SELF-LEARNING MODULES

in

ENTREPRENEURSHIP
Third Quarter
 SECOND SEMESTER
QUARTER 3

Senior High School

Self-Learning Modules
Entrepreneurship

Development Team of the Self-Learning Module

Writer: Ryan Ganancial Española

Reviewers: Jocelyn E. Plaza, PSDS
Eduardo J. Julve, P-III
Lee C. Apas, MT-I
Rousell C. Casison, MT-I
Raziel Bulabog-Lozano, T-II
Layout Artist: Kim Tadulan Talha
Management Team: Lee C. Apas, MT-I
Rousell C. Casison, MT-I
Raziel Bulabog-Lozano, T-II
Mary Grace S. Ladra
Ryan Ganancial Española
Marle Abelgas-Otacan
Kim Tadulan Talha
 Entrepreneurship has become common to every
individual in today’s generation. Even the laymen can do it without even
thinking that what they did is entrepreneurship. They have personal
experiences and learning without the proper background on how to
handle and assess its profitability and feasibility.

As part of the applied subjects, all students in Senior High School will experience how to
deal business and how to maximize profit out from it. This Self-learning module will teach the
students on the basic entrepreneurial mind set which will help them in their day-to-day endeavor.

In the first set (QUARTER 3) of this module, the students will learn the relevance of the
course, explore job opportunities for Entrepreneurship as a career, recognize a potential market,
analyze the market need by determining the possible products or services that will meet the
need, screening the proposed solutions based on viability, profitability, and customer
requirements; and selecting the best product or service that will meet the market need. They will
also recognize the importance of marketing mix in the development of marketing strategy in
relation to the business opportunity. Students will also experience on how to develop a brand
name. Meanwhile, in the second set (QUARTER 4) the students are expected to demonstrate
understanding of the 4 M’s of operation (Manpower, Method, Machine, and Materials) in relation
to the business opportunity. After such, they will independently or with his/her classmates start
and operate a business according to the business plan and presents a terminal report of its
operation.

In connection, engaging activities are prepared to develop and improve the higher order
thinking skills of the students. They can surely relate with the said activities because they are
localized and contextualized.

With these, the subject teachers of this module hope that the students will begin to take
the risk in starting a business and be an entrepreneur. May this help them develop further their
communicative skills and may help them in their future endeavors.

R.G.E.
R.J.F.
C.B.D.

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 These self-learning modules for ENTREPRENEURSHIP are compiled,
designed, and organized, for the students of Sta. Josefa National High School
only and not for sale and for use of other institutions.

Moreover, the references of the information included herein are indicated in every
module. If, in any case, the subject teacher forgets to cite the authors of some information
used here, the subject teacher would like to express his/her sincere apology and would like
to emphasize that it was unintentional and did not intend to offend the rightful authors.

Furthermore, the subject teacher also wants to point out that the graphics and visuals
used in making these modules are also cited. Again, if, in an unintended action, the subject
teacher failed to cite the artist or developer of the said graphics, he/she would like to reiterate
that it is unintentional and that the acknowledgment should be given to the rightful owner of
the said graphics.

If ever that this module is reproduced and distributed, the subject teacher condemns
and revokes such action. This must not be photocopied and distributed. In addition, the
subject teacher and the school will not be held liable for whatever copyright and intellectual
rights violations committed that involve these modules.

R.G.E.
R.J.F.
C.B.D.

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 ENTREPRENEURSHIP

LESSON
1
INTRODUCTION TO ENTREPRENEURSHIP

I. Content Standard: The learner demonstrates understanding of key concepts, underlying

principles, and core competencies in Entrepreneurship.
II. Performance Standard: The learner independently creates/provides a quality and
marketable product and/or service in Entrepreneurship as prescribed in the TESDA
Training Regulation.
III. Duration: 4 hours
IV. Learning Competency: Discuss the relevance of the course explore job opportunities for
Entrepreneurship as a career.
A. Objectives:
a. Discuss the relevance of the course.
b. Explain the key concepts of common competencies.
c. Explain the core competencies in Entrepreneurship.
d. Explore job opportunities for Entrepreneurship as a career.

V. References:
• Entrepreneurship Self-learning Module, Cagayan de Oro Division; Entrepreneurship
Teaching Guide.

VI. Discussion:

Have you imagined your future 6 years from now? Have you thought of yourself
to be a renowned businessman/woman? Or the most trending vlogger in the youtube
platform? Or even the most popular online seller in different social media platforms? This
may sound difficult to achieve but if you are just ready to take the risk, you can be one of
them.

Businesses are the backbone of the economy. Entrepreneurs play an important

role in developing the economy through providing the needed products and services
including the solution to the problem of unemployment.

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Entrepreneurs are encouraged by the economy because they can provide a lot of
opportunities for the unemployed young people. It will increase the per capita income,
higher standard of living and increased individual saving, revenue to the government
in the form of income tax, value added tax, export duties, import duties, and balanced
regional development.

Before we will proceed to our lesson, can you tell me what comes into your mind when
you hear the word Entrepreneur? Write it in a sheet of paper. (All answers will be accepted).

RELEVANCE OF ENTREPRENEURSHIP TO AN ORGANIZATION

1. Development of Managerial capabilities- this means that one of the benefits an

entrepreneur gets is to develop his managerial skills.
2. Creation of Organizations- which means that because of entrepreneurships many
organizations will exist.
3. Improving standard of living- this means that entrepreneurship can lift up the
economic status of an individual.
4. Means of economic development- this means that not only the life of the entrepreneur
is improved but also the society where the business is located.

CONCEPT OF ENTREPRENEURSHIP

The word “entrepreneur” was derived from the French verb enterprendre, which means
“to undertake” This is pinpointing to those who “undertake” the risk of enterprise. The
enterprise is created by an entrepreneur and the process is called “Entrepreneurship”.

Entrepreneurs are innovators, willing to take risks and generate new ideas to make it
unique and profitable solutions to the present-day problems.

FACTORS AFFECTING ENTREPRENEURSHIP

1. Personality Factors which includes:

a. Initiative- which means doing things even before being told.

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Proactive-which means he can classify opportunities and

seize it.
b. Problem Solver- which means he can retain good
relations with other people
c. Perseverance-meaning he will pursue things to get
Decisive means that having the power or quality
done regardless of challenges
of deciding. If someone can make decisions
d. Persuasion- means that he can entice people to buy quickly, then they are known as decisive. For
even if they don’t. example is Tan Dato’ Azman Hashim. He is one
e. A Planner- meaning he makes plan before doing of the richest people in Malaysia. According to

things and do not fail to monitor it. him, in order to be a successful entrepreneur,
making decision is an important stage.
f. Risk-taker which means that he is willing to gamble
Communication is a way to make interaction
but he will calculate it first.
between people. Entrepreneurs always try to
improve their communication skills because it will
2. Environmental Factors includes political, climate, legal assist them in sharing their ideas and presenting
system, economic and social conditions and market situations. them clearly and to constantly work in a better

Common Competencies in way with their staff, team members, clients and
colleagues.
Entrepreneurship
1. Decisive- an entrepreneur must be Entrepreneurial Leadership is not actually not
one particular but actually a range of different
firm in making decisions. personal attributes. They need to be friendly and
2. Communicator- an approachable. They do not just identify problems.
If you will go into business, opportunity seeking is very entrepreneur must have a Instead, they determine the solution and ensure
important. You will find customers or markets where
convincing power. that the required actions get implemented.
other people find none; you will find new uses for old
products, including waste product; and you will find new
3. Leader- an entrepreneur
products for old markets or customers must have the charisma to be obeyed by his
employees
Individuals who tend to be proactive have a disposition
4. Opportunity seeker- an entrepreneur must have the
geared toward taking intentional action, helping them
create their environment, future and fate. They don’t wait
ability to be the first to see business chances.
for others to make decisions or decide their future for 5. Proactive- controlling a situation by making things
them – they create their own path. to happen or by preparing for possible future
problems.
Entrepreneurs face multiple risks such as bankruptcy,
6. Risk Taker- they have the courage to pursue what is
financial risk, competitive risks, environmental risks,
reputational risks, and political and economic risks.
their business ideas.
Entrepreneurs must plan wisely in terms of budgeting 7. Innovative- the entrepreneurs have big business
and show investors that they are considering risks by ideas and they do not stop improving and
creating a realistic business plan.
thinking of new worthwhile ideas for their
business.

