SENIOR HIGH SCHOOL ENTREPRENEURSHIP
Supplementary Module No. 3 FIRST SEMESTER
A.Y. 2019-2020
Name
Surname First Name M.I.
Grade: TWELVE Section: _____________________________________________________
Teacher: _____ _____ Date: __________________________________
TOPIC: MARKETING PLAN
Business Plan
It is a comprehensive paper that details the situation analysis, objectives, strategies and tactics, and
how to monitor and control the enterprise.
Value Proposition and Unique Selling Proposition
The first component of the business plan is marketing. Entrepreneurs must give importance to the
voice of a business venture- the market. Marketing is all about knowing the customers. Marketing process
starts with identifying the customer’s need.
Marketing research is a comprehensive process of understanding the customer’s intricacies and the
industry they revolve in. It aims to scrutinize the target market, their specific requirements, and the market
size where the business operates.
Value proposition (VP) states why a customer should buy a certain product or service. Value
proposition should have to be direct in addressing the problems of the customers, should have quantifiable
benefits, and should have differentiated itself from the competitors.
The following are some tips for the entrepreneur on how to create an effective value proposition to the
target customers:
1. Prepare a situation analysis that details the problem(s) of the customers.
2. Make your value proposition straight to the point, simple, and specific; in short, there should be no
complications. Your value proposition has to target your major objective.
3. Highlight the value of your product or service so that customers will easily get what benefits you can
provide.
4. Adapt to the language of your market.
5. Add credibility-enhancing elements.
6. Differentiate your value proposition with your competitors.
Unique selling proposition (USP) refers to how you will sell the product or service to your customers. It
addresses the customer’s wants and desires. It figures out how to advertise or promote certain unique
features of the product or service that the entrepreneur’s trying to sell.
The following are some of the tips for the entrepreneur on how to create an effective unique selling
proposition to the target customers:
1. Identify and rank the uniqueness of the product or service attribute.
2. Be very specific.
3. Keep it short and simple.
Market size
It is simply the size the arena where the entrepreneur’s business will play. It is the approximation of
the number of buyers and sellers in a particular market.
Market space or market universe is the approximate number of customers that will buy the product or
avail the service.
The entrepreneur is required to determine the market size to gauge the vastness or tininess of the
market where he or she intends to join. The only way to do this is to conduct a strategic marketing
research using dependable methods:
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First step: Estimate the potential market.
Second step: Eliminate the customers who are probably unlikely to buy the product or avail the
service.
Last step: Estimate the market share, which is the plotting and calculation of the competitors’
market share to determine the remaining portion for the new venture.
Market share computation illustration: Mr. Alvin Antonio, a budding entrepreneur, wants to establish a
rice retailing business in his area in Barangay San Isidro. He wants to know if this business is worth his capital
and effort. He dug deep and found out there are approximately 500 families in Barangay San Isidro with an
average of five members per family. He did a survey and found out that only 475 families eat rice; they
consume an average of 1 kilo of rice per day. There are four other rice retailers in the area that have been
there for 10 years already and they have equal market share of 20% each. The other 20% of the market is
buying in bulk (per sack) from groceries or convenience stores. The average net profit per kilo of rice is ₱10.
How big is the market size and what could be the potential market share of Alvin’s rice retail business?
First step: Estimate the potential market.
500 families in Barangay San Isidro
Second step: Eliminate the customers who are probably unlikely to buy the product or avail the
service.
Out of 500 families, only 475 families eat rice
25 families do not eat rice
Last step: Estimate the market share, which is plotting and calculation of the competitor’s
market share to determine the remaining portion for the new venture.
