Entrepreneurship

- is a science of converting processed ideas into a remarkable business venture.

ENTREPRENEUR (Person) - Derived from the French root word “entreprendre”,

meaning to begin something and undertake. A person that is responsible for
setting up a business or an enterprise.

ENTREPRENEURSHIP (Process of action)- Capacity for innovation, investment,

and expansion in new market, products and techniques (Fajardo, 2009).

ENTERPRISE (Object) - A business or company. Project that is especially difficult,

complicated or risky.

IMPORTANCE OF ENTREPRENEURSHIP IN EDUCATION

1. Entrepreneurship as a key driver to our economy - It focuses in wealth and high
majority of jobs created by small businesses started by entrepreneurially minded
individuals.
2. Entrepreneurship is a lifelong learning process - It started as early as elementary
school and progressed through all levels of education. Students discover and develop
opportunities and take advantage of these.
3. Entrepreneurship will energize school management - School in the area of
entrepreneurship must be accessible, affordable and accountable of producing
successful students.
4. Entrepreneurship will TRANSFORM LEARNERS TO BE INNOVATORS - Learners
must be equipped with perseverance and determination of an entrepreneurial
mindset. They must take ownership of their own success.
ENTREPRENEURIAL COMPETENCIES
Competencies - The capability, capacity and ability of the learner in handling
situation in various areas in business operations.

● Locus of Control - determine the state to which a person agreed that their actions
can directly affect a situation or that they can control a result
● Specific Goal Settings - Should be motivated to set goals, particularly business
growth objectives. Goals that are specific, measurable, attainable. Realistic and
time-bound.
● Self-Efficacy - Believe in their own ability or self-confidence. Will persevere even
in the face of setbacks, will take negative feedback more positively and use feedback to
improve their performances.
● Need for Achievement - must have a high need for achievement take
responsibility for outcomes.
● Layers of Competency - universal competencies occupying the bottom portion of the
pyramid. Specific competencies located near to the top.
● Ambition - must be motivated, persistent, and persevere even in the face of
situational challenges. Learners embrace new challenges while achieving to exceed
set expectations and standards.
● Willingness to Learn - often pursue opportunities to acquire new skills and
competencies.
● Strong Initiative - they frequently work independently to achieve task master,
regardless of the extra effort necessary to do so.
● Adaptability and Flexibility - must learn how to be a highly flexible and adaptable
often deal very well with a unique ability to choose actions even without all
necessary information.
● Willingness to Take Risks - not only are successful learners willing to take
consequences, they can also identify and calculate risk.
● Interpersonal Skills - They are very insightful with regards to the behavior of
others-understanding motives and actions, quickly aware of strong relationships,
and both verbal and non-verbal behaviors.

INDUSTRY WIDE COMPETENCIES WORK COMPETENCIES

1. Networking/Collaboration
- Ability to build professional relationships.
- Perceived as trustworthy
- Can negotiate with competitors, & identify mutual goals.
2. Creative/ Critical Thinking
- Easily identify what is missing from current product streams and have
imagination, creativity and empathy. Can analyze problems and creative innovative
solutions.
3. Organizing
- Plan and prioritize work to ensure time is managed effectively.
- When goals are not met, they take necessary steps to get projects back-on
track.
4. Checking, Examining & Recording
- Ability to maintain confidential records, easily locate and complete appropriate
forms and paperwork, detect errors and make necessary corrections.
5. Planning
- Must be specific about the direction of their venture and the strategy they will
adopt.
6. Business Principles
- Must understand the basic principles of business (e.g. market knowledge,
economic principles, and ethical practices)
7. Computer Competency
- Must be competent in the use of basic computer hardware and software.
8. Workplace Competencies
- The application of knowledge, skills, attitudes, values and behaviors in the
workplace.
- Many successful entrepreneurs place great value on their industry experiences
prior to launching their own venture, as workplace competencies.
9. High-Growth, High-Value
- Entrepreneurship Entrepreneurs typically offer incentive compensation,
manage business operations, build a strong entrepreneurial culture around
determination and high work ethic, and form effective boards of directors and advisors.
10. Innovation & Creation
- Apply their creativity to the formulation of inventive systems and products. They
have an “opportunity orientation”-assessing changes in trends, identifying small niche or
group of markets, and seeking out opportunities to improve services and products.
11. Marketing
- Competent in both executing strategies that promote their products and
establish client/customer relationships. They conduct market analyses, set pricing
objects and customer objections into sales acceptance.
12. Business Operations
- Entrepreneurs performs business operations that are able to both carry out
daily operations, such as scheduling manpower and maintaining inventories of goods
and management human capabilities.
13. Risk Assessment & Management
- Can handle risk management and can take into account legal actions .
- Stay informed of business laws and regulations, and bond to determine ways to
prevent themselves against failure.
14. Financial Management
- Competent at accounting and funds management managing cash flows and
preparing estimated and projected balance sheets.
15. Problem Solving and Decision Making
- They can generate, evaluate, and implement solutions to difficult problems. -
-They locate and utilize relevant information, and when necessary, generate alternative
solutions.

