Entrepreneurship

(T. Business)
NICA RIZA R. MENDOZA

Aliah Escano | HUMSS | modular

Learning Modality: Modular Distance Learning
Subject: Entrepreneurship Subject Teacher: Nica Riza R.
Mendoza, LPT
Content Standards:
1. Understanding of key concepts, underlying principles and
core competencies.
Performance Standard:
1. Independently creates/provides a quality and marketable
product and/or service
in Entrepreneurship as prescribed in the TESDA Training
Regulation.
Most Essential Learning Competencies (MELCs):
1. Discuss the relevance of the course.
2. Explore job opportunities for Entrepreneurship as a career.
Duration: Week 1 (August 31 to September 4), 3 hours
Learning objectives:
1. Define Entrepreneurship.
2. Identify job opportunities for Entrepreneurship as a career.
3. Determine the relevance of Entrepreneurship to your
everyday life and to the
society as a whole.
4. Create a draft of your own business plan.
Introduction:
Entrepreneurship is the practice of forming a new business or
commercial
enterprise, usually in an industry or sector of the economy
with a large capacity for

PAGE 1
growth. Entrepreneurship is generally synonymous with
resourcefulness, ingenuity, and
the ability to take calculated risks in order to introduce a new,
untested product or
service into the marketplace.
Entrepreneurship is…

 The act of creating a business or businesses while building and scaling it to

generate a profit.

 An important driver of economic growth and innovation.

 What people do to take their career and dreams into their hands and lead it in the

direction of their own choice.

 About building a life on your own terms. No bosses. No restricting schedules.

And no one holds you back.

An entrepreneur is…

 A person who sets up a business with the aim to make a profit and creates a new

business, bearing most of the risks and enjoying most of the rewards.

 An innovator, a source of new ideas, goods, services, and business/or

procedures.

 Playing a key role in any economy, using the skills and initiative necessary to

anticipate needs and bring good new ideas to market.

Note: Understanding what an entrepreneur is can help more people recognize the

value they contribute to the world. Entrepreneurs take the idea and execute it

while entrepreneurship is about execution of ideas.

Entrepreneurship in the Philippines (Batalla, V. (2011)

The notion of the entrepreneur as simply one who forms and manages business

is apparent in government programs that attempt to develop small-scale industries. In

PAGE 2
the Philippines, many entrepreneurial development-training programs rest on such

assumptions. But even without the presence of government support, the statistics for

the past fifty years or so on the number of business establishments formed every year

would generally show an increasing trend. They were mostly in food processing,

property development, and trade (including shopping malls).

In 2005, the top 50 Philippine corporations in terms of sales could be broken

down into 22 private domestic firms, 23 foreign firms, and 5 government-owned and/or

controlled corporations (BizNews Asia 2007as cited by Batalla, V., 2011). The 22

companies could be identified with 11 families and individuals, mostly Filipinos of

Definition of Entrepreneurship and Entrepreneur

DISCUSS

Chinese ethnic background. The 11 families and individuals were the Zobel family

(Ayala), the Lopez clan, Lucio Tan, Henry Sy, John Gokongwei, Alfonso Yuchengco,

Eduardo Cojuangco Jr., Jose Yao Campos (Unilab Group of Companies), George Ty

(Metrobank), Mariano Que (Mercury Drug), and Tony Tan-Caktiong (Jollibee).

1. Mid-level management

At big companies, the C-level folks develop ideas, the ground force does the

work, and mid-level management converts the idea into execution. People who studied

entrepreneurship are well suited for this opportunity.

2. Business consultant

Companies need people who can go to a client site, identify problems and fix

them. That is what an entrepreneur does, and that is why this job is for entrepreneurs.

You have the training to help identify things that others may not pick up on and the

training to know how to fix them.

3. Sales

Someone who works in sales or runs the department needs to know how

PAGE 3
businesses run. They need to know how to represent a company, manage accounts,

and follow up on leads.

4. Research and development

To work in R&D, you need to understand business concepts, procedures, and

practices. With all of the training and education someone has received learning about

entrepreneurship, they are well prepared for this type of position.

5. Not-for-profit fundraiser

Being able to raise funds requires understanding the importance of business and

networking relationships. It is a great place for someone with this type of skill because

you will have experience in studying advanced concepts that can be used to your

advantage on the job.

