MODULE 1- INTRODUCTION TO ENTREPRENEURSHIP

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 - This means that many organizations will exist because of
entrepreneurship.
3. Improving Standard of Living - this means that entrepreneurship can lift the
The economic status of an individual.
4. Means of Economic Development - this means that the entrepreneur’s life is improved and 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 the enterprise. The
enterprise is created by an entrepreneur and the process is called.
“Entrepreneurship.”
Entrepreneurs are innovators. They are willing to take the risks and generate unique ideas that can provide
profitable solutions to the needs of the market and the
society.
Factors Affecting Entrepreneurship
1. Personality Factors which include:
a. Initiative - doing things even before being told.
b. Proactive - which means he can classify opportunities and seize it.
c. Problem Solver – he can retain good relations with others.
d. Perseverance - meaning he will pursue things to get done regardless of challenges.
e. Persuasion - means that he can entice people to buy even if they don’t want to.
f. A Planner - he makes plans before doing things and does not fail to monitor it.
g. Risk-taker - which means that he is willing to gamble but he will calculate it first.
2. Environmental Factors which include political, climate, legal system, economic and social conditions,
and market situations.
Common Competencies in Entrepreneurship
1. Decisive - an entrepreneur must be firm in making decisions.
2. Communicator - an entrepreneur must have convincing power.
3. Leader - an entrepreneur must have the charisma to be obeyed by his employees.
4. Opportunity seeker - an entrepreneur must have the ability to be the first to see business
chances.
5. Proactive – an entrepreneur can control a situation by making things happen or by preparing for
possible future problems.
6. Risk Taker – an entrepreneur has the courage to pursue business ideas.
7. Innovative - the entrepreneur has big business ideas, and he does not stop improving and thinking
of new worthwhile ideas for his business.
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 the
optimum utilization of limited resources.
2. Innovative – The entrepreneur constantly looks for new ideas, thus he needs to be creative.
3. Profit Potential - The entrepreneur can be compensated by his profit coming from the operation.
4. Risk bearing – The entrepreneur needs to gamble but is wise enough to offset the risk.

Types of Entrepreneurs
1. Innovative Entrepreneurs - They are those who always make new things by thinking of new ideas.
They have the ability to think of newer, better, and more economical 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 skeptical about changes to be made in the organization. They
don’t initiate but follow only after they are satisfied.
4. Drone Entrepreneurs - They are those who live 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 and drive social innovation and
transformation in various fields such as education, health, human rights, environment, and
enterprise development.
Career Opportunities of Entrepreneurship
1. Business Consultant - with expertise in the field of entrepreneurship, he can be a very good
source of advice to other entrepreneurs and would-be businessmen.
2. Teacher - a graduate of entrepreneurship can use his knowledge in teaching.
3. Researcher - the entrepreneur can be employed as a researcher by an enterprise.
4. Sales - the entrepreneurship graduate can apply as a salesman.
5. Business Reporter - the entrepreneur being an expert in the field, can be employed as a business
reporter.

MODULE 2- REORGANIZE A POTENTIAL MARKET

Entrepreneurial Ideas
The creation of an entrepreneurial idea 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. (Nick L. Aduana, Entrepreneurship in Philippine Setting for Senior High
School, 2017, C&E publishing page 46, Aduana, 2017).

Essentials in Entrepreneur’s Opportunity – Seeking

These are the basic foundation 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 situations. Being a risk-taker, an entrepreneur can find solutions when
problems arise.
Entrepreneurial heart flame. Entrepreneurs are driven by passion; they are
attracted to discovering satisfaction in the act and process of discovery. Passion is the
great desire of an entrepreneur to achieve his/her goals.
Entrepreneurial gut game. This refers to the ability of the entrepreneur of being intuitive. This is also
known as intuition. The gut game also means confidence in one’s self and the firm belief 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. The following are some 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 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.
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 into a business that responds to the needs of the people during the summer
and rainy seasons.

