offered to consumers.

There are 4 types of products available in the market:

 Pioneers/Breakthrough products: Original, technologically advanced and innovative in what it offers.

Example: COVID-19 Vaccines

 Differentiated products: Products that are established to be unique compared to other products.
Example: Mineral Water with different brands
 Copycat Products: Products that are dupes or replicated feels from another brand. Example: Goya
mimicking Nestle’s KitKat in their Take-it product.
 Niche Products: Products that specialize in their field or have a specifically targeted market. Example:
Dog Food, Flower shops

3. PACKAGING: Packaging refers to how the product is presented upon consumption. It affects the visual
appeal and overall quality of the product or service. It also:

 Extends shelf life and protects the product upon transport

 Identifies and describes the product according to law and government orders.
 Gives a unique point of interest compared to the competitors
 Elevates customer experience and satisfaction

4. PLACE: Place refers to the location where the production and transportation from seller to buyer takes
place. It may be physical or online. There are some location drivers that can help entrepreneurs select their
best and most strategic place:
  Proximity: Position your products close to the target market. If you are selling seafood products, sell
them near ports or fishing docks where buyers visit. Large schools, office buildings and transport
terminals are the most common places for such a strategy.
 Customer Traffic Flow: Study the daily routes or most visited places of your market and position your
business where a high number of people are most likely to see your products. This is best done for
urban areas and cities.
 Industry Clustering: Locate your store near industries and competitors that you think your product has.
Despite the sharper competition, people would often check out both stores, which increases your
chances of getting sales if they tend to like yours better.
 Convergence of Multiple Industries: Central business districts, malls and busy public markets are often
used as points of one-stop convenience. Finding you there can help you increase your business’s
reach.
 Business Climate: Study the socio-political and economic standing of the place. Enterprises often
become more successful when they have a conducive working environment, which can help you have a
less stressful entrepreneurial experience.

5. PRICE: Pricing strategies include

 Cost-plus pricing- calculating the cost and adding a markup

 Competition-based pricing- setting a base price for the products
 Value-based pricing- setting the price on how much your customer perceives your product may cost
 Price skimming-setting a high initial price and lowering it as the market evolves
 Penetration pricing-setting a low price to penetrate the market and raising it after some time

6. PEOPLE: Your market strategy team must be strong, competent and creative, as they can help boost
customer interest and awareness and lead to the selling phase of your products.

7. PROMOTION: Promotion of the product includes communication strategies, branding and constant ways to
improve the product’s appeal to consumers. Research is critical to identify the target consumers and how to
catch their attention.

 Advertising: These can be done through online and traditional media

 Public Relations: Events can be useful in building brand value and shaping perception by generating
positive experiences and stories around a product or service. Providing a venue to give feedback can
also contribute to the
 Personal Selling: This may be done through cold calls, trade shows, product seminars, networking and
product trials.
 Sales promotions
 Many companies have reward programs to ensure loyalty. Limited sales, such as the 12/12 events of
online selling platforms, emphasize the urgency of the purchase.

09 Marketing Mix (7Ps) Part 2

PEOPLE (People as Your Ultimate Marketing Strategy, n.d.)

The ultimate marketing approach is people. People are in charge of selling and promoting the
product. People look for the perfect market for a long time. The products are distributed, promoted, priced, and
sold in the most appealing market venues. People strive to gratify clients long after they have purchased a
product by providing ongoing service and product improvements. The contact points between the enterprise
and the market are people.

The individuals who work in a marketing organization are critical to the company's success. They
undertake market and consumer research on one end of the spectrum, which leads to the development of
product(s) and marketing strategy formulation on the other. They are developing marketing plans and
programs that will be converted to particular aspects of the marketing mix in the middle of the spectrum. On the
other hand, they are contacting, reaching, and persuading clients to purchase the product/s.

The legwork that goes into distributing and selling things must be matched by the market strategy.
Both will fail if one is not present. It would be incredibly difficult to distribute and sell the products if all of the
marketing research and planning efforts did not result in the correct products for the intended clients. A
superhuman sales force with charismatic abilities is required for the incorrect items. Only solid distribution
channels and an effective sales staff are required for the correct products.

People's marketing activities are divided into four categories: (1) creating consumer awareness, (2)
arousing customer interest, (3) educating customers while they consider their purchasing options, and (4)
closing the transaction and delivering the product. The company can utilize a variety of people or
organizational modalities to pique clients' interest.