6. Teacher

It is not like you go teach entrepreneurship. I suggest you teach a core

competency (e.g., math, history, literature, etc.), but teach students the entrepreneurial

side. Teach them the benefits of math to business, history to innovation, and literature

to persuasive advertising.

7. Recruiter

Job Opportunities for Entrepreneurship as a Career

Having studied operations management, leadership, and a variety of others, you

most likely have a keen sense of what type of person is needed to fulfill a position.

Companies who use recruiters rely upon someone being not just people savvy, but

having an in-depth business sense as well.

8. Business reporter

If you can write articles, or pick up a quick class to learn it, you are in a prime

position to take the lead on covering a local business beat. You will understand the field

and concepts and can use your knowledge to make the business section that much

PAGE 4
more interesting and telling.

Importance of Entrepreneurship

1. Entrepreneurship generates new wealth in an economy.

2. Entrepreneurship decreases poverty.

3. It creates opportunities, ensures social justice, instills confidence and

4. stimulates the economy.

5. Entrepreneurship improves productivity

6. Entrepreneurs create jobs.

7. Entrepreneurs innovate.

8. Entrepreneurs create innovation and social change

9. Entrepreneurs give to society

Relevance of Entrepreneurship to SHS Students

1. To prepare students for livelihood even before college.

2. Entrepreneurship education aids students from all socioeconomic backgrounds

to think outside the box and nurture unconventional talents and skills.

3. Entrepreneurship develops their initiative and helps them to be more creative and

self-confident in whatever they undertake and to act in a socially responsible

way.

4. It exposes students to numerous opportunities to learn how to think critically and

analyze the pieces on the board.

5. Being aware of all the important factors and seeing how they affect each other is

the foundation of a smart decision-making process.

6. Students have to be exposed to real-world examples and learn from their own

experience.

7. Entrepreneurship education requires students to be innovative, creative and

collaborative with others.

PAGE 5
8. Entrepreneurship education provides budding entrepreneurs with the skills and

knowledge to come up with business ideas and develop their own ventures

Lesson #1: Competencies in Entrepreneurship and job opportunities for Entrepreneurship

as a career

Lesson #2: Potential Market and the Market need

Existing Customers. Consists of customers who have purchased or otherwise used an

organization’s goods or services, typically within a designated period of time.

A prospect is a potential customer who has been qualified as fitting certain criteria
outlined by a company based on its business offerings. Determining if a contact is a sales
prospect is the first step in the selling process. Once you've determined that the person
meets the criteria, they're a prospect and can move into the next phase of the selling
process.

Market Size is the number of individuals in a certain market who are potential buyers
and/or sellers of a product or service. Companies are interested in knowing the market
size before launching a new product or service in an area.

Demography is the statistical study of populations, especially human beings.

Demographic analysis can cover whole societies or groups defined by criteria such as
education, nationality, religion, and ethnicity.

Market share represents the percentage of an industry, or a market's total sales, that is
earned by a particular company over a specified time period.

Marketing strategy is a long-term, forward-looking approach and an overall game plan

of any organization or any business with the fundamental goal of achieving a sustainable
competitive advantage by understanding the needs and want of customers. Scholars like
Philip Kotler continue to debate the precise meaning of marketing strategy.

Consumers – definition and meaning. Consumers are people or organizations that

purchase products or services.

Customer: A person, company, or other entity which buys goods and services produced
by another person, company, or other entity.

penetrated market: A set of customers or clients who are already using a

particular product or service. A penetrated market means that the potential users of a
product or service are aware of it, and in many cases are active consumers of it. Markets
that are not penetrated may be called potential markets, available markets, or target
markets.

PAGE 6
Potential market: is the part of the total population that has shown some level
of interest in buying a particular product or service. This includes individuals, firms and
organizations. Potential market is also called Total addressable market (TAM).

target market: is a group of customers (individuals, households or organizations),

for which an organization designs, implements and maintains a marketing mix suitable for
the needs and preferences of that group. Target marketing goes against the grain of mass
marketing.

Tangible product
A physical item that can be perceived by the sense of touch. Examples of a tangible
product include cars, food items, computers, telephones, etc. Many businesses also need
to provide packaging for a tangible product to provide protection during its transportation
to a retail location.