2. Technological discovery and advancement

A person with entrepreneurial interest sees the possibility of business opportunities in any new
discovery or because of the use of the latest technology.
For example, an individual with knowledge in the repair and installation of a machine engine
discovers 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 sources of entrepreneurial ideas like the
increasing number of Internet Cafés at present could lead to the strong attachment of young
people to computers.

5. Past experiences
The expertise and skills developed by a person who has worked in a particular field may lead to
the opening of a 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 service 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 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 ones that pay cash in exchange for your goods and services.
One example is the influence of the price or in the bargaining strategy. The buyer has strong and magnified
bargaining power. The threat of its bargaining power will be less if the following factors are noticed:
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.
2. Potential New Entrants
A new entrant is defined as companies or business that have the ability to
penetrate or enter into a particular industry. For example, in 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 noticed 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 wherein business organizations are competing with each other in a
particular market. 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. The 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
A substitute is one that serves the same purpose as another product in the
market. For example, 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 to the industry environment if the following factors are noticed:
a. Switching cost is low.
b. Preferences and tastes of the customers easily change.
c. Product differentiation is highly noticeable.
d. The quality of substitute products dramatically improves.
e. The price of the substitute product is substantially lower.
5. Suppliers
The Suppliers are the ones that provide something that is needed in business operations such as office
supplies and equipment. In an example where supplies and services being offered is unstable the intensity
of the threat is strong in this kind of competitive force in the industry. This can be noticed 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
MODULE 3
What is Unique Selling Proposition (USP) and Value Proposition (VP)? This part allows the entrepreneur
to prepare himself on how to advertise and sell his product even if it is similar to others. In this lesson,
you will find out the answers and understand more about the market.
Value Proposition (VP) - 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
There are many competitors in the market who establish superiority over other entrepreneurs.
Entrepreneurs should think of other alternatives to make their products better. An important aspect of a
Value Proposition is that it must be truthful and that it should establish credibility with the consumers.
Example: Potential value proposition is most common in small businesses of your locality.

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 an entrepreneur, you should think of marketing concepts that persuade your target customers. You
may ask the following questions in doing this: What do the customers want? What brand does well? What
does your competitor sell well? Some tips for the entrepreneur on how to create an effective unique
selling proposition to the target customers are:
• Identify and rank the uniqueness of the product or service’s character.
• Be Very Specific
• Keep it Short and Simple (KISS)

Commonly used methods for segmenting the markets are as follows.:

1. Geographic segmentation – the total market is divided according to geographical
location.
• Variables to consider
a. Climate
b. Dominant ethnic group
c. Culture
d. Density (either rural or urban)
2. Demographic Segmentation – divided based on consumers
• Variables to consider
a. Gender
b. Age
c. Income
d. Occupation
e. Education
f. Religion
g. Ethnic group
h. Family size

3. Psychological Segmentation – divided in terms of how customers think and believe

• Variables 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 customers’ behavior pattern as they interact with a
company.
• Variables 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
Service Requirement:
An intangible thing or product that cannot be touched but the customer can feel the fulfillment. There
are elements in service requirements like on-time delivery, service with a smile, easy payment, etc. It
includes all aspects of how a customer expects to be treated while purchasing a product and how easy
the buying process goes.
Output Requirements:
Tangible things or things that can be seen. Characteristic specifications that a consumer expects to be
fulfilled in the product. Costumers 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. The customer buys gadgets (phone speakers) the specification like
loudness and clarity are the output requirements.

C. Market Size
The entrepreneur’s most critical task is to calculate the market size, and
the potential value that market has for their start-up business. Market research will
determine the entrepreneurs’ possible customers in one locality.
What is Market Size?
Market size is like a size of the 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, the entrepreneur will conduct strategic marketing research from
reliable sources using the following method. The first step is to estimate the potential market – the
approximate number of customers that will buy the product or avail of your services. The second step is
to estimate the customers who probably dislike buying your product or avail of the services. The third
step is for the entrepreneur to estimate the market share, which means plotting and calculating the
competitor’s market share to determine the portion of the new venture. Market size becomes the most
important factor if you ever need to raise funding for your business.

