Module Reviewer (Module 2)
Module Reviewer (Module 2)
Learning Expectations:
MARKETING
Marketing is important in a business because it helps people know what you are selling
and where they can find you if they want your product.
The entrepreneur has to do a good job identifying consumer needs, developing good
products and prices that fit the consumer needs, promoting and distributing the goods
effectively.
Marketing is simply ASCERTAINING WHAT A CONSUMER WANTS AND PROVIDING IT
TO THE CONSUMER AT A PROFIT.
People who have business (ENTREPRENEURS) stimulate the sale and distribution of
their products to somebody else (CUSTOMER)
Marketing is not selling or advertising or distribution or retailing. Such are just market
activities linking the buyer to the seller.
Marketing goes beyond that to identification of customer needs and running your
business in a way that it will produce what the customers need.
In conclusion, MARKETING IS ABOUT UNDERSTANDING CUSTOMERS AND FINDING
WAYS TO PROVIDE PRODUCTS AND SERVICES WHICH CUSTOMERS DEMAND.
Elements of Marketing
Needs
Want
The customer needs and wants are always changing. The entrepreneur should therefore
pay continuous attention to the changing needs and wants.
EXCHANGE
Marketing occurs when people decide to satisfy needs and wants through exchange.
Exchange – the act of obtaining a desired object from someone by offering something in
return.
DEMANDS
They are initially customer wants that are then backed up by buying power.
Since they have endless wants and limited resources, customers have to prioritized the
products that they are willing and able to pay for.
To decide, they base their decisions on their perceptions of a product’s value.
CUSTOMER DEMAND – a want for a specific product coupled by the ability and
willingness to pay for it.
To stimulate demand, entrepreneurs have to not only make products and services that
customers want, but they also have to make them affordable.
1. Identify the markets you want or intend to serve. This involves establishing potential
customers of the business and identifying those that the business wants to do business
with. To do so, one can use a simple questionnaire or make a formal or informal
inquiries from the people around.
2. Identify the needs of those customers. This can be done by simple market surveys
which collect information on the current and potential needs of the customers in their
target market.
3. Develop products or product concepts to meet the needs of the customers. This is
done through research and development and production activities.
4. Take decision on other marketing mix elements. After determining the target market,
their needs, and developing the products, DETERMINE THE PRICE, HOW YOU ARE TO
PROMOTE THE PRODUCT, AND THE DISTRIBUTION MECHANISMS AND OUTLETS FOR
THE PRODUCT. Such activities will help attach/offer value to the customers to
communicate the product and make it accessible and convenient.
o For small businesess, the most ideal and cost-effective way to promote a product
is by exploring the word of mouth. To achieve a positive word of mouth, the
entrepreneur must ensure that his/her customers are happy/satisfied.
5. Put in place a means to continuously monitor your market. The objective of marketing
is not only to attract customers, but also retain them by building a relationship. The
business needs to get regular feedback on customer satisfaction by using customer
satisfaction surveys. This will help you adjust your product and the other marketing mix
elements to suit the customer needs, as well as to fit within the competitive
environemntal changes.
Plan and develop the right product(s) or service(s) required by the customer at the right
place
Determine the range of products/services (product width and depth)
Keep in mind the product features that are most important for the customers
Be mindful of the product quality
Think of packaging and labeling your products
Think of product maintenance (where necessary)
Compare your product with the competitors’
Market – set of actual and potential buyers of a product; arena for potential exchange; a
part of the wider concept of marketing
It is imperative to scan the market environment and see what opportunities are
available.
Information from the market environment will help the entrepreneur to make effective
marketing decisions
Analyzing the needs of buyers and creating products and services that would satisfy
the consumers.
1. Who are the customers (existing and prospective)? Their demographic profile, economic
profile, buying power, and other characteristics
2. What do they buy? Who exactly buys what? What are their needs and wants?
3. Why, how, when, and from where do they buy? Do they buy once a day, weekly,
monthly, once in their life time? Do they buy in the morning, afternoon, evening? Who
makes and influences the customer buying decision? Are the buyers the ultimate users
of the products?
