TECHNOPRENEURSHIP 101 REVIEWER (MIDTERMS)

CHAPTER 1: INTRODUCTION TO - Overcome challenges

TECHNOPRENEURSHIP - Learn to be resourceful and creative
- Inspire the world
TECHNOPRENEURSHIP
- Develop self-awareness
- Is a philosophy, way of building a career
WHY NEED IT?
perspective in life
- Blend two words “technology” and - For long-term success and self-confidence
“entrepreneurship”
KEY CHARACTERISTICS
- Simply means entrepreneurship in the field of
technology. - OPPORTUNITY RECOGNITION
- Originated in 1990’s o Forward-thinkers see potential where
- Technology is the process that results in a others see obstacles.
service/product. - RISK-TAKING & RESILIENCE
- Wellness in society, wealth creation, high value o They take calculated risks and bounce
adding (result) back from failure, always learning.
- Trilogy: - DETERMINATION & PASSION
o Entrepreneurship (Entrepreneur) o This mindset helps individuals push
o Technology (Technician) forward, even against the odds. These
o Management (Manager) traits are essential for driving innovation
and success
IMPORTANCE OF TECHNOPRENEURSHIP
8 ENTREPRENEURIAL MINDSET SKILLS (𝐶 4 𝐹 2 𝐼𝑂)
- Technology has enabled everything to be
effectively managed, time-efficient, and cost- 1. CRITICAL THINKING & PROBLEM-
effective in a company SOLVING
- Raises standard of living - sensible ideas for company o Analyzing situations and making informed
- Economic independence decisions. Identifying problems and
- Benefits new firms and businesses developing creative solutions.
- Job Creations o Capacity to apply higher-level process-
- Innovation, Research and development oriented thinking
- Social Welfare o Ability to apply a higher-level thinking in
- Optimal use of the resources order to see different perspectives on a
- Creation of national wealth problem and use those perspective to solve
ENTREPRENEUR VS. TECHNOPRENEUR it
o Ability to make rational reasonings
- Entrepreneur is a person who organizes and 2. COMFORT WITH RISK
operated a business, taking on greater than normal o Willingness to take calculated risks for
financial risks to do so. (traditional) potential rewards. Understanding that
- Technopreneur is person who revolutionizes the failure is a part of the learning process.
prevailing economic order by making the best use o Be comfortable with the idea of
of technology at hand (new gen) uncertainty together with the investment
1. Build a team of both time and resources
2. Boost problem-solving skills 4 Steps to Start o Big Risk, Big Reward mentality
3. Decision-making Technopreneurship o Ability to go on challenges despite
4. Implementation uncertainties and potential loss or failure-
o Taking risk and experimenting can give us
ENTREPRENEURIAL MINDSET
a boost in achieving the best possible
- Approach thinking that drives entrepreneurial outcome.
action o Even if this experiment results in failure, it
- Emphasize long term planning was never for nothing. These failed
- It is a set of skills that enables us to: experiments can give us an opportunity to
o Identify and make the most of learn and assess ourselves
opportunities 3. COMMUNICATION & COLLABORATION
o Overcome and learn from setbacks o Effectively communicating ideas and
o Succeed in a variety of settings building relationships. Working well with
others to achieve common goals.
IMPORTANCE OF ENTREPRENEURIAL MINDSET

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 TECHNOPRENEURSHIP 101 REVIEWER (MIDTERMS)

o Effective communication is the ability to oTaking charge and driving projects

convey information clearly and forward independently. Overcoming
persuasively to others obstacles and finding solutions on your
o Ability to express ideas unto your own.
audiences and team effectively and o The power to take ownership of a project
efficiently without input or guidance and work
o Having the confidence in your own through obstacles independently
abilities to make negotiation and persuade o Having accountability a lows us to have
business partners and customers awareness with the consequences of our
o Collaboration is the cooperative effort of actions and reflect on how it impacts
individuals working together towards ourselves and other people.
shared objective o You to keep moving forward, you have to
4. CREATIVITY & INNOVATION learn how to walk on your own. As this
o Generating new ideas and thinking outside would help you in certain situation where
the box. Developing innovative solutions no one would be there to guide you,
to problems. especially if you are the head of your team
o It enables entrepreneurs to identify gaps in and everyone is counting on you. This
the market and develop unique solutions would ensure that you have faith in your
that meet customer needs more effectively abilities
than existing offerings 8. OPPORTUNITY RECOGNITION
o Ability to create new methodologies in o Identifying and capitalizing on new
order to solve problems opportunities. Seeing potential in
o Solving problem in unconventional ways unexpected situations
o Some individuals may say that creativity o Opportunity recognition is the capability
is an intrinsic talent, but in the field of to discern and capitalize on prospects for
entrepreneurship, everybody can be innovation, growth, or advancement
creative. Finding ways to optimize and o Ability to see bad situation as an
make innovation can already be creative opportunity to solve problems and have a
5. FUTURE ORIENTATION profit for solving them
o Focusing on long-term goals and planning o The time to apply al of the necessary skils
for the future. Considering the potential to be an entrepreneur
consequences of decisions.
WAYS TO ACHIEVE
o An optimistic disposition with a focus on
obtaining the skills and knowledge - Positive Mental Attitude
required to transition into a career - Creative Mindset
o You will learn to overcome challenges and - Persuasive Communication Ability
have an interest to harness new skills to - Intrinsic Motivation and Drive
have a bigger toolbox to solve those
problems in the future. HOW TO DEVELOP AN ENTREPRENEURIAL
o Entrepreneurs focused in prioritizing their MINDSET
goals and action-oriented trajectory to
1. Embrace Challenges and Turn Them into
achieve that goal to have success
Opportunities
6. FLEXIBILITY & ADAPTABILITY
2. Foster creativity and innovation.
o Embracing change and adjusting to new
3. Set clear, Achievable goals.
circumstances. Being open to different
4. Build Strong Relationships and Collaborate
perspectives and approaches.
5. Continuously Learn and Adapt
o Willingness and ability to embrace change
6. Practice self-reflection
and explore different paths
o Bouncing back from failure is one of the INVENTION
characteristic of an entrepreneur and
- Refers to the creation of something entirely new,
trying to move forward despite difficulties
such as a product, process or technology must have
can put us on the pedestal and come out on
originality, novelty, impact
top of the game.
o Ability to make necessary actions to INNOVATION
change present problems
7. INITIATIVE & SELF-RELIANCE

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- Refers to implementation or application of new - An intangible process that focuses on providing

ideas, concepts, or inventions in a way that creates expertise and solutions rather than physical goods
value in order to create customer relationship.
- turning newly generated ideas something familiar - Activities that provide some combination of time,
in a faster, better, cheaper, or more convenient location, form or psychological value
manner creating/ adding value from ideas - intangible offerings, solutions or activities that
- The process of renewing ideas or inventions to utilizes technology to operate
valuable products or services.
TECHNOPRENEURIAL PRODUCT & SERVICES
- Achieved by integrating new processes and new
ideas onto an existing good or service to create - Heavily relies on technology
greater value - Targets digitally native customers
- Prioritize efficiency, convenience

ENTREPRENEURIAL PRODUCTS & SERVICE

TYPES OF INNOVATION
- Focuses on traditional business models, customer
1.INCREMENTAL INNOVATION (sustaining)
relationships, market functions
o Already existing products and services are
- Includes wider variety of industries & sector
innovated through gradual and continuous
changes (Exist both) TEAM
2. ARCHITECTURAL INNOVATION
o Reconstructing technologies that already - A team refers to a group of individuals who
exists in a way that has never been done collaborate by carrying out interrelated tasks, all
before, creating new markets (New Market, Exist Product) aimed at achieving a shared goal or particular
3. DISRUPTIVE INNOVATION (Exist Market, New Product) objective.
o New products and services are created to
BRUCE WAYNE TUCKMAN’S STAGES OF TEAM
cater the demand of an existing market
FORMATION
4. RADICAL INNOVATION (New Both)
o Innovations that introduces new 1. FORMING
technologies and ideas which in turn, o The initial stage where team members
creates new market come together, get acquainted, and define
their goals and tasks
PRODUCT
o members tend to rely on the authority of
- A tangible or intangible item that is innovated and the leader
produced to be marketed in order to satisfy 2. STORMING
customer needs or solve problems. o Conflicts and disagreements may arise as
- Physical items that require raw materials team members established roles and
- tangible items or goods incorporated with challenge one another’s idea
technology and innovative features 3. NORMING
o The team starts to resolve conflicts,
TYPES OF PRODUCTS develop norms, and establish more
effective communication and collaboration
1. CONVENIENCE PRODUCTS
patterns
o Products that are purchased frequently
4. PERFORMING
with little planning or effort
o The team operates cohesively, with
2. SHOPPING PRODUCTS
members working together efficiently to
o Products that customers purchase less
achieve their objectives
frequently and usually compare with other
o the group reaches a high level of
options before making a purchase decision
productivity and efficiency
3. SPECIALTY PRODUCTS
5. ADJOURNING
o High-end products or brand identity that
o The final stage which involves the
makes them unique and desirable for the
completion of the team task, and the team
customers.
members often go their separate ways as
4. UNSOUGHT PRODUCTS
the project or mission comes to an end
o Products that customers do not think about
o the group disbands, either because their
regularly until a specific need arises.
task is completed or due to other reasons
SERVICE like the end of a project or a change in
team dynamics