MODULE 4 MARKET RESEARCH

Market Research or Marketing Research Process can be defined as the process of gathering, analyzing,
and interpreting the information about the products or services to be offered for sale to potential
consumers in the market (De Guzman, 2018, p. 25)
DATA COLLECTION is the most valuable tool in any type of research study. Inaccurate data collection may
cause mistakes and ultimately lead to invalid results. (Edralin, 2016, p. 80)
TIPS in COLLECTING 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
• Take note of interesting or significant data
Three different data collection techniques
SURVEYS are the most common way to gather primary research with the use of questionnaires or
interview schedules. These can be done via direct mail, over the phone, internet (e.g. Google) or email,
face-to-face, or on the Web (e.g. Skype or Viber). When designing or constructing your own research
questionnaire, remember the following guidelines. (Edralin, 2016)
• Keep it as 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 response scales used are consistent with categories that are mutually exclusive

INTERVIEW is one of the most reliable and credible ways of getting relevant information from target
customers. It is typically done in person 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 & Ormrod, 2001, pp.38-39)
Personal interviews are the traditional method of conducting an interview. It allows the researcher to
establish relationships with potential participants and therefore gain their cooperation. It generates the
highest response rates in survey research. They also allow the researcher to clarify indefinite answers and
when necessary, seek follow-up information. (Leedy & Ormrod, 2001, pp.39)
• 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 moderated by 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.
• Conduct focus groups discussion with 8 to 10 participants per group.
• Assign an expert moderator/facilitator who can manage group dynamics.
• Use a semi-structured 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)
(Leedy & Ormrod, 2001, pp.40-41)

MODULE 5- P’s of MARKETING AND BRANDING

Whatever you sell or offer you must outline your marketing mix. Marketing mix has been around as early
as trade existed and that is quite a long already. The only difference is that today everything is well
outlined and keeps evolving even further. To get to the point, a marketing mix is a business mechanism
used for the effective marketing of products. There is no hesitation that anyone would benefit from a
powerful 7Ps.

Marketing Mix is a set of controllable and connected variables that a company gathers 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 7P. The original 4 P’s stand 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

There are several important frameworks that you can utilize for the purpose of marketing your product
and services. A very crucial structure among these is the “7 P’s of Marketing. The framework of “7 Ps of
marketing” includes product, place, price, promotion people, packaging, and positioning. Realizing these
P’s in the most ideal manner can turn out to be very profitable, however, you should totally see each
description of the 7 P’s first.

1. PRODUCT
The first P in the Marketing Mix is the 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. Examples of goods include tires, MP3 players, clothing and etc. Goods can be categorized
into business goods or consumer goods. A buyer of consumer goods may not have a thorough knowledge
of the goods he buys and uses. Examples of services include 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 is the second P in the Marketing Mix. 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.
It is one thing having a great product, sold at an attractive price. But what if:
• Customers are not near a retailer that is selling the product?
• A competing product is stocked by a much wider range of outlets?
• A competitor is winning because it has a team of trained distributors or sales agents who are out there
meeting customers and closing the sale? Place matters for a business of any size. It is a crucial part of the
marketing mix. The main function of a distribution channel is to provide a link between production and
consumption.

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 third P in the Marketing Mix is price. The price is a serious component of the
marketing mix. What do you think is the meaning of 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. Thus, customers exchange a certain value for having or using the product – a value
we call price. In commerce, price is determined by what (1) a buyer is willing to pay, (2) a seller is
willing to accept, and (3) the competition is allowing to be charged. With product, promotion, and place
of marketing mix, it is one of the business variables over which organizations can exercise some degree of
control. One example of a pricing strategy is the penetration pricing. It is when the price charged for
products and services is set 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. There are several factors that affect
a small business’ revenue potential. One of the most important is the pricing strategy utilized by you as
the owner of the business. A right pricing strategy helps you define the particular price at which you can
maximize profits on sales of your product or service. You need to consider a wide range of factors when
setting prices of your offerings. The different pricing strategies with its definition
can be found in the table below
4. PROMOTION
Promotion is the fourth P in the Marketing Mix. Promotion refers to the complete set of activities, which
communicate the product, brand or service to the user. The idea is to create an awareness, attract and
induce the consumers to buy the product, in preference over others. The following are the most common
medium in promoting a product and this is called promotional mix.