4. How much do they pay for similar/competing products? How much are they willing to
pay for your product? Are they willing to pay for your product?
5. Where are they located? Are they within your operating area, in the next area, district,
etc.?
Information gathered can be taken from internal sources within the organization or
external sources, which are the already existing records compiled by various
organizations or through administering a simple questionnaire.
Market research helps identify the following:
1. Who are the customers? You should be specific. e.g. the hotels, the children, bars,
primary schools, universities, etc.
2. Where are they located?
3. How many are found in each location?
4. Are your customers increasing, decreasing or constant?
5. Why do these customers buy from you?
Market Size
What is the size of your market, is it increasing, decreasing or constant? You can use
your business records and the information from your customers.
Competition
Name and discuss all major competitors. You should compare your product with your
competitors’ products in terms of price, quality, etc. You should know what they are
doing better than you and what you are doing better than them.
Who is your primary target Primary Target Customers
customer? The main customers would be the
(Do a segmentation and describe government and its agencies pertinent to
your target group in detail! If your contact tracing like the Department of Health
primary is the end consumer use and Department of Information and
the following attributes: Communication Technology.
Age This is a partnership/commission project with
Gender them, we are merely providing them with the
Location services that we have to function as a
Income Level contact-tracing medium.
Social class and occupation As for the end-users, they come from across
Education all ages, genders, locations, income level,
Other (specific to your social strata and occupation, and education.
industry) The target consumers would be ranging from
21-55 years old, or including those
Which particular markets will you individuals allowed by the IATF to go out and
target/focus more attention on and enter public establishments or spaces.
why? There is no specific target gender.
The location would be all around the country.
Income level and social class would come
from across all sectors, the working class,
middle class, upper class etc.
This would target all individuals who go out
and enter public establishments which is a
necessity in these extraordinary times.
Customer Needs Assessment
The needs met by this product is the need for
a more efficient contact tracing measure, by
saving time and providing more accurate and
time-sensitive data to the authorities.
MARKETING MIX
Product
Something offered to the customers for purchase to satisfy their needs and wants
Purely physical products to services
The task is to DEVELOP THE RIGHT PRODUCTS required by the customer
Products, product characteristics/features, packaging, branding, labeling, etc.
For example, good packaging will protect the product from getting spoiled and makes it
easy for you and the consumer to move the product from one place to another.
Branding and labeling will make it easy for the customers to identify the product and
refer to it by name.
1. Product Development
2. Range of Products (width and depth)
3. Product Quality
4. Packaging and Labelling
5. Maintenance
6. Service, Guarantees, and Warranties
7. Comparison with Competitors
Price
Place/Distribution
Promotion
Customers have to be informed of the existing products and be persuaded to buy the
products
The entrepreneur should decide on how to inform the customers, through what media
and what inducements to make
Radio, television, newspaper, simple signs
Word of mouth – the most cost effective for small business
Plan the position you wish to occupy in the minds of the customer
1. Pick product/service attributes that are important for your customers
2. Cross the attributes with your competitors and estimate your and your competitors’
performance on each attribute
Who is directly and indirectly competing with Direct and Indirect Competitors
you?
(Provide details of your direct competitors –
that is competitors who offer the same
product or service! Give their
names
products/services and their special
features (what makes them unique?)
prices
location
promotion services
and if available information, about
their revenues and profits
How is your position compared to your key competitors? First, take the attributes from the
Working Sheet 04 – Customer Analysis and list them in the first column of the matrix! Then,
cross your key competitors with the attributes or features to form a competitive profile matrix!
Give an honest assessment from 1 (very weak) to 5 (very strong) of your own and your
competitors’ performance on each attribute or feature!