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CHAPTER 2: CUSTOMERS products and services that meet customers' needs

and wants
CUSTOMER
HOW MUCH IS A CUSTOMER WORTH?
- a person or business that buys something from a
third party - There will be no sales if there are no customers
- an individual or organization that purchases goods
TARGET CUSTOMER PROFILE
or services from a business in exchange for
payment. - a detailed description of the ideal customer a
- Businesses often follow the saying "the customer is business aims to reach with its product or services
always right” - Customer Profile
- Customers are crucial because they generate o Demographics (age, gender, income,
revenue occupation, educational level, occupation,
- Many businesses closely watch how their marital status, ethnicity)
customers talk to each other o Psychographics (interests, lifestyles,
- lifeblood of a business, as they provide revenue and values)
sustain its operations o Behavioral Characteristics (buying
behavior, product usage, brand loyalty)
IMPORTANCE OF CUSTOMERS IN BUSINESS
CUSTOMER PERSONA
- Source of Income
- They promote brand and businesses - Persona is a fictional, detailed representation of a
- The provide insightful criticisms specific type of customer.
CUSTOMER VS CONSUMER CLASSIFICATION OF CUSTOMERS
CUSTOMER 1. INTERNAL CUSTOMERS
o Internal customers have a relationship
- an individual or entity that PURCHASE products
with, and within your company, either
or services from a business. Customer are
through employment (colleagues) or as
DIRECTLY INVOLVED IN THE
partners who deliver your product or
TRANSACTION AND EXCHANGE MONEY
service to the end user.
FOR THE GOODS OR SERVICES. They are
o stakeholders and shareholders
responsible for making the purchase decision and
o The person who depends on other people
often have a financial relationship with the business
in the company to provide services and
CONSUMER products to the external customer.
2. EXTERNAL CUSTOMERS
- the person or entity who USES OR CONSUMES
o External customers are the people that pay
the product or service purchased. The may or may
for and use the products or services your
not be the same as the customer. The consumer is
company offers.
the end user who benefits from or interacts with the
o External customers are persons who are
product or service, regardless of whether they were
not directly connected to your
ones who made their purchase.
organization other than by purchasing
WHO IS NOT A CUSTOMER? your product or service.
o “clients” or “accounts”
- CLIENT
o a person or a group that uses the TYPES OF CUSTOMERS
professional advice or services of a lawyer
1. LOYAL CUSTOMERS
accountant, advertising agency, architect
o are less in numbers but promote more
etc
sales and profit
o often used to describe customers who have
o These customers revisit the organization
a relationship with a supplier
over time
CONSIDERING CUSTOMERS o They want individual attention and
demand polite and respectful responses
- Businesses look at customer profiles regularly to from their supplier.
improve their marketing strategies and stock to 2. DISCOUNT CUSTOMERS
attract the most customers. o are also frequent visitors but are only a
- Understanding customers helps businesses make part of business when offered discounts.
better marketing and advertising plans, make o mostly related to small industries.

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3. IMPULSIVE CUSTOMERS “How did you find out about us?” This
o These customers are difficult to convince will help to improve the product or
as they want to do the business in urge or services.
caprice. 3. TRY
o They don’t have any specific item into o Experience is by going into the field and
their product list. participating in the same process
4. NEED-BASED CUSTOMERS customers do. In addition, putting yourself
o these customers are product specific and in customers’ shoes can help you find the
only tend to buy items only to which they problems
are habitual.
HOW TO MEET CUSTOMER NEEDS?
o These customers should be handled
positively. 1. Identify
o These customers could possibly be lost if 2. Distribute
not tackled efficiently with positive 3. Create
interaction. 4. Collect
5. WANDERING CUSTOMERS
o these are the least profitable customers. Other:
o These customers are normally new in
1. Listen to Feedback
industry and most of the times visit
o Pay attention to customer feedback, both
suppliers only.
positive and negative, through channels
o They investigate features of most
like social media or reviews. This helps
prominent products in the market
identify areas for improvement
CUSTOMER NEEDS 2. Engage with Customers
o Interact directly with customers, either in
- The problems that a consumer is trying to solve. person or through follow-ups like emails,
These are the irritations or issues that a customer to better understand their needs
experiences causing them to search for solutions 3. Improve and Solve Problems
such as products or services o Continuously improve your offerings
based on customer review to ensure your
TYPES OF CUSTOMER NEEDS
product or service addresses specific
1. FUNCTIONAL NEEDS customer problems.
o Product or services that a consumer sees to
CUSTOMER PAIN POINTS
be useful to achieve their tasks. In
addition, the product or services that - These are specific problems or challenges that
address functional needs are usually what customers experience when using a product or
the consumer wants service. Identifying and addressing these pain
2. SOCIAL NEEDS points is crucial for improving customer
o Needs that consumers want to be satisfaction and loyalty
perceived by others when using the
product or service. Furthermore, these TYPES OF CUSTOMER PAIN POINTS
needs are seeking for subjective qualities
1. FUNCTIONAL PAIN POINTS
rather than functionality
o Issues related to the core functionality or
3. EMOTIONAL NEEDS
usability of a product or service
o Refers to the consumers' want to feel
2. EMOTIONAL PAIN POINTS
when using the product or service
o Concerns or frustrations that impact a
CUSTOMER NEEDS METHODS customer’s emotional well-being or
satisfaction
1. LOOK 3. FINANCIAL PAIN POINTS
o Observe and collect data about the o Problems related to the cost or value
targeted consumers. Furthermore, data proposition of a product or service
should not be biased because it can lead to 4. SOCIAL PAIN POINTS
less effective user research o Issues related to social aspects or
2. ASK interactions with others regarding the
o Ask the consumers open-ended questions product or service
about what they think about the product or 5. CONVENIENCE PAIN POINTS
service. Ask questions such as “What did
you like best about your experience?” or
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o Frustrations related to the ease of use, numerical) or quantitative (numerical or

accessibility, or convenience of a product statistical)
or service o FOCUS GROUP - A focus group consists
6. EXPERIENTIAL PAIN POINTS of a small group of 6-10 individuals who
o Problems arising from the overall usually respond to online surveys
experience with the product or service. o ONE-TO-ONE INTERVIEW - This
7. CUSTOMER SERVICE PAIN POINTS method involves personal interaction in
o Issues related to the quality and the form of an interview, where the
effectiveness of customer support. researcher asks a series of questions to
collect information or data from the
CUSTOMER SERVICE TECHNOLOGY
respondents
- Customer service technology is a range of software o ETHNOGRAPHICS RESEARCH -
and hardware solutions This type of in-depth research is
- Companies can use a range of different tools both conducted in the natural settings of the
on the customer side and internally, on the agent respondents. This method requires the
side interviewer to adapt himself/herself to the
natural environment of the respondents
CUSTOMER-FACING TECHNOLOGY which could be a city or a remote village.
Ethnographic research can last from a few
- Self-service customer portal
days to a few years
- Chatbots
2. SECONDARY RESEARCH
- Interactive Voice Response
o Secondary research relies on data
- Internal Knowledge Management
compiled by external sources such as
- Customer Service Software
government agencies, media outlets, and
- AI-powered automations
chambers of commerce. This information
With so many technologies how can you keep up to date is available in newspapers, magazines,
with the latest technologies that could be cheaper and books, company websites, and from both
offer new and transformative features? government and non-government
organizations
- Obvious answer is to think of innovation, and go o PUBLIC RESOURCES - Public sources,
above and beyond such as libraries, are excellent resources
- We should not forget that the customers’ demand for accessing free information.
and satisfaction are crucial in entrepreneurship. Government libraries often provide
- Startups, especially insurtechs should be in a race services at no cost, allowing researchers to
to understand and help our customers, rather than a document the information available.
race for innovation o COMMERCIAL SOURCES -
MARKET RESEARCH Commercial sources are available in local
newspapers, magazines, journals, and
- a method used to gather data on a specific area of television media are valuable commercial
interest, which is then analyzed and applied to outlets for gathering information
support informed decision-making. Market o EDUCATIONAL INSTITUTIONS - Not
research helps businesses figure out what products a very common way to gather information
to create, how to improve services, or how to sell but universities and educational
things better by listening to what customers have to institutions are great sources because they
say. It’s all about gathering information to make conduct more research projects than most
smart choices that can lead to success. businesses.
TYPES OF MARKET RESEARCH KEY STEPS IN MARKET RESEARCH
1. PRIMARY RESEARCH - Problem Definition
o (Combination of both Qualitative and - Approach Formulation
Quantitative Research) - is a process - Research Design Selection
where it involves organizations or - Data Collection
businesses directly engaging with end - Data Processing
consumers or hiring a third party to - Analysis and Presentation
conduct studies for data collection. This
data can be either qualitative (non- DECISION MAKING

