LESSON 4

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. Marketing mix is a set of
actions an entrepreneur takes to build and market its product to its customers. It helps to make sure that
you can offer your customers the right product at the right time and the right place for the right price.

THE 7P’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 consumer’s
wants, tastes, and preferences.
⮚ It will be for the satisfaction of the group for the target market, and it must be specific, identified
from the others, and easily be recognized.
⮚ It is anything that can be offered to a market to satisfy the desire or need of a customer.
⮚ A product, is generally categorized as tangible goods, but it can also be intangible services.

2 Main types of Products

1. Goods- are tangible products that can measure satisfaction with results or evidence as manifested through
physical development.

a. Durable goods are the physical products that use over a long time.

b. Non-durable goods are the physical products that are quickly and easily consume

2. Services- are intangible products that satisfaction can be measured in future preferences.

a. Rented-goods services- are the consumer rented facility of the sellers at a particular time.

b. Owned-goods services- are the repair and maintenance services rendered by the sellers to the
products of the customer.

c. Non-good service- is personal service on the part of the seller.

Other types of Products

● Consumer product- these are goods and services produced for the final consumer for personal, family, or
household use.
 ● Convenience product- is purchased with a minimum or less effort because the buyer knows product
characteristics before shopping.

A. Staples are low priced items that are routinely purchased regularly and used every day.
B. Impulse products are the items that the consumer does not plan to buy

● Shopping Products- are products that the consumers acquire through further knowledge and information
to make a final purchase decision.

● Specialty Products- are items with particular brands and stores to which consumers are Loyal.
● Industrial Products- these are goods or services purchased for use in the production of other goods or
services.

Goods can be categorized into business goods or consumer goods.

3 Levels of Product

1. Tangible/Actual Product - It can be perceived by seen and touch.

2. Augmented Product - it includes the image and service features of a certain entity.

3. Generic/Core Product - emphasizes the impact of the product to the customer, not on the seller.
These products are named only by their Basic product type, and not on the individual brand.
Many stores carry generic products for lower prices than goods with brand names.

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 shop on the
internet.

⮚ Channel of Distribution - Is made up of people or organizations involved in the distribution process.

Basic Types of Channel Distribution
⮚ Direct Channel Distribution – Is the transfer or movement of goods and services from
manufacturer to final user or customer without the intervention of an independent middleman.

⮚ The Indirect Distribution of Channel - Is the transfer or movement of goods or tangible

products and services or intangibles goods from manufacturers or producers to independent
intermediaries to customers.

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 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 marketing mix. Price is the value of money in
exchange for a product or service. It is the amount or value that a customer gives up to
enjoy the benefits of having or using a product or service.

⮚ Pricing Strategy - tells how the firm prices its products or services.
⮚ It is an essential component of the business plan.

If the firm wants to achieve its objective, the right price for its product or service must be maintained.

There are four (4) Methods of Pricing Strategies

1. Cost – Plus Strategy = This method covers all the costs, variables, and fixed, plus an extra increment
to deliver profit.
2. Demand Pricing – This is a method of pricing where the firm sets prices based on buyer desires.

3. Competitive Pricing = This method of pricing calls for a price-setting, based on the price charged by
competitors.

4. Market Pricing – This is a form of cost-oriented pricing, in which the firm sets prices by adding per–unit
merchandise costs, operating expenses, and desired profit.

4. Promotion - It is any form of communication that use to inform, persuade, and remind people
about an organization or individual's goods, services, image ideas, community involvement, or impact on
the society.

Promotional Mix - It is a combination of the strategies to accomplish the promotion objectives of an

organization.

Promotional Mix tools - It refers to the entire set of activities, which communicate the products,
brand, or service to the user.

Elements of Promotional Objectives

⮚ Advertising = Is a paid and non–personal communication, regarding goods, services,

organizations, people, places, and ideas that are transmitted through various media by business
firms, government, and other non – profit organizations and individuals who are in some way
identified in the advertising message as the sponsor.
Examples:
Moving Image like TV, Cinema, DVD, and YouTube

Print like Newspapers, Billboards, Magazines, and Direct mails.

Digital like SMS, Podcast, Blogs, Banners, Social Media and

Audio like Radio and Podcast.

⮚ Publicity – Is a non-personal communication regarding goods, services, organizations, people, places, and
ideas transmitted through various media.

An example is Sponsorship.
 ⮚ Personal Selling – Involves oral communication with one or more prospective buyers by paid representatives
to make sales.
Examples: Face to Face, Telephone, Emails, and Video/Web Conferencing.

