UNIVERSITY OF CAGAYAN VALLEY

Tuguegarao City

SCHOOL OF BUSINESS ADMINISTRATION & GOVERNANCE

MODULE IN ENREPRENERIAL MIND

Course Title: ENTREPRENEURIAL MIND

Credit Units: 3 units
Course Description:

This course aims to provide students with an understanding of the nature of enterprise and
entrepreneurship and orientate students towards an entrepreneurial mindset. It introduces the
role of the entrepreneur, innovation, and technology in the entrepreneurial process. Being
entrepreneurial is not necessarily about starting a new venture but is about seeking opportunities
and taking action to bring those opportunities into reality. It involves "building something from
nothing" and successful entrepreneurs know how to manage and mitigate uncertainty and risk.
The course content is relevant to those individuals thinking about starting a business or who are
already in business - large or small, for profit or social enterprise; those who are interested in
commercializing their own innovations or of other; entrepreneurial employees interested in
"corporate entrepreneurship" and those who advise entrepreneurs or engage in policy making in
the entrepreneurship area. Developing an entrepreneurial mindset and enterprising skill set
critical for constantly changing markets or workplaces.

MODULE 2 MARKETING FOR SMALL BUSINESS

Learning Outcomes:

At the end of this module, students are expected to:

Knowledge
1. Receive guidance on developing a comprehensive marketing strategy and plan.
2. Learn how to implement basic marketing principles for a small business
3. Determining why the price of a product or service is one of the most important
marketing decisions.
Skills
1. Develop relevant skills preparing them for entry into management careers in business.
2. Assess and apply their strengths in management Skills.
3. Describe the role of marketing in building and managing customer relationships.
4. Demonstrate a clear understanding of the marketing concept
Values
1. To familiarize the students with the basic terms, concepts, approaches and problems of
pricing decisions.
2. Know how marketing creates value for the consumer, the company, and society

LESSON 2. MARKETING FOR SMALL BUSINESS

Intended Learning Outcomes

1. Learn how to implement basic marketing principles and concepts for a small business
2. Demonstrate how to measure customer-satisfaction levels and take corrective action if
needed.

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 UNIVERSITY OF CAGAYAN VALLEY
Tuguegarao City

SCHOOL OF BUSINESS ADMINISTRATION & GOVERNANCE

3. Demonstrate an understanding of the marketing strategy.

4. Identify the criteria for selecting good suppliers.
5. Be aware of and apply the approaches in consumer service and behavior.
6. Know the importance on the techniques of quality control and scheduling.

Learning Activities

MARKETING FOR SMALL BUSINESS

Professor Kotler
- defined marketing as a set of human activities directed at facilitating and consummating
exchange.
 The definition of Kotler includes three elements:
1. Two or more persons who are potentially interested in exchange,
2. Each person having things of value to offer to others, and
3. Each of them is capable of communication and delivery.

A market is people with:

-Needs to satisfy
-money to spend
-willingness to buy
Major Marketing Functions
1. Exchange Functions
a. Buying
b. Selling
2. Distribution Functions
a. Transporting
b. Storing
3. Facilitating Functions
a. Financing
b. B. standardizing
c. Grading
d. Risk-taking
e. Marketing information

MARKETING CONCEPT VS. SELLING CONCEPT

Selling is one of the oldest professions. But not marketing. The latter is relatively a new
subject. Marketing includes an integration of various functions, such as marketing research, new
product development, advertising, customer service, distribution and selling. So selling is only
part of Marketing.
-The marketing concept determines the needs of the customers first, then develops the
product and service to satisfy such needs. In short, marketing is customer-oriented. On the other
hand, the selling concept uses a reverse strategy. The enterprise makes the product first. Then it
uses various ways of persuading people to buy the product. The focus of selling in on the needs
of the seller instead of the buyer.
To implement the marketing concept, an enterprise must:
1. Get information about its customers and potential customers.

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 UNIVERSITY OF CAGAYAN VALLEY
Tuguegarao City

SCHOOL OF BUSINESS ADMINISTRATION & GOVERNANCE

2. Determine customer needs and how well the products of the firm and its competitors
satisfy such needs.
3. Direct the marketing resources and activities of the firm to improve products and
services, together with reasonable prices for customer’s maximum satisfaction.

IMPORTANCE OF CUSTOMER SERVICE

The following are some approaches in customer service:
1. Train all employees to be courteous.
2. Coddle the customer.
3. Remember that dissatisfied customers tell others about their experience.
4. Listen to others about your business.