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- A decision-making process is a series of steps one

or more individuals take to determine the best
option or course of action to address a specific
problem or situation

PROCESS OF DECISION-MAKING

1. Identify the Decision

2. Gather Information
3. Identify Alternatives
4. Weight the Evidence
5. Choose among the alternatives
6. Take action
7. Review your decision

DE BONO HAT SYSTEM

- Blue Hat: The Conductor’s Hat

- Green Hat: The Creative Hat
- Red Hat: “The Hat for the Heart”
- Yellow Hat: The Optimist’s Hat
- Black Hat: The Judge’s Hat
- White Hat: The Factual Hat

NOTES:

- Technopreneurship begins with the customer

experience and works backward.
- The 'art of marketing’ in the digital age is to
activate traditional sales skills in a new technology-
supported environment.
- It is important to align the business strategy with
technology by driving modernization with a
customer-centric approach
- An organization's customers are the individuals and
entities who purchase from it
- Some businesses keep a careful eye on their
interactions with clients to discover new ways to
improve the quality of their services and products
- The way a firm serves its customers could provide
it with an advantage in the marketplace.
- Market goods and services are consumed or used
by consumers.

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CHAPTER 3: VALUE PROPOSITION the value proposition is focused on

affordability, the business may need to
VALUE PROPOSITION
offer lower prices to attract customers.
- A value proposition is a statement of the unique 6. Increase revenue
benefits delivered by your offerings to your target o A value proposition can persuade potential
audience or customers. customers to choose their offerings over
- It defines the problem the product or service solves, others which can increase customer
the advantages it offers, unique benefits to deliver, acquisition, retention, and brand loyalty,
and why it stands out from its competitors thereby contributing to higher revenue
- According to McKinsey & Co., 1988, a value growth for the company.
proposition is a clear, simple statement of the
ELEMENTS OF A COMPELLING VALUE
benefits, both tangible and intangible, that the
PROPOSITION
company will provide, along with the approximate
price it will charge each customer segment for 1. TARGET AUDIENCE/MARKET
those benefits. o A business needs to have a clear idea of
- focuses on the value that a product or service who its ideal customer is and shape its
delivers value proposition to appeal to that
- usually compose 2 to 3 sentences customer
2. SPECIFIC VALUE
IMPORTANCE OF VALUE PROPOSITION
o A company must clearly answer for its
- Targets customers who will benefit most from potential customers the question of why
using the company’s products, and this helps they should choose the company’s
maintain a company’s economic moat. products over all other available choices
- Helps your product or service stand out from the 3. CUSTOMER CONNECTION
rest who also thrives in the same market o This element is aimed at appealing to
1. Helps differentiate from competitors customers’ emotions and establishing a
o A clear and compelling value proposition relationship that hopefully engenders
helps a business stand out from its ongoing brand loyalty.
competitors by communicating its unique
DEVELOPMENT OF VALUE PROPOSITION
selling proposition and benefits to
customers. This helps potential customers - Questions to be answered:
understand why they should choose the o What product or service do you offer?
business over its competitors o Who is target customer?
2. Improves acquisition of customers and investors o What problem does your product solve for
o A strong value proposition helps attract your customer?
new customers and investors by clearly o How does your product or service benefit
communicating the benefits of a product your customer?
and providing a clear understanding of the o What differentiates you from competitors?
value they will receive from the business.
STEPS IN CRAFTING A VALUE PROPOSITION
3. Increases customer loyalty
o By communicating the unique benefits of 1. Identify
its products or services, a business can o Determine who the ideal customer is and
create a sense of customer loyalty. This is what their pain points and needs are.
because customers are more likely to 2. Research
remain loyal to a business that provides o Analyze what the competition offers and
value beyond what is offered by its identify gaps in the market that can be
competitors. addressed
4. Guides product development 3. Define
o A value proposition can help guide a o Clearly articulate the problem that the
business’s product development efforts by product or service solves, and how it
ensuring that new products or services addresses the needs of the target audience
align with the company’s unique selling 4. Highlight
proposition and target customer needs. o Identify and communicate the unique
5. Helps with pricing strategy benefits that the product or service
o If the value proposition is focused on provides, and how they differ from
high-quality products or services, a competitors.
business can charge a premium price. If 5. Refine
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o Craft a clear, concise, and compelling ▪ Comprehensive: Includes the

message that resonates with the target target market, the product, the
audience, using language that is easy to unique value, and the competitive
understand and jargon free. comparison
6. Test and Refine - VALUE PROPOSITION
o Test the value proposition with potential o A value proposition clearly explains how a
customers and refine the messaging based product or service solves customers’
on feedback. problems or improves their situation,
7. Implement delivers specific benefits, and tells the
o Implement the value proposition. Ensure ideal customer why they should buy from
that your product or service consistently you
delivers the value promised.
BAD VALUE PROPOSITIONS
DIFFERENCE:
- Using Jargons
- UNIQUE SELLING PROPOSITION - Disregarding the competition
o A unique selling proposition is the factor - Being too Generic / Generic claims
or feature that differentiates a product or - Straying away from target market / overly broad
service from its competitors. It makes the target audience
product or service stand out in a crowded - Not testing the VP
marketplace - Being Synonymous to Competitors
o Characteristic: - Focusing too much on features
▪ Specific: It pinpoints a specific - Vague statements
characteristic or benefit of the - Catchphrases or slogans
product. - Long-winded explanation
▪ Unique: It highlights something
GOOD VALUE PROPOSITIONS
not offered by competitors.
▪ Compelling: It provides a - Unique
persuasive reason for a customer - Clear and concise
to choose this product over - Customer-focused
others. - Specific
- TAGLINE - Quantifiable
o A tagline is a catchy and memorable - Memorable
phrase companies use to communicate the
essence of their brand succinctly. It’s NEEDS APPROACHBENEFITSCOMPETITION
designed to leave a lasting impression and (NARC) ELEMENTS OF VALUE PROPOSITION
build brand recognition.
- An essential method to quickly structure, analyze
o Characteristic:
and develop value propositions
▪ Memorable: Easy to remember
and often catchy. FOUR FUNDAMENTALS
▪ Brief: Usually a short phrase or a
sentence. 1. NEEDS
▪ Brand Essence: Reflects the o a need should relate to an important and
brand’s personality or core specific client or market opportunity, with
market size, and end customers clearly
message.
stated.
- POSITIONING STATEMENT
2. APPROACH
o A positioning statement is an internal tool
o As the approach develops through
used by a company to define how they
want customers to perceive their brand or iterations, it becomes a full proposal or
product. It outlines the unique place the business plan, it becomes a full proposal
brand intends to occupy in the market and or business plan, which can include
the customers’ minds. market positioning, cost, staffing,
partnering, deliverables, and intellectual
o Characteristics:
▪ Strategic: Used as a foundation property.
3. BENEFITS
for strategic planning.
o Each approach to a client's need results in
▪ Internal Guide: Primarily meant
for internal use, guiding unique client benefits, such as low cost,
marketing efforts. high performance or quick response.

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4. COMPETITION
o we must be able to tell our clients why or
solution represents best value.

SEARCH ENGINES

- Search engines provide results for any search query

a user enters. To do so, they survey and
“understand” the vast network of websites that
make up the web. They run a sophisticated
algorithm that determines what results to display
for each search query.