⮚ Sales Promotion – Involves paid marketing communication activities that stimulate consumer purchases and
dealer effectiveness.

Examples:
Buy one Take one, Bodega sale, and Discounts Coupons.

PEOPLE

Your team, a staff that makes it happen for you, your audience, and your advertisers are the
people in the 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 marketing mix today. This is because of the remarkable rise of the service
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 the clients will patronize your
service.
Therefore, the right people are essential in marketing mix in the current marketing scenario.

People can consider as a product by providing satisfaction to the consumer.

Businesses can improve their ability to attract, retain, and improve productivity by applying the following
five Steps PRIDE process.

P – Provide a Pleasant Working Environment

R – Recognize, Reward and Reinforce the Good Behavior
I – Involve and Participate in the Activities and Programs
D – Develop Skills and Attitude
E – Evaluate and Measure Performance

Networking - It involves socioeconomic business activity by which entrepreneurs and business people
meet to form business relationships to recognize, create, or act upon business opportunities, share
information, and seek potential partners for business ventures.

The following tips can help someone to become successful in a networking career:

1. Be humble and confident when dealing with others.

2. Remember, both of you are important to the meeting.
3. Make the first meeting successful. Remember that first impression last.
4. Share information to create understanding
5. Praise other people, avoid being arrogant.
6. Let other people share, do not monopolize a conversation.
7. Thank someone
8. Ask for referrals
9. Bring the best ideas. Avoid talking nonsense.
10. Be conscious in time, some people are busy.

PACKAGING
Packaging is a silent hero in a
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 and cost efficient for the
customers. Packaging is high
functional. It is for protection,
containment, information, utility of use
and promotion.

POSITIONING

Positioning - It refers to how the firm differentiates products or services, from those of the competitors and serving
a niche.
It is one where the firm identifies a target segment and develops a strategy mix to address the desires of the
segment.
The objective of the positioning is to establish the firms' product or service identity in the mind of the buyer.
When a company presents a product or service in a way that is different from the competitors, they are said to be
“positioning”. Positioning refers to a process used by marketers to create an image in the minds of a target market.
Solid positioning will allow a single product to attract different customers for not the same reasons. For example, two
people 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.

⮚ Product Positioning
The entrepreneur must create an image to the public, presenting how they want to position the product.
The customers/target market must be well informed about a new product – What it is, What it can do, What
makes it better than other products, and Who should buy it.
⮚ Market Positioning
1. Innovator/Leader vs. Follower
The idea that the company can consider as an innovator or leader means being an initiator in selling a
new product to the market. The product is new and a stranger to the market; still, the firm creates
strategies to sell it.
The idea that the company is considering as a follower or imitator
means that the product is just being copied from the innovator.

2. Domestic vs. International/Global

A Domestic firm produces only for local consumption. There is no vision for a larger market and focuses
only on the minority of markets in the country.
It is also the idea that the international/Global market expands its product line to meet the market
located beyond the boundaries of one country.
3. Quality vs. Price
The idea that Quality must be the priority in selling the product not considering how much it will cost, It
describes how the firm priorities the materials being used and how it will create satisfaction in the
market.
On the other hand, the price must be the first consideration in producing the product – How much it
will cost to the market, and How to make the product affordable to the market.

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.

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.
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.

SELECTING A GOOD BRAND NAME

1. It should suggest about the product or service.

If you choose a brand name it should be connected to the product that you’re
going to sell.

2. It must be easy to pronounce and remember.

If you’re going to make a brand name it should be easy to remember and
pronounce so, you’re customer can always remember your brand and product.

3. It must be simple and short.

Don’t make your brand name complicated it should be simple and short but has
an impact to your customers.

4. It must be distinct or different from others.

Make your brand name unique and remarkable, it’s going to catch the eyes of
your consumers.

5. It must be adaptable to new company product that may be added.

Bear in mind that if you choose a brand name it should be flexible because as an
entrepreneur you innovate and create new product, make sure that your brand
name will suit to all products that you’re going to produce.

6. It must be capable of registration and legal protection.

 And lastly, you should create a brand name that you can registered easily
because as long as your brand name is registered, you as a producer is
protected by the law and also your products.

REASONS FOR THE EXISTENCE OF BRANDS

1. Identification – brands enable consumers to easily distinguished one

product from another.
If your product has a brand it can be identify and recognize easily in the market.