Intangible good
An intangible good is claimed to be a type of good that does not have a physical nature, as
opposed to a physical good (an object). Digital goods such as downloadable music, mobile
apps or virtual goods used in virtual economies are proposed to be examples of intangible
goods.

An event organizer is responsible for planning, managing, and organizing sensational

events in the most efficient and cost effective way. His/her job description entails
searching target audiences in the market and finding occasions at which events are
organized.

7 most common types of after sales service

1) Pre-Installation services

Whenever a product is bought it comes with a manual for installation. Depending on the
nature of the product the installation may vary. While some products have very specific
installation steps other products are customer friendly. Products like a ceiling fan, air
conditioner, washing machine etc. require technical expertise for installation other
products like mobile phones does not. Providing free pre-installation is one of the after
sales services.

Most of the companies provide this for free of cost world very few companies may charge.
Providing good installation services starts in the customer and customer service relations
on a good note. Industrial machinery, electric household items, Copier machines, require
technical expertise installation. Providing a demonstration is also a part of installation

PAGE 7
wherein the customer service team install the product and demonstrate the functions of
the product.

2) User training

Training of the end user is another part of after sales service. In the case of industrial
machinery, this is a very crucial part. Even in case of surgical equipment’s which are used
in the operation theatres, it is very essential that the doctor has to get trained on the
machine. Organizations like St Jude’s, Medtronic, etc. ensure they provide training to the
end users or doctors in their case effectively. It is very essential that user training is
provided propositions user is going to be handling the product.

3) Warranty services

This is perhaps the most common type of after sales service provided by almost every
company for almost every product. Warranty services include repairing replacement of
selected parts for a selected period of time. For example, Apple provides complete care of
iPhone for a period of one year from the date of purchase. That is included in the Apple
care. Customers have the option of extending the warranty by purchasing Apple care
before the end of the official warranty.

For the first year, the customers are provided with free replacement or repairing of the
device for any problem. While from the 2nd year they are charged if they do not have
Apple care. In some cases, there could be selective warranty services like After sales
service of the air conditioner. Many companies offer free repair and service for one year
from the date of purchase but they charge if there is a replacement of any plastic
components, similarity television will have a warranty of about 5 years but the remote of
the television with having only year warranty of 1 or 2 years depending on the company.

In such a way different companies have different policies for their products. Warranty
services are perhaps the best types of after sales service. Some companies provide a service
of extended warranty wherein the customer can pay a little extra and get the warranty
extended for a limited duration. Extended warranty is useful in the case of electronics.

4) Online support

E-Commerce companies have started providing online support for any of the product
related queries. There is a dedicated helpline for customer service wherein the grievance
re-dressall mechanism is carried out according to the standard procedure of the company.
The customer may call the online support or chat as per his comfort, discuss the problem
and get it resolved. Online support is very effective for software services and laptop
support. The customer service can share the screen and resolve the problem immediately
in most of the cases

PAGE 8
5) Return/Replacement

For a Limited period of time companies provide free replacement of the product in case of
any queries. However, this is with certain terms and conditions. In some cases,
replacement may be of the entire device, or in other cases, replacement may be only of the
defective part.

In case of returns, the product is returned to the company and the customer is issued with
either the store credit or replaced product or the amount is refunded. The rules may vary
according to the company. For example, Amazon provides returns for almost all products
but a replacement for the limited products.

6) Features and benefits

One of the Types of after sales service, some companies provide additional features for
example replacement of a part for a lifetime, for free counseling for the entire duration of
the product. A perfect example of this would be when Google provided free unlimited
storage of photos on Google photos for all the pixel devices.

The Oslo Manual for measuring innovation defines four types of innovation: product
innovation, process innovation, marketing innovation and organizational
innovation.

Product innovation: A good or service that is new or significantly improved. This includes
significant improvements in technical specifications, components and materials, software
in the product, user friendliness or other functional characteristics.

Process innovation: A new or significantly improved production or delivery method. This

includes significant changes in techniques, equipment and/or software.

Marketing innovation: A new marketing method involving significant changes in product

design or packaging, product placement, product promotion or pricing.

Organizational innovation: A new organizational method in business practices, workplace

organization or external relations.