SEARCH ENGINE OPTIMIZATION

- Search engine optimization (SEO) is the practice of

orienting your website to rank higher on a search
engine results page (SERP) so that you receive
more traffic. The aim is typically to rank on the
first page of Google results for search terms that
mean the most to your target audience.

HOW DO YOU CRAFT A VALUE PROPOSITION

THAT RANKS WELL ON SEO?

- Understand your audience

- Use relevant keywords
- Write clearly and concisely
- Use visual elements
- Test and optimize

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CHAPTER 4: MARKET IDENTIFICATION AND o International trade

ANALYSIS o Cultural differences
o Regulatory environments
MARKET
MARKET IDENTIFICATION
- Market refers to the group of consumers or
potential customers who need or desire a particular - Target market identification is the process of
product or service. selecting specific groups of customers to focus on
- A market can be defined as a group of individuals in a company's marketing mix. By tailoring
or organizations that share common characteristics marketing strategies to these target market
and have the potential to purchase a specific segments, businesses can increase their chances of
product or service success and profitability compared to trying to
- Market refers to the overall group of people or reach everyone in the market
organizations that might be interested in buying a
WHY IS IT IMPORTANT TO KNOW THE TARGET
product or service. The market includes all
MARKET?
potential customers, regardless of whether or not
they have a specific need or interest in the product. - Efficient use of resources
- Better understanding of customer needs
TARGET MARKET
- Effective marketing strategies.
- A target market refers to a specific group of - Higher profitability
customers or consumers that a technopreneur is
MARKETING MIX
aiming to reach and serve with their technology
product or service. - The marketing mix can be defined as the list of
- The target market is the group of people who are elements that are involved in the foundation of the
most likely to have a need or desire for the marketing strategy of a business or company.
technology solution that the technopreneur is - The term “marketing mix” was first used by Neil
offering Borden, A Harvard Professor, who published the
- A target market is the specific group of people you concept in one of his articles named “The concept
want to reach with your marketing message. They of Marketing Mix” in 1964
are the people who are most likely to buy your
products or services, and are united by some 7 P’S OF MARKETING MIX
common characteristics, like demographics and
1. PRODUCT
behaviours. Central to marketing is the target
o Physical product, service, or experience.
market, and the foremost competency that a
Products are purchased for their benefits
beginning entrepreneur must develop as a marketer
and what they mean to us
is the ability to understand that target market
2. PLACE
MAJOR TYPES OF MARKET o Concerned with making products available
when and where customers want them.
1. CONSUMER MARKET Includes physical distribution of goods
o cater directly to individual consumers 3. PRICE
o personal use o What the buyer must give up to obtain the
o Fast-Moving Consumer Goods product. Often serves as an indicator of
o Durable Goods product quality
2. BUSINESS MARKET 4. PROMOTION
o Business-to-business markets o How companies inform, educate,
o Raw materials persuade, and remind consumers of their
o Services product benefits. Includes advertising,
3. INSTITUTIONAL MARKET public relations, sales promotion, and
o Organizations purchase goods and personal selling
services for own use 5. PHYSICAL EVIDENCE
o Support their operations o To provide tangible proof of a brand's
o Educational institutions existence and transactions. Helps build
4. GOVERNMENT MARKET trust and credibility with customers,
o Between businesses and government reducing perceived risk.
entities 6. PEOPLE
o Defense contracts
o Public infrastructure projects
5. GLOBAL MARKET
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oAnyone involved in the brand or product, - Back Up Your Business Idea with Figures, Data,
from sellers to designers, managers, and and Facts
customer-facing representatives - Recognize Market Potential Early and Avoid
7. PROCESS Wrong Decisions
o The entire customer experience, from - Identify Knowledge Gaps and Fill Them in on
awareness to post-purchase. Time
- Understand Competing Products in the Market
BENEFITS OF MARKET IDENTIFICATION
- Identify Market Entry Barriers and Estimate
- More effective marketing mix Market Attractiveness
- Right marketing channels 1. Great help in understanding your customers
- Uses time and resources efficiently o Having a comprehensive understanding of
- Maximizes sales and profit your customers is key to achieving core
business goals.
STEPS OF MARKET IDENTIFICATION 2. Analyze your competitors
o Analyzing your competitors' strengths and
- Assess Product characteristics
weaknesses in comparison to your own
- Identify Selling Points
and to find a gap in the market. It will help
- Identify Relevant dimensions of segmentation
you recognise how you can enhance your
- Segment according to specific criteria
own business strategy.
- Identify most profitable segment
3. Helps Determine Your Unique Sales Proposition
MARKET ANALYSIS o Using market analysis to determine your
entry point and your unique selling
- Market analysis is the thorough process of data proposition is crucial for creating a
collection to choose whether the product or the sustainable business model
service that is going to come will cater to
customers’ needs. DIMENSIONS OF MARKET ANALYSIS
- Market analysis is a methodical evaluation of the
MARKET SIZE
various forces, trends, and factors influencing a
specific industry or market segment. - This dimension assesses the total volume or value
- Market analysis provides you with a holistic, or of a market currently and projects its future size
well-rounded picture of the markets you are based on trends and market dynamics
interested in operating in. - Market size refers to the current and potential
- Market analysis is helpful in crafting a business volume of the selected market. The organization
strategy because it assesses the market's size and studies the growth potential of a particular market
value, consumer behavior and spending patterns, and decides to enter into the market only if the
the competition, and the market barriers and results match their expectation
challenges. Thus, the information derived from this
analysis is crucial in moving forward with a Methods:
successful business.
1. BOTTOM-UP
- An effective market analysis will include an
o determine by considering the major
accurate description of the target market and
variables of your business, such as where
thorough market research
you sell your products, the number of
- To understand the essence of a market, including:
potential customers and the historical
o Demand and Supply Dynamics
numbers of competitors' products sold
o Customer Segmentation
o focused on specific customer
o Competitive Overview
2. TOP-DOWN
o External Factors
o determine the size of the entire market,
SPECIFIC SCENARIOS THAT CALL FOR A figure out how much of that market you
COMPREHENSIVE MARKET ANALYSIS control and then compute the amount your
business may earn from that share of the
- New Product or Service Launch market. focused on broad view of the
- Entering a New Market market.
- Rebranding or Repositioning
- Responding to Market Shifts MARKET TRENDS
- Setting and Revising Budgets
- Trends involve the patterns and shifts in consumer
IMPORTANCE OF MARKET ANALYSIS behavior, preferences, and technological
advancements that shape the market landscape.

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- Market trends refer to the general direction or market, such as strong branding, customer service,
pattern of change in a particular market over time. or innovation
They are the movements or shifts in demand, - These are the specific factors that are critical to the
supply, and pricing that reflect changes in success of companies operating in a particular
consumer behavior, preferences, and needs. industry.
- Market trends are influenced by various factors - Such factors might include:
such as demographic shifts, technological o Accessibility to essential and unique
advancements, economic conditions, and cultural resources
shifts o Competence to reach economies of scale
o Accessibility to channels of distribution
MARKET GROWTH RATE
o Accessibility to the state-of-the-art
- This dimension indicates how quickly the market is technology
expanding or contracting, typicaly expressed as a
MARKET SEGMENT
percentage over time.
- This refers to the rate at which the market is - It is the process of dividing a larger market into
expected to grow in terms of demand for a smaller, more defined groups of consumers who
particular product or service over a period of time. have similar needs, wants or characteristics.
- The market growth rate is also the basic - There are many ways to segment a market,
information investors need before making an including demographic, geographic, psychographic,
investment decision. If it is likely to grow then and behavioral factors
investors can decide to put in more money in it
STEPS IN CONDUCTING MARKET ANALYSIS
How do we determine market growth rate?
1. UNDERSTANDING THE PURPOSE OF
- Extrapolating the past data into the future, market ANALYSIS
growth rate can be ascertained in an organization o Define the purpose behind the endeavor
- Product diffusion curve - based on the study of whether exploring a new markets,
characteristics of adoption rate of similar products launching a new product, or assessing the
or services in the past current market conditions.
o A clear purpose sets the tone for a focused
MARKET PROFITABILITY
and effective market analysis, helping you
- Market profitability measures the potential for stay aligned with your objectives.
firms within the market to generate profits based on 2. IDENTIFYING THE TARGET MARKET
different factors o Creating a detailed profile of your ideal
- refers to the ability of a company or product to customer, taking into consideration
generate profits within a specific market. It is a demographics and psychographics.
measure of the potential financial returns a business o With a clear picture of who your audience
can make from operating within a given market is, you can tailor your products and
segment. services to meet their specific needs and
preferences, ensuring a more focused
INDUSTRY COST STRUCTURE strategy
3. ANALYZING THE INDUSTRY
- This dimension examines the costs associated with
o Understanding the major forces that shape
operating in the industry, including fixed and
the industry, identifying key players, and
variable costs.
recognizing emerging trends.
- It refers to the way in which costs are incurred in a
o Helps you assess external factors such as
particular industry, including the fixed and variable
technological advancements, economic
costs associated with producing and delivering
shifts, and regulatory changes that could
products or services
influence the market.
DISTRIBUTION CHANNELS 4. EVALUATING THE COMPETITION
o Identify both direct and indirect
- This refers to the pathways through which products competitors and evaluate their strengths
or services reach consumers, including wholesalers, and weaknesses. By understanding your
retailers, and direct sales. competitors, you can find ways to
KEY SUCCESS FACTORS differentiate your offerings and carve out
your own unique position in the market.
- These are the essential elements or conditions that 5. GATHERING AND ANALYZING MARKET
must be met for a company to succeed in the DATA
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o Collect relevant data through various MARKET RESEARCH