2. Protection – it enables the owner of the brand name to enjoy the

goodwill associated with the name so as not taking advantage of
others.
If you have a brand name you are protected by the law because we all know
that in the market there are so many fake and imitated product from a brand
that is popular.
3. Positioning – it enables the owner to communicate the benefits of his
product vis-à-vis competition.
Through your brand name you can communicate to your consumers if what is
the benefits they get from your product.

CRITERIA FOR CHOOSING A BRAND NAME

1. Distinctive – is the brand closely associated with another product?

First, if you’re going to choose a brand name make sure that it is not associated
with other products.

2. Word Association – does it have a pleasant meaning?

If you’re going to choose a brand name make sure that the word association
have a pleasant meaning.

3. Legal Requirements – can it be registered?

In choosing a brand name you must think also a name that can be registered,
because not all brand name ideas is qualified for registration.

4. Memorability – can your name remembered easily?

It’s another criteria for choosing a brand name, make sure that the brand name
that you’re going to use is easy to remember.
 5. Pronounce ability – can it ne pronounced easily?
Make sure your brand name is easily to pronounce to make it less complicated
for your consumers.

6. Limitations – is the brand name too limiting to be used for expansion?

Don’t make a brand name that limitates the expansion of your product.

LESSON 5
Operations Management is about delivering products and services to customers to meet
or surpass the expectations. It is designing, developing, and executing the Enterprise Delivery
System, from sourcing of the necessary input to the transformation of these input to the
transformation of these input the final output, which come in the form of goods or services or
both, must carry all the features and attributes that customers are looking for. All operations
managers must therefore, begin with the customer’s wants and desires in mind. These wants
and desires can be classified into customer outcome expectations that are crucial to the
operations function.

4M’s of Operations mainly represent factors that influence on results of any concern
process. This was used to make product design and quality defect prevention to identify
potential factors on cause and overall effect. In manufacturing industries this method was
used to apply on production control, improvement, overall efficiency measurement, processes,
and design. Let us now describe the 4 major domains of 4M’s of Operations in relation to
business opportunity.
 4Ms of Operation:

1. METHOD- It refers to the system and step by step process in the business.

As a company manager you need to ensure that your products were properly processed before
you sell it out in the market.
Without a scalable process, it would be difficult to expand the business. This means that the
methods used in the main branch must be documented and must be replicated as well
in other branches.

For example: Those companies who were using machines to make the production in the main
branch faster and easier should also have the same machine in their other branches to maintain
the consistency and avoid consumer confusion.

A Method is a detailed procedure for accomplishing something. It is a systematic way of doing a

particular job. Method was used in business when developing or innovating a new products or
services, expanding your business enterprise, searching for skilled workers to include in the
workforce, and for improving the efficiency of its process. All of this activity was documented as
reference for every development of the business including notations that identifies product or
service and customer preferences. This will result to a standard operating procedure in all
activities that the business will implement.

Methods - suggest the process of combining raw materials and how these are going to be
transformed using the other factor inputs of production.
This resource input is also called technology or techniques of production since it prescribes the
intensity in the use of factor inputs.
If labor is abundant and cheap in the locality, the firm might use more labor-intensive
techniques. This only means that they will use labor more than other factor inputs. However, if
labor is expensive and capital is cheap the firm or company may implement a capital-intensive
technology. This means that will use more capital compare to the other factor inputs.

Ex. Now in the production of pandesal, the mixing of ingredients will use manual labor
intensively as applied by small bakeries. On the other hand, large bakeries in urban areas will
use modern baking equipment and utensils that are capital intensive.
2. MANPOWER- The number of people working or available for work or service.

A wise selection of Manpower to join in your workforce provides strategic solutions in promoting
a sustainable competitive advantage that quickly adapts changing demands in business and its
operations. These are employees that processes and give insights on how to reduce cost,
increase productivity to achieve a better business result. Finding an honest and capable people
is always a challenge in business. To have them work happily and satisfied, an employer should
always take good care and treasure them by providing the right salaries and benefits as they
are integral to the growth of the business.

How to maximize the staff contribution to work?

● Motivate the staff. It helps to improve their morale.