PAGE 9
4 Types of Consumer Products
Firstly, what specifically is a consumer product? A consumer product is a product bought
by final consumers for personal consumption. But not every consumer product is the
same. There are four different types of consumer products. Marketers usually classify
consumer products into these 4 types of consumer products:

Convenience products

Shopping products

Specialty products

Unsought products

These 4 types of consumer products all have different characteristics and involve a
different consumer purchasing behavior. Thus, the types of consumer products differ in
the way consumers buy them and, for that reason, in the way they should be marketed.

Convenience products

Among the four types of consumer products, the convenience product is bought most
frequently. A convenience product is a consumer product or service that customers
normally buy frequently, immediately and without great comparison or buying effort.

PAGE 10
Examples include articles such as laundry detergents, fast food, sugar and magazines. As
you can see, convenience products are those types of consumer products that are usually
low-priced and placed in many locations to make them readily available when consumers
need or want them.

Shopping products

The second one of the 4 types of consumer products is the shopping product. Shopping
products are a consumer product that the customer usually compares on attributes such
as quality, price and style in the process of selecting and purchasing. Thus, a difference
between the two types of consumer products presented so far is that the shopping product
is usually less frequently purchased and more carefully compared. Therefore, consumers
spend much more time and effort in gathering information and comparing alternatives.
Types of consumer products that fall within the category of shopping products are:
furniture, clothing, used cars, airline services etc.

Specialty products

Number three of the types of consumer products is the specialty product. Specialty
products are consumer products and services with unique characteristics or brand
identification for which a significant group of consumers is willing to make a special
purchase effort. As you can see, the types of consumer products involve different levels of
effort in the purchasing process: the specialty product requires a special purchase effort,
but applies only to certain consumers.

Examples include specific cars, professional and high-prices photographic equipment,

designer clothes etc. A perfect example for these types of consumer products is a
Lamborghini. In order to buy one, a certain group of buyers would make a special effort,
for instance by travelling great distances to buy one. However, specialty products are
usually less compared against each other. Rather, the effort must be understood in terms
of other factors: Buyers invest for example the time needed to reach dealers that carry the
wanted products.

Unsought products

The 4 types of consumer products also include unsought products. Unsought products are
those consumer products that a consumer either does not know about or knows about but
does not consider buying under normal conditions. Thus, these types of consumer
products consumers do not think about normally, at least not until they need them. Most
new innovations are unsought until consumers become aware of them. Other examples of
these types of consumer products are life insurance, pre-planned funeral services etc. As a
consequence of their nature, unsought products require much more advertising, selling
and marketing efforts than other types of consumer products.

PAGE 11
The marketing mix refers to the set of actions, or tactics, that a company uses
to promote its brand or product in the market. The 4Ps make up a typical marketing mix -
Price, Product, Promotion and Place. However, nowadays, the marketing mix increasingly
includes several other Ps like Packaging, Positioning, People and even Politics as vital mix
elements.

Description: What are the 4Ps of marketing?

Price: refers to the value that is put for a product. It depends on costs of production,
segment targeted, ability of the market to pay, supply - demand and a host of other direct
and indirect factors. There can be several types of pricing strategies, each tied in with an
overall business plan. Pricing can also be used a demarcation, to differentiate and enhance
the image of a product.

Product: refers to the item actually being sold. The product must deliver a minimum
level of performance; otherwise even the best work on the other elements of the
marketing mix won't do any good.

Place: refers to the point of sale. In every industry, catching the eye of the consumer and
making it easy for her to buy it is the main aim of a good distribution or 'place' strategy.
Retailers pay a premium for the right location. In fact, the mantra of a successful retail
business is 'location, location, location'.

Promotion: this refers to all the activities undertaken to make the product or service
known to the user and trade. This can include advertising, word of mouth, press reports,
incentives, commissions and awards to the trade. It can also include consumer schemes,
direct marketing, contests and prizes.

What is the importance of the marketing mix?

All the elements of the marketing mix influence each other. They make up the business
plan for a company and handled right, can give it great success. But handled wrong and
the business could take years to recover. The marketing mix needs a lot of understanding,
market research and consultation with several people, from users to trade to
manufacturing and several others.

PAGE 12
PAGE 13