means such as market research, surveys,
1. PRIMARY RESEARCH
and industry reports. Use a mix of
o experts from a target market are
qualitative and quantitative data to gain a
interviewed in order to collect new data.
holistic view. Leverage analytics tools to
The advantage of this is that it is still your
spot patterns, trends, and growth
own research purpose in focus
opportunities.
2. SECONDARY RESEARCH
6. TAKING ACTION BASED ON MARKET
o uses existing data records from previous
ANALYSIS
surveys. This can be collected both
o The ultimate goal of market analysis is to
internally and externally.
inform strategic decision-making. refining
marketing strategy, adjusting pricing, or MARKET RESEARCH VS MARKET ANALYSIS
perhaps developing new products
- Market research is focused on collecting data
PORTER’S FIVE FORCES MODEL directly from the market and customers, while
Market analysis pursues a broader perspective of
1. THREAT OF NEW ENTRANTS
putting together data and insights from a wide
o This force refers to the potential for new
variety of sources (including market research) to
competitors to enter the market and
evaluate all possible options of growth and
disrupt the current competitive landscape.
business forecasts for the times to come
Factors that influence this force include
the ease of entry, capital requirements, and METHODS OF MARKET ANALYSIS
barriers to entry such as patents,
economies of scale, or brand recognition. 1. QUALITATIVE METHODS
2. BARGAINING POWER OF SUPPLIERS o By engaging with real people, qualitative
o This force refers to the power that methods provide deep insights into
suppliers have over the industry and their customer preferences, attitudes, and
ability to increase prices or reduce the behaviors
quality of goods or services. Factors that 2. QUANTITATIVE METHODS
influence this force include the number of o Employ statistical market analysis,
suppliers, availability of substitutes, and surveys, and numerical data.
switching costs 3. PEST ANALYSIS
3. BARGAINING POWER OF BUYERS o examines political, economic, social, and
o This force refers to the power that buyers technological factors. Understanding these
have over the industry and their ability to external factors can help in anticipating
negotiate lower prices or higher quality changes in the market, such as regulatory
goods or services. Factors that influence shifts or technological advancements. It's
this force include the number of buyers, often used in conjunction with SWOT to
the size of their orders, and their price provide a complete market analysis
sensitivity 4. ONLINE MARKET ANALYSIS
4. THREAT OF SUBSTITUTES o Leveraging online marketing analysis
o This force refers to the potential for tools to gather insights from web traffic
substitutes to take market share away from and online behavior is crucial. This
the industry's products or services. Factors includes analyzing data from social media,
that influence this force include the search engines, and website analytics.
availability of substitutes, their relative Online market analysis can help in
price and performance, and the switching understanding customer behavior, market
costs for customers. trends analysis, and the effectiveness of
5. RIVALRY AMONG EXISTING online marketing strategies.
COMPETITORS 5. COMPETITIVE ANALYSIS
o This force refers to the intensity of o Understanding competitors is vital in
competition among existing firms in the gaining a competitive edge. This method
industry. Factors that influence this force involves analyzing competitors' products,
include the number and size of pricing, marketing strategies, and market
competitors, industry growth rate, position. This can help in identifying
differentiation of products or services, and opportunities and threats, making it an
exit barriers. integral part of a market analysis business
plan.

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6. CONSUMER ANALYSIS o Know who the big players are and how
o Consumer analysis focuses on you can differentiate your brand
understanding the needs, preferences, and 3. Identify market gaps
behaviors of the target audience. It may o Market gaps are needs that are currently
involve segmentation, buyer analysis, or not being filled by existing brands.
customer analysis in a marketing plan. By 4. Define your target market
knowing what motivates the target market, o Know your customer's unique
businesses can tailor their products and characteristics and tailor your offers and
marketing efforts accordingly marketing accordingly.
5. Identify barriers to entry
5 SKILLS THAT ONE MUST ACQUIRE TO
o Know what stands in your way and
UNDERSTAND THEIR TARGET MARKET
address challengers head on.
1. Segmenting the Market 6. Create a sales forecast
o marketing concept that describes grouping o Estimate future sales and make confident
potential customers into segments or business decisions
groups with comparable demands and
CATEGORIES OF MARKET IDENTIFICATION AND
responses to marketing actions
ANALYSIS
o Ex: geographic, demographic,
psychographic, behavioral 1. CLASSES OF COMPETITORS
2. Targeting o COMPETITOR
o evaluate and select target segments ▪ any individual, team, or
o allows you to focus your attention on one organization that competes
market or group at a time against you and as well as to
3. Understanding your target other businessmen and
o The goal of market research is to better entrepreneurs in a specific
understand the demands of a market by context.
methodically collecting data on o RIVAL
individuals, businesses, or both. The ▪ Close competitor, most similar
outcomes of market research are then market and produce similar
applied to assist business owners in products
making more informed decisions o ARCH RIVAL
concerning the company's operations, ▪ two companies are leaders in
strategy, and potential customers their field and have a big market.
o Ex: Survey, Observation, Prototyping, a. Direct Competitors
Focus Group, Emphatic Tools ▪ offers the same or very similar
4. Analyzing the competition products or services within the
o when trying to understand your target same market segment
market, do not neglect to look at your b. Potential Competitors
competitors ▪ businesses that do not currently
5. Estimating potential market demand compete in your market but have
o Estimation is an educated guess. The best the capability to enter it in the
way to be certain is to look for factual future
information c. Indirect Competitors
o Estimating potential market demand is a ▪ provide different products or
marketing skill that has an impact on services that satisfy similar
projecting sales, sales growth, and capital, customer needs
machine, and manpower requirements d. Future Competitors
o The estimated potential market demand is ▪ do not currently compete in your
a numerical representation of how well the market but have the potential to
entrepreneur understands the target market enter and become rivals in the
future
HOW TO DO MARKET ANALYSIS?
e. Replacement Competitors
1. Research your industry ▪ offer alternative products or
o Gain a holistic understanding of services that can fulfill the same
everything happening in your industry and need as your offering but are not
prepare to navigate it. in the same category.
2. Investigate the competitive landscape
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2. PRODUCT DIFFERENTIATION AND advertising, and public relations