Market size of rice business in San Isidro = # of families * average consumption per annum
Market size = 475 families * 1 kilo per day * 365 days per year
= 173 375 kilos of rice per year
Market size profit = 173 375 kilos * ₱10
= ₱1 733 750 per annum
The objective of Mr. Antonio in the first year is to capture the 20% of the market by implementing
marketing strategies in pricing (reduced markup of ₱2) and promotion (free delivery of rice for five kilos and
up) through text message and phone call. None of the competitors have thought of or done these strategies
yet. In the example, the four rice retailers are considered direct competitors because they offer exactly the
same product and are structured similarly with Mr. Antonio’s proposed business. On the other hand, the
groceries and convenience stores are considered indirect competitors because they don’t offer exactly the
same product type (i.e., rice sold in sacks instead of by kilo) and are not similarly structured but still compete
with Mr. Antonio’s business indirectly.
Potential market share = market size * estimated share
= ₱1 733 750 * 20%
= ₱346 750
However, because Mr. Antonio will reduce the markup by ₱2, the net profit per kilo will only become
₱8.
Potential market share = 1 733 750 * 20% * ₱8
= ₱277 400
This market share for a startup business is an attractive venture. Mr. Antonio also has a bigger chance
of capturing the market share of competitors if he implements relevant and enticing marketing strategies.
Customer Requirements
Customers are said to be the lifeblood of the business. These are the people who buy the products or
avail the services of the entrepreneur. Their thoughts, feelings, and experiences shape the decisions of the
business.
Customer requirements are specific features and characteristics that the customers need from a
product or a service.
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Primary and Secondary Market
Market intelligence includes customer profiling, drives the entrepreneur on what correct strategies and
tactics to employ.
Market segmentation is the process of grouping similar or homogenous customers according to
demographic, psychographic, geographic (location), and behavior.
Demographic segmentation also called as socioeconomic segmentation. It is the process of grouping
customers according to relevant socioeconomic variables for the business venture: income range and
social class, occupation, gender and age group, religion and ethnicity.
Psychographic segmentation is the process of grouping customers according to their perceptions, way
of life, motivations, and inclinations.
Geographic segmentation is simply grouping customers according to their location.
Behavioural segmentation is the process of grouping the customers according to their actions. These
behaviour are instigated by: occasions, desired benefits, loyalty, and usage of products or availment of
services
For example, a product such as solar power panels that can provide electricity to a house is being
imported by a local businessman ad installed at residential locations all around Philippines, by his company.
Mike De Guzman tried it initially in his house, installing ₱500 000 worth of solar panels on his roof. Since then,
his usual monthly electric bill of ₱24 000 has been reduced to around ₱9 000 to ₱12 000 a month. He
calculates that his investment will pay off in five years. The panels are best for homes with wide roofs.
Maintenance is simple, with cleaning every few months. Also, the cost of the solar panels have been
decreasing from ₱216 000 to ₱47 500 for China-made models. (Read the full story at
[Link]
net-metering)
If Mike De Guzman wants to develop a marketing plan for his solar panels and panel installation, he
would need to identify possible target markets, such as the population in urban areas in the country.
He would segment his market geographically, he could target various metropolis, such as Metro
Manila, Metro Cebu and Metro Davao.
Demographically, his probable customers would males who belong to the upper income
bracket to afford the cost of the solar panels, and educated about technology.
For psychographics, their lifestyles involve use of appliances and facilities that consume
electricity and energy, resulting into high electricity consumption and ensuing bills.
Behaviorally, they are heavy users of energy and are ready to explore ways to reduce their
electricity bills and find alternative sources of energy like solar power.
Mike De Guzman could target Metro Manila residents in the various gated subdivisions, where houses
have wide roofs, electric consumption is high, residents have the purchasing power to afford the panels, and
are generally educated and forward-looking regarding the use of technology and renewable energy, in
particular. De Guzman can position his products as effective, tried and tested, and moderately priced, and his
installation service as an experienced one. Finally, for the product aspect of the marketing mix, he has already
identified the brands that are effective yet competitively priced; for the price, he has targeted a price range
that is suited to his market and informs his customers of how the investment will pay off; for placement or
distribution, he has direct links with the Chinese manufacturer and has arranged for the distribution and
delivery of the supply of panels to him, as well as established his own distribution and delivery chain in the
Philippines for his clients; and for promotion, he can market online, through the village newsletters, and can
distribute brochure at the various villages he is targeting.