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CORE COMPETENCIES IN ENTREPRENEURSHIP

1. Economic and dynamic activity- Entrepreneurship is an economic activity
because it involves the creation and operation of an enterprise with a view to
creating value or wealth by ensuring optimum utilization of limited resources.
2. Innovative- Entrepreneurs constantly look for new ideas thus, he needs to be
creative.
3. Profit Potential- meaning the entrepreneur can be compensated by his profit
coming from the operation.
4. Risk bearing –meaning the entrepreneur needs to gamble but wise enough to
offset the risk.
TYPES OF ENTREPRENEURS
1. Innovative entrepreneur- they are those who always make new things by
thinking of new ideas.
2. Imitating entrepreneurs- they are those who don’t create new things but only
follow the ideas of other entrepreneurs.
3. Fabian entrepreneurs- they are those who are skeptical. They don’t initiate but
follow only after they are satisfied.
4. Drone entrepreneur- they are those who lives on the labor of others. They are
die-hard conservatives even ready to suffer the loss of business.
5. Social entrepreneurs-they are those who initiate changes in the various fields
such as education, health, human rights, environment and enterprise
development.

CAREER OPPORTUNITIES OF ENTREPRENEURSHIP

1. Business Consultant- with the expertise of the entrepreneur he can be a very
good source of advices to other entrepreneurs and would be business man.
2. Teacher- a graduate of an entrepreneurship can use his knowledge in
teaching.
3. Researcher- the entrepreneur can be employed as researcher by an
enterprise.
4. Sales- the entrepreneurship graduate can apply as salesman
5. Business Reporter- the entrepreneur being expert in the field, can be
employed as business reporter.

TYPES OF ENTREPRENEURS
1. Innovative entrepreneurs- have the ability to think newer, better and more
economical ideas.
2. Imitating- these are people who follow the path shown by innovative
entrepreneurs
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3. Fabian Entrepreneurs- are skeptical about changes to be made in the

organization.
4. Drone entrepreneurs- are persons who live on the labor of other
5. Social entrepreneur- are people who drive social innovation and
transformation in various fields including education, health, human rights and
many others.

VII. Exercises
Activity 1.1 ASPIRE-PRENEUR
Give at least five (5) names of entrepreneurs that you know, may it be from your locality
or within Philippines. Identify what type of entrepreneur are they and answer the following
questions:
1. What characteristics or qualities that you observe from each of them?
2. Are there common characteristics or qualities among them?
3. Who among the entrepreneurs that you mentioned you admire most and why?
4. In your own opinion, what do you need to possess to become a successful entrepreneur?

RUBRIC FOR ESSAY

Content The content was well-thought ,guide 4
questions were thoroughly answered
Organization The paper was well-written with ideas 3
easily conveyed to readers.
Development Points are thoroughly developed 3
TOTAL 10

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Activity 1.2 ASSESS ME!

Direction: Find out if you have the qualities of an entrepreneur. Put a check mark on the box.
Qualities YES NO
Risk Taker
Communicator
Leader
Opportunity Seeker
Proactive
Innovator
Decisive
Interpretation: If you have more YES than NO, you have the qualities of an entrepreneur.

Activity 1.3 BIZ-BIOGRAPHY!

Research on the life story of ONE (1) entrepreneur in your locality; identify how they
started their business. Ask how much their start-up capital and how their business grown
through the years.

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VIII. How Much Have You Learned?

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1ST SUMMATIVE TEST

Test I. TRUE OR FALSE. Read the statements carefully then write True if the statement is
correct and write False if you think the answer is wrong. Write your answers in your activity
notebook or activity sheets.

____________1. Entrepreneur means “to undertake.”

____________2. Entrepreneurship is a process of actions of an entrepreneur who is always
in search of opportunities.
____________3. The greatest significance of entrepreneurship is to help identify and
develop the managerial capabilities of entrepreneurs.
____________4. Entrepreneurship will lead to the creation of organizations.
____________5. Entrepreneurship can improve the life of the entrepreneur only.
____________6. Coward people will become successful entrepreneur.
____________7. An entrepreneur is a “Risk Taker”.
____________8. Entrepreneurship is not an economic activity.
____________9. Entrepreneurs are innovative.
____________10. Profit potential is the compensation of the entrepreneur.
____________11. An entrepreneur can become a business consultant.
____________12. An entrepreneur can also be a researcher.
____________13. An entrepreneur can also become a salesman.
____________14. Entrepreneurship graduates can become a business reporter.
____________15. The entrepreneur could easily see the results of his efforts.

Test II. Multiple Choice. Read the questions carefully. Write the letter of your answer on your
activity notebook or activity sheet.

1. The entrepreneurs who create new ideas are called?

a. Drone b. Fabian c. Imitating d. Innovative

2. The entrepreneur who lives on the labor of others is called?

a. Drone b. Fabian c. Imitating d. Innovative

3. These are entrepreneurs who are to follow the path shown by innovative entrepreneur.
a. Fabian b. Imitating c. Innovative d. Social Entrepreneurs

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4. Which of the following is NOT a function of an entrepreneur?

a. Risk taking c. Skills management
b. Conduct research d. Make no changes with his product

5. Entrepreneur is derived from the French verb word “Entreprendre” which means
_____________.
a. Risk taker c. To undertake
b. To research d. To improve standard of living

6. It is a personality factor which means “doing things even before being told”.
a. initiative b. perseverance c. persuasion d. proactive

7. It is a personality factor which means convincing customers to buy the product.

a. Persuasion b. Proactive c. Risk-taker d. Self-confidence

8. Which of the choices is NOT part of the environmental factors?

a. Climate c. Political
b. Family background of the manager d. Weather condition

9. Which of the following does NOT belong to the group?

a. Political protest c. Strikes
b. Product d. Unfair trade practices

10. The entrepreneur who is skeptical about the changes in the company
is called?
a. Drone c. Imitating
b. Fabian d. Social entrepreneur

11. Which is NOT a career for an entrepreneur?

a. Business consultant c. Research and Development
b. Domestic Helper d. Sales

12. They are entrepreneurs who drive social innovation and transformation
in various fields.
a. Drone c. Imitating
b. Fabian d. Social entrepreneur

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13. Which of the statements below is true?

a. Entrepreneur has limited career opportunities.
b. Entrepreneurs are prone to constant high income.
c. Entrepreneurs are the reasons for unemployment problem.
d. Entrepreneurs are contributor to the development of the society.

14. Which of the statements is NOT true?

a. Entrepreneurs are researchers.
b. All entrepreneurs are successful.
c. The profit of the entrepreneur is immediate.
d. An entrepreneur will patiently wait for his efforts to bear fruit.

15. Which of the following is NOT true?

a. Entrepreneurship create organizations.
b. Entrepreneurs improves the economy.
c. Improves the life of the entrepreneur alone.
d. None of the choices

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LESSON
2
RECOGNIZE A POTENTIAL MARKET

I. Content Standard: The learner demonstrates understanding of concepts, underlying

principles, and processes of developing a business plan.
II. Performance Standard: The learner independently or with his/her classmates presents
an acceptable detailed business plan.
III. Duration: 6 hours
IV. Learning Competency: Recognize a potential market. TLE_ICTAN11/12PC-Ia-1
A. Objectives:
1. Associate the market problem to be solved or the market need to be met.
2. Look solution/s in terms of product/s and service/s that will meet the need
using techniques on seeking, screening, and seizing opportunities.
3. Break down the market need.
4. Detect the possible product/s or service/s that will meet the need of your
locality.
5. Screen the proposed solution/s based on viability, profitability, and customer
need in developing a Business Plan.
6. Choose the best product or service that will meet the market need.

V. References:
• Entrepreneurship Self-learning Module, Cagayan de Oro Division; Entrepreneurship
Teaching Guide.

VI. Discussion:

Welcome to the second module of entrepreneurship! This module will allow you to learn
independently the knowledge and skills in recognizing a potential market. It will guide you to
identify the market problems to be solved or the market needs to be met; and let you propose
solution/s in terms of product/s and service/s that will match the need using techniques on
seeking, screening, and seizing opportunities. Also in this module you are going to identify
the market problem and propose solutions with regards to products and services, to continue

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discover the ideal business you are going to offer to your community. Basically, in return to
your hard time of selling your product you can generate profit.
The objectives stated above are your guidelines on how to develop a Business Plan.
By identifying and appealing to particular group of consumers you need to check on the
possible product needed in your locality.