POSITIONING efforts
o PRODUCT DIFFERENTATION o Examples:
▪ process of distinguishing a ▪ Quality Positioning: Emphasizing
product or service from others. it superior quality (e.g., luxury
highlights unique features & brands like Rolex).
benefits from other products ▪ Price Positioning: Competing on
o Key Aspects: cost leadership (e.g., discount
▪ Unique Features: distinctive retailers like Walmart).
characteristics or functionalities ▪ Niche Positioning: Targeting a
that are not available in specific segment of the market
competing products (e.g., organic products for health-
▪ Quality & Performance: based conscious consumers).
on superior quality or 3. MARKET STRUCTURE
performance metrics, such as o the characteristics and organization of a
durability or reliability. market, which influence the behavior of
▪ Design & Packaging: Aesthetic firms operating within it. Understanding
elements, packaging innovations, market structure is crucial for businesses
and branding as it affects pricing strategies, competition
▪ Customer Experience: Providing levels, and overall market dynamics
exceptional service or a unique o Types/Categories
purchasing experience can also ▪ Perfect Competition: Many
differentiate a product. buyers and sellers, homogeneous
o Types: products, no barriers to entry or
▪ Vertical Differentiation exit.
• Based on measurable ▪ Monopolistic Competition:
attributes like quality or Many firms sell similar but
price (e.g., luxury vs. differentiated products, low
budget brands) barriers to entry, some control
▪ Horizontal Differentiation
over pricing.
• Based on subjective
▪ Oligopoly: A few large firms
preferences (e.g.,
dominate the market, products
flavors, colors, styles).
may be homogeneous or
o Four Main Types of Product
differentiated, significant barriers
▪ Valuable but not undifferentiated
to entry.
▪ Differentiated but not valuable
▪ Monopoly: A single firm
▪ Undifferentiated and not valuable
controls the entire market, high
▪ Differentiated and valuable
barriers to entry, unique product
o PRODUCT POSITIONING
with no close substitutes.
▪ refers to how a product is
o Importance:
perceived in the minds of
▪ Develop Competitive
consumers relative to competing
Strategies: Tailor marketing and
products. It involves creating a
pricing strategies based on
distinct image and identity for the
competitive dynamics.
product that resonates with the
▪ Predict Market Behavior:
target market
Anticipate how competitors
o Key aspects:
might react to changes in pricing
▪ Target Audience: Understanding
or product offerings.
who the ideal customers are and
▪ Identify Opportunities and
what they value helps in crafting
Threats: Recognize potential
effective positioning strategies.
areas for growth or risks within
▪ Value Proposition: Clearly
the market landscape.
articulating the unique benefits
4. MARKET SEGMENTATION AND SIZE
and value that the product offers
o MARKET SEGMENT
compared to alternatives.
▪ A group of individuals in a
▪ Market Perception: Influencing
uniform market
how consumers view the brand
o MARKET SEGMENTATION
through marketing messages,
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 TECHNOPRENEURSHIP 101 REVIEWER (MIDTERMS)

▪The procedure of dividing, ideal target to sell a new product

distinguishing, and assessing the or service. The choice of the
segments of a market to market is based on the
determine a target market compatibility between the
o 4 Key Types: resources available, the product,
▪ Demographic segmentation: and the market itself.
The who o Steps:
▪ demographic segmentation is one ▪ Market evaluation: A startup or
of the most simple yet effective
a company searches and selects a
kinds of segmentation. You can
use demographic segmentation to target market portion aligning
split your audience and create with its service or product
customer personas based on offering. Plus, it has the
objective information possibility of growth, including a
▪ Psychographic segmentation: customer base.
The why ▪ Market penetration: Then, the
▪ Psychographic segmentation is
company enters the target market
the process of grouping people
together based on similar personal using a strong value proposition.
values, political opinions, Hence, it tries to obtain market
aspirations and psychological share and consumer acceptance.
characteristics. ▪ Establishment: After that, the
▪ Geographic segmentation: The company starts building a strong
where base in the target market. It does
▪ Geographic segmentation is the
it by directing all its resources on
process of grouping customers
based on where they live and customer acquisition, product
where they shop. People who live development, and marketing of
in the same city, state or zip code products.
typically have similar needs, ▪ Expansion: After succeeding in
mindsets and cultural preferences. building the base, the business
▪ The real advantage of geographic
turns its attention and resources
segmentation is it provides an
insight into what your customers’ into expanding and leveraging its
location says about a number of success into nearby markets or
geo-specific variables different segments.
▪ Behavioral segmentation: The
how
▪ Behavioral segmentation is the
process of grouping customers
based on common behaviors they
exhibit when they interact with
your brand
o MARKET SIZE
▪ made up of the total number of
potential buyers of a product or
service within a given market, and
the total revenue that these sales
may generate
5. BEACHHEAD MARKET
o BEACHHEAD
▪ Is derived from a military
strategy that advocates that, as
you are approaching an enemy
territory, you should plan and
focus all your resources on
winning a small border area that
become a stronghold area from
which to advance into the enemy
territory
o BEACHHEAD MARKET
▪ A small market with specific
characteristics that make it an
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CHAPTER 5: CREATING COMPETITIVE helping a company refine its own

ADVANTAGE AND THE PHILIPPINE competitive approach
COMPETITION ACT o Four Key Components:
▪ Competitor’s Objectives: Each
COMPETITIVE ADVANTAGE
competitor has a mix of
- This refers to certain factors that allow a company objectives. The company wants
to produce products and services cheaper and with to know the relative importance
a higher quality than its rivaling companies. These that a competitor places on
factors commonly include pricing, branding, cost current profitability, market share
structure, quality of services, distribution network, growth, cash flow, technological
intellectual property, and customer service leadership, service leadership,
- Delivering better value to customers than and other goals. Understand the
competitors, by understanding customer needs and goals competitors prioritize (e.g.,
developing strategies that build strong, profitable market share, profitability,
relationships innovation). Analyze competitors'
focus (cost leadership, growth,
COMPETITOR ANALYSIS service). Monitor shifts in
competitor objectives to identify
- To be able to create effective marketing strategies,
opportunities or threats.
a company needs constant analysis of their existing
▪ Competitor’s Strategies: The
and potential competitors that includes their prices,
company needs to look at all the
strategies, promotions, offers, and many more
dimensions that identify strategic
Steps: groups within the industry.
▪ Competitor’s Strengths &
1. IDENTIFYING COMPETITORS Weaknesses: Marketers need to
o Identifying your company’s competitors carefully assess each
plays a major role in keeping your competitor’s strengths and
company competitive in the market weaknesses to answer a critical
o Identifying from: question: What can our
▪ Industry POV: Competitors have competitors do? As a first step,
the same product/service and companies can gather data on
target market inside the same each competitor’s goals,
category or industry strategies, and performance over
▪ Market POV: Competitors have the past year. Admittedly, this
the target market but differ in some of this data is hard to
products/services that they offer obtain. Gather data on
o Ways: competitors' performance and
▪ Market Research resources. Use secondary data,
▪ Keyword Research customer feedback, and
▪ Analyzing Google Search benchmarking. Identify areas
▪ Monitoring Social Media where competitors excel or fall
Conversations short
▪ Customer Feedback ▪ Estimating Competitor’s
o Steps:
Reactions: The company needs
▪ Identifying the company’s to look at all the dimensions that
competitors identify strategic groups within
▪ Assessing Identifying the the industry company wants to
company’s competitors know: What will our competitors
competitors’ objectives, do? Marketing managers need a
strategies, strengths and deep understanding of a
weaknesses, and reaction patterns competitor’s mentality if they
▪ Selecting which competitors to want to anticipate how that
attack or avoid competitor will act or react.
2. ASSESSING COMPETITORS Predict how competitors will
o Assessing competitors involves evaluating respond to your moves (e.g.,
their strengths, weaknesses, and strategies price cuts, product launches).
to identify opportunities and threats, Consider their market

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 TECHNOPRENEURSHIP 101 REVIEWER (MIDTERMS)

philosophy, internal culture, and Try to buy shares rather than earn
past behavior. Identify reactive it. They take large risk. They
vs. passive competitors. invest in overcapacity. They
3. SELECTING COMPETITORS TO ATTACK & upset industrial equilibrium
AVOID 4. FINDING UNCONTESTED MARKET
o Strong or Weak Competitors: The key to SPACES
gaining competitive advantage is to - Rather than competing head to head with
examine how a company’s offer compares established competitors, many companies seek out
to that of its major competitors in each unoccupied positions in uncontested market spaces.
customer segment. Most company prefers They try to create products and services for which
to compete with weak competitors. This there are no direct competitors
require fewer resource and less time But - Blue-Ocean Strategy - Create new market spaces
firm may also gain little Firm should without direct competitors. Focus on value
compete with strong competitors in order innovation to make competition irrelevant.
to sharpen its ability Even strong - Red-Ocean Strategy - beat the competition
competitors have some weaknesses
NOTES:
Succeeding against them provides them
greater returns. - Having identified and evaluated its major
o Close or Distant Competitors: Most competitors, a company now must design broad
companies will compete with close marketing strategies by which it can gain
competitors that resemble them most competitive advantage
rather than distant competitor - A sustainable competitive advantage refers to a
▪ Close Competitors: Compete unique advantage that a company has over its
directly with similar products or competitors, which enables it to outperform them
strategies (e.g., Nike vs. Adidas). over a long period of time
Greater risk of intensifying
rivalry, which may bring in larger Designing a Competitive Intelligence System
competitors if not managed well
- Companies need to gather, analyze, and use
▪ Distant Competitors: Compete in
competitor information efficiently. Given the time
a different space or with different
and cost involved, a cost-effective competitive
strategies. Less direct
intelligence system is essential
competition, but still important to
1. Identify Key Information: Determine essential
monitor
competitive data and best sources.
o Good or Bad Competitors: A company
2. Continuous Data Collection:
needs and benefits from competition. The
- Sources: Sales force, channels, suppliers, market
existence of competitions results in
research, internet, social media, trade associations,
strategic benefits
government publications, speeches, online
▪ Good Competitor - plays by the
databases.
rules in the industry. Play by
3. Validate & Interpret: Ensure data accuracy and
industry rule They make realistic
reliability, then analyze it.
assumptions about industry
4. Organize & Distribute: Provide relevant
growth potential. They set prices
information to decision-makers.
in reasonable relation to costs.
5. Respond to Inquiries: Address manager questions
They favor a healthy industry.
about competitor actions, strengths, and weaknesses
They limit themselves to a
portion or segment of the APPROACHES TO MARKETING STRATEGY
industry. They motivate others to
reduce cost or improve 1. ENTREPRENEURIAL MARKETING
differentiation. They accept the o Individuals live by their wits and do not
general level of their share and believe in formal marketing
2. FORMULATED MARKETING
profit.
o Development of formal marketing
▪ Bad Competitor - try to buy
strategies.
shares rather than earn, take large
3. INTREPRENEURIAL MARKETING
risks, and play by their own
rules.Compete in a different o Re-establishment of the entrepreneurial
space or with different strategies. spirit
Bad competitors break the rules.