● Make sure they are comfortable in their workplace. They must be provided with the
required amenities so that their work does not appear burdensome.
● Staff should be provided with necessary benefits. They must feel that their work is
worth performing. Not only the entrepreneur should gain, but also the employee should
benefit.
● Self-respect is very essential. The employee should be treated well. He must not be
treated as a slave.
● The staff should also share in the profits if possible. Yearly bonus apart from his or her
salary is added income for him or her.
● Appreciation. Hard work and dedicated effort should be appreciated.
● Leisure time should be provided for extra-curricular activities. He or she should also be
given time to take off from work so that he or she can go on a holiday. A change of
scene refreshes the mind.
● One must listen to the woes of the employees. Understanding their difficulties in
performing the task is essential.

3.MACHINES- These are the basic tools to produce goods or to generate services.

Machinery is also important. Without the proper

equipment, you will not able to perform the needed
tasks efficiently. You may be able to use the manpower
to do it, but it is usually more efficient if machines are
able to automate the work.

To put it simply, as an entrepreneur you need to use

such equipment like food processor, garment
machines, and networked printers/copiers to produce
more products in just a short couple of time.
Machine plays a vital part in operating a business. Aside from manpower the use of machinery
is important nowadays to make the process of production more effective and efficient. A
machine is a mechanical structure that uses power to apply forces and control movement to
perform an intended action. It is controlled by people or a machine itself to produce the
necessary or required number of productions needed. You may be able to use the manpower to
do a particular job but it is usually more efficient if machines are able to automate the work.

The right machine equipment can improve your processes, productivity, and capacity to
innovate. Not only will you save time and resources, but you’ll also avoid costly quick fixes.

4. MATERIAL- The matter from which a thing is or can be made.

Materials are the things that we need to use in

order to produce a product.

Example: We can make a bread by using some

ingredients like yeast, flour and so on. The
materials include both direct and indirect or
consumable materials.

Direct materials- These are the materials which can be conveniently identified with.

For example: Butter is produced out of milk, Timber is a raw material for making furniture.
Indirect Materials-These are the materials which cannot be easily and conveniently
identified, like consumable stores, oil and waste, printing and stationery

Example:

The machines that is used for production requires lubricants, jute and cotton.

Materials Requisitioning Options

Manufacturing own products or offer services – if this is the case entrepreneurs need to
prepare huge capital for the materials, machines and manpower which we all know will cause
the company a greater risk. However, through this entrepreneurs can closely monitor the
quality of his product and can build his own name overtime making his own brand identity.

Outsourcing of manufacturing or service activities to a third party – this is the process

where a company appoint a third party manufacturer to do the manufacturing operations of the
business. Expertise wise these third party companies have more experience and can handle
manufacturing products tailored to the entrepreneur’s needs at a lower cost. It also saves the
entrepreneur from buying expensive machineries, but has it also has its risk such as: Profit
shared with the third party, they run out of supply, when the outsource party closes its business
and if they produced sub-standard products.

When outsourcing the entrepreneur must protect its product through a trademark or a patent
and a noncompeting or nondisclosure agreement.

o Patent – the right to protect the entrepreneur regarding the product or service.
o Trademark – a sign or symbol that helps to distinguish the product from the others
o Nondisclosure Agreement – states that the third anyone else.

Purchasing own products or services from present suppliers – this is where entrepreneurs
purchased finished products from manufacturer or offering the services of another company.
The company can save the cost of the machines and manpower. However, the entrepreneur
cannot own the brand name of the product or service and the manufacturer is not restricted to
sell to the entrepreneur’s competitors.

Traditionally, these are the crucial four (4) domains of production where one cannot function
properly without the other. However, let’s add another M in this list.

Money – it is a financial resource used to purchase all the resources needed by the firm for its
operation. The owners of the company contribute seed money for the initial operations of the
firm. It is also needed to purchase raw materials, pay salaries of the workers and managers and
durable equipment needed for the company.

In the economic analysis of production, the resource inputs mentioned above are grouped into
two major categories – intermediate inputs and factor inputs.

 Intermediate inputs – are semi-processed materials that need further transformation to

produced a finished product. They are also called raw materials or materials.

 Factor inputs – are the transforming inputs that will process the intermediate inputs into
finished products. They are also called productive inputs because of their transforming
properties. This includes labor (manpower), capital (machinery), land and technology (method).

While money does not have a direct participation in the physical transformation of the
intermediate inputs, it is very crucial in the production process. As mentioned earlier, we use it
to purchase materials, pay workers’ salaries and wages and even the machineries we use.

Now that we already know how important 4Ms are in the business process together with the
7Ps of marketing mix, we can definitely make the Ayalas or even the Lopezes run for their
money right? We should only need to understand and know how to entice our prospective
buyers to buy our products.