FACTORS TO CONSIDER OF A NEW ENTREPRENEUR

1. Know your Product or Service.
- You must believe on the product or service that you will offer to your customer.
- Unique product that would satisfy customers’ needs and wants.
- Customers want to try new products, but it must be better than those existing in
the market.
2. Analyze the Market Potentials.
- The wider the market potential, the more chances of growth and success.
- Entrepreneur must know his needs and wants and figure out how to satisfy
these needs.
- Analyze customers’ profile as to their buying habits, their income, and social
status.
3. Determine the Marketing Strategy.
- A unique product or service needs effective distribution strategy to get customer
into the basket of demand potential.
- Customers must have access to the product when they need it.
4. Know the Competitors.
- Know their strength and weaknesses.
- Develop new product and marketing strategy and turn their weaknesses as new
opportunity for your product.
- Continuous innovation and research would mean better quality products or
service.
5. Do not set on your Laurels.
- Landscape of business is continuously changing.
 - Your initial success in your business activities needs more proactive analysis for
expansion and growth and overcome possible competitions.
- Develop advertising and promotion strategy to penetrate the wider market.
Develop budget for expansion and diversification either horizontally or vertically.

ENVIRONMENTAL SCANNING
1. Business Location for Small Entrepreneurs.
- A retail outlet would need a site that is convenient to prospective customers in
terms of parking space or an availability of transportation.

In choosing the location, the following factors must be looked into by the entrepreneur:
a. Rent and Space – the cost of rent is a regular monthly expense and it must be
sustained with the possible income that will be generated.
b. Terms of Lease Agreement – the term of lease must be studied carefully as some
owners of space might take advantage of lessee.
c. Types of Goods or Merchandise – they need quick and easy access to the store
and would not spend a lot of time to purchase their goods.
d. Income Level of Prospective Customer – a good barber shop or a beauty salon
with facilities of air conditioning units and other amenities need to be located in the
community with higher income bracket.
e. Prospective Sales Volume – high density sales volume need to be located in
shopping area where customers conversed to buy essential goods.
f. Municipal or City Ordinances including taxes and fees – the location must not
violate city or municipal ordinances and the taxes and fees must reasonable for the
owners of business.
g. Location of the Area – the area must be free from floods and other calamities that
will endanger the business.

2. Location for Small Industrial Plant or Manufacturing Facilities.

- Environmental factors in locating a manufacturing plant or industrial facilities need
to be studied carefully as plant location is a great factor in the investment of funds and
its profitability in the long run.

The following are important factors to consider:

a. Land Area – the contour of the land, its size, and shape must be suitable to the plant
site.
b. Facilities for Expansion – the land area must have ample space for plant expansion
and provisions for parking facilities for customers and employees.
c. Power and Utilities – availability of power supply and the cost of electricity involve in
the operation are great factors in the production of goods.
d. Building and Other Utilities – the building must be within the restriction code of the
municipality or city. The utilities like canteen and other employees’ facilities must be put
in place in compliance with the labor code.
e. Plant Site Accessibility – the plant site must be accessible to public or service
transport for its employees and valued customers.

STRENGTH, WEAKNESSES, OPPORTUNITIES AND THREATS (SWOT)

SWOT ANALYSIS.
- Opportunities carries with it some risk involved and this should be look into carefully.
The strengths and weaknesses are internal factors to the entrepreneur while the
opportunities and threats are external factors.