Business industries offer products and services. The activity of making, buying, or
selling goods or providing services in exchange of money is called business. Product is
something that is made or grown to be sold or use, or something that is a result of a process.
Services are those intangible products where there is a skill involved and has a value.

After completing this module, you need to:

• Learn and understand the sources of opportunities for business.
• Determine the essentials in the entrepreneur’s opportunity seeking
• Identify market problems and propose potential products or services that will meet
the market needs.
• Know the problem in which a business opportunity arises from.
• Identify, screen and proposed solution to meet the problem
• Select the best product or service that will meet the market’s need with a consideration
of generating profit.

In the previous lesson, you knew about the difference between businessman and
entrepreneur. Knowing all the entrepreneurial concepts will not assure a person of becoming
a successful entrepreneur and not all business people are entrepreneurs. Some says being
an entrepreneur is a calling; a lot of qualities must be possessed to be considered successful
and sustainable. So, if you are given a great opportunity to venture into the field of
entrepreneurship, it may be a long process to undertake and the willingness to take a risk.
Also, you’re not only the one who’s in progress but at the same time, you’re helping for the
development growth of our economy.

DEFINITION OF TERMS:
1. Opportunity seeking - Process of considering, evaluating, and pursuing market based
activities that are accepted to be beneficial for the business.

2. Entrepreneurial process - can be defined as the steps taken in order to begin a new
enterprise. It is a step-by-step method, one has to follow to set up a business.

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3. Entrepreneurial ideas - an innovative concept that can be used for financial gain that is
usually centered on a product or service that can be offered for money.

4. Essentials of entrepreneur’s opportunity seeking - These are the basic foundation that the
entrepreneur must have in seeking opportunities, such as entrepreneurial mind frame, heart
flame and gut game.

5. Sources of opportunity - can be attain by assessing and looking at changes in the

environment; technological discovery and advancement; government’s thrust, programs, and
policies; people’s interest, and past experiences.

6. External environment - refers to the physical environment, societal environment, and

industry where the business operates.

7. Government - refers to the local government (municipality, city, or provincial) or the

national government and its branches.

8. Competition – it is the act or process of trying to get or win something.

9. Substitute – anything that takes the place or function of another.

10. New entrants – the one who enters something.

11. Suppliers – are the one that provide something that is needed or wanted.

12. Buyers – are the one that pays cash in exchange to your goods and services.

13. Rivalry – is a state or situation in which people or groups are competing with each other.

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Creation of Identification of Opening of

entrepreneurial entrepreneurial entrepreneurial
Ideas Opportunities Venture

Figure 1. The Entrepreneurial Process of Creating New Venture

The creation of an entrepreneurial ideas leads to the identification of entrepreneurial

opportunities, which in turn results in the opening of an entrepreneurial venture.

The entrepreneurial process of creating a new venture is presented in the diagram

below. (Aduana, 2017)

Essentials in Entrepreneur’s Opportunity Seeking

These are the basic foundations that the entrepreneur must have in seeking
opportunities:

Entrepreneurial mind frame. This allows the entrepreneur to see things in a very
positive and optimistic way in the midst of difficult situation. Being a risk - taker, an
entrepreneur can find solution when problems arise.

In fact, in Chinese writing, the word crisis is composed of two

characters. The first character means danger while the second character
means opportunity.

For example, you are selling batchoy in your locality, but due to
the sunny season in your place, most of your customers are not
patronizing the batchoy and looking for a product that could quench their
thirst. So, you decided to sell Halo-halo just to answer the demand of
your customers.

Entrepreneurial heart flame. Is also about emotional intelligence

or EQ, which is often manifested in the entrepreneurs’ efforts to nurture
relationships with customers, employees, and suppliers. The
entrepreneur also looks after the interests of his or her people by
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motivating and encouraging them to be the best that they can be. This
creates caring culture within the organization that brings about synergy
among the people working toward a common vision.

Entrepreneurial gut game. This refers to the ability of the

entrepreneur of being intuitive. This also known as intuition. The gut
game also means confidence in one’s self (lakas ng loob) and the firm
believes that everything you aspire can be reached.

Sources of Opportunities
There are many ways to discover opportunities. Looking at the big
picture some have noticed the emerging trends and patterns for
business opportunities. While others are trying to find out their target
market. Some are the following sources of opportunities:

1. Changes in the environment

Entrepreneurial ideas arise when changes happen in the external environment. A
person with an entrepreneurial drive views these changes positively. External environment
refers to the physical environment, societal environment, and industry environment where
the business operates.

1.1 The physical environment includes

a. Climate- the weather conditions.
b. Natural resources- such as minerals, forests, water, and fertile land that
occur in nature and can be used for economic gain.
c. Wildlife- includes all mammals, birds, reptiles, fish, etc., that live in the
wild.

1.2 The Societal environment includes the various forces like

a. Political forces- includes all the laws, rules, and regulations that govern
business practices as well as the permits, approvals, and licenses
necessary to operate the business.
b. Economic forces- such as income level and employment rate.
c. Sociocultural forces- customs, lifestyles and values that characterize a
society.
d. Technological environment- New inventions and technology
innovations.

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1.3 The industry environment of the business includes:

a. Competitors
b. Customers
c. Creditors
d. Employees
e. Government
f. Suppliers

For example, one factor in the physical environment that can easily change is the
climate. The temperature is very high during summer but very low during the rainy
season. An individual with entrepreneurial drive can be extremely imaginative and
inventive in identifying opportunities. He/she can venture a business that responds to the
needs of the people during summer and rainy season.

2. Technological discovery and advancement

A person with entrepreneurial interest sees possibility of business opportunities in

any new discovery or because of the use of latest technology.

For example, an individual with knowledge in repair and installation of a machine

engine discovers that additional engine parts that considerably reduce fuel consumption.

3. Government’s thrust, programs, and policies

The priorities, projects, programs, and policies of the government are also good
sources of ideas.

For example, the use of firecrackers to celebrate New Year’s Eve is strictly prohibited.
People without entrepreneurial interest will view the ordinance as a plain restriction. However,
for an entrepreneur, it is a business opportunity to come up with a new product that will serve
as a substitute for firecrackers.

4. People’s interest

The interest, hobbies, and preferences of people are rich source of entrepreneurial
ideas. Like the increasing number of Internet Café at present could be lead to the strong
attachment of young people to computers.

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5. Past experiences

The expertise and skills developed by a person who has worked in a particular field
may lead to the opening of related business enterprise.

For example an accountant who has learned the appropriate accounting and
management skills and techniques in a prominent accounting firm can start his/her business
venture by opening his/her own accounting firm.

Forces of Competition Model

It is also known as the “five forces of competition,” An industry environment is a
competitive environment. Regardless of what product or services you have, competition is
always present.

Competition – it is the act or process of trying to get or win something.

For example, the prices are lower when there is a competition among the stores.

These are the five forces competing within the industry:

• Buyers
• Potential new entrants
• Rivalry among existing firms
• Substitute products
• Supplier

1. Buyers

The buyers are the one that pays cash in exchange to your goods and services. For
example, the influenced of the price or in the bargaining strategy. The buyer has a strong
and magnified bargaining power. The threat of its bargaining power will be less if the following
factors notice:

a. There are several suppliers available in the market.

b. The buyer has the potential for backward integration.
c. The cost of switching the supplier cost is minimal.
d. The product represents a high percentage of the buyer’s cost.
e. The buyer purchases large portions of the seller’s product or services.

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2. Potential New Entrants

A new entrant is defined as the one who enters something. For example, the level of
capital requirements, if the business requires huge capital, new entrants should decline to
join the business. This gives a threat to the business. This can be notice if there is the
presence of the following factors:
a. Substantial capital requirement.
b. Strict government policy.
c. Difficulty in accessing distribution channels.
d. Economies of scale.
e. High cost of product differentiation.
f. High switching cost

3. Rivalry among Existing Firms

Rivalry is a state or situation in which people or groups are competing with each other.
For example it depends on the Marketing strategy of your competitor, like giving freebies and
special offers. The intensity of rivalry among existing firms is characterized to the following
factors:

a. Diversity of rivals.
b. Number of competing firms.
c. Characteristics of the products or services.
d. Increased capacity.
e. Amount of fixed costs.
f. Rate of industry growth.