PROMOTIONAL MIX
1. ADVERTISING
• Radio
Advertising by means of radio gives the advantage of selecting the territory and
audience to which the message is to be directed. It is also cheaper than TV advertising.
• Television
This is the latest and the fast-developing medium of advertising and is getting increased popularity
these days. It is more effective as compared to radio as it has the advantages of sound and sight.
On account of pictorial presentation, it is more effective and impressive and leaves a lasting
impression on the mind of the viewer.
• Print
The print media carry their messages entirely through the visual mode. These media consist of
newspapers, magazines and direct mail.
• Electronic
You can also advertise electronically through your company website and provide important and
pertinent information to clients and customers. You can protect some parts of your website through
passwords and give access to member customers. You can also send advertisements via direct e-
mail as part of your promotional strategy.
• Word of Mouth
Word-of-mouth advertising is important for every business, as each happy customer can steer
dozens of new ones your way. And it's one of the most credible forms of advertising because a
person puts their reputation on the line every time they make a recommendation and that person
has nothing to gain but the appreciation of those who are listening.
• Generic
The promotion of a particular commodity is without reference to a specific producer, brand name
or manufacturer. Producers join together to expand total demand for the commodity, thereby
helping their own sales. These activities are often self-funded through assessments on marketing
called check-off programs.

2. PUBLIC RELATIONS OR PR
In public relations, the article that features your company is not paid for. The reporter, whether broadcast
or print, writes about or films your company as a result of information he or she received and researched.
Many people use the terms PR and advertising interchangeably, PR involves sharing information with the
public using platforms that do not require payment, such as social media or through press releases shared
with magazines and newspapers. PR professionals package information and disseminate it in the hopes
that it will be organically shared. The goal of public relations is to shape public perception of a business,
presenting a positive image through various strategies to its various
constituents.
3. PERSONAL SELLING
Personal selling occurs when an individual salesperson sells a product, service or solution to a client.
Salespeople match the benefits of their offering to the specific needs of a client. Today, personal selling
involves the development of longstanding client relationships. Personal selling involves a selling process
that is summarized in the following Personal Selling Process.
The five stages are:
• Prospecting
• Making first contact
• The sales call
• Objection handling
• Closing the sale
4. SALES PROMOTIONS
Sales promotion is any initiative undertaken by an organization to promote an
increase in sales, usage or trial of a product or service (i.e., initiatives that are not
covered by the other elements of the marketing communications or promotions mix).
Sales Promotion Technique
• Free Gifts
There are many ways to utilize this particular sales promotion technique. A newly opened store, for
example, may offer the first 10 customers free items worth 100 pesos.
• Free Samples
Providing free samples is a technique used to introduce new products to the marketplace. Samples give
the consumer a chance to see how well they like a product or try something they otherwise would not
normally buy.
• Free Trial
A free trial is a way for a consumer to try a new product while eliminating risk. It may be used when a
product is unique to the marketplace.
• Customer Contests
Contests offer the customer a chance to win prizes like cash or store merchandise.
• Special Pricing
Special pricing is used to offer consumers a lower price for a period of time or to purchase in multiple
quantities. For example, a retailer may offer a product that normally costs 35 pesos at a price of 3 for 100
pesos during the promotional period.
5. DIRECT MARKETING
Direct marketing is a promotional method that involves presenting information about your company,
product, or service to your target customer without the use of an advertising middleman. It is a targeted
form of marketing that presents information of potential interest to a consumer that has been determined
to be a likely buyer.