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MICHAEL PORTER’S BASIC COMPETITIVE - aim to excel in all strategic areas but ultimately fail
STRATEGIES to stand out in any or they try to be good on all
competitive strategies
1. Overall Cost Leadership
o A company works hard to achieve the TREACY & WIERSEMA'S Competitive Strategies
lowest production and distribution costs
- Treacy and Wiersema's competitive marketing
o Can be implemented by:
strategies are a framework for businesses to gain a
▪ Efficient operations
competitive advantage in their industry by
▪ Economies of scale
identifying their core strengths and leveraging them
▪ Low-cost inputs
in a way that is most appealing to their target
▪ Cost-effective marketing
customers
▪ Minimal product features
2. Differentiation Value Disciplines:
o A company concentrates on creating a
highly differentiated product line and - Operational Excellence
marketing program so that it comes across o The company provides superior value by
as the class leader in the industry leading its industry in price and
o Can be implemented by: convenience
▪ Market research innovation and - Product Leadership
development o The company provides superior value by
▪ Establishing brand reputation offering a continuous stream of leading-
3. Focus edge products or services
o A company focuses its effort on serving a - Customer Intimacy
few market segments well rather than o The company provides superior value by
going after the whole market precisely segmenting its markets and
o Focus Strategy: tailoring its products or services to exactly
▪ Cost Focus: A company aims to match the needs of targeted customers
become the lowest-cost producer
COMPETITIVE POSITIONING
in a specific market or industry
segment. - Competitive positioning is a marketing strategy that
▪ Differentiation Focus: A refers to how a marketing team can differentiate a
company aims to differentiate its company from its competitors
products or services from
competitors in a particular market DIFFERENT COMPETITIVE POSITIONS
or industry segment. - Market Leader
o Focus Strategy allows businesses to: o Market Leader is the firm with the largest
▪ Achieve higher profit margins by market share
serving a specific niche or target - Market Challenger
market with a unique and o Market Challengers are firms fighting to
targeted product or service increase its market share
offering - Market Follower
▪ Develop a deep understanding of o Market Followers are firms that want to
the target market's needs and hold onto their market share without
preferences, which can help them rocking the boat
create more effective marketing - Market Nicher
campaigns and build stronger o Market Nichers are firms that serve small
customer relationships market segments not being pursued or
▪ Build a reputation as a specialist overlooked by other firms
in a particular market or industry
segment, which can lead to MARKET LEADER STRATEGIES
greater customer loyalty and
- Refers to the actions and approaches taken by the
repeat business
company that dominates its market, often holding
LOSING STRATEGY: MIDDLE-OF-THE-ROADERS the largest market share and setting the tone for the
industry. These strategies help the market leader
- A concept that describes a business strategy that maintain its position, fend off competitors, and
tries to achieve both low cost and differentiation at expand its dominance
the same time but fails to excel in either of them 1. Expand Total Demand

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 TECHNOPRENEURSHIP 101 REVIEWER (MIDTERMS)

- Expand total demand by developing: o Multiple niching

o New users
BALANCING CUSTOMER & COMPETITOR
o New uses
ORIENTATIONS
o More usage of its products
2. Protect their Current Market Shares 4. A customer-oriented company prioritizes the needs
- Protect current market by: and wants of its customers above all else.
o Fixing or preventing weaknesses 5. On the other hand, a competitor-oriented company
o Maintain consistent prices that provide is primarily focused on beating its rivals, often at
value the expense of customer satisfaction.
o Keep strong customer relationships
o Continuous innovation COMPETITOR-CENTERED COMPANY
3. Expand Market Share
- A company whose moves are mainly based
- By:
competitors’ actions and reactions. Its main goal is
o Producing high-quality products
to capture as much market share as possible, even if
o Creating good service experiences
that means sacrificing customer satisfaction. This
o Building close relationships
approach can be effective in the short term, as a
MARKET CHALLENGER STRATEGIES company may be able to generate quick profits by
cutting corners and slashing prices. However, over
- Market challengers are companies that are not the time, this strategy can lead to a decline in customer
market leader but are aggressively trying to loyalty and a damaged reputation.
overtake the leader or gain a larger market share. - Advantage:
Challengers often target the weaknesses of the o Competitor-oriented companies are often
market leader or focus on innovation and very aggressive in their marketing
differentiation to disrupt the status quo strategies, which can help them gain
1. Full Frontal Attack market share quickly. By focusing on
- By challenging the market leader and other competitors, companies may be able to
competitors in an aggressive bid for more market identify weaknesses in their own products
share (market challengers) or services and improve upon them.
- Attack competitor’s strengths - Disadvantage:
2. Indirect Attack o By prioritizing competition over customer
- By carving out toeholds using tactics that satisfaction, companies may neglect the
established leaders have trouble responding to or needs of their customers, which can
choose to ignore ultimately lead to lost sales and revenue.
- Attack competitor’s weaknesses Competitor-oriented companies may
engage in unethical practices to gain a
MARKET FOLLOWER STRATEGIES
competitive edge, which can lead to legal
- Market follower strategies are used by companies and ethical issues.
that do not seek to challenge the market leader
CUSTOMER-CENTERED COMPANY
directly but instead choose to maintain a stable
market position by imitating or closely following - A company that focuses on customer developments
the leader's products, services, and strategies. in designing its marketing strategies and on
o Follow Closely delivering superior value to its target customers. A
o Follow at a distance customer-centered company is primarily focused on
meeting the needs and wants of its customers. Its
MARKET NICHER STRATEGIES
main goal is to create loyal customers who will
- Market nicher strategies are employed by continue to do business with the company for years
companies that focus on serving specific, often to come. This approach can be effective in the long
underserved market segments. Unlike market term, as it can create a strong brand reputation and
leaders or challengers, niche players prioritize customer loyalty
specialized products or services tailored to the - Advantage:
distinct needs and preferences of particular o Customer-centered companies are often
customer groups. able to charge a premium for their
o Specialization (Quality focus, products or services, as customers are
customization, geographic focus, price willing to pay more for quality. Customer
focus) By specializing in serving one type loyalty can be a powerful asset, as it can
of niche such as customer, market, quality- lead to repeat business and positive word-
price, service of-mouth marketing.
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 TECHNOPRENEURSHIP 101 REVIEWER (MIDTERMS)