4. Substitute Products

Substitute means anything that takes the place or function of another. For example
the consumers decide to use margarine as a substitute for butter. In case the price of butter
increases, preferably the consumer will gradually switch to margarine.

A substitute product can give a big threat in the industry environment if the following
factors are notice:

a. Switching cost is low.

b. Preferences and tastes of the customers easily change.
c. Product differentiation is highly noticeable
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d. The quality of substitute products dramatically improves.

e. The price of substitute product is substantially lower.

5. Suppliers

The Suppliers are the one that provide something that is needed or wanted. For example
if the supply and services being offered is unstable or keep. The intensity of the threat is
strong in this kind of the competitive force in the industry. This can be notice if there is the
presence of the following factors:

a. The supplier has the ability for forward integration.

b. Suppliers in the industry are few, but the sales volume is high.
c. Substitute products are not readily available in the market
d. The switching cost is very high.
e. The product or service is unique.

VII. Exercises

ACTIVITY 2.1 CORRECT ME!

True or False. On the space provided before the number write T if the statement is correct
and F if the statement is wrong.

_____ 1. Entrepreneur enter a business because of its profitability.

_____ 2. New business ideas provide business opportunities.
_____ 3. Entrepreneurial process starts with identification of entrepreneurial opportunities.
_____ 4. Not all changes in the external environment provides business opportunities.
_____ 5. Discovery and advancement in the use of technology are additional good source
of business opportunities.
_____ 6. Interest and hobbies of the people are possible good source of entrepreneurial
ideas.
_____ 7. Industry environment of business is under technological discovery and
advancement sources of opportunities.
_____ 8. The variables in the physical environment include the economic forces.
_____ 9. Entrepreneurial heart flame refers to the ability of the entrepreneur to sense without
using the five senses.
_____ 10. Entrepreneurial mind frame permits the entrepreneur to see things in a very
positive and optimistic light.
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_____ 11. The business operates in the industry environment.

_____ 12. Opening a Halo – halo business during summer seasons.
_____ 13. Environmental scanning is conducted only when a new business is opened.
_____ 14. When the barriers to the competitive forces are high, the effect to the growth of
the business is likewise high.
_____ 15. Entrepreneurs need not observe and evaluate the priorities of the government.

Activity 2.2 ASSESS ME!

Complete the table below by supplying it with products related to your specialization
that you consider similar. For the Academic Track you can choose one from any of the related
products. Write the product, and not the brand, in their respective columns. Then describe
and differentiate its characteristics and uses.

AGRI-FISHERY ARTS
Primary Product ( Product Substitute Product ( Product
No.
name ) name )
Example Inorganic Fertilizer – expensive fertilizer that Organic Fertilizer - cheaper fertilizer which
deplete the soil of its nutrients… improves the soil texture…
1.
2.
3.
4.
5.

HOME ECONOMICS 1
Primary Product ( Product Substitute Product ( Product
No.
name ) name )
Example Butter - expensive price used as bread Margarine – lesser price also used as bread spread
spread.
1.
2.
3.
4.
5.

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HOME ECONOMICS 2
Primary Product ( Product Substitute Product ( Product
No.
name ) name )
Example Hot Oil - expensive hair treatment Kakang Gata – Natural hair treatment that is less
expensive
1.
2.
3.
4.
5.

INFORMATION AND COMMUNICATIONS TECHNOLOGY

Primary Product ( Product Substitute Product ( Product
No.
name ) name )
Example Flash Drive – a device used to transport and CD - the old device use for storing files but is less
store files in a fastest way expensive
1.
2.
3.
4.
5.

SHIELDED METAL ARC WELDING

Primary Product ( Product Substitute Product ( Product
No.
name ) name )
Example E6010 Electrode - can be used with direct E6011 Electrode - produce a soft arc with minimal
current power source. spatter.
1.
2.
3.
4.
5.

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AUTOMOTIVE SERVICING
Primary Product ( Product Substitute Product ( Product
No.
name ) name )
Example Air compressor oil – lubricates moving parts. Hydraulic Oil – a mineral based used to transfer
power.
1.
2.
3.
4.
5.

Activity 2.3 THE BIZ!

Conduct a short interview of any successful entrepreneur in your locality. Ask the
following question:

• What is the nature of your business?

• Who are your customers?
• What industry are you operating?
• How much was your starting capital?
• How many years in operation?
• How many manpower involved from the start of operation until now?
After the interview, have a selfie with him/her then paste the picture in your activity
notebook.

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VIII. How Much Have You Learned?

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2nd SUMMATIVE

Test I. Multiple Choice. Read the questions carefully. Write the letter of your answer on your
activity notebook or activity sheet.

1. It is the process of considering, evaluating, and pursuing market-based activities that are
believed to be advantageous for the firm.
A. Opportunity seeking C. Opportunity screening
B. Opportunity seizing D. Sources of opportunity

2. This is essential to opportunity seeking which allows the entrepreneur to see things in a
positive and optimistic light in the midst of crisis or difficult situations.
A. Entrepreneurial mind frame C. Entrepreneurial heart flame
B. Entrepreneurial gut game D. Entrepreneurial heart frame

3. It is the ability of entrepreneur that can sense without using the five senses, also known
as intuition.
A. Entrepreneurial mind frame C. Entrepreneurial heart flame
B. Entrepreneurial gut game D. Entrepreneurial heart frame

4. One of the essentials of entrepreneur’s opportunity seeking that refers to the driven passion
of an individual.
A. Entrepreneurial mind frame C. Entrepreneurial heart flame
B. Entrepreneurial gut game D. Entrepreneurial heart frame

5. What variable of societal environment includes income level and employment rate?
A. Economic forces C. Sociocultural forces
B. Political forces D. Technological forces

For questions 6 and 7 refer to the following statements:

A. Preferences and tastes of the customers easily change.
B. The buyer has the potential for backward integration.
C. The cost of switching the supplier cost is minimal.
D. Product differentiation is highly noticeable.

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6. Which are the factors of the substitute product that pose a great threat in the industry
environment?
A. A, B, C, D C. A and D
B. A and C D. B and C

7. Which are the factors that influenced the buyer to have a less threats because of the
bargaining power?
A. A only C. A and D
B. A and C D. B and C

8. They are the one that pays cash in exchange to your goods and services.
A. Buyers C. sellers
B. Competitors D. suppliers

9. The intensity of rivalry among existing firms is characterized to the following factors except
one:
A. Diversity of rivals.
B. Number of competing firms.
C. Characteristics of the products or services.
D. The product represents a high percentage of the buyer’s cost.

10. The following are the forces competing within the industry except one:
A. Potential new entrants and Substitute Products
B. Buyers and Suppliers
C. Rivalry among existing firms
D. Needs and Wants

11. Which of the following good sources of entrepreneurial ideas determine the interest,
hobbies and preferences of people.
A. Changes in the environment C. People’s interest
B. Technological discovery D. Past experiences

12. Societal environment includes the following, except:

A. Economic forces C. Political forces
B. Sociocultural forces D. Natural resources

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13. Which among the following is the result of identifying entrepreneurial opportunities?
A. Creation of entrepreneurial ideas C. Sources of opportunity
B. Opening of entrepreneurial venture D. Entrepreneurial process

14. What entrepreneurial idea will you recognized, if you consider the new discovery and
advancement of technology as source of opportunity?
A. People’s interest
B. Changes in the environment
C. Technological discovery and advancement
D. Government’s thrust, programs, and policies

15. Source of entrepreneurial idea where expertise and skills developed by a person from its
previous work can lead to the opening of a related business enterprise.
A. Past experiences
B. People’s interests
C. Government’s thrust, programs, and policies
D. Technological discovery and advancement

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LESSON
3
RECOGNIZE AND UNDERSTAND THE MARKET

I. Content Standard: The learner demonstrates understanding of environment and market

in one’s locality/town.
II. Performance Standard: The learner independently creates a business vicinity map
reflective of potential market in one’s locality/town.
III. Duration: 8 hours
IV. Learning Competency: Recognize the importance of marketing mix in the development
of marketing strategy. TLE_ICTAN11/12PC-Ia-1
A. Objectives:
1. Describe the unique selling proposition and value proposition that differentiate
one’s product/service from existing products/services.
2. Determine who the customers are in terms of target market, customer
requirement, and market size.