The product must be evaluated along the following areas:

1. Product Strength in the Market must have the following:
a. Available Technology in Product Processing – technology is an important
component in producing the product as the economies of scale determines the price
index.
b. The source of Raw Materials must be Abundant and at Lower Price – the
constant supply of raw materials is an important factor in the production of the product.
c. Skilled Workers must be Available – technology must have component of skilled
workers that shall operate the machineries and other equipment.
d. Capital Investment in Machinery and Operating Expenditures – a starting
venture may have little investment in terms of machinery and equipment but starting
with small capital should generate profitable operation.
e. Expertise and Technical Skills of the Management Team – a good product is
the making of a well-conceived idea of the management team.

2. Characteristics of Weak Products and Weak Management:

a. Poor quality and High Price – the entrepreneur should not launch a poor product
in the market as it will surely fail to advance in the sales and profit.
b. Product Design and Appeal – Product design should appeal to customers’
demand. Poor design of the product is the making of people with no technical expertise
in handling customer wants in terms of features.
c. Product Cost – production cost is the price determinants. Entrepreneur cannot
make maximum profitability on products whose production cost cannot survive market
competition.
 d. Supply and Demand – intermittent supply to the market will make customers shift
to other products. The supply chain management must be put in place to make the
products available to valued customers.
e. Weak Product Management – weak management is created when people at the
top of the organization fail to sustain a vigorous effort for expansion and growth when
management sets on his initial laurels and ventured on vices and other extra activities
that will lose his total investment.

3. Sustainable Product Opportunities in the Market:

a. Product Demand – product demand is the greatest opportunity of the
entrepreneur. Demand is the essence of profit and this must be sustained by the
entrepreneur before wide competition appeared in the marketplace.
b. Presence of Poor Quality in the Market – the presence of poor quality product in
the market place is an opportunity for the entrepreneur.
c. Government Policies and Support – the government support to local
entrepreneur is an opportunity for greater expansion. The government should support
the local entrepreneur in terms of taxes and government incentives.
d. Liberal Credit Terms and Interest Rates – liberal credit terms by banks and other
government institution will generate expansion for the local entrepreneur. Banks and
financing institutions serve as conduit of business in their expansion program.

4. Threats to Product Profitability and Market Expansions:

a. Entrance Competition – the entrance of many competitors in the marketplace will
give problem to the entrepreneur. Competition will reduce profitability as the price has to
be competitive with those in the marketplace.
b. The supply of raw materials – will be limited as other competitors will be getting
the same supplier. Increased production cost means changes in product price.
c. The Emergence of Leftwing Labor Unions – Many companies close shops with
the advent of labor unions leftist philosophy as they want more wages and benefits that
the company could not give.

BUSINESS PLAN
Business Plan is a written description of your business' future, a document that tells
what you plan to do and how you plan to do it.

General Format of a Comprehensive Business Plan

I. Introduction
II. Project summary
III. Management & personnel components
IV. Marketing studies V. Production
VI. Financial studies

I. Introduction
- The introduction contains the rationale and the background of the study undertaken. It
should include the importance of the project and the proponent’s background and their
desire to establish the business.

II. Project summary

A. Name of the Firm
B. Business Location
C. Brief Description of the Business
1. Brief history of how the business was organized.
2. Highlights of the findings in every phase of the business study.

III. Management and Personnel Components

1. Legal Structure
2. Board of Directors
3. Company Departments
4. Skills and Experience Requirements
5. Number of Employees
6. Management Members
7. Supporting Documents

IV. Marketing Studies

A. Market Profile – This refers to the market segmentation for the distribution of the
product or service. The study must cover the possible users of the product and how to
reach the particular market segments.

B. Demand Analysis
1. Projected consumption in the First year of operation, then Five years and Ten
years’ operation.
2. Major segment users of the product and their location.

C. Supply Analysis
1. Source of Product Supply
2. Foreign Suppliers
3. Local Suppliers
4. Factor Analysis of the Past and Future Supply Chain.
D. Competitive Analysis
1. Selling Price – This refers to the selling price of the product.
2. Competitions – It refers to the competing product in the markets as to its quality
and market acceptability.
3. Distribution and Cost of Transportation – it refers to the transfer or movements
of products from the producer to the ultimate user.
4. Channel of product distributions – this refers to the means of reaching the
target market or it is the method or strategy to penetrate a particular market segment.
5. General Competitive Practice – it is the analysis of how competitors distribute the
product to existing end users.