How will we do that? Definitely through an effective product description, you can guarantee
that they will hit that “add to cart” button in an instant. Product description is one of the
important aspect of selling, you have to visualize what your target market will patronize and
would like to have.

Here’s the 3 Rules to Visualize a Product Descriptions That Sell.

1. Know who your target audience is – you might want to highlight the things that might
interest your potential buyers. You can actually do this by knowing what specific demographics
you are going to cater. Is it for teens? Young professionals or Seniors. By knowing such you will
have a specified goal to achieve once you roll your product.

2. Focus on the Product Benefits – know the difference between product features and
benefits. A product feature is a factual statement about the product that provides technical
information. A product benefit, on the other hand, tells how the product can improve the
buyer’s life. If you are the customer I know you will choose the latter. However, you can always
convert the features into benefits.

3. Use good product images – aside from the description, a quality image will do the trick.
Why? Because 63% of customers think that a product image is more important than the
description or even the reviews. So an important aspect of your product description is actually
in the photo itself. Quality photos will show the customer all of the key features about your
product. They will also allow the customer to imagine having this product in her life.

Once you already have a clear vision of what should be the description of your product. We can
now create our own prototype.

What is Prototype?

You have visualize a great product. You can imagine how this particular product will make a
change and how it will be a great help to make our life easier. However, what we have in mind
is sometimes a lot difficult to explain so we create a mock-up of what the final product will look
like, that is a prototype. A Prototype is an initial creation of a product that shows the basics of
what product will look like, what it will do and how it will work. However, it is not meant to be
the final version as there will be lots to improve.

Prototype example

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1024x724.jpg

Advantages of Prototypes:

1. Creating prototype gives you the opportunity to test and refine the functionality of your
design.

2. It makes it possible to test the performance and quality of the materials.

3. It will help you describe your products more effectively with potential buyers.

4. It will encourage others to treat you more seriously.

The key to creating products or services that fit into the sweet spot between what you love to
create and what your potential customers really need is to validate the marketability of your
product or service.
This may sound boring, but it is actually a part of the process that is very useful in building
trust with your customers and checking that your product or service will be patronized.

WHAT IS PRODUCT/SERVICE DESCRIPTION?

A product/service description is the marketing copy that explains what a product/service is

and why it's worth purchasing. The purpose of a product/service description is to supply
customers with important information about the features and benefits of the product/service so
they're compelled to buy. (Henneke, 2019)

Here is an example of a product description.

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MARKET VALIDATION

Market validation is the process of presenting a

concept for a product to its target market and learns
from those prospective buyers whether or not the idea
is worth pursuing.

This process typically takes place early-on in the

conception stage, before any significant investment has
been made in developing the product.

The two most common approaches to market validation are:

1. Interview people in the target market, such as the buyers.

2. Send out surveys to these personas.

The key is that market validation research must include direct contact and feedback from
people in the product’s intended market.

WAYS TO VALIDATE A PRODUCT’S OR A SERVICE’S MARKETABILITY

1. Ring the cash register

The first and arguably best way to validate your product is to prioritize making a few initial
sales. Nothing is more important than customers seeing the value in your product and
exchanging money for it.

2. Conduct competitive analysis

 Research can be useful when you’re still in the ideation stage or searching for a product to
sell. Exploring the current market can also help you mitigate risk and build confidence in your
idea before investing too much time and money.

Evaluate the market for your product as it stands today to ensure there’s enough demand to
build a viable business. One way to make sure there is a healthy market to sell to is to look
closely at your direct competition. Find out what they are doing and how it compares to what
you are planning to do.

Remember not to get discouraged when you see competitors that have already grown big
businesses. The fact that they exist will give you a good sense of whether what you are offering
is unique or different than what’s currently in the market, which can point you toward untapped
opportunities or help you figure out what to focus on going forward.

Competition is good, because it confirms that there’s existing demand for what you plan to
sell.

You can also check out your competition’s social media to see how engaged their customers
are with their posts and products. It’s a great way to check out negative feedback about a
product and see if you can find a way to improve.

3. Research the existing demand

A third strategy you can use to validate your product and its market is to analyze demand
and search volume. Now that you know more about your competitors, let’s take a closer look at
interest from potential customers.

The easiest starting place is to go to Google Trends. This is a free tool that allows you to
see how often people are searching for the product you’re selling. Knowing where the market is
going can help you make a more informed decision and using Google Trends lets you see if
you're dealing with a trending product that's on the upswing, or it’s a stagnant product
category. The last thing you want to do is jump into a declining market.