V. References:
• Entrepreneurship Self-learning Module, Cagayan de Oro Division; Entrepreneurship
Teaching Guide.

VI. Discussion:

Value Proposition (VP) is a business or marketing statement that summarizes why

a consumer should buy a company's product or use its service. This statement is often
used to convince a customer to purchase a particular product or service to add a form of
value to their lives. In creating Value Proposition, entrepreneurs will consider the basic
elements:
• Target Customer
• Needs/opportunity
• Name of the product
• Name of the enterprise/company

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There are many competitors in the market to establish superiority to them.

Entrepreneurs should think some alternative and how it works better. An important aspect
in Value Proposition must be truthful that will establish credibility to the consumers.

Example: Potential value proposition is most common in small businesses of your

locality.

BREADSTAR opens only from 6:00 am to 6:00 pm, but the owner noticed
that there are customers who go nearby town to look for a bakery at around
10:00 pm to 6:00 am. The owner believes that it is a great opportunity for them
to operate 24/7. In this example, proposed value proposition: “BREADSTAR,
opens 24/7”.

The business describes Bakery – a basic bread and pastry manufacturing

store. The assurance from this value proposition is because of the phrase “opens
24/7”, Breadstar opens 24/7, which make it different from other competitors.

Unique selling proposition (USP) refers to how you sell your product or
services to your customer. You will address the wants and desires of your
customers.

As entrepreneur, you think of marketing concept that persuade your target

customers. The following questions you may ask in doing this – What the
customers want? What brand does well? What your competitor does well?

Some tips for the entrepreneur on how to create an effective unique selling
proposition to the target customers:
• Identify and rank the uniqueness of the product or services character
• Very Specific
• Keep it short and simple (KISS)

As entrepreneur, present the best feature of your product or services that are
different from other competitors. Identifying the unique selling proposition requires
marketing research that you will learn from the other modules. In promoting your products
or services, make sure that it is very specific and put details that emphasize the differentiator
against the competitors. Keep it short and simple and think of a tagline that is easy to
remember. Right now, the proposed unique selling proposition: “BREADSTAR, opens
24/7”.

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Readers get confused between value proposition and unique selling proposition. The
two propositions are used to differentiate the products from competitors. For example,
Jollibee is known to have a Filipino taste burger. This brand has a unique selling point
because of its tagline “Langhap Sarap”.

Unique Value Proposition and Value Proposition are two most famous tools used
to explain why prospect customers buy each products and services. Base on each
definition, we learn that USP and VP are frameworks of each business industry. The two
propositions are valuable for the entrepreneurs.

After you understand the value proposition and the unique selling proposition, now
it’s time to understand the target market, customer’s requirement and market size.

A. Target Market

Market Targeting is a sage in market identification process that aims to determine

the buyers with common needs and characteristics. Prospect customers are market
segment that entrepreneurial venture intends to serve.

In targeting a specific market, it will exclude people even if it will not fit your criteria.
Rather, target marketing allows you to focus your marketing money and brand message on
a specific market that is more likely to buy from you than other markets. Product is more
affordable, efficient, and effective way to reach potential clients and generate business.

Commonly used methods for segmenting the market are follows.

1. Geographic segmentation – the total market is divided according to geographical
location.
• Variable to consider
a. Climate
b. Dominant ethnic group
c. Culture
d. Density (either rural or urban)

2. Demographic Segmentation – divided based consumers.

• Variable to consider
a. Gender
b. Age
c. Income
d. Occupation
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e. Education
f. Religion
g. Ethnic group
h. Family size

3. Psychological Segmentation- divided in terms for customers think and believe.

• Variable to consider
a. Needs and wants
b. Attitudes
c. Social class
d. Personality traits
e. Knowledge and awareness
f. Brand concept
g. Lifestyle

4. Behavioral Segmentation- divided according to customer’s behavior pattern as

they interact with a company.
• Variable to consider
a. Perceptions
b. Knowledge
c. Reaction
d. Benefits
e. Loyalty
f. Responses

B. Customer Requirements

Customer requirements are the specific characteristics that the customers need from
a product or a service.

There can be two types of customer requirements:

1. Service Requirement
2. Output Requirement

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Service Requirement:

Intangible thing or product that is not able to be touched but customer can feel the
fulfillment. There are elements in service requirement like on-time delivery, service with a
smile, easy-payment etc. It includes all aspects of how a customer expect to be treated
while purchasing a product and how easy the buying process goes.

Output Requirements:

Tangible thing or things that can be seen. Characteristic specifications that a

consumer expects to be fulfilled in the product. Costumer that will avail services as a
product, then various service requirements can take the form of output requirements. For
example, if the consumer hires a multi cab, then on-time arrival becomes an output
requirement. Customer buys gadgets (phone speaker), the specification like the loudness
and clarity are the output requirements.

B. Market Size

Entrepreneur’s most critical task is to calculate the market size, and the potential value
that market has for their startup business. Market research will determine entrepreneur
possible customers in one locality.

What is Market Size?

Market size is like a size of arena where the entrepreneurs will play their business.
It is the approximate number of sellers and buyers in a particular market. Companies are
interested in knowing the market size before launching a new product or service in the
area. In determining the market size, entrepreneur will conduct a strategic marketing
research from reliable sources using the following method. First step is to estimate the
potential market – approximate number of customers that will buy the product or avail your
services. Second step is to estimate the customers who probably dislike to buy your
product or avail the services. Third step is for the entrepreneur to estimate the market share
that means plotting and calculating of the competitor’s market share to determine the
portion of the new venture. Market size become the most important if you ever need to
raise funding for your business.

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VII. Exercises

ACTIVITY 3.1 MARKET MATCH!

A. Identify whether the following statement are Unique Selling Proposition or Value
Proposition on one’s product/service.
Example: Langhap Sarap Example: Unique Selling Proposition
1. Safeguard ___________________________
2. Love ko to ___________________________
3. Supermarket ___________________________
4. Surf ___________________________
5. Bukas kahit anong oras ___________________________

B. Determine what method of market segmentation (Geographic, Demographic,

Psychological and Behavioral Segmentation) will be used to the following items.

1. We have Climate Change. ___________________

2. Over 60 years of age. ___________________
3. Branded (US Levi’s). ___________________
4. This product is good for my health. ___________________
5. Most People in the community are Roman ___________________

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Activity 3.2 RECOGNIZE ‘D ADVERTISE!

Give 5 products advertised or promoted on television. Evaluate each one according
to its USP, VP, method of segmentation used, customer requirements, and who are target
customers.
Product Method of Customer Target
Name USP VP Segmentation Requirements customers
Ex. Jollibee Langhap Filipino Service &
Sarap taste burger Psychological Output All people

1.

2.

3.

4.

5.

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Activity 3.3 MY BUSINESS PLAN! Based on the instructions given in the G.R.A.S.P.S below.
Accomplish the given tasks. Write your answer in your activity notebook or activity sheets.

To be able to make a draft of a business plan.

GOAL

Role An aspiring Entrepreneur

Possible investors
Audience

Situation
You are planning to establish a business in your locality. You need
possible investors would invest to your chosen business. To attract
them, you need to prepare a business plan to be presented to them

Product
Crafted Draft of the BUSINESS PLAN

Standards
Your draft Business Plan should be crafted
following these questions:

• What product you want to sell?

• Apply the concept of value proposition
and unique selling proposition.
• Make a tagline for your chosen product?
• Who is your target market?

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VIII. How Much Have You Learned?

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3rd SUMMATIVE

Test I. True or False. Write True if the statement is correct and write False if not correct. Write
your answers in your activity notebook or activity sheet.

__________1. Value refers to what the product does for customers that they’re prepared to
pay.

__________2. Marketing concept that was first proposed as a theory to understand the
pattern in successful advertising called Unique Selling Proposition.

__________3. In creating value proposition, entrepreneurs will consider the four (4) basic
elements.
__________4. Unique selling proposition is specific, often citing numbers or percentages.

__________5. The effective selling using advertising and marketing is part of value
proposition.

__________6. Identify and rank the uniqueness of the product or services character is one
tip for the entrepreneur on how to create an effective unique selling proposition.

__________7. The Entrepreneurs will not consider the health benefits of the consumers.

__________8. Consumers have common wants and needs.

__________9. The market targeting is a stage in market identification process that aims to
determine the set of buyers with common needs and characteristics.

__________10. Identifying the unique selling proposition will not require marketing
research.

__________11. Targeting a specific market does not mean that you are excluding people
who do not fit your criteria.

__________12. Demographic segmentation is the total market divided according to

geographic location.