E. Program Analysis of Marketing Strategies

1. Geographic Segmentation Strategy – this refers to the place of target market
and the approaches to penetrate the market niche.
2. Psychographic Strategy – this refers to educational background and the lifestyle
of target market.
3. Demographic Segmentation Strategy – this refers to the market as sex, age,
income and the other personal factors of the target market.
4. Pricing Strategy – this has something to do with the price index of any pricing
strategy that will attract customers.
5. Channel of Distribution – the choices could be retailers, wholesalers, dealership,
franchise, or direct marketing.
6. Promotion and Advertising – media network, personal selling, billboard, or any
media penetrate strategy.

V. Production
A. Product Specification – it talks about the product or service that the entrepreneur
will offer to its target market.
B. Product Process – it is the detailed layout of the production process as the products
goes into the production line indicating the flow process, materials, and equipment to be
used and normal timetable that the product will be finished.
C. Plant Rated Capacity – this refers to the volume of production per shift per day or a
monthly basis considering target market consumption.
D. Machinery and Equipment – it involves the kind of machine to be used, its sources,
spare parts, working guarantees, rated capacity per day, and the cost estimates
involved in its purchase.
E. Plant Location – a drawing or plant location and the vicinity map as to its
accessibility to supply or raw materials, and the transport of finished product ti the
market.
F. Building Facilities – it must describe the type of building that will be constructed or
sketch of the building plan, electrical plants, drainage, and other utilities.
G. Raw Materials – it deals with the raw material requirements and its specification, its
source, cost and terms of payment, availability, and the possible long-term supply.
H. Power Supply and Utilities – utilities refer to the supply of electricity, water, and its
availability in the processing of the product.
I. Production Cost – this refers to the direct labor and administrative cost in the
processing the products.

VI. Financial Studies

1. Total project Cost
2. Capital Investment Required
3. Pre-operation Cash Flow and its Relation to timetable
4. Projected Financial Estimates
5. Supporting Schedules in the Financial Statements and Income

Entrepreneurs must have a full knowledge as to what products are needed in the
society. The product will be for the satisfaction of the group of the target market.

A product can be tangible or intangible in nature that can be offered for satisfaction of
the recipients it may be an idea, a physical entity (a good), service or any combination
of the three.

LEVELS OF PRODUCT
1. Tangible Products are the basic physical appearance which can be an idea
having precise specifications and is offered under a given/specified description or a
model number.
2. Augmented Products include the image and service features of a certain entity.
It gives emphasis on the intangible benefits that the customer will be getting from
buying the product.
3. Generic Products emphasize the impact of the product to the consumer, not the
seller. This will signify the purpose of its existence and the primary objective in creating
the product.
TYPES OF PRODUCT
1. Goods are sale of the physical products from the manufacturer to the
consumer of final and ultimate user. These are tangible products that can measure
the satisfaction with result or evidences as manifested through physical development.
a. Durable Goods – are sale the physical products that are used over a long
period of time. These products are expensive because of the quality of the
materials used.
b. Non-Durable Goods – are the physical products that are quickly and easily be
consumed or worn out, become obsolete, unfashionable or no longer popular. These
products are inexpensive and can easily be damaged.

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 in a
certain period of 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; most common
are the expertise and profession of the seller.

CHARACTERISTICS OF SERVICES
1. Intangibility is the services that cannot be displayed, transported, stored,
packaged or inspected before buying.
2. The credibility of the service provided most of the time counts.
3. Inseparability is the service provider and services that cannot be separated. It
cannot accomplish the purpose if one is missing.
4. Variability is when the service is difficult to standardize because it varies upon
the performance of the provider.

CONSUMER PRODUCTS
- These are goods and services destined/produced for the final consumer for
personal, family, or household use. The use of the goods or services designated it as
a consumer product.

1. Convenience products are purchased with the minimum or less effort because
the buyer has knowledge of product characteristics prior to shopping.
a. Staples are low priced items that are routinely purchased on a regular basis
and are products that are used every day.
b. Impulse products are the items that the consumer does not plan to buy.
2. Shopping products are products that the consumers acquire through further
knowledge and information in order to make final purchase decision. Consumers
will exert effort in searching or looking for information because these products have high
prices and are bought infrequently and are categorized as follows.
a. Attribute – based shopping products provide customers with information and
evaluated product features, performance, options, warranties and other factors.
b. Priced – based shopping products enable customers to judge product
attributes to be the same and look around for the least expensive item.

3. Specialty products are the items with particular brands and stores to which
consumers are loyal. They are willing to make a significant or specific effort to acquire
the brand desired units and will pay a higher or above the price of similar products.