MARKETING PLAN
A marketing plan is an outline of actions designed to achieve a specific set of goals. As
mentioned earlier in this book, a plan should be realistic. That it should be based on available
resources. Likewise, a marketing plan must be compatible with marketing resources and the
external environmental of the enterprise. The latter greatly affects—and in most cases
uncontrollably—marketing operations.
 The external environmental of the enterprise consists of:
1. Economic forces- such as inflation and employment which directly influence the
purchasing power of the customers. For instance, when prices are high, people can
only buy a lesser number of goods and services.
2. Societal forces- like social and cultural values and traditions that greatly affect the
choices of goods and services by consumers.
3. Political forces- in the form of government laws and policies that regulate marketing
activities. For instance, unreasonable taxes dampen the growth of marketing.
4. Technological forces- such as new methods machines that can be both positive and
negative to marketing. Entrepreneurs can avail of the benefits of better technology to
improve the quality of reduce the cost of production.

Developing a Marketing Plan

1. Assess the marketing environment (present and potential market; Marketing
programs/strategies; (Availability of resources
2. Formulate specific marketing objectives (Reasonable; Realistic; Relevant to firm’s
goals)
3. Choose a target market with strategies on:(Product; Pricing; Promotion; Distribution)
4. Monitor and evaluate the operations of the marketing program though:
-Marketing research
-Marketing information system (computer-based)

Consumer Behavior
Success in marketing depends on the ability of the entrepreneur to identify and
understand the behaviors of consumers. Such characteristics of consumers can be studied
through marketing research. Behaviors of buyers can by analyzed through observations and
interviews. Those who are business for a long time already know consumer behavior.
An entrepreneur can easily satisfy the needs of consumers if he knows their behaviors.
Such knowledge and understanding of consumer behaviors create mutual benefits for both seller
and buyer.

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 UNIVERSITY OF CAGAYAN VALLEY
Tuguegarao City

SCHOOL OF BUSINESS ADMINISTRATION & GOVERNANCE

In studying consumer behavior, the following should be considered:

1. Who buys?
2. What do they buy?
3. Where do they buy?
4. When do they buy?
5. How do they buy?
6. Why do they buy?

Why Do Consumer Buy?

Specially, people buy a certain product for the following reasons:
1. The product satisfies their basic needs.
2. The product gives them convenience.
3. The product provides a future.
4. The product offers fame.
5. The product protects them.

Developing Marketing Strategies

According to Professor Philip Kotler, a marketing strategy is a consistent, appropriate
and feasible set of principles through which a particular enterprise hopes to attain its long-run
customer and profit objectives in a particular competitive market. Such strategy takes into
consideration the following factors:
1. Competitive size and market position of the enterprise
2. Resources, objectives and policies of the enterprise
3. Marketing strategies of competitors
4. Buying behavior of target market
5. Stage of product-life-cycle
6. Character of the economy

INTRODUCING NEW PRODUCTS

Here are the main reasons of new product failures:
1. Inadequate market analysis about market needs and size.
2. Product defects such as poor quality and design.
3. Underestimated costs resulting to higher prices.
4. Poor timing in developing the product.
5. Competitors driving away the new products with lower prices.
6. Inadequate marketing effort to support the new product.
7. Weak sales force for lack of training and motivation.
8. Wrong channels of distribution.

PROMOTIONS
The two most widely methods of promotions are advertising and personal selling.
Advertising utilizes the media: newspaper, magazine, radio, television, billboard, mail and
yellow pages. Personal selling is done on a person-to-person basis with a customer.
Advertising has several objectives:
1. increase sales
2. to introduce a new product
3. to sustain an established business.

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 UNIVERSITY OF CAGAYAN VALLEY
Tuguegarao City

SCHOOL OF BUSINESS ADMINISTRATION & GOVERNANCE

DISTRIBUTION CHANNELS
Products move from the producer to the consumer either directly or indirectly. If it is
direct, producers deliver the goods to the consumers. If it is indirect, a middleman sells the
goods to the final users. A middleman can be a wholesaler or a retailer.
The right distribution channel depends on the target market. All other things being equal
the most economical and most profitable channel of distribution should be chosen. The relevant
factors in selecting the most appropriate distribution channel are:
1. Who are the buyers?
2. Where are they located?
3. How can they be reached?
4. When do they buy?

PRICING STRATEGIES
Price -is the value of a product or service expressed in money. In our capitalist economy, price
allocates goods and services. The government of course interferes in the pricing system to
protect the consumers against unreasonable prices.
In business, the apparent objective of pricing is to maximize profit. This is only possible
in a monopoly or oligopoly. But in a market situation where there are many competitors, pricing
is planned to meet stiff competition, to improve market share, or to get a fair return of
investments. The bottom line in spacing is the cost of production. Enterprises that are more
efficient have lower costs of production. Therefore, they can charge lower prices than their
inefficient business rivals.
There is also the prestige pricing. A very high price is set to project an aura of quality
status. In the case of new products, an entrepreneur may adopt penetration pricing. A very low
price for the new product is offered. The objective is to develop a large market for the new
product as soon as possible.

Entrepreneurship by: Feliciano R. Fajardo

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