__________13. Knowledge and awareness is one variable to consider in behavioral

segmentation.
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__________14. Service requirement is intangible thing or product not able to be touch but
feel the fulfillment.

__________15. Market size is like a world globe measurement.

Test II. Multiple Choice. Read the questions carefully. Write the letter of your answer on your
Activity notebook or activity sheet.

1. What is the relationship between unique selling proposition and value proposition?
a. a framework of each business industry
b. meet your competitors needs wants.
c. persuades another to exchange money for a product service’s
d. connected with only one particular thing.

2. The following variable to consider in behavioral segmentation, except.

a. perception
b. brand concept
c. reaction
d. benefits

3. What is the function of Value Proposition?

a. use to power up sales
b. convince customer to purchase a particular product or services.
c. customers buying habits
d. provide value to your customers

4. Give example in promotion using Value Proposition and Unique Selling proposition.
a. with the slogan “Langhap Sarap”
b. ordinary sari-sari store
c. multinational business
d. fruit shake stand

5. ________________ will determine entrepreneur possible customers in one locality.

a. Market design c. market research
b. Market strategy d. market size

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6. The term behavioral segmentation refers to:

a. divided based on consumers
b. divided in terms for customers think and believe.
c. divided according to geographical location.
d. divided according to customers behavior pattern as they interact with a company.

7. What is market size?

a. tangible things that can be seen.
b. Size of arena where the entrepreneur will play their business
c. The most important part to the success of the company
d. another variation of segmentation marketing.

8. Considered favorable indicators for doing business in that particular location.

a. structure of the segment
b. capability of the business
c. size and growth of the segment
d. segmentation marketing

9. Select type of customer requirement

a. service requirement c. service responsibility
b. service oriented d. service fulfillment

10. This refers to how you sell your products or services to your customer.
a. Value proposition c. Selling proposition
b. Unique selling proposition d. Marketing concept

11. Tips for the entrepreneur on how to create an effective unique selling proposition to the
target customers, except.
a. Identify and rank the uniqueness of the product or services characteristic.
b. Very specific
c. Keep it short and simple
d. Completeness of proportion

12. Geographic segmentation refers to:

a. Divided according to geographical location
b. Divided based consumers.
c. Divided in terms for customers think and believe
d. All of the above

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13. Service requirement _____________ thing or product not able to touch but customer
can feel the fulfillment.
a.Tangible c. Service
b. Intangible d. Output

14. Tangible things that can be seen refers to what?

a. Service requirement c. customer requirements
b. Output requirement d. Entrepreneurs output

15. What is the first step in conducting a strategic marketing?

a. Estimate the potential market
b. Estimate the customers who probably dislike buying your product
c. Estimate the market share
d. Estimate business funding.

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LESSON
4
MARKET RESEARCH

I. Content Standard: The learner demonstrates understanding of environment and market

in one’s locality/town.
II. Performance Standard: The learner independently creates a business vicinity map
reflective of potential market in one’s locality/town.
III. Duration: 8 hours
IV. Learning Competency: Recognize the importance of marketing mix in the development
of marketing strategy. TLE_ICTAN11/12PC-Ia-1
A. Objectives:
1. Discuss market research;
2. Know the meaning of data gathering; and
3. Identify the different data gathering techniques.

V. References:
• Entrepreneurship Self-learning Module, Cagayan de Oro Division; Entrepreneurship
Teaching Guide.

VI. Discussion:

Firms and other business companies need to understand their service offerings and their
customers to ensure that their services will be adopted as solutions to consumer needs. In
order for the firms to recognize the needs of the market or the customers, they need to
conduct market research.

The Market Research or Marketing Research Process can be defined as the process of
gathering, analyzing and interpreting the information about the products or the services to
be offered for sale to the potential consumers in the market,
There are different ways to collect the data. The most important methods you can consider
are surveys, focus group discussion and interviews.

DATA COLLECTION is the most valuable tool of any type of research study. Inaccurate
data collection may cause mistakes and ultimately lead to invalid results.
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TIPS in GATHERING DATA

• Organize collected data as soon as it is available
• Know what message you want to get across and then collect data that is relevant
to the message
• Collect more data
• Create more data
• Regularly run experiments or collect data
• Challenge your assumptions
• Set reasonable expectations
• Take note of interesting or significant data

In this lesson, we will consider the three different data collection techniques –
SURVEY (Questionnaire), INTERVIEW and FOCUS GROUP DISCUSSION – and evaluate their
suitability under different circumstances.

SURVEYS are the most common way to

gather primary research with the use of
questionnaires or interview schedule. These
can be done via direct mail, over the phone,
internet (e.g. Google) or email, face-to-face or
on Web (e.g. Skype or Viber).

When designing or constructing your

own research questionnaire, remember the
following guidelines. (Edralin, 2016)
• Keep it simple as possible.
• Make sure it is clearly appealing and easy
to read.
• Cluster or block related questions.
• Move from complex questions to more
specific questions.
• Make sure questions are concise and
easily understood.
• Avoid questions that are difficult to answer.
• Make sure any response scales used are consistent with categories that are mutually
exclusive.

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INTERVIEW is one of the most reliable and credible ways of getting relevant
information from target customers. It is typically done in personal between the
researcher/entrepreneur and a respondent where the researcher asks pertinent questions
that will give significant pieces of information about the problem that he will solve. The
interview is also helpful even when the business has already started because the customers’
feedback provides the entrepreneur a glimpse of what the customers think about the
business.

Interviews normally last from 15 to 40 minutes, but they can last longer, depending
on the participants’ interest in the topic.

In a structured interview, the researcher asks a standard set of questions and nothing
more (Leedy and Ormrod, 2001).

• Personal interviews are the traditional method of conducting an interview. It allows

the researcher to establish relationship with potential participants and therefore gain
their cooperation. It generates highest response rates in survey research. They also
allow the researcher to clarify indefinite answers and when necessary, seek follow-up
information.

• Telephone interviews are less expensive and less time consuming, but the
disadvantages are that the response rate is not as high as the face-to- face interview,
but considerably higher than the mailed questionnaire.

FOCUS GROUP DISCUSSION (FGD) - is an

excellent method for generating and screening ideas
and concepts. It can be a moderated group
interviews and brainstorming sessions that provide
information on user’s needs and behaviors.
The following are considerations in the use of focus
group discussions in market research:

• The length of the session is between 90 and 120 minutes.

• Usually, conduct focus groups discussion with 8 to 10 participants per group.
• Assign an expert moderator / facilitator who can manage group dynamics.
• Use a semi-structure or open-format discussion
• Strive for consistency in the group’s composition (for example, it may not be
advisable to have business customers and retail customers in the same focus
group, their needs are very different)
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Aside from the main basic groups of research methods (quantitative, qualitative and
mixed), there are different tools that can be used to collect data. Interviews can be done
either in personal or over the phone. Surveys/questionnaires can be paper or web based.
Focus Group Discussions can be moderated group interviews and brainstorming sessions
that provide information on user’s needs and behaviors.

VII. Exercises

ACTIVITY 4.1 MIRROR MIRROR ON THE WALL!

Answer the following statements honestly. There is no right or wrong answer.
Indicate your response to the items by putting a check that best corresponds to your
answer.

Strongly Disagree Neither Agree Strongly

Disagree Agree or Agree
Questions
Disagree
(1) (2) (3) (4) (5)
I always think about having my
own business in the future.
I do activities related to starting
my own business
I have a strong desire to start my
own business
I will make every endeavor to
start my own business
I would like to follow the
footsteps of a successful
entrepreneur
I will comply all the requirements
needed to start a business
I will be very happy when I am
able to start my own business

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I know my family would support

of my dream to start a business
I would have a great opportunity
of being successful if I try to start
a business while I am still young
When problems come my way, I
will not easily give up while
starting my own business
TOTAL

After answering all the statements, add your score. Refer to the conversion and the
verbal interpretation of your score:

40 – 50 = Very high intention to become an entrepreneur

30 – 39 = High intention to become an entrepreneur
20 – 29 = Average intention to become an entrepreneur
19 & below = Low intention to become an entrepreneur

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ACTIVITY 4.2 LET’S INVESTIGATE!

Conduct a survey among 15 teenagers in your place about “Milk Tea”. Use the
survey form below:
SURVEY FORM

Name of Respondent (optional):

______________________________________________
Age _______________ Gender:  Male  Female
Grade Level__________

What are your reasons for buying the product?