Outsourcing employees from advertising agencies, event management companies, call centers, and
telemarketers are the first option. The second option is to hire market researchers, brand managers, salesmen,
public relations officers, and website writers to develop in-house competencies. Collaboration or cooperation
with principals, distributors, dealers, and industry groups is the third option.

In order to educate customers on their evaluation process, the company must first understand the
customer's decision-making process.

1. What is the purchase process like, and who is involved?

2. At what stage of the purchasing process are your customers? Is it true that they are still canvassing and
"shopping"? Do they have a few people in mind right now? Are they taking the company's product
seriously?
3. What are the clients' next steps, and how can the company help them get there? The customer
evaluation process may follow something similar to Table 9.1.

Finally, the transaction must be completed, and the merchandise delivered to the consumer. The
goods must be available, adequate, acceptable, and affordable in order to close the sale." (Ultimate Marketing
Strategy: People, n.d.)

“Availability” refers to whether or not the company has the goods or services on hand. Customers can
readily obtain the product at their typical purchasing location if it is accessible. Adequate signifies that the
product fulfills the customer's quality and delivery requirements. Acceptable means that the buyer is persuaded
by the product's selling aspects, sees few or no unpleasant features in the product, and accepts the seller's
conditionality, warranties, and amenities. “Affordable” indicates “the price and terms of payment are
reasonable.

Four variables would determine the organizational strategy for educating clients, assisting them in
their decision-making process, and closing the transaction (Castro, n.d.).

1. Is it necessary to have high touch or will low contact suffice?

2. Is it necessary to have a high level of accessibility? If this is the case, the corporation will need to
increase its reach through distributors, dealers, branches, and franchisees.
3. Is the transaction cost hefty or light? High-transaction-cost items necessitate the hiring of new,
knowledgeable salespeople.
4. Does the consumer require a lot of pre-sale and post-sale service?

PROMOTION
An enterprise's intentional communication plan to elicit patronage, loyalty, and support not just from
its consumers but also from its other major stakeholders is known as promotion (Principles and Strategies for
Promotion., n.d.).

Advertising, public relations campaigns, promotional tour product offerings, point-of-sale displays,
websites, leaflets, emails, letters, telemarketing, and other direct communication initiatives are all included in
the promotion. The company communicates indirectly through the quality of its products and the attractiveness
of its packaging. It also communicates through indirect means.
Effective promotion is dependent on three important factors: the communicator's credibility, the message and
channel of the message, and the audience's receptivity to everything being communicated to them.

Before developing a promotion and communication strategy, the communicator must thoroughly
profile the target audience in business. This requires some research into who the target audience is, what they

are looking for, and what it will take to persuade them to buy.
It is critical for a business promoter to elicit a strong emotional response from the target audience. All
messages must have an impact on the target audience, and that impact must be sensory, emotional, and
intellectual. As a result, all messages must begin where the customers are, not where the company is, except
when it has earned such high levels of trust and devotion from its audience that anything it says is accepted as
gospel truth.

The firm should begin creating a promotion campaign with the target audience as its core.

The firm may have a relatively small market to cover at the start of its operations. The promotion
effort should be more focused on the narrower the market penetration is. For highly localized businesses,
neighborhood fliers, word-of-mouth promotion, and house-to-house campaigns may be sufficient. Trade
journals and active involvement in specific trade events would be more effective in directly contacting
specialized customers such as vintage automobile aficionados or rare orchid farmers. It is best to find contact
persons, compose letters specific to the demands of the targeted corporate market, and make impressive face-
to-face presentations when marketing corporate services such as advertising, business-process outsourcing,
and management seminars.

The marketer might go from a rifle to a shotgun method as the target demographic grows larger.
Electronic mail, websites, letter blasts, radio broadcasts, and print ads in certain periodicals could all be used
to accomplish this. Television advertisements, ubiquitous billboards, high circulation broadsheets, magazines,
and tabloids would already be cost-effective and have a significant impact on mass markets. The goal is to
match the market's size to the medium chosen and the company's resources. The company should keep track
of the results of its marketing activities.

Sample Illustration

The Ayala Group has been able to build tremendous credibility in over a century of service to the Filipino
people. Their bank, the Bank of the Philippine Islands, is a conservative, safe, but growing financial institution
with a tremendous following from corporations, high net-worth individuals, and ordinary depositors. Its Ayala
Land offerings sell upscale lots and condominiums like hotcakes. Buyers know that Ayala can deliver quality
properties and that these properties would be able to gain market value easily. Ayala's reputation in building
Makati City has spilled over to its numerous commercial centers and high-class subdivisions in many key
locations. All Ayala has to do in its promotion campaign is to announce that it is 'Ayala' building the property,
and the people will buy.