INDUSTRIAL PRODUCTS
- Industrial products are goods or services purchased for use/consumption in the
production/manufacturing of other goods or services, in the operation of a
business or for resale to other customers.

1. Accessory equipment is selected priced portable goods which last long period of
time, requiring a moderate amount of consumer decision making.
2. Raw materials are unprocessed basic materials from extractive and agricultural
industries. Natural environment promotes a good source of raw materials.
3. Industrial or operating supplies are inexpensive convenience goods which are
rapidly consumed and are necessary for the day-to-day operation of the firm.
4. Component materials are semi-manufactured goods which undergo further changes
in form and later to be a part of the finished products.
5. Installations are very expensive materials, non-portable goods which are used in the
production process and do not become part of the finished product.
6. Fabricated parts are finished products of other companies which form part of the
manufactures product without further changes in form, but given added feature to make
a new product.

NEW PRODUCT DEVELOPMENT PROCESS

- The process consists of two sets: one is internal which looks at the company’s
objectives and resources, while the other is external which looks at the customer’s
needs and wants.
PRODUCT SATISFYING FEATURES
- Product patronage in the market is conditioned by the strategies and policies
employed by the manufacturer and the marketing organization on the product’s
attributes.
1. Design - It matters to the elements that collectively form of good or service that will
satisfy customers and gain competitive advantage.
2. Product Colors - It is the customer’s rejection or acceptance of the product. This
could be true in clothing, cars or furniture and other fixtures. Color can be an important
consideration for highly technical products.
3. Product Quality - this is set of features and attributes of a product or services that
determine its ability to satisfy human needs.
4. Product Warrantees - one very important attribute of the product is warrantee. It is
the state where the buyer is assured that the product meets the specifications stated in
the product labels.

Tips in Choosing the Business Name

1. Easy to Recall or Remember – the business name must be understandable so it is
easily stored in the memory.
2. Pleasant Meaning Creates Pleasant Feelings – It produces positive or favorable
feeling upon saying or mentioning to the public.
3. Easy to Pronounce – the business name must be cited as freely as it can be.
4. Easy to Spell – the business name must be simple. Words that are used in everyday
communication will be an advantage.
5. Related to the Product – the business name must describe the product. It
represents the features of the product.

Product Life Cycle

- The Product Life Cycle concept describes a product’s sales, profits, customers,
competitors, and marketing emphasis from its beginning until is removed from the
market.
Stages of Product Life Cycle
I. Product Development
- The company must think of a new product. A new product is a modification,
creation, and innovation of an existing product which makes product more meaningful to
the customer.

The new product planning process involves a series of steps:

1. Ideas Generation – searching and looking for a new product or business
opportunities. The employees, channel members, competitors, and customers can be a
great source.

METHODS
A. Brainstorming – all the members of the group can contribute in sharing ideas,
comments, and suggestions.
B. Analyzing Existing Products – a successful product that captures great market can
be analyzed as a basis in creating a new product.
C. Reading Trade Publications – an inspirational story of a successful entrepreneur
can lead into a development of a new product.
D. Visiting Suppliers’ Facilities – Supplier’s raw materials can be used as a method to
innovate and modify existing product.
E. Surveys – getting feedback coming from the customers and potential market.

2. Idea Screening – ideas which are unsuitable, unattractive, or poor are junked. Ideas
together with attributes are rated on the basis of a rating from 1-10. I
deas are rated on the following categories: general, marketing and production
characteristics.

3. Concept Testing – ideas which have passed the screening stage will now require
feedback from the consumer. It measures consumer enthusiasm by asking potential
consumer to react a picture, statement or oral description.

4. Business analysis – is a review of a market factors, revenues, cost and trends.

A. Demand Projections – sales potential; sales growth; rate of purchase; distribution
intensity.
B. Cost projections – per unit cost; raw materials cost; cost of existing facilities and
resources; breakeven point.
C. Competition – market share of company and competitors; strengths and
weakness of competitors; potential competitors.
D. Required investment – engineering patent search, product development, testing,
promotion, production, distribution.
E. Profitability – time to recover initial cost; per unit profits, distribution
intermediaries; control over price; return on investment.