- Disadvantage: WHAT BUSINESSES AND ENTITIES DOES THE PCA

o Customer-centered companies may be COVER?
reluctant to take risks or innovate, as they
- Individuals, Corporations, Partnerships,
may be afraid of upsetting their customer
Cooperatives, Government-Owner Corporations,
base. By focusing solely on customers,
may it be domestic or international trade
companies may be blindsided by changes
in the market or the emergence of new EXCLUSIONS
competitors
- The PCA does not cover agreements or
MARKET-CENTERED COMPANY arrangements between employees and employers
- A market-centered company balances both WHAT ARE THE POWERS AND FUNCTIONS OF
customer and competitor orientations. Such THE PCC?
companies understand that they need to meet their
customers' needs while keeping a close eye on their - While it has original and primary jurisdiction in the
competitors' activities. They also understand that enforcement and regulation of all competition-
market conditions can change rapidly, and they related issues, the PCC works with relevant sector
need to adapt to these changes to remain regulators on matters where the regulators’ innate
competitive. expertise and knowledge in the sector are critical.
- A market-centered company invests in market o Conduct inquiry, investigate, and hear and
research to gain insights into its customers' needs decide on cases involving violations of the
and preferences. It also analyzes its competitors' PCA, its implementing rules, and other
strategies and activities to identify areas of competition laws
opportunity and threats. Additionally, a market- o Monitor and analyze the practice of
centered company may engage in strategic competition in markets, and issue advisory
partnerships and collaborations to expand its opinion, rules, and guidelines on
market share and improve its competitive position competition matters for the effective
enforcement of the PCA
PHILIPPINE COMPETITION ACT o Conduct, publish, and disseminate studies,
reports, and other publications on
COMPETITIVE MARKET
competition matters to inform and guide
- consists of multiple buyers and sellers the industry and consumers
- no one controls the price of goods and services
HOW DOES PCC CONDUCTS INVESTIGATION?
- businesses thinking outside the box for better edge
and providing consumer demand - The Philippine Competition Commission (PCC)
conducts investigations based on its Rules of
BENEFITS FROM COMPETITIVE MARKET
Procedure, issued in September 2017. These rules
- For consumers govern how investigations, hearings, and
o Product at lower prices proceedings are carried out.
o Wide range of product options o Triggers for Investigation: Investigations
o Better-quality product can be initiated in one of three ways:
- For Businesses ▪ A verified complaint from an
o Level playing field individual or entity.
o Easier entry ▪ The PCC’s own initiative, also
o Opportunities for small businesses called motu proprio.
▪ Referral by another regulatory
RA 10667 THE PHILIPPINE COMPETITION ACT
agency.
- An act providing for a national competition policy o Preliminary Inquiry (PI): Once
prohibiting anti competitive agreements, abuse of triggered, the PCC's Enforcement Office
dominant position, and anti competitive mergers conducts a fact-finding or Preliminary
and acquisitions, establishing the Philippine Inquiry (PI) to assess whether reasonable
Competition Commission and appropriating funds grounds exist to proceed further. This PI is
therefore. limited to a 90-day period.
o Full Administrative Investigation (FAI):
WHAT BUSINESSES AND ENTITIES DOES THE PCA If reasonable grounds are found, the PCC
COVER? moves into a Full Administrative
Investigation (FAI). This more in-depth
- Any person or entity engaged in trade, industry, and
investigation determines whether there is
commerce in the Philippines
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 TECHNOPRENEURSHIP 101 REVIEWER (MIDTERMS)

sufficient basis to charge an entity with - CASE: Price fixing among three driving school
violating the Philippine Competition Act associations in China, 2012
(PCA), its Implementing Rules and
RELEVANT MARKET
Regulations (IRR), or other competition
laws. - Possibilities of substituing goods and services with
o Case Filing or Closure: After the FAI, the other domestic and foreign products.
Enforcement Office will either file the - Cost of distribution of goods and services
case with the Commission if sufficient - Cost and probability of users and consumers
evidence is found, or close the seeking other market
investigation if not - National, local, or international restrictions
o Adjudication: If the case proceeds, the
Commission adjudicates to determine ARE ALL INTERACTIONS BETWEEN
whether there is substantial evidence to COMPETITORS NECESSARILY COLLUSIVE?
justify penalties or remedies. The decision
- No. There are instances where businesses meet
of the PCC can be appealed to the Court of
with their competitors for transactions in which not
Appeals
prohibited by the law. HOWEVER, this can
ANTI-COMPETITIVE AGREEMENTS provide thr businesses to discuss and exchange
information
- Substantially prevent, restrict, and lessen
competition. UNDERSTANDING HOW FIRMS ACHIEVE
- Can be in a form of: DOMINANT POSITION
o Contract
- A business may become dominant in a certain
o Arrangement
industry by gaining a significant share in the
o Understanding between to businesses to
market or becoming an industry leader by virtue of
fix prices and manipulate bids.
years in operation.
PRICE FIXING
HOW DO FIRMS ABUSE THEIR DOMINANT
- Directly or indirectly fix purchase or selling price POSITION?
instead of letting the supply and demand determine
- Predatory Pricing
the prices of goods and services.
- Price Discrimination
- CASE: Price fixing of electronic books in the
- Limiting production, markets, or technical
United States, 2013
development
OUTPUT LIMITATION - Exploitative behavior towards consumers,
customers, or competitors
- Creating artificial shortages in the market that
subsequently drives up prices. MERGERS
- CASE: Output restrictions in India’s cement
- A merger refers to the joining of two or more
industry
entities into an existing entity or to form a new
MARKET SHARING entity

- Divide the market and claim dominamce according ACQUISITION

to teritory, customet demographic, and sale
- Acquisition refers to the purchase of securities or
volume—creating monopolies
assets for the purpose of obtaining control of
- CASE: Market allocation by pharmaceutical
another entity
companies in England, 2011
Note:
BID RIGGING
- M&As can benefit consumers because they may
- Agrees to fix prices at an auction or manipulates
lead to businesses that operate more efficiently,
bids, forcing the buyers to select higher-prices item.
enable the transfer of technologies, broaden access
- CASE: Bid-rigging cartels in Canada’s automobile
to capital and increase productivity. However, there
industry, 2013
are M&As that harm competition and can be
CARTELS disadvantageous to consumers

- Organization formed by competitors on a specific WHICH M&As VIOLATE THE PCA?

industry, which enables them to set prices or
- Mergers and Acquisitions (M&As) violate the
control levels of production.
Philippine Competition Act (PCA) if they
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 TECHNOPRENEURSHIP 101 REVIEWER (MIDTERMS)

substantially lessen, restrict, or prevent competition CAN A BUSINESS CONSULT THE PCC IF IT
in the market. The PCA doesn't prohibit all M&As, SUSPECTS THAT ITS CONTIMPLATED
but it aims to prevent those that create entities with TRANSACTION VIOLATES PCA?
dominant market power that could harm
- THE APPLYING ENTITY WILL BE GIVEN UP
competition and consumers. another entity.
TO 90 DAYS TO ABIDE AND SHALL NOT BE
KEY POINTS REGARDING M&AS UNDER THE PCA SUBJECT TO ADMINISTRATIVE, CIVIL, OR
CRIMINAL ACTION UNLESS FAILS TO
1. Compulsory Notification: M&As must notify the
COMPLY WITH THE PROVISIONS OF PCA
PCC if they meet certain thresholds for the size of
o Yes. Under the Sec. 37 (a) of the PCA, the
the transaction and the size of the person (referring
Commission can be requested in writing,
to the value of assets or revenues of the involved
to render a binding or ruling provided to
entities). These thresholds are updated annually
be in a specified period and also based on
based on the country’s nominal gross domestic
substantial evidence
product (GDP).
2. Merger Review: The PCC conducts a rigorous
economic analysis of the M&A to assess its
potential impact on competition. This analysis helps
determine if the merger would harm consumers or
stifle competition.
3. Triggers for Merger Review:
o Notification by the parties involved in the
merger.
o The PCC’s own initiative (motu proprio).
o Complaints from third parties.

WHAT WILL PCC DO TO THOSE WHO VIOLATES

PCA?

- IN CASES INVOLVING BASIC NECESSITIES

AND PRIME COMODITIES AS DEFINED IN
THE PRICE ACT OF 1992 (RA NO. 7581), THE
FINAL FINE SHALL BE TRIPLED
o Administrative fines for Violations of Sec
14 (Anti-Competitive Agreements), Sec 15
(Abuse of Dominant Position), Sec 17
(Compulsary Notification), and Sec 20
(Prohibited Merges and Acquisitions)
- THESE FINES SHALL ONLY ACCUMULATE
DAILY STARTING ON THR 45TH DAY FROM
THE TIME THAT THE COMMISSION'S
RULING, ORDER, OR DECISION WAS
RECEIVED
o Fines ranging from PHP 50,000.00 to PHP
2 MILLION for failure to comply with an
order of the commission.
- APPLICABLE TO AN ENTITY THAT
MISLEADS AND INFORMATION IN ANY
DOCUMENT, APPLICATION, OR OTHER
PAPER FILED WITH OR SUBMITTED TO THE
COMMISSION
o Fines up to PHP 1,000,000.00 for the
supply of incorrect or misleading
information
- SCHEDULED FINES SHALL BE INCREASE BY
THE COMMISSION EVERY 5 YEARS.
o Fines for at least PHP 50,000.00 for any
other violation not specifically penalized
under the relevant provisions of the PCA
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