Once you really start getting a sense of your customer base, it’s critical that they have a
way to communicate with and provide feedback to you. The quickest and easiest way is to
provide friends and family with your minimum viable product (MVP) and then gather feedback
using a free survey.

4. Start a crowd-funding campaign

What is Crowd-funding?

Crowd-funding is the use of small amounts of capital from a large number of individuals
to finance a new business venture. A crowd-funding campaign is a helpful, proven option to see
if there’s demand for your product. One of the benefits of a crowd-funding campaign is that you
have a firm timeline and it requires all of your focus and effort to reach your goal.

Market research can be useful, but real product validation requires paying customers. Do
some research to ensure you have the right platform with the right community to launch your
product, and definitely try to talk to people who have run successful crowd-funding campaigns
for tips.

5. Meet customers in person

Another method is to sign up for trade fairs in local market. It provided a convenient way to
gather quick, first-hand feedback from potential customers.

Selling in person has the added benefit of a strict deadline that you need to take action by,
which is why we personally love it. This deadline acts as a forcing function that pushes you to
get your products ready, and to get yourself ready to sell them. Once you’re able to meet in
person, you’ll benefit by getting to talk to potential customers, seeing their initial reactions to
your product, and finding out if they are willing to spend money on it.

6. Beta Test

Other ways to validate your product include creating a test version of something and
running it past a small group or audience to get their feedback.

A test version of the product can either be paid, or free, and is a great way to get
testimonials and feedback while you create. You can also use the feedback from your first
round to improve and build on your ideas to make them even better!

WHAT HAPPENS IF NO ONE SEEMS INTERESTED?

What if your potential customers do not want your idea?

Take a look at the execution; it might be they love the concept, but the delivery needs to be
different. Or, that the idea is sound but the offer isn’t clear.

If you are passionate about your product or service and truly believe it has a place in the
market, test it with a few variants of concepts and play around with some methods of delivery
and adding value.
 Do your research, build as you go, and make sure that the vibrancy and energy behind your
passion for your offering remain there, and your business and clients will thank you for it!

LESSON 6
Business implementation is a set of steps that companies use to determine how to
implement a strategic plan within company to achieve one or more business plan
objectives.

Guidelines for successful business plan implementation:

1. Objectives – the entrepreneur should have a clear idea on what is his purpose of
putting up his enterprise.

2. Tasks – this means that the entrepreneur must know what the tasks are he has to
perform in order that his objectives will be realized.

3. Time allocation – this means that the entrepreneur should have a timetable or a
schedule to follow every task, so that it will be accomplish on time and realize his
objective.

4. Progress – this means that the entrepreneur should monitor the development of
the tasks and the accomplishment of the objective.

In operating a business, the entrepreneur should first consult professional for

advices, like accountants or consultants from small enterprises. In your case, you can
consult your teacher in entrepreneurship or anyone you think that could help you.

The following are the basic requirements to start a business in the Philippines:

 Securities and Exchange Commission (SEC) Registration –

for partnership or corporation

 Department of Trade and Industry (DTI) Registration – for

your business trade name
  Mayor’s Business Permit – for getting the license to operate in
the city or municipality and payment of your local business taxes.

 Bureau of Internal Revenue (BIR) Registration – for getting TIN, official

receipts and invoices, registering your book of accounts and paying
your national internal revenue taxes.

 SSS, Philhealth, and Pag-Ibig Fund Registration – for registering

yourself or company as an employer and for remitting your employees’
contribution together with your employer’s share.

Other steps to follow before operating a Business are as follows:

1. Set up an accounting system or hire an accountant. Knowing how the

business is doing financially is important for planning and survival.

2. Advertise the business. No one will buy the products or services if customers do
not know the company exits. You can make use of the social media.

3. Secure insurance for the business. Liability insurance protects the business in
the event of litigation. Consider life and disability insurance , health insurance and fire
insurance when you are leasing an office or storefront.

Keeping Business Records

Good record keeping can help protect the business, measure the performance and
maximize profit. Records are the source documents, both physical and electronic, that
specify transaction dates and amounts, legal agreements and private customer and
business details.
 Developing system to log, store and dispose of records can benefit the business. A
systematic recording allows you to;

A. Plan and work more efficiently

B. Meet legal and tax requirements

C. Measure profit and performance

D. Protect your rights, and

E. Manage potential risks