The word “entrepreneur” is derived from the French verb enterprendre which means “to undertake”.
This refers to
those who “undertake” the risk of New enterprises. An enterprise is created by an entrepreneur. The Process of
creation is called “entrepreneurship.
Importance of Entrepreneurship
1. Entrepreneurship generates new wealth in an economy.
2. Entrepreneurship decreases poverty.
3. It creates opportunities, ensures social justice, instills confidence and Stimulates the economy.
4. Entrepreneurship improves productivity.
5. Entrepreneurs create jobs.
6. Entrepreneurs innovate.
7. Entrepreneurs create innovation and social change.
8. Entrepreneurs give to society
THREE LEVELS OF COMPETENCIES
1. Personal competencies
2. Interpersonal competencies
3. Business competencies
THE POTENTIAL MARKET
Potential Market – the part of the total population that has shown some level of interest.
TAM – Total addressable market
HOW TO IDENTIFY YOUR POTENTIAL MARKETS?
Consider ever target demographic that you currently sell to, as well as those you have not yet targeted.
Identify what they have in common
MARKETING STRATEGIES
Demographic information
Best forms of media
What they prefer
Concerns, struggles, or problems that you can help them overcome
Values
Language
WHY IS POTENTIAL MARKET IMPORTANT?
For future growth
For identifying new costumers
Thinking proactively
Show the potential of your business
Increase your revenue
Creates a plan B
A MARKET CONSISTS OF:
Existing Costumers – People who have already purchased.
Prospects – Who are willing and capable buyers. They have not yet purchased but are considering it.
Target Market Users – Not currently looking for a solution.
PRODUCTS AND SERVICES
Client – A person who only receives official and professional services.
Customer – a person who buys goods and services from the business stores.
PRODUCT
Anything we can offer
To satisfy a need
Includes services, events, persons, places, organizations or even ideas.
Tangible
SERVICES
Special form of product.
Consists of activities, benefits, or satisfactions,
Intangible
HOW TO MEET THE NEEDS
Research
Distribute the information
Craft product features
Collect customer feedback
7 PS
POSITIONING
Three Overlapping Objectives
1. Enterprise Perspective
• Scans the market environment
2. Competitive Perspective
• Differentiate and distinguish itself from its competitors
3. Costumers Perspective
• Way of costumers perceive the enterprise and its products or services in their minds.
PRODUCTS
A tangible good or the intangible service that the enterprise offers to its customers in order to satisfy their needs and to
produce their expected results.
Four General Types of Products
1. Breakthrough Products
Double the performance at half the cost
More convenient and easy to use
2. Differentiated Products
Try to claim a new space in the mind of the costumer
May add additional benefits on special aspects of the product
3. Copycat Products
Will not make much impression on the consumer’s mind.
4. Niche Products
Do not compete directly with the giants
PACKAGING
1. Identifies the product, describes its features and benefits, and complies with government rules. Specifying its
contents, weight, chemical composition, and potency.
2. Differentiates the product from its competitors and its other brand offerings.
3. Lengthens the lifespan
4. But it is an environmental issue itself. Recyclability and biodegradability are now a major concern.
5. The aforementioned purposes have increased the cost of packaging and price of product.
PLACE
Finding a good location proves to be challenging but maximizing the potentials of that location is more challenging.
INITIAL LOCATION SCREENING
1. Customers residing or working in the area. Who frequently passes.
2. Density per unit area
3. Access routes to alternative locations
4. Buying habits of costumers
5. Locational features
FINAL CHOICE
1. Image and location conditions
2. Exact fit to target costumers
3. Clustering or competitor establishments
4. Future area development
5. Fiscal and regulatory requirements
2 MAJOR PLACE DETERMINANTS
GEOGRAPHY DETERMINANT
Decision Tensions
Concentration versus destination
Access versus abundance
Clustered versus dispersed
Developed versus underdeveloped
Physical versus virtual
Upscale versus downscale
ATMOSPHERE DETERMINANT
Decision Tensions
Formal vs Informal
Exclusive vs Public
Conservative vs adventurous
Aesthetics vs functionality
Minimalist vs Maximalist
PEOPLE
The ultimate marketing strategy
Sell and push product
Search hard to find the right market
Distribute, promote, price and sell products in the most attractive place
PEOPLE PLAY A CRUCIAL ROLE IN THE SUCCESS OF THE ENTERPRISE
4 LEVELS OF PEOPLE’S MARKETING EFFORT
Create costumer awareness
Arouse costumer interest
Educate customers
Close the sale and deliver the products
PROMOTION
The explicit communication strategy adopted by an enterprise to elicit the patronage, loyalty, and support from its
significant stakeholders.
ENCOMPASESS
Advertising
Websites
Flyers
Emails
Letters
Telemarketing
3 CRITICAL FACTORS
1. Credibility of the communicator
2. Message and medium of the message
3. Receptiveness of the audience
PRICE
Pricing depends on the business objectives set by the enterprise.
PRICES COULD BE
A premium to project a quality image and to distance the product from its inferior competitor
To set very low to survive in a competitive market
Cost recovery pricing charges a price that allows the organization to merely recover its full costs
Marginal pricing sets the price higher than the variable costs
Different kinds of Business Plans
1. Business Plan written prior to setting up an enterprise
To convince investors about the soundness and potential of their Business, convey capabilities and competencies of
owners and Managers
2. Business Plan written during the first few years of the Enterprise
To guide entrepreneurs which strategies would be beneficial
3. Business plan that is focused on bringing the enterprise to Higher level of growth
Enterprise reached its peak and want to enter new endeavour.
Business Plans serves many masters
1. Serves entrepreneur who must set the Navigational course
2. Serves investors and cautious financiers
3. Serves managers and staff of the Organization so they will know the Strategies and programs of the enterprise
Business Concept
Contains the essence of the enterprise in a concise and powerful Manner
Stresses the value of the product offering to the target Customer.
Business Model
Product concept translated to business model
It is formula on how the enterprise exactly plans to make money Out of business
Business Goals
Show the future and long-term prospects of the enterprise
FOUR TYPES OF STAKEHOLDERS
Resource mobilizers and financial backers
Technology providers and applicators
Governance and top management
Operating and support team
Business plan should estimate total market supply and demand for the product offerings, and the major critical factors
that influence this Market.