5. Product Development – ideas are converts into tangible form. Stage involves:
A. Product construction: type and quality of materials, method of production,
production tome and cost requirements peer unit, plan capacity, sizes and colors.
B. Packaging: materials used in promotion or storage; cost; size and colors.
C. Branding: choice of new or existing name; exclusivity; trademark protection.
D. Product positioning: selecting a market segment.
E. Consumer attitude and usage testing.

6. Test Marketing – involves a selling of a fully developed product in a selected city and
observing the actual on the spot performance under the chosen marketing plan.
Depending on the results, a firm can decide to go ahead, modify the product or
services, modify the marketing plan or drop or delete the product.
7. Commercialization – this involves the actual marketing of the product in the target
market. The different activities to introduce the product to the market must be
presented.

II. Introduction
- A new product is introduced into the market place and the objectives is to generate
customer interest.

III. Growth
- The product gains wider consumer acceptance and the objective are to expand
distribution and the range of available product alternatives. More firms enter the
profitable and tested market.

IV. Maturity
- The product’s sales level and companies try to maintain lower price, better product
features for as long as possible. Market is saturated, penetrated and competition is at its
highest level.

V. Decline
- The product’s sales fall as substitutes and new competitors enter the market.

MARKET ANALYSIS
- A market analysis is a quantitative and qualitative assessment of a market ability to
respond positively. It looks into the size of the market both in volume and in value, the
various customer segments and buying patterns, the competition, and the economic
environment in terms of the barriers to entry and regulation in the industry.

How to do a Market Analysis?

- This is show to the investors that company knows their target market. It is large
enough to build a sustainable business.

The following activities can be recommended:

1. DEMOGRAPHICS AND SEGMENTATION
a. Demographics is the statistical characteristics of human population (as age or
income) used especially to identify markets.
b. Segmentation is the process of dividing into segments with similar characteristics.
2. TARGET MARKET
- This is the type of customers that are focused within the market. It is focused on the
more qualitative side of the market analysis by looking at what drives the demand.

3. MARKET NEED
- Investors must determine the needs of the market through analysis based from
research conducted focusing on their needs.

4. COMPETITION
- Determining the competitor’s positioning and describe their strengths and
weaknesses.

BARRIERS TO ENTRY
- These are the hindrances or something material that block or intend to block passage.
Here are a few examples of barriers to entry:
1. Investment (project that requires a huge of investments)
2. Technology (application of the combination of scientific and engineering knowledge)
3. Brand (the huge marketing costs required to get a certain level of appreciation)
4. Regulation (licenses and permits in particular)
5. Access to resources (exclusivity with suppliers, accessibility of suppliers)
6. Access to distribution channels (exclusivity with distributors, availability of
intermediaries)
7. Location (place, venue where the business is located)

In building product, entrepreneurs can meet customers’ needs. In identifying

market problem, the following can be considered:
1. Existing customers are the people who have already purchased the product you are
selling.
2. Target market users are the people in your target market who are not currently
looking for a solution.
3. Prospects are the people who have not yet purchased your product but have an
intention to buy.

Tips in Identifying Market Problem

1. Focusing only on innovation and the competition
2. Focusing only on customers
3. Focusing only on revenue
How to evaluate market problem?
1. Consider if the market problem is urgent, if yes, consider necessary actions by
identifying alternative courses of action (ACA) then enumerating their advantages and
disadvantages.
2. Evaluate if the market problem is pervasive or easily diffused, if yes, think for a
temporary solution.
3. Determine if the buyers will pay to have this problem solved.

PROBLEM-IDENTIFICATION RESEARCH
- By conducting new market research projects, learn can discover problem or
opportunity. You could discover any of the following factors through
problem-identification research:
1. Brand Image – is the impression in customers’ mind of brand’s total
personality.
2. Market Characteristics – describes attributes of the buyers in making decision
related in purchasing a certain product.
3. Market Potential – is the estimated maximum total sales revenue of all suppliers of a
product in a marketing during a certain product.
4. Market share – is a percentage of total sales volume in a market captured by a
brand, product or company.

PROBLEM-SOLVING RESEARCH
1. Distribution Research: determining on how transfer the product from the
manufacturer to ultimate user.
2. Market Segmentation: grouping customers by similar characteristics or similar
purchase behaviors.
3. Pricing Research: determining the ideal price for the product. Setting the price for the
product is one of the most important marketing steps.
4. Product Research: testing the new or revised products or completing test marketing.
5. Promotional Research: determining the best research in the area of disseminating
information.