______________________________________________________________
______________________________________________________________
_________________________________________________________.

Where do you buy the product?

______________________________________________________________
______________________________________________________________
Is it available when you need it?  Yes Sometimes  No

What do you use as a substitute if it is not available?

______________________________________________________________
______________________________________________________________
Is the price affordable to you?  Yes  No

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Activity 4.3 SHARE IT! Based on the instructions given in the G.R.A.S.P.S below. Accomplish
the given tasks. Write your answer in your activity notebook or activity sheets. Be guided by
the given criteria in rating your output.

To be able to conduct a Focus Group Discussion

GOAL

Role A participants of an Annual Business Summit.

Entrepreneurs
Audience

Situation
You are attending an Annual Business Summit with your co-
businessmen in your locality. In the said summit you are grouped
into three to five and asked to generate new business ideas.

Product
A minutes of your Focus Group Discussion and the list of products
being patronized which are not yet offered in your community.

Standards

• Your output should follow the standards

in conducting a Focus Group Discussion
• Your output will be graded according to
the criteria provided

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The learners’ output will be evaluated according to the criteria:

Creativity -20 points
Content/ Accuracy -20 points
Timeliness -10 points
Total 50 points

VIII. How Much Have You Learned?

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4th SUMMATIVE

Test I. Multiple Choice. Read the questions carefully. Write the letter of your answer on your
Activity notebook or activity sheet.

1. It is the most common way to gather primary research with the use of questionnaires or
interview schedule.
A. Interview C. Survey
B. Focus Group Discussion D. Data Gathering

2. It is the traditional method of data collection which is normally done on personal manner
with the respondents.
A. Personal Interview C. Survey
B. Focus Group Discussion D. Data gathering

3. A data gathering technique where it can be moderated to group interviews and

brainstorming sessions that provide information on user’s needs and behaviors.
A. Personal Interview C. Survey
B. Focus Group Discussion D. Data Gathering

4. It refers to information gathered directly from the respondents who answered set of
questions.
A. Primary Research C. Survey
B. Secondary Research D. Data Gathering

5. A data gathering technique where it can be done via direct mail, over the phone, internet
or e-mail.
A. Data Gathering C. Focus Group Discussion
B. Survey D. Interview
6. It refers to the process of gathering, analyzing and interpreting the information about the
product or the services to be offered for sale in the market.
A. Primary Research C. Data Gathering
B. Secondary Research D. Market Research

7 – 9. In your own opinion what is Market Research?

________________________________________________________________
________________________________________________________________
________________________________________________________________
_______________________________________________.
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10 – 15 Give at least three data gathering techniques and explain.

________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________.

Test II. IDENTIFICATION. Write, in your activity notebook or activity sheet, the word or phrase
that is described or one which completes the thought of each statement.

__________1. It is an information gathered directly from the respondents who answered

set of questions.

__________2. It is the traditional method of data collection which is normally done on a

personal manner with the respondents.

__________3. It obtains information on general attitudes, understand the circumstances

under which customers might require your product or services, understand their desired
outcomes.

__________4. It is the most common way to gather primary research with the use of
questionnaire or interview schedule.

__________5. It is the most valuable tool of any type of research study.

__________6. A data gathering technique where it can be done via direct mail, over the
phone, internet or e-mail.

__________7. They also allow the researcher to clarify indefinite answers and when
necessary, seek follow-up information.

__________8. A data gathering technique where it can be moderated group interviews and
brainstorming sessions that provides information on user’s needs and behavior.

__________9. It is typically done in personal between the researcher/entrepreneur and a

respondent where the researcher asks pertinent questions that will give significant pieces of
information about the problem that he will solve.

__________10. It can be a moderated group interviews and brainstorming sessions that

provide information on user’s needs and behaviors.
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__________11. It normally lasts from 15 to 40 minutes, but they can last longer, depending
on the participants’ interest in the topic.

__________12. It is a type of interview are less expensive and less time consuming.

Test III. Give one guideline or consideration in the use of the following data gathering
techniques in market research. Write your answer in your activity notebook or activity sheet:

13. Surveys _____________________________________________________

14. Focus Group Discussion __________________________________________

15. Interviews ____________________________________________________

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LESSON
5
7 P’s OF MARKETING AND BRANDING

I. Content Standard: The learner demonstrates understanding of environment and market

in one’s locality/town.
II. Performance Standard: The learner independently creates a business vicinity map
reflective of potential market in one’s locality/town.
III. Duration: 8 hours
IV. Learning Competency: Recognize the importance of marketing mix in the development
of marketing strategy. TLE_ICTAN11/12PC-Ia-1
A. Objectives:
1. Describe the Concept of Marketing Mix.
2. Identify the seven P’s in the Marketing Mix.
3. Identify the commonly used brand strategy.
4. Develop a Brand Name.

V. References:
• Entrepreneurship Self-learning Module, Cagayan de Oro Division; Entrepreneurship
Teaching Guide.

VI. Discussion:

This module introduces the Marketing Mix, more popularly referred to as the 7P’s of
Marketing. It is a set of controllable and interrelated variables composed of product, place,
price and promotions that a company assembles to satisfy a target group better than its
competitor. Marketing Mix strategy is selecting and applying the best potential means to
achieve the organization’s vision and gain competitive edge.

Marketing Mix is a set of controllable and connected variables that a company gather to
satisfy a customer better than its competitor. It is also known as the “Ps” in marketing.
Originally, there were only 4Ps but the model has been continually modified until it became
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7P’s. The original 4 P’s stands for product, place, price and promotion. Eventually, three
elements have been added, namely: people, packaging and positioning to comprise the 7
P’s.
The 7 P’s of Marketing Mix

1. PRODUCT

Marketing strategy typically starts with the product. Marketers can’t plan a distribution
system or set a price if they don’t know exactly what the product will be offered to the
market.

Product refers to any goods or services that are produced to meet the consumers’
wants, tastes and preferences. An example of goods includes tires, MP3 players, clothing
and etc. Goods can be categorized into business goods or consumer goods. A buyer of
consumer goods may not have thorough knowledge of the goods he buys and uses. An
example of services includes hair salons and accounting firms. Services can be divided
into consumer services, such as hair styling or professional services, such as engineering
and accounting.

2. PLACE

Place represents the location where the buyer and seller exchange goods or services.
It is also called as the distribution channel. It can include any physical store as well as
virtual stores or online shops on the Internet.

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STAGES OF DISTRIBUTION CHANNEL

Channel 1 contains two stages between producer and consumer - a wholesaler and
a retailer. A wholesaler typically buys and stores large quantities of several producers'
goods and then breaks into bulk deliveries to supply retailers with smaller quantities. For
small retailers with limited order quantities, the use of wholesalers makes economic sense.

Channel 2 contains one intermediary. In consumer markets, this is typically a retailer.

A retailer is a company that buys products from a manufacturer or wholesaler and sells
them to end users or customers. In a sense, a retailer is an intermediary or middleman
that customers use to get products from the manufacturers.

Channel 3 is called a "direct-marketing" channel, since it has no intermediary levels.

In this case the manufacturer sells directly to customers.

3. PRICE

The price is a serious component of the marketing mix. What do you think is the
meaning of a Price?

In the narrowest sense, price is the value of money in exchange for a product or
service. Generally speaking, the price is the amount or value that a customer gives up to
enjoy the benefits of having or using a product or service. One example of a pricing strategy
is the penetration pricing. It is when the price charged for products and services is set
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artificially low in order to gain market share. Once this is attained, the price can be higher
than before. For example, if you are going to open a Beauty Salon, you need to set your
prices lower than those of your competitors so that you can penetrate the market. If you
already have a good number of market share then you can slowly increase your price.

4. PROMOTION

Promotion refers to the complete set of activities, which communicate the product,
brand or service to the user. The idea is to attract people to buy your product over others.
Advertising, Personal Selling, Sales Promotion, Direct Marketing, and Social Media are
examples of promotion.

5. PEOPLE

Your team, a staff that makes it happen for you, your audience, and your advertisers
are the people in marketing. This consists of each person who is involved in the product
or service whether directly or indirectly.

People are the ultimate marketing strategy. They sell and push the product. People
are one of the most important elements of the marketing mix today. This is because of the
remarkable rise of the services industry. Products are being sold through retail channels
today. If the retail channels are not handled with the right people, the product will not be
sold. Services must be first class nowadays. The people rendering the service must be
competent and skilled enough so that that the clients will patronize your service.
Therefore, the right people are essential in marketing mix in the current marketing
scenario.