PRICE

Pricing is determined by the company's commercial objectives. While price is an important

consideration for customers when purchasing a product, it is not the only one, especially when purchasing
high-end items. When a customer buys a premium item, non-price considerations outweigh the price because
the buyer is more concerned with the 'premium-ness' of the product in terms of quality, status or image,
reduced waiting time or fast delivery, and other such characteristics.
Finding the proper pricing for a product is much more complicated than just adding a markup to the
cost of the product or service, as some businesses do.

The prices of the company's products or services should be determined by its business objectives,
such as the following:

1. Maximization of profits
2. Maximizing revenue
3. Maximization of market share
4. Achieving the necessary level of prestige or excellent leadership
5. Penetration, survival, or liquidation
6. Scarcity pricing or market skimming
7. Cost recovery
8. Subsidy pricing
9. Marginal pricing
 The first three pricing strategies are concerned with the linked dynamics of various price ranges
applied across various product volumes or quantities while taking into account product costs incurred as these
products are purchased or sold. Take a look at Table 9.2 for a better understanding.

Table 9.2 shows an example of a profit, revenue, and market share maximization pricing strategies.
As demonstrated in the first column, prices ranging from P10 to P18 per unit have been market-tested. As a
result of these prices, quantities (see second column) have ranged from 50 units at P18 per unit to 100 units at
P10 per unit.
As shown in the third column, total revenues are calculated by multiplying price by quantity. In the
fourth column, total costs are calculated assuming fixed expenses of P300 regardless of volume and variable
costs of P5 per unit. The total profits are calculated in the fifth column.

Profits are maximized at P375 at a price of P14 per unit, as opposed to smaller profits at other price
levels. In column six, the unit cost is calculated to show how it decreases as volume increases.

Multiplying the different prices by their projected demand volumes yields the revenue-maximizing
price. As shown in the table, the revenue-maximizing price is P12, generating total revenues of P1,080. This
revenue-maximizing price model is more straightforward to construct than the profit-maximizing price model.
When the overall costs are primarily fixed, it should be used (little change over a wide volume range).

Market share maximization is accomplished by setting a price that achieves the maximum feasible
volume of sales without surrendering too much profit. This market share-maximizing price, with a volume of
100 units, is P10 in the same table. Profits are still made at this cheap pricing. Perhaps at the lower price of P8
per unit, a larger volume can be attained. A probable demand for 110 units at this price level would result in
sales of P880 and total expenditures of P850, yielding a profit of only P30. At this point, pursuing market share
may be putting too much profit on the line. One market research approach in estimating the demand, given the
different price levels, is to conduct a price tolerance survey of randomly selected respondents.

Assuming that 100 respondents are chosen (at a 90% confidence level), the respondents should be
asked whether they would buy a product at, say, P10 a piece. After securing their answers, the respondents
should be queried if they would still buy at P12 a piece. The surveyor should, subsequently, move up to the
higher price levels. There would be less and less respondents answering "yes" to the question. The percentage
of respondents answering "yes" at the different price levels could be multiplied by the estimated population of
the target market to obtain the size of the demand.

As mentioned earlier, prices could be set at a premium to project a quality image and to distance the
product from its inferior competitors. The idea is to attract customers who are willing to pay extra for the quality
difference.

At the other end, prices can be set very low to survive in a competitive market or to get rid of
mounting inventories and convert them into cash. The other objective of a low-pricing strategy is to penetrate
the market fully and overtake the competition.
 Products that are extremely uncommon or scarce will appeal to wealthy clients who want to be a part
of an exclusive group of owners.

Cost recovery pricing is a method of charging a price that allows an organization to recover all of its
expenditures. The goal is to reinvest the profits from sales to create more items and reach out to more people.
To increase total profitability, marginal pricing sets a price that is higher than a product's variable
costs but lower than the whole costs. This is done to take advantage of extra production capacity that would
otherwise go unused.

There may be other price objectives that the company has. To promote a new product, it may provide
introductory or promotional rates. It may charge various prices in different geographic areas to cover increased
logistics costs in remote locations or to meet impoverished geographic areas' reduced purchasing power.
Customers that are loyal and frequent may be offered a discount in order to keep them coming back.