This section deals with the industry or the market you are going to enter. So, define your
industry or market and give information about its size and future development. Answer the
following questions and you will get your industry and market analysis:
POSITIONING
Plan the position they wish to occupy – how they would like to be remembered in their
customers’ minds
The marketing mix programme/strategies
1. Product Strategy
What kinds of product(s) are you going to sell?
What will be the depth and width of your product(s)?
How are you going to package, design, and label them?
Test your product (its price and quality) on the market before you launch it
2. Pricing Strategy
What price do you want to charge for your product?
What discount do you intend to give if any?
What about the payment terms?
Remember that a high price as compared to that of competitors may scare off your
customers
A very low price may not enable you to make reasonable profit
3. Distribution Strategy
Where will you sell your product?
How will you ensure that the product reaches the customers?
Will you sell to urban or rural areas or both?
Will you sell beyond your geographical region?
4. Promotion Strategy
How will you make your product known to your customers?
Which media will you use to communicate your products?
Will you use radio, TV, fliers, or a combination?
5. Process, people, and physical evidence (service firms)
6. Stress your strengths over those of the competitor and capitalize over their weaknesess
7. Capitalize on those areas where you are really good
8. Compete ethically
MARKET SEGMENTATION
Dividing the market into smaller clusters or segments with similar characteristics to help
direct an enterprise’s marketing efforts
According to Demography
According to Geography
TARGET MARKET
Specific market segment toward which an enterprise aims its marketing activities
POSITIONING
The position they wish to occupy, that is how they would like to be remembered in their
customers’ minds
PRODUCT STRATEGY
What kind of product(s) are you going to sell to your customers? What will be the depth
and width of your product(s)? How you are going to package, design and label them etc.
PRICING STRATEGY
What price do you want to charge for your product? What discount do you intend to
give if any? What about payment terms?
DISTRIBUTION STRATEGY
Where will you sell your product? How will you ensure that the product reaches your
customers? Will you sell to urban or rural areas or both? Will you sell beyond your
geographical region?
PROMOTION STRATEGY
How will you make your product known to your customers? Which media will you use to
communicate your products? Will you use radio, TV, flyers or a combination?
Come up with the proper choice of media so as to influence your sales positively.
Learning Expectations:
1. Increase appreciation of planning your priorities and executing what you have planned
2. Customize your milestones for your enterprise
3. Set long-term goals
4. Craft a development plan
Entrepreneurship is all about taking actions or implementing what you have planned.
Acting begins with setting goals. Goals are the starting point of actions.
Goals facilitate being self-starting because they indicate what is still to do and provide
direction for the entrepreneur’s efforts.
Goals structure the entrepreneur’s efforts. Without goals, the entrepreneur’s actions
would be sporadic and reactive, lacking consistence and purpose.
Goal specificity – goal is measurable and terminated
A challenging goal competes against goal commitment, because the higher the goal, the
less realistic goal achievement is and therefore the less committed an individual will be.
However, the higher the goal, the higher the motivation will be to achieve if the
individual is really committed.
Functions of a Goal
1. Goals CHANNEL ATTENTION – as they give direction which actions the entrepreneur
should focus on
2. Goals MOBILIZE ON-TASK EFFORT – if an entrepreneur sets a challenging goal, the
intensity of effort will be higher than if he or she has no goal
3. Goals SUSTAIN PERFORMANCE OVER TIME – as goals are the discrepancies between
the current and future state, the entrepreneur will keep on putting effort into achieving
the goal if the future state is not achieved yet
4. Goals STIMULATE STRATEGIC PLANNING – Goals define only an end state. The path to
the end-state is not defined by the goal, the entrepreneur hence, must develop a plan
that specifies the actions to be taken.