6. PACKAGING

Packaging is a silent hero in the marketing world. Packaging refers to the outside
appearance of a product and how it is presented to the customers. The best packaging
should be attractive enough and cost efficient for the customers. Packaging is highly
functional. It is for protection, containment, information, utility of use and promotion.

7. POSITIONING

When a company presents a product or service in a way that is different from the
competitors, they are said to be “positioning” it. Positioning refers to a process used by
marketers to create an image in the minds of a target market.
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Solid positioning will allow a single product to attract different customers for not the same
reasons. For example, two people are interested in buying a phone; one wants a phone
that is cheaper in price and fashionable while the other buyer is looking for a phone that
is durable and has longer battery life and yet they buy the same exact phone.

DEVELOP A BRAND NAME

Brand Name is a name, symbol, or other feature that distinguishes a seller's goods
or services in the marketplace. Your brand is one of your greatest assets because your
brand is your customers' over-all experience of your business. Brand strategy is a long-
term design for the development of a popular brand in order to achieve the goals and
objectives. A well-defined brand strategy shakes all parts of a business and is directly
linked to customer needs, wants, emotions, and competitive surroundings

Experts believe that a good brand can result in better loyalty for its customers, a better
corporate image and a more relevant identity.

As more customers continue to differentiate between emotional and experienced

companies, a brand may be the first step forward in your competition instead of price
points and product features. The question is, can you build a brand which truly talks to
your audience?

Branding is a powerful and sustainable high-level marketing strategy used to create

or influence a brand. Branding as a strategy to distinguish products and companies and to
build economic value to both customers and to brand owners, are described by Pickton
and Broderick in 2001.

Commonly Used Branding Strategy

1) Purpose
"Every brand makes a promise. But in a market in which customer confidence is little and
budgetary observance is great, it’s not just making a promise that separates one brand
from another, but having a significant purpose," (Allen Adamson).
How can you define your business' purpose? According to Business Strategy Insider,
purpose can be viewed in two ways:

a. Functional. This way focuses on the assessments of success in terms of fast and
profitable reasons. For example the purpose of the business is to make money.

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b. Intentional. This way focuses on fulfillment as it relates to the capability to generate

money and do well in the world.

2) Consistency
The significant of consistency is to avoid things that don’t relate to or improve your brand.
Consistency aids to brand recognition, which fuels customer loyalty.

3) Emotion
There should be an emotional voice, whispering "Buy me". This means you allow the
customers have chance to feel that they are part of your brand.
You should find ways to connect more deeply and emotionally with your customers. Make
them feel part of the family and use emotion to build relationships and promote brand
loyalty.

4) Flexibility
Marketers should remain flexible to in this rapidly changing world. Consistency targets at
setting the standard for your brand, flexibility allows you to adjust and differentiate your
approach from your competition.

According to Kevin Budelmann, "Effective identity programs require sufficient consistency

to be identifiable, but sufficient variation to keep things fresh and human" so if your old
tactics don't work anymore, don't be afraid to change. It doesn’t mean it worked in the past
it may still work now.

5) Employee Involvement
It is equally important for your employees to be well versed in how they communicate with
customers and represent the brand of your product.

6) Loyalty
Loyalty is an important part of brand strategy. At the end of the day, the emphasis on a
positive relationship between you and your existing customers sets the tone for what
potential customers can expect from doing business with you.

7) Competitive Awareness
Do not be frightened of competition. Take it as a challenge to improve your branding
strategy and craft a better value in your brand.

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VII. Exercises

ACTIVITY 5.1 PASTE THE P’s!

Look for newspapers or magazines. Find and identify pictures related to the P’s in
Marketing Mix. Cut out the pictures, sort and paste them on your activity notebook/sheet,
then write a short description on the line next to the picture.

PICTURE 1

PICTURE 2

PICTURE 3

PICTURE 4

Rubrics for Scoring

Score Description
15 The table is complete with pictures and the descriptions are correct.
12 The table is lacking one (1) picture and the descriptions are correct.
9 The table is lacking two (2) pictures and the descriptions are correct.
6 The table is lacking three (3) pictures and the descriptions are correct.
3 The table is lacking one (4) pictures and the descriptions are correct.

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ACTIVITY 5.2 THE POWER OF COLOR!

I am going to show you some colors. For each one, write down the FIRST company
or product that comes in to your head when you see the color.
What’s the FIRST BRAND you think of when you see this colors?

Rubrics for Scoring

Score Description
15 The diagram is complete with the right brand written in its corresponding color.

The diagram is lacking one (1) with the right brand written in its corresponding
12
color.
The diagram is lacking two (2) with the right brand written in its corresponding
9
color.
The diagram is lacking three (3) with the right brand written in its corresponding
6
color.
The diagram is lacking four (4) with the right brand written in its corresponding
3
color.

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Activity 5.3 PICTIONARY STYLE

Direction: Follow the task guide below.

TASK GUIDE:

Task 1. Invent a new product and give it a name. Sketch it.

Task 2. Once you have chosen the name for your product write a short explanation. In
your explanations you should describe your product and explain how and why you chose
its name.

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VIII. How Much Have You Learned?

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5th SUMMATIVE

Test I. Multiple Choice. Read the questions carefully. Write the letter of your answer on your
Activity notebook or activity sheet.

1) It is a set of controllable and interrelated variables composed of product, place, price and
promotions that a company assembles to satisfy a target group better than its competitor.
a. Price b. Marketing Mix c. Product d. Packaging

2) The amount that a customer pays for to enjoy it.

a. Price b. Marketing Mix c. Product d. Packaging

3) An item that is produced to satisfy the needs of a certain group of people.

a. Price b. Marketing Mix c. Product d. Packaging

4) It is a tangible product. Its example includes tires, MP3 players, clothing and etc.
a. Branding b. Positioning c. Goods d. Place

5) It can be intangible or tangible as it can be in the form of services or goods.

a. Price b. Marketing Mix c. Product d. Packaging

6) The way your product or service appears from the outside.

a. Price b. Marketing Mix c. Product d. Packaging

7) A marketing model that modifies the 4Ps model.

a. Packaging b. 7 P’s Model c. Marketing Mix d. People

8) Responsible for every element of your sales, marketing strategies, and activities.
a. Packaging b. 7 P’s Model c. Marketing Mix d. People

9) How a business creates awareness in the market?

a. Place b. Brand Name c. Services d. Promotion

10) It is intangible. Its example includes hair salons and accounting firms
a. Place b. Brand Name c. Services d. Promotion

11) The ultimate marketing strategy.

a. 7 P’s Model b. Marketing Mix c. People d. Branding

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12) Where your product or service is actually sold.

a. Place b. Brand Name c. Services d. Promotion

13) The place occupied by products in the heart and minds of the consumers.
a. Branding b. Positioning c. Goods d. Place

14) A name, symbol, or other feature that distinguishes a seller's goods or services in the
marketplace.
a. Brand Name b. Positioning c. Branding d. Place

15) A powerful and sustainable high-level marketing strategy used to create or influence a
brand.
a. Brand Name b. Positioning c. Branding d. Place

Test II. IDENTIFICATION. Write, in your activity notebook or activity sheet, the word or phrase
that is being described or completes the thought of each statement.

______________1. It is a set of controllable and interrelated variables composed of

product, place, price and promotions that a company assembles to satisfy a target group
better than its competitor.

______________2. The amount of money that a customer pays for to enjoy it.

______________3. An item that is built or produced to satisfy the needs of a certain group
of people.
______________4. It determines your firm’s profit and survival.

______________5. It can be intangible or tangible as it can be in the form of services or

goods.

______________6. The way your product or service appears from the outside.

______________7. A marketing model that modifies the 4Ps model.

______________8. Responsible for every element of your sales, marketing strategies, and
activities.
______________9. It refers to how a business creates awareness in the market.

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______________10. It claim a new space in the mind of the customer different from the
spaces occupied by existing products.

______________11. The ultimate marketing strategy.

______________12. Where your product or service is actually sold.

______________13. The place occupied by products in the heart and minds of the
consumers.

______________14. A name, symbol, or other feature that distinguishes a seller's goods

or services in the marketplace.

______________15. A powerful and sustainable high-level marketing strategy used to

create or influence a brand.

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