Marketing Mix: 7Ps of Marketing
Product
It is any physical good, service, or idea that is created by an entrepreneur or an innovator in
serving the needs of the customers and addressing their existing problems.
Place
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It refers to a location or the medium of transaction. A strategic location depends on the nature
of the business and the primary target market.
Physical location – entrepreneur must research about the area’s population, the traffic,
the people’s common paths, their buying behavior, and their preferences for the
location.
Cyber location – entrepreneur must use Web analytics data to understand Web site
performance.
Price
It is the peso value that the entrepreneur assigns to a certain product or service after
considering its costs, competition, objectives, positioning, and target market. The following are
the most common pricing strategies:
Bundling
Penetration pricing
Skimming
Competitive pricing
Product line pricing
Psychological pricing
Premium pricing
Optional pricing
Cost-based pricing
Cost-plus pricing
Promotion
It involves presenting the products or services to the public and how these can address the
public’s needs, wants, problems, or desires. The following are promotional tools:
Advertising
Selling
Sales promotions
Public relations
People
It plays a vital role in servicing customers. With the influx of various competing products and
services, one of the major differentiators is how people or employees make a difference in the
lives of the customers. It is not just about the quality of the product anymore, but how
employees make a difference in the lives of the customers. Employees have become a major
influence in the customer’s buying behaviour.
Packaging
It is how the product or service is presented to customers. It is the overall identification of the
product or service. Packaging’s ultimate goal is to entice the customers to purchase the product
or service.
Processing
It is defined as the step-by-step procedure or activity workflow that the entrepreneur or
employees follow to effectively and efficiently serve customers.
REFERENCES:
ENTREPRENEURSHIP in Philippine Setting for Senior High School By Nick L. Aduana
ENTREPRENEURSHIP by DIWA Learning Systems
ENTREPRENEURSHIP by Leah Alvino Macatangay
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SENIOR HIGH SCHOOL ENTREPRENEURSHIP
Activity Module No. 3 FIRST SEMESTER
A.Y. 2018-2019
Name
Surname First Name M.I.
YOUR SCORE
Grade: TWELVE Section: _____________________________________
Teacher: _____ ___ Date: _____________________
30
A. IDENTIFICATION
Directions: Identify the word/s being described in each number. Write your answer on the space provided
before each number. (6 points)
__________________1. It simply states why a customer should buy a certain product or service.
__________________2. It refers to how you will sell the product or service to your customer.
__________________3. It is the process of knowing your potential customers.
__________________4. It is the approximation of the number of buyers and sellers in a particular market.
__________________5. It is the approximate number of customers that will buy the product or avail the
service.
__________________6. It pertains to forces existing in the industry environment that produce, sell, or render
a similar type of product or service to the customers
B. UNDERSTANDING
Directions: Describe the marketing mix (7Ps) in relation to the business opportunity. (14 points)
Marketing Mix Description
a. Product
b. Place
c. Price
d. Promotion
e. People
f. Packaging
g. Process
C. EVALUATING
Directions: Name the top brand of the following generic product or services. Why do you think they are the
top-of-mind brands? (10 points)
Generic Product/Service Top-of-Mind Brand Reason
1. University
2. Smartphone
3. Toothpaste
4. TV station
5. Coffee
ENTREPRENEURIAL ACTIVITY
Directions: Suppose that you are an entrepreneur whose task is to market a recent product invented by a
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Filipino student, which is a flashlight powered by the warmth of the human hand that holds it.
Describe how you would plan on how to market it.
Value proposition:
Unique selling
proposition:
Brand name:
Reason:
Proposed brand name:
Proposed trade logo:
Marketing tactics and
strategy