Goals should be articulated into SMART:
a. SIMPLE – not complicated
b. MEASURABLE – how much is the exact figure
c. ACHIEVABLE – challenging goals as high as possible
d. REALISTIC – you can and want to achieve
e. TIME-BOUND – exact time you want to achieve the goal
1. To-do list of tasks and goals that have to be accomplished to get the business up and
running
2. Schedule for the next weeks that highlights the steps and milestones in the process of
getting the business up and running
Helps you plan your next steps and get an idea of where you are and where you are going to
be with your company for the short-run
Includes MOST IMPORTANT MILESTONES for the set-up of the business
It is an OVERVIEW OF THE WORK THAT REMAINS TO BE COMPLETED BEFORE LAUNCHING
your business.
Schedule that highlights the steps and milestones in the process of getting your business up
and running
IMPLEMENTATION
Implementation intentions build on strong and activated goals that are set by an
entrepreneur.
The pro-activity facet relates to the future and preparing for future problems as well as
opportunities.
Proactive goals – an entrepreneur anticipates future problems and opprtunities and
converts them into goals.
1. The entrepreneur should develop back-up plans to be prepared if things fail
2. The entrepreneur should develop plans how to exploit an opportunity if it suddenly
arises
Being Persistent
Self-Regulation
Being persistent can be facilitated by using principles from the theory on self-regulation:
Activating or inhibiting
Prolonging or abridging
Organizing and structuring
Modifying
Monitoring
Self-regulation works via the following mechanisms:
Goal-setting
Self-monitoring
Self-evaluation and self-consequation
Meta-skills that include forethought/planning and emotion control skills
To be persistent in the face of difficulties and temptations, the entrepreneur SHOULD
CONTINUOUSLY CHECK THE PROGRESS MADE REGARDING GOAL ACHIEVEMENT AND
EVALUATE.
If it is behind the set expectations, the entrepreneur should allocate more resources to
the accomplishment of the goal.
Emotion-handling – negative emotions affect behavior, thoughts, and eventually
performance by consuming valuable personal resources. The entrepreneur must control
his emotional state through an alteration of the internal dialogue.
MECHANISMS OF SELF-REGULATION
1) Goal Setting
2) Self-Monitoring – status check; a process by which the entrepreneur maintains a record
of his or her progress towards goal attainment; comparing and detecting discrepancy
between the target and actual state
If failed, self-monitoring provides what the entrepreneur still has to do and mobilizes
energy and effort to reduce discrepancy
If successful, it increases pride and self-efficacy (confidence to perform specific
activities), is an important factor for performing the specific activity.
3) Self Evaluation and Self Consequation – includes judgment of the actions taken so far,
evaluating the progress towards goal attainment, and drawing the consequences from
such evaluation
The entrepreneur may fall below expectations
The entrepreneur may meet the expectations
The entrepreneur exceeds expectation
4) Emotion Control – deliberate change or maintenance of a mood. It should particularly
keep negative emotional reactions at bay during task engagement. It is important to
control one’s emotions, since negativities divert attentional resources to the self and
away from the task. This could affect task performance.
Self-mechanism can be either DELIBERATE or AUTOMATIC. It must be taught first to train
the self over a period of six months. Applying the mechanisms continuously leads to an
automatization.
THE ENTREPRENEURIAL MIND
Module 2 (Sessions 1-3)
Module Reviewer
Learning Expectations:
1. Apply the leadership concepts and strategic planning techniques to leverage the
economic value of the enterprise
2. Develop vision and mission statements
3. Prepare a strategic plan to achieve competitive advantage
4. Craft operations plan – process of producing and delivering your product or service
LEADERSHIP
Leadership of Organizations
Leadership in Organizations
VISION
An ideal and unique image of the future that reflects shared values to which one should
aspire
Projected mental image of products, services, and organizations
The initial idea of the entrepreneur is developed into the final concept of the business,
which becomes the basis of the actual business.
Since the entrepreneur needs help from potential investors, a well articulated vision of
the business will provide more success in acquiring the necessary support.
1. Brief
2. Clear
3. Abstract
4. Challenging
5. Future-oriented
6. Stable
7. Able to inspire
GOAL VISION
Specific; they should be measurable More abstract and should not
and terminated completely specify how to achieve
positive outcome
Visions and goals go hand-in-hand. The vision should be the overarching guide for the
short, mid, and long-term goals.