5. PEOPLE
The fifth P in the Marketing mix is People. Your team, the 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 by 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. The marketing efforts of
people are to create customer awareness, arouse customer interest, educate customers, close the sale,
and deliver the product. Therefore, the right people are essential in the marketing mix in the current
marketing scenario.

6. PACKAGING
Packaging is the sixth P in the Marketing Mix. 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.
Five Basic Functions of Packaging
1) Protection:
One of the major functions of packaging is to provide for the effects of time and
environment for natural and manufactured products. The protection function can
be divided into some classes.
A. Natural deterioration:
It is caused by the interaction of products with water, gases, and fumes, microbiologic
organisms like bacteria, yeasts, molds, heat, cold, dryness, contaminants and insects, and
rodents.
B. Physical protection:
The packaging is also used for physical protection, which includes improving shock
protection, internal product protection, and reducing shock damage caused by vibration,
snagging, friction, and impact.
C. Safety:
A special kind of protective packaging is required for products that are deemed harmful to
those who transport them or use them. These products include extremely inflammable gas
and liquid, radioactive elements, toxic materials, etc. The packaging should also be done so
that children could not easily use or dispose of them.
D. Waste reduction:
Packaging also serves to reduce the amount of waste, especially in the case of food
distribution.
 2) Containment:
This involves the merging of unit loads for shipping. It starts with spots of adhesives on
the individual shippers that stick them together, straps of steel and plastic, entire coverings of
shrinkable or stretchable plastic films, and paper or corrugated wraps that surround an entire pallet
of product.

There are some special bulk boxes or pallet bins made from unusually strong corrugated board or
fabricated from plastics or metal, the method of which depends on the type and weight of the
product and its protective needs. The cargo containers made of aluminum used to hold many pallets
loads of goods can be transferred to or from ships, trains, and flatbed trucks by giant cranes.

3) Information:
The packaging conveys necessary information to the consumers. The common information that
packaging provides includes general features of the product, ingredients, net weight of the
contents, name, and address of the manufacturers, and maximum retail price (MRP).
Packaging of medicine and some food products is required to provide information on
methods of preparations, recipes and serving ideas, nutritional benefits, and date of
manufacturing, date of expiry, warning messages, and cautionary information.
Sometimes, the color of the packaging itself provides some information.
4) Utility of use:
Convenience packaging has been devised for foods, household chemicals, drugs,
adhesives, paints, cosmetics, paper goods, and a host of other products. This type of
packaging includes dispensing devices, prepackaged hot metals, and disposable medical packaging.
5) Promotion:
Companies use attractive colors, logos, symbols, and captions to promote the product that can
influence customer purchase decision.
Packaging Decisions:

i. Packaging concept:
This defines what the package should be or do for the particular product in terms of
size, shape, materials, color, text, and brand mark and tamperproof ability
ii. Engineering tests:
This will ensure that the package stands up under normal conditions
iii. Visual tests:
This is to ensure that the script is legible and colors are harmonious
iv. Dealer tests:
This is to ensure that the dealers find the packages attractive and easy to handle
v. Consumer tests:
This is to ensure a favorable consumer response

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. 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. There are three basic concepts for
positioning.
These are Functional Positions, Symbolic Positions, and Experiential Positions. Functional
Positions deal with solving a problem, providing benefits, and getting a favorable perception from
investors, stockholders, and consumers. Symbolic Positions deal with self-image enhancement,
ego identification, belongingness, social meaningfulness and effective fulfillment and Experiential
Positions deal with providing sensory or cognitive stimulation.
Developing 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 is described by Pickton and Broderick in 2001.

Commonly Used Branding Strategies

1) Purpose
"Every brand makes a promise. But in a market in which customer confidence is
The 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 significance of consistency is to avoid things that don’t relate to or improve your brand.
Consistency aids to brand recognition, which fuels customer loyalty.