MISSION
Provides an overview of the environmental factors each firm has to consider to develop
a viable business strategy
Macro-Environment
Internal Conditions
a. Firm’s resources
b. Capabilities to exploit available resources
Such are the basis for a competitive advantage in the market
Resources
Capabilities
Refers to the skills of the firm to combine available resources to create value
Each firm has several input factors, and in the throughput stage, it recombines these
input factors to generate an output.
The firm’s capabilities determine how well the firm transforms the input factors into
high quality outputs
Core competencies – result from the firm’s resources and capabilities, and they are
critical to the firm’s success
Key-Success Factors
Organizational Capabilities
Strategic Management
Determining a direction for the business to survive and grow the environment
Getting competitive advantage
Monitoring the environment (type of competitors, suppliers, employees)
Implementing the strategy
1. Price leader
2. Quality
3. Offer unique attributes (insulated paper cup, camera in cellphone, MP3 player in
cellphone, special design)
4. All new product/service
A matrix combining both the external environment and internal conditions of the
business
Develops a strategy for dealing with future events and developing the business
The external environment may yield FAVORABLE (opportunities) or UNFAVORABLE
(threats) situations to the business
The business itself may possess sufficient resources and capabilities (STRENGTHS) or
insufficient resources and capabilities (WEAKNESSES) to deal with the external
environment
It requires a comprehensive information search to identify all possible opportunities and
threats, as well as strengths and weaknesses
Combining INTERNAL STRENGTHS WITH EXTERNAL THREATS help identifying new
business opportunities (when strengths meet opportunities to get more revenue,
develop new products, or develop new markets like internationalizing or the internet)
Combining INTERNAL WEAKNESSES WITH EXTERNAL THREATS AND OPPORTUNITIES
indicate risks that need the business owner’s attention and development of resources
and capabilities.
1. Differentiation
2. Low cost
3. Niche
Differentiation
The firm offers the same product or service that already exists, BUT WITH DIFFERENT
PROPERTIES
This offers better performance or more benefits for the customer (technical features,
attractive design, special service, brand image)
It is important to analyze and understand WHAT THE CUSTOMERS REALLY NEED AND
WANT
1. Quality – high quality means the product functions and meets the customer’s
requirements on functionality, durability, and reliability
2. Time – speeding-up operating procedure, delivering faster and guaranteeing
timeliness constitutes competitive advantage; developing and introducing
innovations faster
3. Flexibility – smaller firms can be more flexible in fulfilling customers’ special needs
and wants; product customization
Low Cost
The firms offers the same product with the same quality, AT A LOWER PRICE
Economies of scape, economies of scope (suitable for larger firms)
Cost management – ensuring that the final product or service stays below a certain cost
limit. The cost limit becomes the target for all procedures, and all phases must yield to
the cost limit by adapting and modifying in accordance with the limit
Cost benchmarking – business owner gets available information on the cost structure of
competitors or some other relevant industry. The firm analyses the own costs with
those of the competitors and identifies the phase with highest difference. Reasons for
difference are identified and measures be taken to reduce such difference.
Niche
Market Position
Business owner should be well aware of the competitors’ position in the market and
choose a unique position to stand out from the other firms’ offerings
ACTION PRINCIPLES
OPERATIONS PLAN
Location
1. Provides information on how the business will look like and what kind of facilities
must be acquired
2. Points potential strengths and weaknesses of the business that can be used or
addressed by the owner
Exact address, surrounding areas, type of business
Floor plan (size, rooms, layout of production facilities and equipment, space for stocks
and inventory)
Information on the premises, physical necessities, required equipment to get started
Explain the reason for the location
Operating Procedure/Process
Quality Control
LAST REMARK
Includes details about the necessary equipment, production process, and the necessary
measures to ensure the quality of the product or service
Includes information on all incurring expenses, should be the starting point for the
financial projections for the business